Brazil and Argentina Plan for a Latin American Common Currency

Two of Latin America’s largest economies Brazil and Argentina with eyes to strength in numbers along the lines of the Euro, plan a common currency to reduce the risk that comes with relying on the US dollar. Both countries have been in a cycle of a financial roller coaster since the Latam financial crisis of the 1970’s. Market crashed continue to pop up in recent years. The hope is it would strengthen trade amongst the group. It would at first … Continue reading “Brazil and Argentina Plan for a Latin American Common Currency”

Brazil Oil Major Petrobras Shares Fall 10% After Plans to Privatize Shelved by New President Lula

Petrobras shares fell -10.75% Tuesday to $9.51-1.14 after the Brazilain oil major was no longer going to be privatized. Luiz Inacio Lula da Silva in one of his first official acts after being sworn in as Brazil’s president on January 1 was to remove Petrobras (PBR) and Brazil’s postal service from the list of state asset sales from a list of state-controlled businesses that had been scheduled for privatization. Lula plans on turning PBR it into a renewable energy powerhouse. … Continue reading “Brazil Oil Major Petrobras Shares Fall 10% After Plans to Privatize Shelved by New President Lula”

Brazilian Real Best Year Since 2016 with Interest Rates at 13.75%

The Brazilian Real at $5.3 closed up more than 6% in 2022 supported by a series of interest rate hikes by the central bank and an upbeat growth outlook. Banco Central do Brasil​ aggressively hiked its benchmark interest rate to 13.75% in twelve consecutive interest rate hikes since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The lending rate is now at its highest level since 2017. The … Continue reading “Brazilian Real Best Year Since 2016 with Interest Rates at 13.75%”

S&P 500 Worst Year Since 2008 as Mega Cap Tech Stocks were Shredded

The Blue-Chip S&P 500 index had a dismal year, down 19.4% in 2022, it was the worst performance since 2008. The benchmark index saw one new high in 2022, January 3 with the now infamous January 5 FOMC minutes from the Federal Reserve putting paid to anymore for the year. By comparison the S&P 500 clocked 70 fresh record highs in 2021. Trailing only 1995 with 77 closing highs. Last year energy companies Devon and Marathon were the top two … Continue reading “S&P 500 Worst Year Since 2008 as Mega Cap Tech Stocks were Shredded”

Canadian Oil and Gas Producers Rise Over 50% Buffeting Toronto Losses to 8.7% in 2022

Canada’s benchmark stock market the S&P/TSX Composite fell 8.7% in 2022 in the worst year since 2018, closing 0.5% lower at 19,385 on Friday. Canadian bond yields rose sharply as the BoC’s tighter monetary policy matched the US Fed and US Treasuries reaction. In 2022 Toronto’s banking sector fell over 12% on average, pressured by lower credit demand. The tech sector lost over 30%. Canadian oil and gas producers soared over 50% on average, as natural gas crude oil prices … Continue reading “Canadian Oil and Gas Producers Rise Over 50% Buffeting Toronto Losses to 8.7% in 2022”

S&P Global Ratings Settles Conflict of Interest Violations with SEC

The US Securities and Exchange Commission on Monday charged S&P Global Ratings with conflict-of-interest violations. The SEC said the ratings agency violated conflict of interest rules designed to prevent sales and marketing considerations from influencing credit ratings. In the same press conference, the SEC announced S&P Global had settled for $2.5 million quickly putting the story to bed would be the hope. There was no word on why the SEC has been deathly quiet on the FTX fraud, collapse and … Continue reading “S&P Global Ratings Settles Conflict of Interest Violations with SEC”

US Preparing to Lift Venezuela Sanctions with Chevron to Resume Oil Production WSJ Reports

The WSJ is reporting that the US administration is preparing to scale down sanctions on Venezuela. The move would allow Chevron to resume oil production in the country. Such a move could see a reopening of U.S. and European markets to oil exports from Venezuela. WSJ cites people familiar with the proposal. The move comes after OPEC+ agreed on a 2mbpd crude oil production cut at the October meeting Wednesday.  President Biden appears increasingly desperate after having sold the US … Continue reading “US Preparing to Lift Venezuela Sanctions with Chevron to Resume Oil Production WSJ Reports”

Banco de México Raised Rates for 11th Straight Time to Record 9.25%

The Mexican Central Bank, Banco de México raised rates for the 11th consecutive rate increase since June of 2021 and third straight by 75 basis points to 9.25% matching the previous three interest-rate moves by the U.S. Federal Reserve. The bank again increasing its forecasts for headline and core inflation forecasts. The size of future rate increases will depend on prevailing conditions, the bank added. Banco de México’s Governing Board decided to raise the target for the overnight interbank interest … Continue reading “Banco de México Raised Rates for 11th Straight Time to Record 9.25%”

Mexican Inflation Rate Soared to Highest Since 2000, Banco de México to Raise Rates Again

Mexico’s annual inflation rate rose to 8.70% in August of 2022 to the highest level since December of 2000. Prices rose from 8.15% in July. Prices were sharply higher for both goods at 10.55% due to processed foods and beverages up 12.94% and services up 5.19%. Energy prices rose faster 7.25% vs. 4.76% last month. Last month Banco de México raised rates for the 10th consecutive rate increase since June of 2021 to 8.50% and increased its forecasts for headline … Continue reading “Mexican Inflation Rate Soared to Highest Since 2000, Banco de México to Raise Rates Again”

Banco de México Raised Rates for 10th Straight Time to 8.50% as Inflation Hits 22 Year Highs

The Mexican Central Bank, Banco de México raised rates for the 10th consecutive rate increase since June of 2021 and second straight by 75 basis points to 8.50% matching the previous two interest-rate moves by the U.S. Federal Reserve. The bank again increasing its forecasts for headline and core inflation forecasts. The size of future rate increases will depend on prevailing conditions, the bank added. Banco de México’s Governing Board decided to raise the target for the overnight interbank interest … Continue reading “Banco de México Raised Rates for 10th Straight Time to 8.50% as Inflation Hits 22 Year Highs”