Loan delinquencies among Brazil’s businesses reached a record high in July alongside a sluggish local economy, credit analysis agency Serasa reported. Serasa estimated loan delinquencies at 3.57 million, more than half of the seven million registered with the agency. More than 90% of the companies showing delinquency were small or medium-sized companies. Serasa said 47%…
Prosecutors Seek To Freeze $650M Of Eike Batista’s Assets
by BCR Staff •
Brazil’s federal prosecutor’s office will seek to freeze some $650 million of mining magnate Eike Batista’s assets for alleged insider dealing, the prosecutor’s office said. According to the allegations, Mr. Batista defrauded investors by simulating a put option in Oct. 2012 that would have required him to invest at least $400 million in the oil…
Activity Accelerated In July Despite Poor Consumption Data
by BCR Staff •
Economic activity accelerated in July for the first time in three months despite a slowdown in retail sales during the period, according to central bank IBC-Br index. The central bank reported activity accelerated 1.5% during the month and by 5.28% versus the same month in 2013. The figure came despite data from Brazil’s IBGE statistics…
Poll Shows Rousseff, Silva Tied In Runoff Round
by BCR Staff •
Brazil’s incumbent president Dilma Rousseff has gained back some ground among voters and is tied with challenger Marina Silva for a second round vote, according to a new poll. The poll from the Datafolha institute shows the president and Ms. Silva technically tied with 43% and 47% support, respectively. For a first round vote, Ms.…
Retail Sales Down 1.1% In July, Sharpest Drop Since 2008
by BCR Staff •
Countering expectations of strong activity during Brazil’s hosting of the World Cup, retail sales fell sharply in July amid slow purchasing during the period. The IBGE statistics institute reported sales were down by 1.1% during the month, the sharpest monthly drop since 2008. Sales were down by 4.9% in comparison to July 2013. The result…
Industrial Employment Declines In July For 4th Consecutive Month
by BCR Staff •
Brazil’s industrial employment fell for a fourth consecutive month in July under the influence of fewer working days during the month, the IBGE statistics institute reported Wednesday. The IBGE said industrial employment declined by 0.7% during the period, bringing a decline of 2.6% for the January to July period. Industrial employment was down 3.6% from…
Moodys Lowers Brazil Rating Outlook To Negative
by BCR Staff •
Ratings agency Moody’s Tuesday lowered its outlook on Brazilian debt to negative from stable, citing weak growth and poorer dynamics for debt financing. In a statement, the agency said a “growing risk of a long period of fragile growth and deterioration of debt parameters” threaten “a reduction in Brazil’s solvency.” Moodys currently maintains its rating for Brazilian…
Portugal Telecom Approves Merger With Oi
by BCR Staff •
Shareholders of Portugal Telecom have agreed to revised lower stake in a merger with Brazilian telecom operator Oi, maintaining an option for a larger stake in the future, the companies said. Under the new terms of the deal, Portugal Telecom shareholders agreed to a 25.6% stake, lower than a 38% stake originally proposed. Portugal Telecom,…
Rousseff Says Mantega To Exit If She Is Re-elected
by BCR Staff •
Brazil’s Finance Minister Guido Mantega will not stay on in the cabinet if President Dilma Rousseff wins re-election in October, the president said Monday. Speaking in an interview with Brazilian newspaper Estado de S. Paulo, Ms. Rousseff said that Minister Mantega had requested to step down from the post at the end of the current…
Former Petrobras Director Cites Government Allies In Bribe Scheme
by BCR Staff •
A bribe scheme at Brazil’s state-controlled oil company Petrobras may have involved more than 30 top allies in Brazil’s governing political coalition, according to information from former Petrobras supply director Paulo Roberto Costa that has emerged in local press reports. A weekend report by Brazilian news magazine “Veja” said Mr. Costa cited at least 3…
