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☆ Brazil recently hit a record high. Why further gains may be harder to come by
▼ + stars: | 2024-09-15 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +3 min

Brazilian stocks have been on a tear, but stubborn inflation could grind the recent rally to a stop. It's a work in progress, and most likely will require further rate hikes by the central bank." BCA Research's Arthur Budaghyan agreed that the Brazilian central bank is unlikely to hike rates for very long. Against this backdrop, Budaghyan advises clients steer clear of Brazilian stocks in the near term. U.S. investors who want exposure to the Brazilian stock market can obtain it through the iShares MSCI Brazil ETF (EWZ) .

Persons: Bovespa, Fernando Haddad, Goldman Sachs, Alberto Ramos, Ramos, Arthur Budaghyan, Budaghyan Organizations: U.S . Federal, CNBC, U.S, Fed, BCA, Banco, MRB Partners Locations: Lower U.S, overcompensate, America, Banco Central, Brazil, U.S

☆ There's a bull case emerging in Brazilian stocks for long-term investors
▼ + stars: | 2024-06-02 | by ( Fred Imbert | ) www.cnbc.com time to read: +4 min

Recent struggles in Brazilian stocks could be an opportunity for investors to buy into Latin America's largest economy at a discount. There are also other factors that can boost Brazilian stocks going forward, including an attractive valuation and investor positioning. Low valuations and strong consumer Brazilian stocks are very cheap, especially compared to the other emerging markets. Another catalyst for Brazilian stocks may be stronger consumer spending. How to invest Investors in the U.S. can gain exposure to Brazilian stocks via the EWZ ETF and its small-cap counterpart, the EWZS.

Persons: Leonard Linnet, Unibanco, Ed Yardeni, Morgan Stanley, Alexsandro Broedel, Broedel, That's, Itaú's Linnet Organizations: Federal, Brazil —, CNBC, Yardeni Research, Petrobras, Vale Locations: Brazil, U.S, New York, Latin America

☆ Abu Dhabi's ADNOC makes new bid for stake in Brazil's Braskem; shares soar
▼ + stars: | 2023-11-09 | by ( ) www.reuters.com time to read: +3 min

Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai Acquire Licensing RightsSAO PAULO, Nov 9 (Reuters) - Brazilian petrochemical producer Braskem (BRKM5.SA) on Thursday said Abu Dhabi oil company ADNOC (ADNOC.UL) has presented a new non-binding offer to buy conglomerate Novonor's stake in the firm. The petrochemical company cited a letter exchange with Novonor in its filing. The conglomerate would be granted a minority stake of up to 3% in Braskem following the deal, Braskem added. ADNOC had previously presented a joint cash-and-debenture offer alongside U.S. asset manager Apollo (APO.N) for Braskem, with other bidders for the firm including Brazil's Unipar Carbocloro (UNIP6.SA) and J&F.

Persons: Toru Hanai, Braskem, ADNOC, Folha de S.Paulo, BTG, Pedro Soares, we're, Brazil's Unipar, Gabriel Araujo, Steven Grattan, Tomasz Janowski, David Evans Organizations: REUTERS, SAO PAULO, Petrobras, PETR4, Novonor's, Sao Paulo, Novonor, Folha de, ADNOC, U.S, Apollo, Thomson Locations: Gastech, Chiba, Japan, Abu Dhabi, Sao, Braskem

☆ Austria taps Embraer's C-390 aircraft to replace retiring C-130 fleet
▼ + stars: | 2023-09-20 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Johanna Geron/File Photo Acquire Licensing RightsVIENNA/SAO PAULO, Sept 20 (Reuters) - Austria plans to replace its retiring C-130 Hercules fleet with Embraer's (EMBR3.SA) C-390 Millenium military transport aircraft, the country's Defence Minister Klaudia Tanner said on Wednesday. Austria is aiming to buy about four aircrafts and is negotiating with the Netherlands on a potential joint order, Tanner told a news conference. Aside from an order for 19 C-390 aircrafts from the Brazilian Air Force, Portugal has ordered five and Hungary has requested two. Analysts at JPMorgan calculated that including the prospective orders from Austria and The Netherlands, the aircraft's potential lifetime sales stand at 35 units, 28 of which are still to be delivered. Shares in Embraer rose 2.85% in early trading on the Brazilian stock exchange, outperforming the Bovespa stock index (.BVSP), which rose 0.8%.

