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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 […]

Petrobras to Dismiss 12 thousand Employees

As you all know, Brazil is currently at the peak of a dangerous political crisis. Yesterday Lula was appointed Chief of Staff, then it wasn’t anymore. People were out in the streets and there were news of localized violence. The impeachment committee’s member were chosen and it looks like it will proceed full-on to knock down […]

Vale to Seek Growth Through Acquistion

Vale, the world’s largest iron ore mining company, announced today Tuesday that it plans to acquire as much as 25 percent, worth USD 965 million, in its erstwhile Australian rival Fortescue Metals Group as both companies seek to carve out more market share in China. The agreement between Vale and Fortescue comes as iron ore prices are on a recovery […]

Federal Police Quiz Former President Lula

This morning the country woke up to the news of former president Lula being ‘coercively’ brought by the Federal Police for questioning regarding the ongoing expansive corruption investigation in Brazil.  Prosecutors say Lula may have profited from a payments from construction companies investigated in connection to the Petrobras graft scandal. Specifically, Lula may have benefited from renovations […]

The Unbearable Lightness of Petrobras

Following a very (or not….) controversial vote from the Congress last week, we need to understand why the Petrobras collapse and the pre-salt is so important for Brazil. For those who read Portuguese, here is a highly recommended reading from today’s Estadão: http://economia.estadao.com.br/noticias/geral,a-insustentavel-leveza-da-petrobras,10000018942 PS: Sorry for skipping the Moody’s downgrade last week. I was out for a […]

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 […]

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 […]

Emerging Markets Insights

a blog by Frontier Strategy Group

longandvariable

A blog on macroeconomics and public policy by Tony Yates.