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Brazil posts January Current Account Deficit

Last Friday the Brazilian central bank (BCB) reported the country’s January current account results, which recorded a current-account deficit of $11.9 billion, compared with a deficit of $5.7 billion in December 2019. The results for the 12-month period of ending in January were a deficit of $52.3 billion, compared to $50.8 billion from the month […]

Firms Avoid Brazil as a Supplier

From the WSJ, this article sheds some light on what a lot of people who have been invested in Brazil for a long time are now planning for their supply chains going forward after the last year’s deforestation ‘boom’ in Brazil. Many companies are now looking to reduce their risk in the country and some […]

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 […]

Emerging Markets Insights

a blog by Frontier Strategy Group

longandvariable

A blog on macroeconomics and public policy by Tony Yates.