Persons: Klaudia Tanner, Johanna Geron, Tanner, JPMorgan, Francois Murphy, Peter Frontini, Andrew Heavens Organizations: Austria's Defence, Foreign Affairs, Defence, REUTERS, Rights, SAO PAULO, country's Defence, Embraer, Brazilian Air Force, KC, JPMorgan, Sao Paulo, Thomson Locations: Ukraine, Brussels, Belgium, Rights VIENNA, Austria, Netherlands, Portugal, Hungary, Czech Republic, South Korea, India, Sweden, The Netherlands, Vienna, Sao

☆ Global stock market correction likely before year-end: Reuters poll
▼ + stars: | 2023-08-23 | by ( Hari Kishan | ) www.reuters.com time to read: +4 min

REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsSummary poll dataReuters poll graphic on global stock market outlookBENGALURU, Aug 23 (Reuters) - Global stock markets are heading for a correction in coming months, though overall they should post marginal gains between now and the end of 2023, according to a majority of analysts polled by Reuters. A bad year for stocks in 2022 carried into this year as global central banks battled inflation with interest rate rises that are now largely drawing to an end. A 71% majority of analysts, 55 of 77, who answered an additional question in the Aug. 9-23 poll said a correction by year-end in their local equity market was either likely or very likely. A "fear of missing out" is said to have helped drive much of the equity market rallies of recent years. The year-end forecast in February's Reuters poll was 4,200.

Persons: Brendan McDermid, Jerome Powell, Marko Kolanovic, Morgan, Terry Sandven, Europe's, Hari Kishan, Indradip Ghosh, Ross Finley, John Stonestreet Organizations: New York Stock Exchange, REUTERS, Reuters, Treasury, NIKKEI, February's Reuters, U.S, Bank Wealth Management, Japan's Nikkei, IPC, Thomson Locations: New York City, U.S, BENGALURU, Jackson, February's, Bengaluru, Buenos Aires, London, Mexico City, Milan, New York, San Francisco, Sao Paulo, Tokyo, Toronto

An Embraer E195-E2 Profit Hunter aircraft is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. REUTERS/Benoit Tessier//File PhotoSAO PAULO, Aug 14 (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) on Monday shot past market estimates for second-quarter results, with its chief executive voicing optimism about upcoming quarters for the company. "Despite the supply chain challenges, we are very optimistic about this year after a good Q2," Gomes Neto said. "We're working hard so next year we can better spread out production and deliveries throughout the year, which will further improve the company's performance," Gomes Neto added. The planemaker reported a 25% increase in second quarter adjusted net profit to $57.9 million, more than double the $24.3 million forecast by analysts polled by Refinitiv.

Persons: Benoit Tessier, Francisco Gomes Neto, Gomes Neto, BTG Pactual, Gabriel Araujo, Jason Neely, Barbara Lewis, Sharon Singleton Organizations: Embraer, Hunter, International Paris Air, Le, REUTERS, SAO PAULO, EMBR3, Airbus, Boeing, Refinitiv, JPMorgan, Thomson Locations: Le Bourget, Paris, France

☆ US investors are searching overseas for opportunities
▼ + stars: | 2023-08-03 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

CNN —Despite the gains in US stocks this year, some investors are looking for opportunities elsewhere. That’s despite what’s been shaping up to be a banner year for the US stock market — at least prior to this week’s US credit rating downgrade (more on that below). But some investors say that cheaper valuations for non-US stocks, compared to their domestic counterparts, are enticing some on Wall Street to look for deals overseas. The S&P 500 index currently trades at about 19.6 times its expected earnings, according to FactSet. That MSCI All Country World ex USA index has risen roughly 9% on a US dollar basis, underperforming the S&P 500.

