Espresso: April 20th

Espresso for April 20th

QUOTE OF THE DAY                                                                                            

“The difference between tax avoidance and tax evasion is the thickness of a prison wall.” Denis Healey

WHAT MARKETS ARE TALKING ABOUT


 

PAY TAX, A FINE AND WE ARE OK

The Brazilian government is offering a one-time opportunity for tax dodgers to report undisclosed offshore accounts, pay corresponding taxes, pay a penalty fee and have a clean record. As much as $400 bn could be hidden in offshore accounts from Brazil. The program offers a 6-month window starting April 4th. The government aims to cover some of the budget deficit with the initiative and expects to raise around $10 bn, however raised funds may exceed expectations.  To qualify for the offer the accounts need to prove the money was earned legitimately; current politicians and public workers cannot apply. The offer sounds like one you could not refuse as would avoid jail.

OIL DOWN AS KUWAIT STRIKE ENDS

Kuwait´s oil workers ended a three-day strike sending oil futures 2% down. It was reported that the strike had a significant impact on Kuwait´s oil production. Oil price could be further pressured as Russia may increase oil production and exports; following the failure of reaching any output freeze deal in Doha. Oil Price could also find difficulties if the already high levels of oil inventories in the US continue to rise.

FIRST GAS IMPORT PERMITS GRANTED IN MEXICO

The Energy Ministry granted 11 permits for gasoline imports and 21 for diesel to 22 foreign and domestic firms. In addition 62 imports requests have been submitted for a total of 11.5% of total gasoline consumption (2015) and 30% of diesel consumption. Currently PEMEX imports around 50.7% of gasoline consumption, so there is still demand to catch up. Permits are granted for 20 years and require to meet quality criteria set by the Energy Ministry.

ARGENTINA OPENS DEBT ACCESS FOR DEVELOPING ECONOMIES

Raising $16.5 bn in highly oversubscribed offering, Argentina´s success opens opportunity for emerging markets´debt issuance. Banks are already claiming we are in the best financing conditions for emerging markets since 2012… really?

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