Review: The next fight for Latin America’s soul 17 Nov 2017 Dictators and demagogues have come and gone; progress in the region has been impressive. Still, rule of law and effective institutions still lack, Michael Reid writes in "Forgotten Continent." That makes the next steps toward prosperity harder.
AB InBev grows bigger without getting better 26 Oct 2017 A year after acquiring SABMiller, the world’s No.1 brewer said cost savings from the deal will be higher than expected. Bulking up allows the Belgian company to buy on better terms. Yet it looks worryingly weak at persuading consumers to drink more of its beer.
Brazilian oil auction gives Temer some validation 28 Sep 2017 The president is doing his country's economy good even as his popularity craters over graft charges. A less nationalist energy policy paved the way for a record haul in a drilling-rights auction and bodes well for more. It may leave Mexico and its oil deals battling for bids.
Hadas: Fighting corruption delivers small payoffs 27 Sep 2017 Miner BHP wants to see if 20 years of more openness has made lives better. It’s doubtful. The "Panama Papers", Brazil's "Car Wash" and Olympics scandals suggest graft remains standard practice. Public outrage may be subdued, though, because obvious economic harm is hard to find.
JBS takes shareholders on zany rollercoaster ride 11 Sep 2017 The scandal-plagued Brazilian meatpacker raised a much-needed $1 bln by selling a poultry business to Pilgrim’s Pride. That gave investors a bit of a high after the low provided by the unraveling of the controlling family’s corruption plea deal. More stomach-churning lies ahead.
China’s grand plans help Advent to shore in Brazil 8 Sep 2017 The buyout firm is selling port operator TCP in a $1 billion deal. That is a good outcome after a recession and a currency rout, and the target fills a strategic gap for its Chinese state-backed buyer. China’s trading ambitions mean more overseas port deals should follow.
Brazil’s Temer gets a win as more graft oozes up 6 Sep 2017 Forcing state lender BNDES to cut back soft loans to business will shrink the government's role in the economy and help its ailing finances. New graft allegations against the president’s predecessors show how badly such measures are needed. Sometimes corruption can be his friend.
Beware Brazilian promises to relinquish control 23 Aug 2017 The cash-and-corruption-challenged government dangled the idea of reducing its 51 pct voting stake in Eletrobras, the electric utility. While that sent the shares soaring by half, investors need only recall Brasilia's past stewardship at Petrobras and Vale to slow their samba.
Petrobras takes the drama out of its crisis 11 Aug 2017 The state-controlled oil company has often resembled a character in one of Brazil's more lurid telenovelas: blessed with great potential, but profligate and easily corrupted. Second-quarter results, though, tell a dull but encouraging tale of rehab under CEO Pedro Parente.
Brazil’s Congress discounts cost of corruption 3 Aug 2017 Lawmakers voted to shield President Michel Temer from criminal trial, at least for now. The calculus set immediate economic interests, which should benefit from the decision, against the longer-term merits of tackling political graft. Call it the net present value of shame.
Brazil pork mongers find comfort in flip-flops 31 Jul 2017 Selling trendy sandal maker Alpargatas to wealthy banking families will help meatpacking-to-pulp firm J&F pay a huge fine for bribing politicians. The original purchase, from a company also embroiled in scandal, is being probed by authorities too. It's a Brazilian microcosm.
Carrefour unit shows way to Brazil IPO revival 19 Jul 2017 The French supermarket chain’s local unit raised $1.6 bln in the country’s biggest stock offering in four years. Rising deal flow suggests growing confidence Latin America’s largest economy is getting back on track. But the recovery’s pace is tepid, and sensible pricing is key.
Lula graft conviction is a sad boon for Brazil 12 Jul 2017 At his popular peak, the ex-president offered a magical moderate leftism that both markets and the poor could love. He hoped to regain power in 2018. Positive investor reaction to his prison sentence shows how dead that dream is. Brazilians face harder, more realistic choices.
Brazil shambles toward zombie rule 27 Jun 2017 President Temer probably can cling to his job despite corruption charges leveled by the country's top prosecutor. His focus on survival, however, is apt to sap life from much-needed efforts at fiscal restraint. Semi-paralysis will be the state of play until 2018 elections.
Brazil’s economy teeters at the abattoir gates 23 May 2017 Laws and sausages alike are famously messy to make. That Brazil's President Temer, a master of the dark legislative arts, may lose his job over meatpacker JBS's corruption charges is perhaps fitting. But pension reform still needs forcing through Congress, whoever's in charge.
Water investors will get used to cash calls 19 May 2017 Shares in Sao Paulo utility Sabesp plunged on news it may raise equity for post-drought projects. But its funding needs and already high leverage were no secret. With the global water sector requiring $10 trln of investment, this Brazilian capital raise won’t be the last.
Brazil’s corruption vortex engulfs reform hopes 18 May 2017 President Michel Temer has improved economic headlines, for example pushing inflation below 4.5 pct. Now he's implicated in the wider bribery scandal enveloping his government. A 10 pct drop in the stock market reflects fear that his unpopular but effective policies are on hold.
Santander tames its troublesome triplets 26 Apr 2017 Brazil and Spain have become less of a challenge for the Madrid-based lender. The UK, which could turn problematic, hasn’t yet. Santander is treading cautiously despite a 14 percent quarterly earnings increase – which is wise, because the benign environment is still fragile.
Brazil’s Temer steers white-knuckle reform route 17 Apr 2017 The "Car Wash" corruption probe is increasingly denting the president's government as he tries to drive crucial changes to an unsustainable pension system through Congress. The nation's economic recovery may hinge on his ability to ease off the gas just enough to ensure passage.
Oil giant Petrobras leads Brazil out of the mire 22 Mar 2017 A rotting-meat scandal is the latest corruption mess to stink up Brazil’s reputation. But an earnings revival at the country’s state oil firm, whose kickback woes helped create the stench, shows reforms are bearing fruit. Sweeter smells of recovery should follow.