Persons: Goldman Sachs, That’s, what’s, ”, Adam Turnquist, China’s, Jimmy Lee, bode, Fitch, ” Richard Francis, CNN’s Matt Egan, Francis, “, ” Francis, Janet Yellen, Obama, Jason Furman, Larry Summers, Read, Sam Stovall Organizations: CNN Business, Bell, CNN, Investors, Federal Reserve, LPL, Global, The Wealth Consulting, America, Fitch, Treasury Department, AAA

BRASILIA, July 7 (Reuters) - Brazil's lower house of Congress approved on Friday the main text of a tax reform that will restructure the country's complex consumption taxes, a move President Luiz Inacio Lula da Silva touted as a "great victory". The bill will now be sent to the Senate, where it will also be voted on in two rounds. "Brazil will have its first tax reform of the democratic period ... We are working towards a better future for everyone." Markets reacted positively to the lower house approval, with Brazil's real strengthening more than 1% against the dollar, while benchmark stock index Bovespa (.BVSP) jumped 1.65%. 'A NECESSITY'The lower house approved the reform by 382-118 in the first round of voting held late on Thursday.

Persons: Luiz Inacio Lula da Silva, Lula, Fernando Haddad, Haddad, Rodrigo Pacheco, Arthur Lira, Jair Bolsonaro, Maria Carolina Marcello, Carolina Pulice, Gabriel Araujo, Michael Perry, Devika Syamnath, Alistair Bell Organizations: Lawmakers, Senate, Markets, JPMorgan, Finance, Workers ' Party, Thomson Locations: BRASILIA, Brazil

PARIS, June 20 (Reuters) - Brazilian planemaker Embraer (EMBR3.SA) on Tuesday notched fresh orders from American Airlines and Spanish carrier Binter for its E-Jets in deals announced at the Paris Airshow that are seen totaling about $1 billion. Embraer, the world's third-largest planemaker after Airbus and Boeing (BA.N), said the new orders follow expansion goals of regional carriers such as Binter and Canada's Porter Airlines, underscoring positive momentum for its planes in global markets. "We were expecting Embraer to announce at least 30 new orders during the event," they said. "We believe that additional new orders could be announced in the coming days, as in the last Paris Air Show Embraer divided its announcements into 3 days." "The best orders are repeat orders," Embraer's Chief Commercial Officer for commercial aviation Martyn Holmes said.

Persons: Le Bourget, Canada's, Binter, Rodolfo Nunez, Martyn Holmes, Porter, Holmes, Gabriel Araujo, Steven Grattan, Jan Harvey, Alexandra Hudson Organizations: Embraer, EMBR3, American Airlines, Spanish, Jets, Paris Airshow, Airbus, Boeing, Canada's Porter Airlines, JPMorgan, Air, Envoy Air, Leasing, Avolon, Sao Paulo, Alexandra Hudson Our, Thomson Locations: Sao Paulo, Paris, Sao

☆ Brazil's Localiza launches $935.5 mln share offering to expand fleet
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, June 16 (Reuters) - Brazilian car rental company Localiza (RENT3.SA) said on Friday it will launch a follow-on share offering aimed at raising as much as 4.5 billion reais ($935.51 million) to expand its car fleet and service network. The primary offering will initially comprise 60.02 million new shares, Localiza said in a securities filing, but could be increased by up to 12.5% if demand allows it. Considering its closing price of 66.64 reais per share on Thursday, the offering would total around 4 billion reais, the company said. Shares of Localiza slipped around 2% after the move was announced, making it one of the biggest fallers on Brazil's Bovespa stock index (.BVSP). ($1 = 4.8102 reais)Reporting by Gabriel Araujo; Editing by Steven Grattan, Louise Heavens and Conor HumphriesOur Standards: The Thomson Reuters Trust Principles.

Persons: Localiza, Bradesco, BTG Pactual, Gabriel Araujo, Steven Grattan, Louise Heavens, Conor Humphries Organizations: SAO PAULO, JPMorgan, UBS Brasil, Santander, Bank of America, Banco Safra, XP, Thomson Locations: Santander Brasil

☆ Brazil lifts 2023 growth outlook thanks to booming farm sector
▼ + stars: | 2023-06-01 | by ( Marcela Ayres | ) www.reuters.com time to read: +3 min

BRASILIA, June 1 (Reuters) - Brazil's economy rebounded more than expected in the first quarter, powered by a booming farm sector and paving the way for a rosier annual outlook despite a drag from high interest rates. Gross domestic product (GDP) expanded by 1.9% in the three months through March after a revised 0.1% drop in the prior quarter, data from government statistics agency IBGE showed on Thursday. The Brazilian real strengthened 0.5% against the U.S. dollar and the benchmark Bovespa stock index (.BVSP) rose 0.6%. Goldman Sachs adjusted its 2023 GDP growth forecast to 2.6% from 1.75% after the first-quarter data, citing the additional help of net exports and inventory accumulation. XP economists indicated an upward revision of their current 1.4% growth outlook, forecasting market expectations to keep rising to the range of 2.0% to 2.5%.

