Everything you need to know about Brazil investing
-
COPOM raises Selic, Brazilian interest rate, to 13.75% per year, highest since December, 2008
The Brazilian committee for monetary policy (COPOM) has raised the interest rate benchmark by 0.5% to 13.75% per year. The decision was unanimous and came without a direction indication and in line with expectations. Therefore, Selic is back to the level of december 2008. In the note released with the decision, the committee suggests that…
-
IMF Says Brazil is Strong Against Turbulences
Brazil is today more resilient to face external turbulence, despite the significant growth in its debt in US dollar in 2014. The reason for the resilience, according to the IMF, is that the majority of the short-term debt is hedged. This is an undebatable advantage but that also brings a concern: the Real did not…
-
Pão de Açúcar and Casino Create a Giant Global E-Commerce Company: Cnova
Grupo Pão de Açúcar (aka Companhia Brasileira de Distribuição – CBD), Via Varejo (VVAR11:BR) and French group Casino Casino Guichard-Perrachon (OTC:CGUIF) (OTCPK:CGUSY) have announced a joint venture to create a giant new e-commerce company: Cnova. CBD and Via Varejo will own 53.5% of the new company, while the remaining 46.5% will belong to Grupo Casino. The French…
-
CADE rejects Telefónica and Telecom Italia merge. Vodafone is arriving in Brazil?
Brazilian antitrust authority, Administrative Council for Economic Defense (Cade) rejected Telefónica’s (TEF) embargoes and kept the fine of BRL 15 million that was imposed on the company for breach of the agreement signed in 2010, by which it should stay away from TIM (TSU), controlled by Telecom Italia (TI). Official Announcement With the negative for…
-
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…
-
Itaú Unibanco: Largest Private-Controlled Bank in Latin America
Itaú is the second largest bank in Brazil. Only behind Banco do Brasil, which is a government-controlled bank, even though part of its equity is traded at Bovespa. We do not recommend exposure to government-controlled companies in Brazil so Itaú is the largest bank we cover in LATAM. Itaú Unibanco was formed as the merge…
-
Historical Moment for Brazil!
Brazilian supreme court has mandated the immediate imprisonment of eleven politicians involved in curruption during the government Lula. First of all, this topic should not be used by other parties for political purposes. The ones that are mostly celebrating the sentence, PSDB supporters, should remember that the CPI (parlamentary investigation) has determined that the mensalão has…
-
Brazil Inflation
Below you will find the main Brazilian inflation indexes in the recent months, as well as the accumulated in the last two years and in the last 12 months. Wondering what each of indexes mean? Find out what they mean here. Or find more about the perspective for the Brazilian Inflation and interest rate moving forward…
-
Sugar and Ethanol Producer? Cosan is much more than that nowadays!
Cosan’s most known business is indeed Ethanol and Sugar production. That’s how the company started and they are still the largest producer in Brazil and a major player worldwide. However, due to volatility in these commodities’ prices, Cosan’s management has been diversifying its activities in the last few years and now half of it’s EBITDA…
-
Brazilian GDP beats expectation in Q3 and grows 1.5% QoQ. But is that sustainable?
The result of the GDP may have shown some relief that the economy is still growing. However, this result is still not a guarantee that the situation is better and that the growth in the year will be higher than current expectations, around 2.5% YoY, the so called PIBinho, diminutive for GDP in Portuguese. Manufacturing…
Got any recommendations or questions?
