Category: Politics
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Oil Workers Strike in Brazil for Wages, Investments, Assets
Twelve oil work unions which are part of the Oil Workers Federation (FUP) in Brazil began on November 1st, a strike at Petrobras refineries all over the country. According to union officials, strikers are protesting against Petrobras’ asset sales, investment cuts, project suspensions, and reduction of some workers’ rights. “The strike was agreed upon more…
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World Bank to help Brazil pilot new infrastructure financing project
Brazil is launching a new “Project Bond” model, developed by the World Bank Brazil is launching a new “Project Bond” model, developed by the World Bank (WB) at the request of the country’s government, with the aim of increasing the role of capital market in financing infrastructure projects. “We expect this new product to help…
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Brazil Announces Spending Cuts, New Taxes
On Monday, the government announced spending cuts and tax increases totaling almost $17 billion. The government said it plans to bring back the CPMF, a tax on financial transactions. The government hopes to raise more than $8 billion next year if Congress accepts the tax. However, many lawmakers oppose the measure. Other proposed cuts would…
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Brazil downgraded by S&P – loses investment grade
Standard & Poor’s stripped Brazil of its investment-grade credit rating on Wednesday, making it even harder for President Dilma Rousseff to regain market trust and pull Latin America’s largest economy out of recession. The faster-than-anticipated downgrade, which will likely hit Brazilian financial markets on Thursday, is a major setback for Rousseff as she tries to…
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Copom raises interest rate in 0.5% to 14.25% per year and indicates an stable rate in the near future
As expected by the majority of the economists, the decision of the Central Bank was to raise the SELIC to 14.25% per year. The 0.5% increase is the seventh in the tightening cycle started last october. The raise was expected because the inflation is currently at the dangerously high levels, with the IPCA, the official…
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Brazilian Antitrust Council Investigates 15 Foreign Financial Institutions for FOREX Manipulation
Brazilian antitrust council, CADE (Administrative Council for Economic Defense), opened an administrative process to investigate alleged cartel consisting of 15 foreign financial institutions in order to manipulate the foreign exchange market. It is the first antitrust case in Brazil for manipulating rates in the financial market. Some of these banks have been investigated for the…
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Ethanol use in Brazil grows with new rules, says Louis Dreyfus unit
Ethanol producers in Brazil are feeling relief from improving demand, prices with tax incentives and an increase in the amount of fuel mixed with gasoline, according to a unit of Louis Dreyfus Commodities. “I’m excited about the prospect of demand for ethanol this year,” said CEO Rui Chammas of Biosev in a telephone interview. “The…
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Long in Brazil? Then Cheer Against it in FIFA’s World Cup
Wait.. What does football has to do with economy or stock investment? And even worse, how come a negative result for the country can be positive for it’s economy? Fair questions. And to answer them, we have to remind that this year is also election year in Brazil and that football is not just one…