Persons: Simone Tebet, Goldman Sachs, Luiz Inacio Lula da Silva, Lucas Toro, Toro Investimentos, Roberto Campos Neto, Marcela Ayres, Bernardo Caram, Brad Haynes, Steven Grattan, Sriraj Organizations: Gross, IBGE, U.S ., Finance Ministry, Thomson Locations: BRASILIA, Brazilian

☆ Shares in Brazil's Azul soar as carrier sees bluer sky ahead
▼ + stars: | 2023-03-06 | by ( Gabriel Araujo | ) www.reuters.com time to read: +3 min

Other travel-related companies in Latin America's largest economy also soared, with shares in fellow carrier Gol Linhas Aereas Inteligentes SA (GOLL4.SA) and travel agency CVC Brasil (CVCB3.SA) rising 23% and 16%, respectively. The company also scrapped its forecast for roughly 3 billion reais cash burn in 2023. Azul expects to generate record revenue of 20 billion reais ($3.84 billion) this year and record earnings before interest, taxes, depreciation, and amortization (EBITDA) of more than 5 billion reais, roughly 40% above 2019 pre-pandemic levels, Rodgerson said. Non-adjusted figures, nonetheless, showed a positive bottom line of 231.2 million reais, reversing the previous year's loss. Total operating revenue rose 19.4% to 4.45 billion reais in the period, slightly below analysts' forecasts, while EBITDA matched expectations at 1.1 billion, up 6.9%.

☆ More volatility, possible correction ahead for global stock markets: Reuters poll
▼ + stars: | 2023-02-23 | by ( Hari Kishan | ) www.reuters.com time to read: +5 min

SummarySummary Companies poll datahttp://tmsnrt.rs/2nHJiJ9https://tmsnrt.rs/3EwxtMLhttps://tmsnrt.rs/3EwgwloBENGALURU, Feb 23 (Reuters) - Volatility in global stock markets is not yet over, as more investors reckon interest rates will likely stay higher for longer, according to a Reuters poll of equity analysts, a slight majority of whom expected a correction within three months. "Valuations are stretched across equity markets after the rally year-to-date. The Feb. 10-22 Reuters poll of more than 150 strategists, analysts and fund managers covering 17 global stock indices, found 56% were expecting a correction in their local market in the next three months. Latam stock markets will have a relatively better year with Mexican stocks expected to advance 6.7% to 57,500 points and Brazil's Bovespa stock index predicted to gain 14.5% to 125,000 points by year-end. (Other stories from the Reuters Q1 global stock markets poll package:)Reporting by Hari Kishan and Sarupya Ganguly; Additional reporting and polling by correspondents in Bengaluru, Buenos Aires, London, Mexico City, Milan, New York, San Francisco, Sao Paulo, Tokyo and Toronto; Editing by Ross Finley and Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

☆ POLL Global stocks to correct in short term as inflation weighs
▼ + stars: | 2023-02-23 | by ( Hari Kishan | ) www.reuters.com time to read: +4 min

Summary poll datahttp://tmsnrt.rs/2nHJiJ9BENGALURU, Feb 23 (Reuters) - Global stock markets are expected to correct in the next three months as investors digest the fact that interest rates are likely to stay higher for longer, according to a Reuters poll of equity analysts. The poll showed a majority would fall short, or just about recoup their 2022 losses by the end of the year. Stocks have rallied about 20% in recent months and some strategists say that the market has gone too far. "Valuations are stretched across equity markets after the rally year-to-date. A stronger 70% majority of analysts, 57 of 82, expected value stocks to outperform growth stocks this year.

