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Feb 20, 2015

Petrobras could cost 5 percent of Brazil GDP in bailout: Moody’s

RIO DE JANEIRO (Reuters) – State-run Petroleo Brasileiro SA could cost Brazil an amount equal to 5 percent of its gross domestic product in the event of a Treasury bailout, a senior analyst with Moody’s Investors Service said, underscoring the potential impact on public finances of a massive corruption scandal at the oil firm.

The likelihood of a $110 billion debt bailout remains low but has been increasing as Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz) fails to publish audited financial results, Mauro Leos told Reuters in a Thursday interview.

Jan 22, 2015

Brazil risks recession as central bank bucks global trend, raises rate

SAO PAULO/BRASILIA (Reuters) – Brazilian President Dilma Rousseff’s crusade to win back investor confidence has entrusted policymakers with the tough mission of hiking interest rates while major central banks cut them, raising the prospect of another recession in Latin America’s biggest economy.

As it boosted the benchmark Selic rate to 12.25 percent on Wednesday, the third consecutive rate hike since Rousseff won re-election in October, Brazil’s central bank sought to deliver on its pledge to do “whatever it takes” to bring down inflation currently running at about 6.5 percent annually.

Dec 26, 2014

Petrobras hit with U.S. class action suit over $98 billion in securities

By Walter Brandimarte

(Reuters) – Brazil’s state-run oil company Petroleo Brasileiro SA and some of its executives were hit with a U.S. class action lawsuit by investors in $98 billion of the company’s securities over an alleged kickback and bribery scheme.

News of the case helped knock Petrobras shares more than 4 percent lower. In mid-December, the stock hit its lowest in nearly 10 years as a widening corruption probe caused the company to delay the release of its third-quarter earnings.

Dec 26, 2014

U.S. city sues Petrobras for corruption-related bond loss -report

SAO PAULO (Reuters) – The U.S. city of Providence, Rhode
Island, is suing Brazil’s state-run oil company Petroleo
Brasileiro SA and some of its executives for bond losses
stemming from an alleged kickback and bribery scheme, a leading
Brazilian newspaper reported on Friday.

The court case is the latest problem for Petrobras
, whose stock price has recently fallen to its lowest
in nearly 10 years as a widening corruption probe caused the
company to delay the release of its third-quarter earnings.

Dec 15, 2014

Brazil central bank director urges tighter fiscal policy

RIO DE JANEIRO, Dec 15 (Reuters) – The Brazilian government
needs to tighten fiscal policy to help bring down inflation and
strengthen the country’s economic framework, central bank
director Luiz Awazu Pereira said on Monday.

A surge in public spending under President Dilma Rousseff
along with record low unemployment have kept inflation high in
Brazil, hurting both business and consumer confidence in the
once booming economy.

Nov 5, 2014

S&P analyst sees limits to Brazil’s fiscal deterioration

RIO DE JANEIRO, Nov 5 (Reuters) – Standard & Poor’s believes
Brazil’s “strong” political institutions will limit
deterioration in the government’s fiscal accounts, supporting
the country’s investment-grade rating, a senior analyst with the
firm said on Wednesday.

Brazil’s credit rating became a concern to investors and a
headache for newly re-elected President Dilma Rousseff as rising
government spending and a stagnant economy prompted S&P to
downgrade the country’s debt rating to near junk in March.

Oct 28, 2014

Rousseff says Brazil will recover, avoid credit downgrade

RIO DE JANEIRO, Oct 28 (Reuters) – Newly re-elected
President Dilma Rousseff said on Tuesday that the Brazilian
economy will recover in her second term and avoid a downgrade of
its credit rating.

In television interviews two days after narrowly defeating
market darling Aecio Neves, Rousseff repeated her offer to sit
down with business leaders to hear their views on the state of
the economy and discuss changes in policy.

Oct 28, 2014

Moody’s gives Brazil’s Rousseff benefit of the doubt, for now

RIO DE JANEIRO, Oct 28 (Reuters) – Moody’s is in no “rush”
to decide whether to cut Brazil’s credit rating but could act
quickly if it sees re-elected President Dilma Rousseff is not
making significant policy changes in her second term, a senior
analyst with the firm said on Tuesday.

Less than two months after the ratings agency threatened to
downgrade Brazil if the government did not change economic
policy, the remarks from Moody’s Investors Service analyst Mauro
Leos are a potential vote of confidence in Rousseff’s pledge for
“new government, new ideas.”

Oct 27, 2014

Brazil markets plunge on Rousseff re-election

SAO PAULO/RIO DE JANEIRO, Oct 27 (Reuters) – Brazilian
financial markets plunged on Monday, with stocks on track for
their worst day in more than three years, as the Sunday
re-election of President Dilma Rousseff dashed investor hopes of
meaningful policy change over the next four years.

Market sentiment going forward will likely depend on whether
or not the leftist president signals policy tweaks to boost
Brazil’s flagging economy, as hinted in a conciliatory first
speech she gave after defeating pro-business challenger Aecio
Neves on Sunday.

Oct 27, 2014

Brazil currency opens sharply lower on Rousseff re-election

SAO PAULO/RIO DE JANEIRO, Oct 27 (Reuters) – Brazil’s
currency plunged early on Monday while stocks were also expected
to sell off following the victory of President Dilma Rousseff
over pro-business challenger Aecio Neves in Sunday’s
presidential election.

The Brazilian real opened about 3 percent lower at
2.53 to the U.S. dollar and is down nearly 7 percent this year.