Espresso: April 15th

Espresso for April 15th

QUOTE OF THE DAY                                                                                            

“Neither side is totally certain they have the votes they need,” said Paulo Calmon, a political science professor at the University of Brasilia. “They’re trying to create a herd mentality.”[1] Comment towards Congress voting on Impeachment process.

WHAT MARKETS ARE TALKING ABOUT


 

BRAZIL´S SUPREME COURT WON´T SAVE ROUSSEFF

The motion filed by the government to stop Sunday´s voting to go ahead with the impeachment process was overturned by the Supreme Court, voting remains on Schedule. The Court voted 8 against 2 vs the government, however the Court also stated that the congress cannot rule on allegations not included in the original impeachment request filed in December, therefore setting limits to the process.

PEMEX HAVING A TOUGH TIME

The Mexican state oil company has a large and increasing bill payable to suppliers at MXN 110 bn and is having a tough time making the payments. Around 1,560 firms have some sort of problem cashing their bills from PEMEX. Many of the bills due several years ago highlight the poor cost control and reckless administration of the company.

BRAZIL BOOSTING CARREFOUR QUARTERLY SALES

The largest France´s retailer reported stronger than expected 1Q16 sales supported by strongest quarterly growth in LatAm. Brazil´s sales increased 9.9% compared to 1Q15 as all formats expanded in the country.

DOHA MEETING ON SUNDAY

Major oil producers will meet in Doha, Qatar this Sunday, the expectation is that Saudi Arabia and Russia will reach a deal to freeze oil output. Despite a potential agreement, the supply glut is still a concern as even with a capped production from the Russians and Saudis, Iran is expected to continue adding capacity further increasing oversupply at the same time demand is reviewed to the downside.

 

[1] Source: Bloomberg

 

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