☆ BTG Pactual joins Brazilian lenders hit by post-Americanas provisions
▼ + stars: | 2023-02-13 | by ( Gabriel Araujo | ) www.reuters.com time to read: +3 min

SAO PAULO, Feb 13 (Reuters) - Banco BTG Pactual SA (BPAC3.SA) on Monday became the latest Brazilian lender to be affected by bad credit provisions due to what it called a "specific, widely publicized event," likely referring to the bankruptcy of Americanas SA (AMER3.SA). BTG reported a quarterly net profit of 1.64 billion reais ($314.5 million), slightly down from 1.74 billion a year earlier and below the market consensus of 2.27 billion, according to analysts polled by Refinitiv. BTG's "good cost discipline" in the quarter helped reduce the impact of the provisions, JPMorgan said. "Despite all the challenges, we expect higher returns in 2023, with greater operating leverage and possibly even higher capital and liquidity levels," BTG Chief Executive Officer Roberto Sallouti said. ($1 = 5.2151 reais)Reporting by Gabriel Araujo; Editing by David Holmes, Kirsten Donovan and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ Lula says 'no explanation' for Brazil's current interest rate levels
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: +1 min

RIO DE JANEIRO, Feb 6 (Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Monday there was "no explanation" for the country's high interest rates, with the benchmark rate at a six-year high, adding that development bank BNDES could help bring down lending costs. Lula, who last week criticised the central bank's formal autonomy and suggested a review of its status, said Brazil's problem was a "culture of high rates" rather than the newfound independence of the central bank. Lula called on business leaders to speak out against current interest rate levels, while dubbing the monetary policy committee's explanation for keeping rates at the current 13.75%, in place since August, "shameful". "There is no justification for the interest rate levels. The committee, known as Copom, said last week it was considering holding interest rates high for longer than markets expect due to fiscal risks under Lula.

☆ Lula's latest attack on Brazil's central bank weighs on markets
▼ + stars: | 2023-02-03 | by ( Marcela Ayres | ) www.reuters.com time to read: +3 min

Lula resumed an offensive agains the central bank in a Thursday TV interview in which he suggested a review of the institution's formal autonomy by the time bank chief Roberto Campos Neto ends his term in December 2024. Those remarks came a day after the central bank signaled it could hold interest rates at a six-year high for longer than markets expect due to fiscal risks under Lula. Brazil's interest rate futures also rose more than 1% in both short and long maturities. Analysts said Lula's comments were weighing on asset prices, with no truce in sight since the leftist president reiterated that "the interest rate issue" is on the agenda. Vitoria acknowledged Brazil has the highest real interest rate in the world.

☆ Brazilian ex-senator takes over as Petrobras CEO; shares fall
▼ + stars: | 2023-01-26 | by ( Marta Nogueira | ) www.reuters.com time to read: +3 min

Prates was unanimously approved by the board, on which he will also hold a seat, Petrobras said in a securities filing. He has said the Lula government would not take an aggressively interventionist approach to Petrobras. Petrobras made bumper payouts in recent quarters, but Prates has said the company cannot "just keep tapping sub-salt oil and paying dividends". Prates, who was a senator for the past four years, is the first politician in several years to hold a high-ranking office at Petrobras. Earlier in the day, the Brazilian Senate's official gazette published the resignation of Prates as a lawmaker.

☆ Billionaire-backed Americanas files for bankruptcy protection, shares tank
▼ + stars: | 2023-01-19 | by ( Gabriel Araujo | ) www.reuters.com time to read: +4 min

SAO PAULO, Jan 19 (Reuters) - Brazilian retailer Americanas SA (AMER3.SA) on Thursday filed for bankruptcy protection, days after uncovering nearly $4 billion in accounting inconsistencies and amid a legal feud with creditors. In the filing, Americanas asks to exclude fintech Ame from the bankruptcy protection, as it is regulated by the central bank, and for authorization to increase its capital. Chief Executive Sergio Rial resigned last week, less than two weeks after taking the job, citing the discovery of "accounting inconsistencies" totaling 20 billion reais. Andre Luzbel, head of variable income at SVN Investimentos, said the bankruptcy protection was unavoidable, noting it would be one of the largest ever in Brazil, "as complex as Oi's one." Oi SA (OIBR4.SA), a telecom firm, filed in June 2016 for Brazil's then-biggest ever bankruptcy protection and only exited it in December 2022.

