Category Sem categoria

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 […]

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, […]

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 […]

Temer Scored Wins and Losses Yesterday

Brazil’s lower house of Congress has approved the base text of a bill to provide debt relief for the country’s cash-strapped states in return for austerity measures. Yesterday lawmakers at the lower house of Congress voted 301-127 to offer states federal assistance and debt relief in for cash-strapped states in exchange for reducing tax exemptions, […]

Banco do Brasil Looking to Increase Fooprint in the U.S.

Banco do Brasil is aiming to grow in the U.S. by first appealing to Brazilians in South Florida, and then general consumers, across the country. An initial plan include rolling out an ultramodern online banking experience and a new credit card product. BB has been steadily growing its Banco do Brasil Americas unit since  2013 after it acquired […]

Legislation to Attract FDI is on the Way

Yesterday, Temer’s Chief of Staff, Eliseu Padilha, announced that the PMDB majority Congress is likely to vote legislation next month to attract FDI. According to Padilha, new legislation will focus on infrastructure and regulatory issues and would give agency directors more discretionary over their budgets. And these directories would be hires for five-year fixed terms not […]

New Figures of Industrial Contraction

And Brazil don’t seem to be able to catch a break lately. This morning, data firm Markit released its Brazil Purchasing Managers’ Index revealing that manufacturing activity dropped in April, suggesting no short term recovery for the country’s deep economic recession. According to the firm’s economist Pollyanna De Lima: “The deteriorating picture in Brazil’s manufacturing sector continued in April, […]

Sete Brasil is Under Judicial Recovery

Yesterday, shareholders of Sete Brasil, an offshore equipment manufacturer that was heavily invested in the Brazilian oil sector with support of giants such as BTG Pactual and pension funds Funcef and Petros, approved the company judicial recovery request, to be filed next week. The request followed a failed attempt to negotiate a beneficial contract with […]

My Thoughts on Yesterday’s Voting

My thoughts on the impeachment proceeding and yesterday’s voting: The left has consistently accused those in favor of impeachment of launching a “coup” and their leaders of “treason”. These claims of “coup” and the labeling of “traitors” are extremely troubling. If the left refuses to accept what is happening as anything but lawful and legitimate […]

Impeachment Vote and GDP Outlook

As Brazil braces for the impeachment voting in the special congressional committee analyzing the matter later today (this voting is to decide if the committee will recommended bringing a formal impeachment procedure voting to the floor of the lower house), the Central Bank released numbers from a weekly survey with 100 economists. According to the survey, Brazil’s GDP is […]

Emerging Markets Insights

a blog by Frontier Strategy Group

longandvariable

A blog on macroeconomics and public policy by Tony Yates.