Walter's Feed
Aug 18, 2014

Brazil markets rise as poll shows election headed to 2nd round

RIO DE JANEIRO, Aug 18 (Reuters) – Brazil’s financial
markets closed higher on Monday as an opinion poll showed
President Dilma Rousseff, criticized by investors for
interventionist policies, is unlikely to win an outright
re-election on Oct. 5.

The poll increased uncertainty about who is likely to face
Rousseff in a second-round runoff – market favorite Aecio Neves
or environmentalist Marina Silva.

Aug 13, 2014

Brazil markets whipsaw on presidential candidate’s death

RIO DE JANEIRO (Reuters) – Brazil’s financial markets whipsawed Wednesday as the death in a plane crash of presidential candidate Eduardo Campos, who ran third in opinion polls, stoked uncertainty about the outcome of the country’s October elections.

Brazil’s benchmark Bovespa index plunged more than 2 percent on news that Campos’ private jet crashed in bad weather in the coastal city of Santos, just south of Sao Paulo. The index later recouped some losses to trade 0.6 percent lower.

Aug 7, 2014

Brazil inflation to ease despite weaker real -central bank

RIO DE JANEIRO, Aug 7 (Reuters) – A weaker real will
not change the declining path of inflation in Brazil, central
bank director Carlos Hamilton Araujo said on Thursday, signaling
no imminent changes to monetary policy.

Araujo said inflation would still ease toward a government
target in a scenario that takes into account market projections
for an exchange rate of 2.39 reais per dollar at the end of 2014
and 2.48 at the end of 2015.

Jul 31, 2014

Argentine default to hit Brazil factories, Uruguay resorts

RIO DE JANEIRO/BRASILIA (Reuters) – Argentina’s debt default threatens to worsen trade tensions in South America, adding to the economic woes of Brazil in a tense election year and causing headaches in Uruguay as the Argentine economy looks likely to plunge deeper into recession.

Brazilian exporters of goods ranging from shoes to cars and busses are reckoning on lower sales, while hotels and other tourist attractions in the hip Uruguayan beach resort of Punta del Este are bracing for a slow summer season after Argentina’s refusal to pay holdout bondholders. The default is likely to hurt Argentine purchasing power because inflation, already running above 30 percent, is heading higher.

Jul 30, 2014

Latam slumps on U.S. rate fears and Argentina soars

RIO DE JANEIRO (Reuters) – Latin American currencies and stocks sold off on Wednesday after stronger-than-forecast U.S. economic data suggested interest rates could soon go up in the world’s largest economy, while Argentine markets rallied on bets that a last-minute deal would avoid a debt default.

The currencies of Brazil, Mexico, Chile and Colombia weakened between 0.6 percent and 1.1 percent after data showed the U.S. economy expanded at a 4.0 percent annual rate in the second quarter, way above the 3.0 percent estimated by economists.

Jul 25, 2014

Brazil to pump up to $20 billion in credit into ailing economy

RIO DE JANEIRO/BRASILIA (Reuters) – Brazil’s central bank on Friday announced measures to inject as much as 45 billion reais ($20 billion) in credit into the country’s ailing economy, which is weighed down by the highest borrowing costs in nearly three years.

The bank said it was freeing up an estimated 30 billion reais in the financial system through changes to banks’ reserve requirements. An additional 15 billion reais may be unlocked “over time” by easing minimal capital requirements in credit operations, a central bank official said.

Jul 25, 2014

Brazil to boost credit to counter economic slowdown

RIO DE JANEIRO, July 25 (Reuters) – Brazil’s central bank on
Friday announced measures to boost credit in the country’s
ailing economy, one week after keeping its benchmark interest
rate at its highest level in over two years to fight inflation.

The bank said in a statement it was freeing up an estimated
30 billion reais ($13.5 billion) in the financial system through
changes to banks’ reserve requirements.

Jul 15, 2014

Brazil risks a recession as presidential campaign heats up

RIO DE JANEIRO (Reuters) – Brazil’s sluggish economy faces substantial risk of falling into a light recession in 2014, and may already have done so, providing opposition candidates with extra ammunition in the run-up to October’s presidential election.

Latin America’s largest economy has slowed to average growth of just 2 percent a year since President Dilma Rousseff took office in early 2011 and, coincidentally, global demand for commodities ebbed.

Jun 27, 2014

Brazil central bank appears to cut short currency swap rollover

RIO DE JANEIRO, June 27 (Reuters) – Brazil’s central bank
did not announce so far on Friday a usual auction to roll over
currency swaps that are set to expire early next month, a sign
it wants to slow recent gains in the real.

The bank has so far rolled over slightly more than 85
percent of the $10.1 billion worth of expiring currency swaps,
derivatives it has been regularly selling to investors who
demand protection against currency losses.

Jun 27, 2014

Brazil stocks, real drop on budget data; Argentine bonds fall

RIO DE JANEIRO (Reuters) – Brazilian stocks and currency dropped on Friday after the government unveiled a surprise primary budget deficit for May, further eroding the country’s economic fundamentals, while Argentine bonds fell on fears of a debt default.

The Brazilian real erased early gains and slid 0.2 percent while the benchmark Bovespa index added to losses after Brazil’s central government posted a primary budget deficit of 10.5 billion reais (2.80 billion pounds) for May, its widest-ever for that month.