Category: Politics
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El-Erian says Brazil in ‘delicate situation’
Mohamed El-Erian’s bet on Brazil before President Luiz Inacio Lula da Silva’s election in 2002 was rewarded by a surge in the nation’s assets in the following years. More than a decade later, he says Latin America’s largest economy must seize the opportunity to undertake deep reforms.Brazil is facing the worst recession in a century…
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Brazil stocks, currency extend rally on former president charges
Brazil’s stocks and currency rose on Thursday, extending a recent rally fueled by hopes ofpolitical change after prosecutors charged former President Luiz Inacio Lula da Silva in a money laundering investigation. State investigators suspect the family of the former president, who was detained for questioning by federal police on Friday, owned an undeclared beachfront apartment in…
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Brazil Considers Raising Foreign Investment Limit On Airlines
Brazil plans to propose to Congress in the first half of the year an increase in the foreign ownership of local airlines, in a move to help the struggling sector.The government continues to discuss the percentage increase in foreign ownership, but believes an increase from the current 20 percent limit is key to bolster investment…
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Prospects abound despite Brazil crisis
Latin American countries are at the whim of the strengthening US dollar and the dire outlook for commodities prices. These factors go some way to explaining the underperformance of the region in the past year, but there are other factors weighing down sentiment.The MSCI Emerging Markets Latin America index lost 27 per cent in 2015,…
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China-Brazil infrastructure cooperation mutually beneficial
Infrastructure cooperation between China and Brazil is mutually beneficial and should be further strengthened, experts say.Brazil hopes to attract Chinese investment in highways, railways, ports, airports and other infrastructure projects, while the Chinese government regards infrastructure building key to bilateral cooperation, they say. “The Brazilian government can count on infrastructure investment as a way to…
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Brazil’s Inflation Unexpectedly Slows as Recession Bites
Brazilian inflation unexpectedly slowed last month, beating forecasts from all analysts surveyed by Bloomberg, as food prices rose less than in the previous month amid a deepening recession.The benchmark IPCA inflation index moderated to 0.96 percent in December from 1.01 percent in November, the national statistics agency said Friday. That compares to the median 1.05…
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CEO of Brazil’s largest investment bank arrested
Brazil arrested the CEO of Latin America’s largest investment bank and the governing party’s leader in the nation’s Senate on Wednesday.The arrests stem from an investigation into a money laundering scandal that has undermined Brazil’s government and once-strong economy. The scandal involves Brazil’s state-run oil company, Petrobras, and has entangled many of the country’s business…
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Central Bank in Brazil Forcasts 2016 Inflation Above Target Ceiling
While there was a consensus among financial analysts that consumer inflation in Brazil would top ten percent this year, the latest report by the Central Bank (CB) shows that analysts’ forecasts for 2016 inflation are also above the target limit of 6.5 percent. According to financial institutions surveyed by the CB for its Focus Report,…
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Brazil keen to further strengthen trade ties with India
Brazil today called for expanding a trade pact with India by adding more products such as frozen chicken (whole) and processed soyabean in the tariff agreement and also stressed on technology transfer and investment in agriculture research. Brazil is also keen to export ethanol and milk products to India and boost shipments of edible oils. India…
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Shares Drop As Commodity Saga Continues, Finance Minister Out?
Some headlines from Brazil, with the iShares MSCI Brazil Capped exchange-traded fund (EWZ) down 2.4% Local press reports in Brazil Wednesday said Brazil’s Finance Minister Joaquim Levy could be replaced within months as the economy and currency collapse. Brazil President Dilma Rousseff may choose Henrique Meirelles, a former central bank president. Brazil’s government says it…