JBS delivers a cleaner cut on second carve-up 6 Dec 2016 The $8 bln Brazilian meatpacker is trying to list its overseas arm again after a government shareholder nixed an earlier plan that could have put the Sao Paulo-based rump under control of a foreign parent. The new deal should lower capital costs, but with fewer complications.
Brazil twists knife with reversed JBS carve-up 26 Oct 2016 The $11 bln meatpacker lost a fifth of its market value after the state development bank vetoed a spinoff of international operations that would have cut the company's financing costs. It's a reminder to global investors that the country's interfering ways will be slow to change.
Nasser’s exit gives BHP chance to reinvent itself 20 Oct 2016 The Anglo-Australian miner's departing chairman, Jac Nasser, delivered middling returns and a narrow vision for the future during his six-year tenure. BHP wants its workforce to be more diverse. A good place to start would be at the top. New blood and new thinking is long overdue.
Brazilian economy flirts with new virtuous circle 19 Oct 2016 The central bank is set to cut its key interest rate for the first time in four years. Inflation is easing, growth is set to resume, and Congress favors spending caps. Even state oil giant Petrobras now has a less batty fuel-price policy. It's a good start to a long journey.
Latam bank exodus risks entrenching local heavies 10 Oct 2016 Global firms Citi and HSBC are protecting shareholders and dividends by selling second-tier units in Brazil and Argentina. That's too bad for the markets they exit. As incumbents Itaú, Bradesco and Santander do the buying, their dominance increases, but competition suffers.
Brazil’s energy future may fly under Canadian flag 23 Sep 2016 State-controlled Petrobras is selling its natural gas pipelines to help pay down debt. Investors from China and Singapore will back the $5.2 bln acquisition led by Toronto-based Brookfield. The clever structure and the buyer's deep pockets could augur more deals between the two.
Carlos Slim may be necessary evil for Brazil’s Oi 22 Sep 2016 The Mexican billionaire's America Movil is interested in buying part or all of the bankrupt telecoms firm. Economic recession and a fragmented market pushed Oi over the edge and may now hasten consolidation. Slim wouldn't be Brasilia's first choice, but he has deep pockets.
Petrobras boldly aims to do more with less 21 Sep 2016 The new five-year plan unveiled by Brazil's state oil company aims to boost production amid steeper spending cuts. It suggests new boss Pedro Parente is confident in his ability to make operations more efficient. There's undoubtedly room for improvement, but conditions are tough.
Lula may wind up masterminding a pro-market Brazil 14 Sep 2016 Prosecutors have accused the country's ex-president of being the chief architect of a graft scheme at state oil giant Petrobras. If proven, it'd be a major blow to his Workers' Party and end chances for Lula to return to power. It also could embolden agents for change in Brazil.
BHP gives legal eagles lesson in accountability 31 Aug 2016 The mining giant is nixing CEO Andrew Mackenzie's bonus after last year's fatal Samarco dam collapse, days after its lawyers sidestepped blaming management. Withholding compensation is easier and may also be a faster way to persuade executives to pay attention to safety risks.
Rousseff ouster gives Brazil impetus to grow 31 Aug 2016 The country's Senate has impeached the president. Her replacement Michel Temer may be able to use that to his advantage and push unpopular steps to cement recovery next year. But lawmakers who were keen to dump Rousseff may be less willing to back his austerity measures.
Chile’s Bachelet faces her own Rousseffian crises 24 Aug 2016 The leftist leader's woes look like a breeze next to those of her impeached coreligionist in Brazil. Chile's corruption scandal, economic slowdown and rising pension crisis are small in comparison, but bad news for the copper producer's status as a bulwark of regional stability.
Britain’s haul: 27 gold medals and a wooden spoon 22 Aug 2016 China underwhelmed in the Olympic medals table, while the tiny UK excelled. That’s a poor guide to more important competitions. Though Britain still has soft power, its value as a role model is on the wane. China no longer needs gold medals to secure its place on the podium.
BHP Billiton reaches earnings nadir 16 Aug 2016 A ray of light is appearing for the mining giant. Weak global demand and a Brazilian dam disaster were partly to blame for a record $6.4 bln full-year net loss but the worst has passed. As long as prices stabilise, cost-cutting will allow BHP to return more cash to shareholders.
Brazil’s marathon will start after the Olympics 15 Aug 2016 Local stocks and the real have sprinted ahead as investor confidence grows in Latin America's biggest economy. Interim President Michel Temer dusting Dilma Rousseff has much to do with that. The hard work of enforcing austerity, however, is all that can help in the long run.
Brazilian meatpacker’s filet job leaves fat to cut 11 Aug 2016 JBS is asking bondholders to approve a plan to carve out non-Brazilian business and move it to Dublin. Tax savings and a lower cost of capital may help juice the valuation. The Sao Paulo-based company, however, is still larded with debt from its $27 bln acquisition spree.
China backlash bandwagon rolls over Li Ka-shing 11 Aug 2016 Australia may block an $8 bln power grid sell-off on security grounds, since both bidders had ties to China. But the Hong Kong tycoon is very different from Beijing-owned State Grid. After recent snubs in Britain and Canada, the climate for Chinese investment is souring rapidly.
Economic models compete for Olympic gold 4 Aug 2016 The Goldman Sachs forecast is in: the United States will win the most medals in Rio, with China next and Brazil outside the top 10. Breakingviews put Russia second and predicts a much better result for the host nation. It's all games, but macro factors do drive sporting prowess.
AB InBev adds dash of cynicism to raised SAB offer 26 Jul 2016 A raised 79 bln pound offer for SABMiller should give agitating hedge funds a dignified exit. But it mostly ignores the fall in the value of the Budweiser brewer's offer - and makes a share-based alternative offer targeted at SAB’s biggest shareholders slightly more attractive.
Review: To have and have not, Brazil-style 1 Jul 2016 In "Brazillionaires," Alex Cuadros explores Latin America's biggest economy through its wealthiest citizens, whose fortunes he tracked as a reporter. It's a tale of boom, bust and back-scratching among moguls and politicos that sheds a telling light on the nation's current woes.