Walter's Feed
Aug 24, 2015

Emerging assets hit new multi-year lows on China contagion

LONDON/SAO PAULO, Aug 24 (Reuters) – Contagion from China’s
equity malaise spread across emerging markets on Monday, driving
currencies to multi-year lows against the dollar while a
benchmark equity index slumped more than 5 percent.

Concern over the world’s No. 2 economy pushed Chinese
mainland stocks into their biggest one-day fall since February
2007. They lost more than 8 percent and are now in the red for
2015 .

Aug 17, 2015

Brazil’s currency nears fair value after dramatic decline

BRASILIA/SAO PAULO, Aug 17 (Reuters) – The Brazilian real is
trading at or near fair value after losing one quarter of its
worth since Jan. 1, economists said, suggesting a possible
respite for one of the year’s most battered currencies.

Emerging market currencies in general have been sliding, and
unexpected domestic and international events could still cause
the real to overshoot toward its all-time low of 4 reais per
dollar. But even Brazil’s political crisis, one of the main
drags on the currency this year, does not look as bad as it did
a couple of weeks ago.

Aug 11, 2015

Moody’s cuts Brazil rating but says investment grade is safe

SAO PAULO (Reuters) – Moody’s Investors Service cut Brazil’s credit rating to near-junk status on Tuesday but said the country’s coveted investment grade status is safe for now, proving some relief to investors and the government of President Dilma Rousseff.

Moody’s decision comes two weeks after competing ratings firm Standard & Poor’s warned Brazil could lose its investment grade in the coming year if fallout from a number of corruption investigations further weigh on economic growth.

Jul 28, 2015

Brazil investment grade rating is at risk, S&P warns

SAO PAULO (Reuters) – Standard & Poor’s on Tuesday said Brazil could lose its coveted investment-grade rating in the coming year if fallout from a number of corruption investigations further stymies economic growth and the implementation of austerity measures.

The statement, which sent Brazil’s currency tumbling, is a setback to Finance Minister Joaquim Levy’s efforts to win back investor confidence in the country’s economy, Latin America’s largest, now in recession.

Jul 13, 2015

Moody’s to visit Brazil this week to review sovereign rating

SAO PAULO, July 13 (Reuters) – Moody’s Investors Service is
preparing a highly anticipated review of Brazil’s credit rating
with a visit to Brazilian policymakers and economists this week,
market sources and the ratings agency said on Monday.

Many analysts expect Moody’s to downgrade Brazil’s Baa2
credit rating by one notch at the end of its review process.
Some fear it may also slap a negative outlook on the new rating,
signaling the country’s investment-grade rating is at risk.

Jul 8, 2015

Brazil poses largest emerging market contagion risk: Fitch poll

RIO DE JANEIRO (Reuters) – Brazil poses a larger threat of contagion for global financial markets than other emerging economies, far eclipsing Russia and China, Fitch Ratings said on Wednesday, giving highlights of an upcoming survey of European fixed-income investors.

The investors, who manage an estimated 7.8 trillion euros in assets, considered economic imbalances, political challenges and U.S. interest rates to select the two biggest contagion threats from a list of five major emerging market countries that also included Turkey and India.

Jul 7, 2015

Analysis: Brazil’s investment grade credit rating at risk again

RIO DE JANEIRO (Reuters) – Concerns that Brazil may lose its coveted investment grade credit rating are again on the rise among government officials and investors who worry that President Dilma Rousseff’s austerity push won’t fully offset plunging government revenues.

As Brazil prepares for a crucial ratings review by Moody’s Investors Service in the third quarter, members of Rousseff’s economic team are reaching out to credit ratings agencies to ask for a vote of confidence in the government plan to increase budget savings, a source with access to one of the ratings firms said.

Jul 7, 2015

Brazil’s investment grade credit rating at risk again

RIO DE JANEIRO, July 7 (Reuters) – Concerns that Brazil may
lose its coveted investment grade credit rating are again on the
rise among government officials and investors who worry that
President Dilma Rousseff’s austerity push won’t fully offset
plunging government revenues.

As Brazil prepares for a crucial ratings review by Moody’s
Investors Service in the third quarter, members of Rousseff’s
economic team are reaching out to credit ratings agencies to ask
for a vote of confidence in the government plan to increase
budget savings, a source with access to one of the ratings firms
said.

Jul 2, 2015

Brazil investigates currency market rigging by 15 global banks

By Guillermo Parra-Bernal and Walter Brandimarte

(Reuters) – Brazil antitrust watchdog Cade opened on
Thursday an investigation over alleged currency rigging by a
group of 15 global banks, the first of its kind in one of the
world’s busiest foreign exchange markets.

In a statement, Cade said the banks colluded to influence
benchmark currency rates in Brazil by aligning positions and
pushing transactions in a way that deterred competitors from the
market between 2007 and 2013, at least. Traders who described
themselves as “The Cartel” or “The Mafia” used online chat rooms
to fix their positions ahead of market trades.

Jun 24, 2015

Powerful Brazil CEO arrested in Petrobras graft probe

SAO PAULO (Reuters) – Brazilian police on Friday arrested Marcelo Odebrecht, the head of Latin America’s largest engineering and construction company Odebrecht SA, and accused his family-run conglomerate of spearheading a $2.1 billion bribery scheme at state-run oil firm Petrobras.

Police also apprehended Otavio Marques Azevedo, CEO of Andrade Gutierrez, Brazil’s second-largest builder, as the probe into corruption at Petrobras spread to the highest level of Brazilian business.