Walter's Feed
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.

Jun 23, 2014

Protesters march along Copacabana before Brazil World Cup match

RIO DE JANEIRO (Reuters) – Around 200 people marched along the beachfront in the Copacabana tourist district before Brazil’s World Cup match against Cameroon on Monday in a protest against the tournament as well as police violence in Rio de Janeiro’s favela shantytowns.

Carrying a banner that read, “The party in the stadiums is not worth tears in the favelas,” the protesters chanted: “We want health, education and who gives a (expletive) if Brazil are champions.”

Jun 18, 2014

World Cup fans camp by the beach to dodge Rio hotel prices

RIO DE JANEIRO (Reuters) – Hundreds of cost-conscious soccer fans have found a cheaper way to attend the World Cup in one of Brazil’s most expensive cities – camping by Rio de Janeiro’s Copacabana beach.

Most of them drove thousands of miles from other South American countries to support their national teams, avoiding expensive flights as well as Rio’s notoriously pricey hotels.

Jun 18, 2014

Soccer-World Cup fans camp by the beach to dodge Rio hotel prices

RIO DE JANEIRO, June 18 (Reuters) – Hundreds of cost-conscious soccer fans have found a cheaper way to attend the World Cup in one of Brazil’s most expensive cities – camping by Rio de Janeiro’s Copacabana beach.

Most of them drove thousands of miles from other South American countries to support their national teams, avoiding expensive flights as well as Rio’s notoriously pricey hotels.

Jun 16, 2014

Brazil likely to wind down FX program as real steadies

RIO DE JANEIRO, June 16 (Reuters) – Brazil’s central bank
will likely scale back its foreign exchange intervention program
within the next couple of weeks, hoping that a period of
relative calm in global markets will help it unwind the plan
without causing too much instability for the currency.

Brazil has tried a number of measures to stabilize its
volatile exchange rate, which strengthened in 2011 to levels
that threatened local industry but then weakened too fast in
2012-13, fueling inflation. Rising prices have hurt Brazilians’
spending power, dragging down economic activity as well as
President Dilma Rousseff’s popularity.

Apr 24, 2014

Brazil Usiminas posts higher Q1 profit, sees flat steel prices

RIO DE JANEIRO/SAO PAULO, April 24 (Reuters) – Usinas
Sider├║rgicas de Minas Gerais SA, Brazil’s largest producer of
flat steel products, on Thursday posted a sharply higher
first-quarter profit on currency gains and cost cuts, although
revenue was little changed.

Profit at Usiminas, as the company is known, was
222 million reais ($99.8 million) during the first three months
of the year, compared to 47 million reais in the fourth quarter,
according to a securities filing. In the first quarter of 2013,
Usiminas posted a loss of 122.7 million reais.

Apr 22, 2014

Wall Street bets on change in Brazil, but the gradual kind

RIO DE JANEIRO, April 22 (Reuters) – Brazil’s financial
markets have soared over the past month on hopes that the
government may run smaller deficits, stop interfering as much in
the private sector and perhaps even undertake long-needed
reforms to revive the economy.

But some of the most experienced Brazil-watchers on Wall
Street are saying: Not so fast, guys.

Apr 10, 2014

Fitch wants Brazil’s next government to adjust policies

RIO DE JANEIRO, April 10 (Reuters) – Fitch Ratings on
Thursday said it expects Brazil’s next government to support the
country’s credit rating by making policy adjustments to improve
its fiscal performance and boost investor confidence.

In a conference call with investors, Fitch analyst Shelly
Shetty said low growth rates and a deterioration in fiscal
accounts are the firm’s main concern about Brazil, which remains
rated at BBB with a stable outlook.