10 Updates

After Rough Start, Downgrade, Brazil Now Beats Benchmark

Apr 2 2014, 3:56pm CDT | by

It was a tough start to 2014 for Brazil, but a recent sovereign credit downgrade and rising interest rates have not put a damper on the nation’s stock market. And thanks to Wednesday’s nice 2.4%...

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15 weeks ago

After Rough Start, Downgrade, Brazil Now Beats Benchmark

Apr 2 2014, 3:56pm CDT | by

It was a tough start to 2014 for Brazil, but a recent sovereign credit downgrade and rising interest rates have not put a damper on the nation’s stock market. And thanks to Wednesday’s nice 2.4% bounce, Brazil is the second best BRIC behind India and is firmly ahead of the MSCI Emerging Markets Index.

Either investors are building positions for a stronger second half, or they are in for a rude awakening.

The iShares MSCI Brazil (EWZ) exchange traded fund started the year on par with Russia as the two worst BRIC markets, both down 10.35% in January.  Year-to-date ending April 2 has EWZ up 3.5% while the MSCI Emerging Markets Index is down 0.54%.


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Judging by Wednesday’s industrial production data, a softer growth trend appears to be in the works.

IP growth for February slowed to 0.4% from January, following an upwardly revised print of 3.8% in January. With today’s report, the level of industrial production has finally recovered from the strong December drop. In year over year terms, the IP index expanded by 5.0%, slightly above consensus estimates and up from a 2.9% contraction in January. So far, IP in Brazil has improved 1.5% year-to-date.

All industrial categories slowed in February. The intermediate goods production sector rose by 0.8%, down from 1.6% in January. There was also a sharp slowdown of capital goods production to 0.1% from an impressive 13.3% growth in January and 13.3% growth in December.

Domestic demand is slowing, Barclays Capital analysts led by Marcelo Salomon in New York said today. Despite the stronger-than-expected fixed investment data from the fourth quarter, Salomon said he remains “very skeptical” the year-ending investment push by companies will spill over into 2014.

The overall growth outlook remains soft.

“Today’s IP report confirms that the robust January print was only a rebound from the strong drop in December, rather than the beginning of a solid growth trend,” Salomon said.

Moreover, the Central Bank is expected to raise the Selic by another 25 basis points to 11%.  The market is expecting this.  All eyes will be on the wording of the monetary policy committee’s meeting minutes for clues as to whether this ends the current tightening cycle that began in April 2013. Given a recent resurgence in food prices due to the worst summer drought in 50 years, the Economist Intelligence Unit said today that there was a “high probability” for interest rates to go higher in the months ahead.

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

Australia A v CA NPS
KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken in ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

The Prince Of Wales Visits The Royal International Air Tattoo
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri Hisha ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the so ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

6 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

6 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Scheme 2014 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

6 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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