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Sep 30, 2014

Moody’s could wait until 2016 to decide on Brazil rating

SAO PAULO/RIO DE JANEIRO, Sept 30 (Reuters) – Moody’s
Investors Service could wait until 2016 to decide whether to cut
Brazil’s sovereign rating, a senior analyst at the firm said on
Tuesday, adding that rampant budget spending remains the
“weakest link” in the country’s credit profile.

Moody’s, which earlier this month warned it could lower
Brazil’s “Baa2″ rating over the next two years due to a slower
economy and a swelling debt burden, expects to convene a
committee to discuss Brazil around the first quarter of 2016.

Sep 16, 2014

Latam markets jump on Fed hopes, Brazil election bets

RIO DE JANEIRO (Reuters) – Latin American financial markets jumped on Tuesday on speculation that the U.S. Federal Reserve will refrain from signaling an interest rate hike is imminent while Brazilian stocks soared nearly 4 percent on election bets.

The U.S. dollar weakened globally, dropping as much as 1.1 percent against the Brazilian real, after a video report on The Wall Street Journal website suggested the Fed will stick to its near-zero rate language in a statement due after its monetary policy meeting on Wednesday.

Sep 9, 2014

Moody’s threatens to downgrade Brazil as economy stalls

RIO DE JANEIRO, Sept 9 (Reuters) – Moody’s Investors Service
on Tuesday warned it may cut Brazil’s credit rating in the next
couple of years as the economy slows down, piling pressure on
whoever is elected president in October to change course on
economic policy.

Brazil will go to the polls on Oct. 5 with the debate about
whether to tighten fiscal policy a hot campaign topic. President
Dilma Rousseff, who has indicated she won’t radically alter
policies if re-elected, faces a strong challenge from
environmentalist Marina Silva who is keen to cut government
spending.

Aug 27, 2014

Brazil’s Silva winning over investors in presidential race

RIO DE JANEIRO (Reuters) – Investors are warming up to a possible victory by Marina Silva in Brazil’s presidential election as the popular environmentalist emerges as their best shot at avoiding four more years of a government they strongly dislike.

Disdain for President Dilma Rousseff’s leftist policies runs so deep in Brazilian financial markets that one comment making the rounds there says: “Marina is like Russian roulette, but Dilma is like a fully-loaded revolver.”

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.