Author Archives: Luiz

Best Jobs Report since 2012

In January, Brazil created ~77 thousand formal job posts, according to official figures released today; the best performance for the month of January since 2012, and the first time since 2014 new hirings is outpacing dismissals.  From February 2017 to January 2018, ~83 thousand formal job posts were created but data for the whole year […]

Petrobras News Notes Ratings

Yesterday both Moody’s and S&P released their rating of Petrobras Global Finance B.V.’s proposed new global notes, which will be unconditionally guaranteed by Petrobras.  Moody’s gave it a Ba3 rating accompanying the rationale behind it that the Ba3 global scale rating reflect the high debt levels and business plan execution risk and, to a lesser extent, […]

Petrobras is Preparing Pre-Salt Mega Tender

Last Friday, it was announced that Petrobras subsidiary Petrobras Global Finance registered a 6K-form with the US Securities and Exchange Commission (SEC) as the initial step to a tender of pre-salt fields in which the company will raise revenue to an early payment of securities due in 2019. According to O Globo, the Brazilian government […]

Petrobras Lands Loan from China Development Bank (CDB)

Petrobras announced yesterday it had signed a 10-year USD 5 billion loan with China Development Bank (CDB) and a commercial contract with Unipec Asia Company for a preferential supply of 100,000boe/d during 10 years. Under the terms of the loan, CDB will disburse USD 2.5 billion by December 2017 and the remainder in January 2018, when Petrobras will […]

Brazil Consumer Confidence on the High

This morning the National Confederation of Commerce and Tourism (CNC) reported that the consumer confidence grew by 1.4% against September and 5.4% in October last year. According to CNC, Brazilian household consumption growth has been slow but steady and pointing to  sustained acceleration in 2018. Brazilian families also are relatively optimistic about the job market, […]

Why Invest in Brazil and the 2018 Elections

Just wanted to share this article from Seeking Alpha. It has a very optimistic tone but the political analysis is a bit far-off in my opinion. Alckmin doesn’t really have any real chances. He has been tried and tested and is not a viable national-level politician. Also, Lula and Bolsonaro can’t be dismissed that easily. Bolsonaro will […]

Brazil Floats Eletrobras Privatization Plan

Yesterday the Brazilian government floated a proposal to privatize Centrais Elétricas Brasileiras SA (aka Eletrobras), the country’s largest power utility, as it struggles to close a record budget deficit, sending Eletrobras’ shares soaring in after-market trading. The Mining and Energy Ministry communicated the plan to Eletrobras and said publicly that it would bring the proposal […]

Homebuilders seek Sector Legislation

Brazil’s construction sector can’t catch a break. The country’s political turmoil could delay efforts to prop up homebuilders struggling with sales cancellations even as officials and industry leaders are close to reaching an agreement on a basic set of rules. Policymakers and industry executives are expected to meet in Brasilia today to decide on a […]

Petrobras seeks buyers for Azulão natural gas field in Brazil

Petrobras unveiled today plans to divest the Azulão natural gas field in the Brazilian Amazon Basin as part of its sale strategy to raise nearly USD 21 billion by the end of 2018. Petrobras  has 100% interest in the natural gas asset in Concession BA-3 in Amazonas state, located 290km east of Manaus, the capital city […]

Petrobras Denies Talks with Exxon Mobil

Petrobras denied this morning being in ongoing talks to partner with Exxon Mobil after Bloomberg reported the two firms were talking. The Wall Street Journal had already reported last month that Exxon Mobil was exploring ways to acquire a stake in Brazil’s offshore oil resources. Possible alternatives included Exxon Mobil investing in projects along with Petrobras, as well as […]

Emerging Markets Insights

a blog by Frontier Strategy Group

longandvariable

A blog on macroeconomics and public policy by Tony Yates.