|Day's Range||94,212.77 - 96,128.52|
|52 Week Range||69,069.00 - 100,439.00|
Brazil's currency and stocks fell on Wednesday as potential hurdles for pension reforms weighed, while other Latin American stocks tracked world equities lower. Currencies succumbed to a stronger dollar. ...
Brazil’s much-vaunted pension reform bill passed a crucial first test late on Tuesday when a congressional committee in Brasília voted that the proposed legislation was constitutional and could proceed through to Congress. The development will be seen as a win for Brazilian President Jair Bolsonaro and Paulo Guedes, economics minister, who is spearheading the reform plan, which is widely seen as necessary to stabilise Brazil’s shaky economy and encourage foreign and domestic investment. Mr Guedes hopes the bill can tackle Brazil’s precarious fiscal position by reducing pension payments from R$1tn ($255bn).
On Thursday, Bolsonaro sought to build bridges with political parties he had long criticized, but failed to get firm backing in talks with leaders that together represent about 200 of the country’s 513 deputies. The day before his economy minister, Paulo Guedes, was broadsided in a lower house hearing that showcased the government’s lack of cohesion and strategy in Congress.
Most Latin American stock markets rose on Thursday, as gains in index heavyweight Brazil boosted the regional benchmark even as global stocks edged lower after five days of gains, as investors sought signs ...
Brazil's benchmark stock index reached an all-time high earlier this month and is up 8.6 percent for the year. Investors in Brazil and across the world are betting that President Jair Bolsonaro will push through key changes to the social security system in Latin America's largest economy. The stakes are high for pension reform in Brazil because an improvement could boost the country's flagging economy and give it some stability.
Latin American shares rose on Friday, in line with other emerging market peers and world stocks, as encouraging signals from U.S.-China trade talks supported risk sentiment. MSCI's index of Latin American ...
Latin American markets rose on Thursday recovering from last session's steep falls as Brazil markets jumped with the country's political top brass trying to assuage investors after rising uncertainty around ...
Brazilian assets are suffering as increased friction between President Jair Bolsonaro and some of his key allies in Congress threaten to slow or even derail the pension overhaul seen as critical to controlling the fiscal deficit. While foreign investors had long warned of continued political risk in Brazil, local investors had fueled a surge in stocks and bonds that began in mid-2018 on optimism Bolsonaro would garner sufficient support for the bill. Bolsonaro’s public support has plummeted, he’s antagonizing key allies and his cabinet is riven by intrigue and infighting.
Brazilian Economy Minister Paulo Guedes on Monday said the government's landmark pension reform may be diluted, but urged lawmakers not to water down targeted savings in the next decade to less than 1 trillion reais ($259 billion). Brazilian markets have slumped in recent days on growing concerns that political fragmentation in Brasilia will delay and dilute the reform that most economists see as critical to restoring public finances and kickstarting the economy. Guedes recognized that the negotiating process is having "natural" teething problems and that political arm-wrestling will likely result in a final bill that differs from the government's original draft.
A Brazilian appeals court judge on Monday ordered the release of former President Michel Temer from jail, following his arrest last week in connection with a corruption investigation. Federal prosecutors have accused Temer, who was president from 2016 to 2018, of leading a "criminal organization" that had received or arranged for 1.8 billion reais ($472 million) in bribes through various kickback schemes. Judge Ivan Athié of the TRF-2 federal appeals court said in his ruling that the evidence provided by investigators did not justify the "preventive" jailing of Temer and seven other defendants, including former minister Wellington Moreira Franco.
Brazilian financial markets fell in highly volatile trading on Thursday as investors feared former President Michel Temer's arrest on graft charges could slow proposed pension reform seen as critical to injecting life into a tepid economic recovery. Temer, who left office on Jan. 1, is accused of leading a "criminal organization" that took in 1.8 billion reais ($472 million) in a bribery and kickback scheme related to the construction of a nuclear power complex. Brazil's 10-year bond yield was up more than 20 basis points at 8.93 percent and the currency, the real, down over 1 percent at one point.
Latin American currencies weakened on Thursday as the dollar soared, while Brazil shares fell sharply following the arrest of a former president of the country on graft charges. A slump in the dollar's ...
SAO PAULO/BRASILIA, March 21 (Reuters) - Brazil's former President Michel Temer was arrested on Thursday in "Operation Radioactivity," a probe of alleged graft in the construction of a nuclear power plant, threatening to delay debate over the government's ambitious fiscal reforms. Temer was president from 2016 to 2018, taking office after the impeachment of Dilma Rousseff, who he served under as vice president for six years. Prosecutors alleged that Temer was the leader of a "criminal organization" that took in 1.8 billion reais ($472 million) in bribes or pending future kickbacks as part of numerous schemes, including one related to the Angra nuclear power plant complex on the Rio de Janeiro coast and other state firms.
Clearly, investors were overjoyed with the prospect that the Fed had their backs. The concern here is that the Fed’s moves will only serve to suppress market rates, putting further pressure on the already razor-thin difference between the short-term rates banks pay on their own borrowings and the long-term rates they charge lenders. In the banking business, this is known as the net interest margin.
Brazil's military would average just 1 billion reais ($265 million) in net savings per year over the next decade under an austerity proposal from the Economy Ministry unveiled on Wednesday, with higher pay consuming most pension savings. The bill is the final piece of a social security overhaul proposed by President Jair Bolsonaro, a former army captain, aimed at saving over 1 trillion reais in a decade. Lawmakers have said they could not debate his pension bill, first presented a month ago, without details of his plans for the armed forces — and even Bolsonaro's allies quickly questioned whether the military personnel were giving up enough.
Most Latin American stocks fell on Tuesday as investors digested mixed signals regarding the progress in U.S.-China trade negotiations, while regional currencies awaited the outcome of a U.S. Federal Reserve ...
Not only that, stocks are on track for their best quarter since soaring 15 percent in the July through September period of 2009. “The pain trade for stocks is still up,” Michael Hartnett, the chief investment strategist at Bank of America, wrote in research note Tuesday. The firm’s closely monitored monthly investor survey found that allocations are just a net 3 percent “overweight” to global equities, the lowest level since September 2016.
Indexes that measure the cost to protect both investment- and speculative-grade U.S. corporate bonds from default fell to their lowest levels since October, a sign of optimism about borrowers’ ability to pay their debts. The credit-focused investment firm announced that it was selling a 62 percent stake to Brookfield Asset Management in a deal worth about $4.7 billion. Well, for one, Oaktree’s chairman and co-founder is the legendary Howard Marks, who built his fortune as a vulture investor in distressed debt.
Breakeven rates on two-year Treasuries — a measure of what bond traders expect the rate of inflation to be over the life of the securities — has risen to the highest since May. In addition, the difference in yield between bonds due in 10 years and longer-term debt due in 30 years – a part of the curve that’s less influenced by Fed policy – is the widest since 2017. To be sure, no one is calling for runaway inflation. At 1.90 percent, the two-year breakeven rate is below the Fed’s 2 percent inflation target.