Month: June 2016
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Brazilian Retail Sales up 0.5% MoM in April
Brazilian retail sales volume in April increased 0.5% MoM but fell 6.7% YoY, both worse than market expectations, according to IBGE (Brazilian Institute for Geography and Statistics). Although in the monthly comparison, most of the sectors have recorded an increase, it was not enough to reverse the downwards trajectory, still visible in the annual comparison…
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Brazilian Steel Industry in Survival mode for the Foreseeable Future
The Brazilian steel industry has seem better days. If we look at the three stocks traded as ADRs in the NYSE, we can see the depth of their agony in the last ten years: Gerdau (NYSE:GGB): Companhia Siderúrgica Nacional – CSN (NYSE:SID): Usiminas (OTC:USNZY): In the 27th Brazilian Steel Congress, held by the Brazil Steel…
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CADE Approves Bradesco’s HSBC Brazil Acquisition with Restricticions
Brazilian anti-trust council (CADE) has approved the acquisition of HSBC Brazil by Bradesco with restrictions. One immediate consequence of the of the restrictions imposed by CADE is that Bradesco is definitely out of the dispute to acquire Citi in brazil, since no new acquisition will be allowed to the bank for 30 months. On top…
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What to Expect for Brazilian Interest Rate in 2016
Monetary Policy Committee (COPOM) has decided to keep the Brazilian interest rate benchmark in Brazil (SELIC) at 14.25% a year, unanimously. The central bank repeated the note issued with the previous decision, in which it says “we see advances in the inflation fighting but the still elevated cost of living and expectations are out of the target”.…
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Brazil mulls emergency loan to Rio de Janeiro ahead of Olympics
By Alonso Soto and Marcela Ayres BRASILIA (Reuters) – Brazil is considering an emergency loan to the cash-strapped state of Rio de Janeiro as it prepares to host the Olympic Games in less than two months, according to two senior government officials familiar with the situation. The loan would be guaranteed by the state’s participation…