Monthly Archives: February 2016

BTG Pactual Gets Rid of Another Unit

Today, EFG International, a Swiss asset manager, acquired BTG Pactual’s Swiss private bank arm BSI for USD 1.33 billion. The sale came less than two years after BTG Pactual acquired BSI from Italy’s Generali Group for USD 1.7 billion. The transaction comes just a few months after BTG Pactual sold in December l its distressed […]

Budget Cuts Announced

Earlier today, Finance Minister Nelson Barbosa announced that 2016’s budget will be slashed by at least US$ 5.9 billion in an rather ambitious fiscal plan. The Mines and Energy, Health and Education Ministries are one taking the lion’s share of the cut. The Mines and Energy Ministry saw its budget reduced by US$ 785 million, while the […]

Brazil’s Credit Rating Downgraded Again

As if Brazil’s economy wasn’t already deep in the weeds, S&P just cut the country’s junk credit rating further a notch, from BB+ to BB. S&P said in a statement:”The political and economic challenges Brazil faces remain considerable, and we now expect a more prolonged adjustment process — a slower correction in fiscal policy as well […]

Shell Goes for the Long-Haul

This past Monday, Royal Dutch Shell PLC  (Shell) completed aUSD 50 billion acquisition of BG Group PLC (British Gas) that will give the Anglo-Dutch company a leg up in the Brazilian offshore oil game. Speaking from Brazil, Shell CEO Ben Van Beurden said the new company will be more resilient “more resilient” to fluctuating oil prices and […]

Government delays announcement of budget cuts

From Agência Estado — President Dilma Rousseff has delayed to March the announcement of a cut on the government budget and market observers believe the final proposal would not be enough to meet the deficit goal of 0,5%. Sources say there are considerations the cuts would hinder social programs, and deepen the economic recession. To reach the […]

Positive OECD Indicators

Yesterday the OECD released its growth leading indicators based on December data. The Paris-based organization pointed to slowdowns in the U.S., the U.K. and Russia, steady growth in the eurozone, and an acceleration in India. OECD seems to be optimistic in relation to Brazil and China and suggested that slowdowns in these two economies may come to an end […]

Petrobras Ratings Affirmed by S&P

The dollar’s slide down today against the real gave Brazil’s stock market a nice bump. On top of that, S&P’s  affirmed its ‘BB’ global scale ratings on Petrobras, citing a “very high likelihood of extraordinary government support” for the company’s heavy debt load. Petrobras’ shares went up by nearly 5% this afternoon but S&P lowered the company’s […]

Dilma Calls for a Tax Raise

As impeachment threats from the lower house of the Congress lose momentum, today president Rousseff called on for the approval of a new proposed tax on financial transactions in an attempt to obtain some extra money to balance the country’s books. Today, she addressed the congress in the legislative year’s opening ceremony for the first […]

Emerging Markets Insights

a blog by Frontier Strategy Group

longandvariable

A blog on macroeconomics and public policy by Tony Yates.