Brazil

Boeing’s $3.8 bln deal looks sleek, may not fly

5 July 2018

The aerospace giant is paying a fair price for 80 pct of Brazilian rival Embraer’s commercial-jet unit. Boeing can use the new joint venture to extend its dogfight with Airbus across the full range of aircraft. But Brasilia hasn’t signed off yet, and an election looms in October.

Guest view: Beware emerging market storm clouds

22 June 2018

A new period of mounting risks and uncertainties looms on the horizon for developing economies like Turkey, Malaysia, Brazil and Mexico, argues former Citibank executive William Rhodes. Rising price volatility and pressures on a range of currencies are merely the warning signs.

Walmart throws its BRICs into one basket

4 June 2018

The retailer is taking a $4.5 bln hit to sell most of its Brazil unit to private-equity firm Advent. As with its China - and UK - retreat, Walmart will at least get some benefit if fortunes improve. But it leaves CEO Doug McMillon’s shop even more dependent on India’s Flipkart.

Petrobras CEO exit weakens Brazil’s adult oversight

1 June 2018

Pedro Parente had been a successful boss of the state oil giant until it cut diesel prices to placate striking truckers. Now his tenure looks more like a blip than the end of traditional government meddling. Petrobras’ share-price plunge is a warning about how the economy is run.

Enel’s Brazil dominance needs elbow grease

31 May 2018

The Italian utility offered $2 bln to buy grid operator Eletropaulo, over three times its market value in March. It makes sense for Enel to grow its presence in South America’s biggest country, but extracting value at this price will require hefty cost savings and efficiencies.

Brazil’s truckers drive toward a fiscal hole

29 May 2018

Protesters demanding lower fuel prices have won concessions from the Temer government. But the specter of revived subsidies and state meddling in oil giant Petrobras hit investor confidence and the real currency, part of the truckers’ problem. Fiscal laxity is not a solution.

World Cup Soccernomics

29 May 2018

Who will lift soccer’s ultimate trophy in Russia this summer? Breakingviews ranked the 32 contenders according to player values, population, home support, and participation in the sport. Put them all together, and Germany is best placed to successfully defend its crown.

Numbers add up to Germany retaining World Cup

29 May 2018

Who will lift soccer’s ultimate trophy in Russia this summer? Breakingviews ranked the 32 contenders according to player values, population, home support, and participation in the sport. Put them all together, and Germany is best placed to successfully defend its crown.

Latam oil opening demands hedged bets

2 May 2018

The region's growing receptiveness to foreign investment in its energy assets could be a dream come true for oil majors. Political winds can change, though, and there is no perfect blend of hydrocarbon potential and legal certainty. Brazil and Mexico will do better than the rest.

Enel and Iberdrola’s Brazil war lacks restraint

30 April 2018

The two companies’ rival bids for Eletropaulo have nearly doubled the market value of Brazil’s top utility in a month, to $1.6 billion. The Europeans want to boost their presence in Latin America’s biggest nation. But the deal is too pricey to create much value for the winner.

UK slide raises Santander’s modest bar to success

24 April 2018

Net profit in its British unit dropped 21 pct, blotting the Spanish bank’s solid first quarter. Strong growth in Brazil and Spain, however, more than made up for Brexit-related jitters. More of the same should allow Santander to hit its full-year earnings and dividend targets.

Brazil’s anti-graft drive may hamper fiscal reform

12 April 2018

The jailing of the country's most popular politician, Lula, and voter disgust at corruption among the powerful will give outsiders with clean reputations a chance to shine in October elections. That's welcome, but could mean needed spending cutbacks are less likely to happen.

Hadas: Even Trump can’t make graft great again

11 April 2018

Resistance to corruption is evident in cases against ex-leaders of South Korea, Brazil and South Africa. Old royal privileges make no sense in modern economies. U.S. officials and the corporate elite have strayed, but rising middle classes will keep straightening out the crooked.

Wall Street gets its money-mining canary back

9 April 2018

Jefferies’ owner, the $8 bln Leucadia, will offload non-financial units, take its traditionally trading-heavy investment bank’s name, and move to a November year-end. The industry will again have an early-warning stock – and long-time boss Richard Handler’s task will be clearer.

Meirelles’ sanity will be a hard sell in Brazil

26 March 2018

The man running Latin America's biggest economy is resigning and wants to be president. His competence and pro-market stance are a welcome addition to a wide-open field ahead of October’s election. But voter disgust for establishment figures could mean rejection for his approach.

Latin America’s pro-market forces need young blood

22 March 2018

Pedro Pablo Kuczynski, a 79-year-old ex-banker, has resigned as Peru’s president amid graft allegations. His junior by two years, Brazil's Michel Temer, has failed to deliver key pension reforms to spur the region’s biggest economy. Latin populism needs more vigorous enemies.

Abertis rethink would avoid bidder roadkill

8 March 2018

Rival bidders Atlantia and ACS are mulling a breakup of the Spanish group, reports say. It would nix the idea of a European champion. But if Atlantia forgets Spain to focus on Abertis’ other assets, it would be politically easier – and avoid a pricey bidding war.

Telecom Italia investors find two reasons to cheer

7 March 2018

Boss Amos Genish has kicked off the separation of the telco’s fixed-line network, and will slash debt. A rerating of the network could help the group’s valuation, and a step-up in free cash flow brings the prospect of long-awaited dividends. Both should please shareholders.

Cowed LafargeHolcim sets sights appropriately low

2 March 2018

The new boss of the world’s largest cement maker has scrapped a share buyback and set the group’s EBITDA growth target at 5 pct. Jan Jenisch can probably do better. Still, given LafargeHolcim’s various headaches since its merger the conservatism is understandable.

AB InBev is one step short of a strong footing

1 March 2018

The world’s top brewer served up better-than-expected EBITDA in the fourth quarter and a welcome chaser of volume growth. That will soothe investor worries that ruthless cost cuts are hurting sales. Now it needs to reverse falling market share in its most important U.S. market.