MADRID | By Sean Duffy | A faltering economy, a plummeting currency, skeptical markets and a polarized electorate are just some of the issues observers are focusing on this weekend as Brazilians go to the polls in what has been labeled the tightest election for a generation.
MADRID | The Corner | Vivendi board has decided to enter into exclusive talks with Telefónica for the disposal of its Brazilian subsidiary company Global Village Telecom (GVT), preferring Telefónica’s bid over the Telecom Italia’s one. Telefónica will pay a total consideration of €7.45 bn, of which €4.66bn in cash and the remainder in newly issued shares of the combined Telefónica Brazil-GVT entity corresponding to a 12% economic interest.
MADRID | The Corner | 2014 is not being a good year for LatAm. All countries in the region with the exception of Colombia have experienced much softer than anticipated growth. In Brazil, the political noise and uncertainty have impacted on the confidence and private activity in 1H201, with investments and private consumption leading the way down. UBS analysts see now Brazil’s real GDP growth at 0.6% in 2014 and 1.5% in 2015.
The Brazilian government can spend $11.5 billion on the World Cup, but they must had an empty wallet when it came to spending money on education, health care and transport. Therefore, Brazilians themselves can be the drivers of change if they are united.
MADRID | The Corner | Inflation in Brazil hit the upper limit of the government’s target for the first time in a year in June: consumer prices rose by 6.52% yoy (IPCA index), airlines’ fares skyrocketed because of the World Cup (almost 22% in June from May). But let’s be fair: only half of the monthly inflation came from the football competition. And prices will remain far from the 4.5 percent target beyond 2015 unless the central bank rises rates further.
MADRID | By Álex García.
MADRID | By Francisco López | Ben Bernanke’s warning about a posible withdrawal of Fed monetary stimulus a year ago prompted a notable rise of premium risks and general drops in global stock markets, but deeper in emerging economies. And it indeed hit the so-called BIITS (Brazil, Indonesia, India, Turkey and South Africa). Today, stocks have recovered and stand at levels prior to the taper shock, although some collateral damages are there.
MADRID | By J. J. Fernández-Figares | According to Eurostat, the US became by far the largest foreign investor in the European Union (EU-28) during 2013, with a figure that triples 2010 data. For its part, the second largest foreign investor in 2013 was Brazil, with €21bn.
Brazilians are unified in their frustration with the government before the World Cup.
MADRID | By Francisco López | Argentina’s devaluation contagion pulled downwards such different assets as Brazil Stock Exchange, Argentinian or South African currency , or even Indonesia’s bonds. In Spain, the Ibex fell again by 1.1% losing 6.7% points in just six days, which means its hardest time in past twelve months. When panic spreads, investors do not consider each countries’ economic circumstaces individually.