Easy Brazil Investing

Tag: Exchange Rate

  • JBS S.A. upgraded by Fitch Rating to BB+

    JBS S.A. (BM&FBOVESPA: JBSS3, OTCQX: JBSAY, “JBS” or “Company”) communicates to its shareholders and to the Market in general that Fitch Ratings (“Fitch”), a rating agency, upgraded JBS S.A. from BB to BB+, with stable outlook. According to the Fitch report, “the upgrade reflects JBS S.A.’s strong products and geographical diversification, as well as the…

  • Fitch plays down 2-notch downgrade for Brazil

    A director at Fitch Ratings on Monday played down the possibility of Brazil losing its investment-grade status during its next rating revision, saying the ratings agency “does not usually” give two-notch downgrades, barring exceptional cases. However, Rafael Guedes, Fitch’s managing director for Brazil, said the possibility of an imminent one-notch downgrade is higher than 50…

  • Brazil downgrade leaves little choice but austerity for Rousseff

    Brazil’s government scrambled yesterday to reassure investors it will impose austerity measures to put public finances in order after its credit rating was downgraded to junk status. President Dilma Rousseff called an emergency cabinet meeting to brainstorm on policies to bridge a fiscal shortfall and how to win their approval by a Congress that has…

  • 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…

  • Moody’s reduce Brazilian sovereign rating but stable outlook reduces chance of losing investment grade

    Moody’s rating agency announced on Tuesday the downgrade of Brazil’s sovereign risk rating from ‘Baa2’ to ‘Baa3’, the lowest in the investment grade scale. Moody’s also changed the outlook from “negative” to “stable”. The market was expecting the reduction in the Brazilian rating, but there was a concern that the agency would maintain a negative…

  • 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…

  • 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…

  • 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…

  • 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…