10 Updates

Brazil Rate Hikes Not Done Yet

Apr 3 2014, 8:27am CDT | by

Brazil raised its overnight Selic interest rate to 11% Wednesday as expected, but Nomura Securities in New York thinks the Central Bank is not done hiking rates just yet. Tony Volpon, Head of...

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16 weeks ago

Brazil Rate Hikes Not Done Yet

Apr 3 2014, 8:27am CDT | by

Brazil raised its overnight Selic interest rate to 11% Wednesday as expected, but Nomura Securities in New York thinks the Central Bank is not done hiking rates just yet.

Tony Volpon, Head of Emerging Markets Americans at Nomura, said interest rates will probably go to 11.25% in May, and then the Central Bank will finally take a breather.

The post-meeting communiqué brought language changes that strongly signal that the current tightening cycle is near its end, Volpon wrote in a note to clients Thursday morning.

Different from the February statement, now monetary authorities are saying that it will “monitor the evolution of the macroeconomic scenario until our next meeting, to then define the next steps our monetary policy strategy.” In previous instances, such language was used to announce the strong intention to end, begin, or change the pace in the current strategy. In the current context, it signals the desire to end the cycle at the next meeting, with or without a further 25 basis point hike to 11.25%.

The decision to signal an end of the cycle at the May 28 meeting is, and is not, surprising. It is surprising because it comes right after a hawkish inflation report that saw large increases in its inflation forecast with no meaningful downgrading in the economic outlook. On the other hand, the weak state of the economy argues for a pause in the interest rate tightening cycle, despite near term inflationary challenges due to drought-related food price shocks, and Brasilia’s unwillingness to raise regulated prices like electricity in an election year.


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–The iShares MSCI Brazil ETF finally outperformed the MSCI Emerging Markets Index in late March despite higher interest rates and creeping inflation.

The more dovish-than-expected message will drive the bulls buying shorter term interest rates futures in Brazil and bonds. But the longer end should not benefit that much, says Marcelo Salomon, an economist with Barclays in New York.

“The real question for monetary policy remains, and is only likely to be dealt with after the elections — namely, how to deal with repressed regulated prices in an environment of weak economic activit,” Salomon says.

On Thursday, the hotly traded iShares MSCI Brazil (EWZ) exchange traded fund was off by 1.5% in the pre-market hours.

 
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 Dewan Rakyat wa ...
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

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KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robber ...
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

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rakyat toda ...
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 Se ...
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 southern states last month ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

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

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

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

 
Update
4

7 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 Mohamed sai ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 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 RM20 million. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

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

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PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 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 Damansara Skyway (Kide ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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