Brazil can’t solve fiscal woes with rates alone 2 Sep 2011 Cutting the benchmark Selic rate to 12 pct isn’t inflationary, since CPI is only 7 pct and global rates are ultra-low. However the government runs big deficits in a huge boom with high commodity prices. That could boost prices down the road - or worsen any downturn.
Petrobras’ bargain barrels pricier than they look 3 Aug 2011 The boss of the $210 bln Brazilian energy giant reckons its shares are the cheapest way to bet on oil. With production growth expected to leave multinational rivals in the dust, Petrobras shares might seem low-priced. But Brasilia’s grip on the firm justifies a big discount.
Kirin pays high price for being late to the party 2 Aug 2011 The Japanese beer group, which like its domestic rivals has belatedly woken up to global M&A, is paying $2.6 billion for 50.45 pct of Brazil’s Schincariol. The brewer, a distant number two, offers a so-so market position - certainly not one worth more than 100 times net income.
Pemex scandal highlights need for restructuring 1 Aug 2011 Long treated as a cash machine by the Mexican government, the national oil group also now appears to have been milked by criminal gangs to the tune of $600 mln just last year. Though imperfect, Latin rivals like Petrobras and Ecopetrol offer models Mexico should emulate.