Espresso for April 18th
QUOTE OF THE DAY
“The commencement of the impeachment process is authorized,” lower house speaker Eduardo Cunha.
WHAT MARKETS ARE TALKING ABOUT
ROUSSEFF, HALF WAY OUT
The Brazilian Congress voted in favor of Rousseff´s impeachment with 367 votes in favor, 25 more than the 2/3 majority needed. As a result the impeachment process will go ahead for voting in the Senate as early as 15 day from now. With the momentum the impeachment has gained, it is likely that the Senate will follow Congress, in addition, the upper chamber only needs a simple majority to force Rousseff to step down as president.
The ouster of Rousseff could bring to an end 13 years of leftist PT´s (Partido dos Trabalhadores) government. Despite demonstrations of support for the impeachment in the streets of Sao Paulo, where a quarter of a million people gathered to cheer the decision, we see a complex route ahead as many people share a negative view about Vice president Temer and no clear leadership is in sight.
NO DEAL FROM DOHA
Expectations of a freeze in oil output did not meet reality as Doha´s summit of 16 oil ministers failed to reach an agreement on capping production. All attention turned to Iran´s absence and the requirement set by Saudi Arabia that every OPEC country, including Iran, needed to agree to the freeze. On the other hand Iran has stated no intention to voluntarily sanction itself reducing oil production after just being granted access to the market. Next OPEC meeting is scheduled until June, 2 , 2016 in Vienna. Oil tumbled 3.8% in futures markets and Asia markets fell in reaction to the news.
ECUADOR STRUCK BY 7.8-MAGNITUDE EARTHQUAKE
A 7.8-magnitude earthquake hit Coastal Ecuador on Saturday, death toll jumped to 272 and more than 2,500 injured. The epicenter was 27km from coastal town of Muisne. Ecuador´s President Correa made several statements highlighting the priority or rescue works. No relationship is stablished with twin earthquakes in Japan that happened on Thursday and Saturday of 7.0 and 6.2 magnitude respectively.