360° Coverage : Brazil Weaker Than Expected

10 Updates

Brazil Weaker Than Expected

May 30 2014, 2:47pm CDT | by

Brazil’s first quarter GDP was in line with consensus forecasts, but revisions to the fourth quarter have led investors to revise their full-on 2014 outlook. The iShares MSCI Brazil (EWZ) responded...

Filed under: news

 
 
 

8 weeks ago

Brazil Weaker Than Expected

May 30 2014, 2:47pm CDT | by

Brazil’s first quarter GDP was in line with consensus forecasts, but revisions to the fourth quarter have led investors to revise their full-on 2014 outlook.

The iShares MSCI Brazil (EWZ) responded in kind, falling 2.2% while the benchmark MSCI Emerging Markets Index fell 1.5%.

First quarter GDP expanded by 0.2% on a quarterly basis, an inch below Barclays’ 0.3% forecast but still in line with consensus. As expected, today’s release brought revisions to the historical series driven largely by the methodological change in industrial production announced earlier this month. Despite the downward revision of the fourth quarter growth rate to 0.4% from 0.7% previously, 2013 real GDP growth was revised up to 2.5%. However, the weaker 2013 year-end also lowers the statistical carry-over expected for 2014 and adds some downward risk to Barclays’ 1.9% 2014 full-year forecast. On a yearly basis, Brazil’s GDP expanded by 1.9%.

Nomura Securities analyst Tony Volpon said Brazil’s 2014 GDP could easily come in below 1%.

“The most alarming sign is the simultaneous contraction of consumption and investments, a situation which last occurred in 2011 and preceded a period of fairly slow growth,” said Volpon.

The fall in consumption was the worst since the third quarter of 2011, while the drop in corporate investments was the worst since early 2012.

Considering that financial conditions stabilized in January and started to ease in February and March, such poor numbers signal a more pessimistic growth outlook among Brazilian corporations. The continuous fall in consumer and business confidence in April and May should make things even worse.

“The combination of declining domestic demand and growing inventories is clearly bad news,” said Barclays Capital economist Marcelo Salomon.

With both business and consumer confidence declining strongly in the second quarter, businesses are likely to reduce inventories by cutting production even faster than expected, which will eventually hit the labor market and reinforce the negative sentiment in Brazil.


Flash Player 9 or higher is required to view the chart
Click here to download Flash Player now
 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

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

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was tol ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

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

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

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

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

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the D ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 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 Hishammuddin Hu ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

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

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 mont ...
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

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

 
Update
4

8 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 Indust ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 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

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 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

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

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

 
Update
1

8 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 (Kidex) ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Samsung to launch two new smartphones
Seoul, Aug 1 (IANS) Samsung Electronics will launch two new high-end smartphones in next six months.
 
 
Galaxy that acts as cosmic magnifying glass discovered
Washington, Aug 1 (IANS) Using NASA's Hubble Space Telescope, astronomers have unexpectedly discovered the most distant galaxy that acts as a cosmic magnifying glass.
 
 
Watch your waistline for diabetes risk
London, Aug 1 (IANS) A British health report has warned that adults with a large waistline are five times more likely to develop type 2 diabetes.
 
 
Now SEPA to facilitate euro payments
Brussels, Aug 1 (IANS) The European Commission said Thursday that the Single Euro Payments Area (SEPA) would become fully operational in all euro zone countries from Aug 1, 2014 onwards.
 
 
 

Latest from the Network

Commonwealth cocktail celebrating spirit of the Games (CWG Diary)
Glasgow, Aug 1 (IANS) Celebrating the spirit and togetherness of the Commonwealth Games, is a city bartender who has come out with a unique cocktail synthesising ingredients from each of the competing nations. Using a...
Read more on Sport Balla
 
Pujara, Kohli slip in ICC rankings for Test batsmen
Dubai, Aug 1 (IANS) South Africa's AB de Villiers continues to head the Reliance ICC Rankings for Test batsmen while compatriot Hashim Amla returned to the top three. Poor performances from India's Chetseshwar Pujara...
Read more on Sport Balla
 
Two women injured in Pakistan acid attack
Islamabad, Aug 1 (IANS) A woman and her daughter were injured Friday in an acid attack in Pakistan's Punjab province. According to police sources, the two women, Momina and her daughter Amina, were inside their...
Read more on Politics Balla
 
Family of six murdered in China
Beijing, Aug 1 (IANS) At least six members of a family were murdered Friday in China's Hunan province, a police official said. According to the official, Cheng and his family were killed in their home in Jiutang...
Read more on Politics Balla
 
Seema, Krishna qualify for women's discus throw final
Glasgow, Aug 1 (IANS) Both Seema Punia and Krishna Poonia advanced to the women's discus throw final but while Seema's throw put her in second position, Krishna was placed a lowly 11th in the qualification round of the...
Read more on Sport Balla
 
James Bond script approved
'Bond 24's revamped script has been approved by movie bosses. Writers Neal Purvis and Robert Wade were rehired last month to ''rescue'' John Logan's original screenplay and insiders have now admitted they had a bigger...
Read more on Movie Balla
 
Samsung to launch two new smartphones
Seoul, Aug 1 (IANS) Samsung Electronics will launch two new high-end smartphones in next six months. Kim Hyun-joon, senior vice president at Samsung, told investors that one model will feature a large screen, while...
Read more on Business Balla
 
Weight issues - when Hollywood movies went wrong
Los Angeles, Aug 1 (IANS) Depictions of weight gain or loss we see in Hollywood movies are rarely true to life, and yet we believe them. Here's a list things movies get wrong when it comes to weight, reports...
Read more on Celebrity Balla
 
Orlando Bloom vaulted sofa to reach Bieber
Orlando Bloom jumped over a sofa to punch Justin Bieber. The 'Lord of the Rings' actor was involved in an altercation with the 'Baby' hitmaker at upmarket Ibiza eatery Cipriani earlier this week, and an onlooker claims...
Read more on Celebrity Balla
 
Amal Alamuddin celebrates bridal shower
Amal Alamuddin enjoyed a bridal shower on Tuesday (07.29.14). The British human rights lawyer celebrated her impending marriage to George Clooney with an ''intimate'' dinner hosted by Ellen Barkin at the actress' New...
Read more on Celebrity Balla