SAO PAULO, Jan 16 (Reuters) - Brazilian lenders BTG Pactual, Bradesco and Santander Brasil are among those most exposed to debt of Americanas SA (AMER3.SA), analysts' estimates showed on Monday, after the retailer obtained an injunction protecting it from creditors. Analysts at JPMorgan and Citi said in research notes that Banco Bradesco SA (BBDC4.SA) had the largest nominal exposure to the firm, while Banco BTG Pactual SA topped exposure as a proportion of loans. Considering JPMorgan's and Citi's estimates, BTG had a 1.9 billion-real exposure to Americanas, which was seen accounting for roughly 1.5% of its loans, while Bradesco had exposure of 4.7 billion reais, or 0.5% of loans. Banco Santander Brasil SA , the local unit of Spain's Banco Santander (SAN.MC), had 3.7 billion reais in exposure, or about 0.6% of loans. Sergio Rial, the outgoing Americanas chief executive who uncovered the accounting inconsistencies, is a former head of Santander Brasil, where he still serves as chairman of the board.

The government of leftist President Luiz Inacio Lula da Silva bolstered security measures nationwide as flyers appeared on pro-Bolsonaro social media calling for mass demonstrations in Brazilian cities to "retake power." Ricardo Cappelli, the federal official in charge of public security in the capital since Sunday, said all security forces had been mobilized to prevent protests and that there would be no repeat of rioting. So far, 727 of the over 1,500 involved in Sunday's riots have been imprisoned. The Supreme Court on Wednesday upheld Moraes's arrest warrant for Anderson Torres, Bolsonaro's former justice minister who oversaw public security in Brasilia during Sunday's riots. The former president, whom Lula has blamed for inflaming the protests, did not mention Sunday's riots.

REUTERS/Adriano MachadoSAO PAULO/LONDON, Jan 9 (Reuters) - Brazilian equities were higher in choppy trade on Monday, a day after thousands of supporters of former President Jair Bolsonaro stormed government buildings in the capital, echoing the Jan. 6, 2021, insurrection in Washington. On Friday, both had performed better after Lula said the economy may grow while government finances are kept in check. On Monday hundreds of Brazilian police in riot gear and some on horseback amassed at an encampment of Bolsonaro supporters near Brasilia's army headquarters. "I think the situation will quickly normalize," said Cristian Maggio, head of portfolio strategy at TD Securities in London. "Yet, it is an event worth keeping an eye on, as it may not be fully over just yet."

[1/2] Supporters of Brazil's former President Jair Bolsonaro are pictured through broken glass as they hold a demonstration against President Luiz Inacio Lula da Silva, in Brasilia, Brazil, January 8, 2023. REUTERS/Adriano MachadoMEXICO CITY/SAO PAULO, Jan 9 (Reuters) - Brazilian assets may be hit by fresh volatility on Monday after supporters of former President Jair Bolsonaro stormed key government buildings, echoing the U.S. Jan. 6 insurrection of 2021, analysts said. Ricardo Lacerda, founder and CEO of Brazilian investment bank BR Partners (BRBI11.SA), said he expects markets to react with volatility in the short term, especially on Monday, given the higher institutional risk. But Komura expects the markets to recover by the end of the week considering a strong institutional reaction against the rioters. While large sections of the Brazilian banking industry has tended to back Bolsonaro given his free market credentials relative to Lula's Workers' Party, the sector's main industry association roundly condemned Sunday's violence.

☆ Brazil's currency, stock futures down after Bolsonaro supporters storm capital
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: 1 min

SAO PAULO, Jan 9 (Reuters) - Brazil's currency on Monday weakened roughly 1% against the dollar in early spot trading after supporters of former President Jair Bolsonaro stormed the country's capital a day earlier. Future contracts for the Bovespa benchmark stock index were down more than 1%, with the Sao Paulo stock market set to open at 10 a.m. (1300 GMT). (.BVSP)"Considering the enormous coverage the event got and the surprise we all had, markets should react negatively, but this should be short term," economists at JPMorgan said in a research note. "As day-to day government work resumes, attention should go back to the macro issues that have been top of mind." Reporting by Luana Maria Benedito, Paula Arend Laier and Gabriel Araujo Editing by Brad HaynesOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil protests expose lack of U.S. risk premium
▼ + stars: | 2023-01-09 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

Like the United States, Brazil was until recently led by an autocratic president who refused to concede electoral defeat. It’s perhaps no surprise that Transparency International’s Corruption Perception Index scores Brazil at 38, below the global average, where 100 reflects a society nearly free of malfeasance. The United States scores substantially better at 67, but still below other developed nations. But if investors ever decide to demand a risk premium, it has a long way to fall. The Brazilian real weakened roughly 1% against the U.S. dollar in spot trading, while the benchmark Bovespa stock index fell 0.5%.

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