Espresso for April 21st
QUOTE OF THE DAY
“Doha or no Doha, we see that the market is turning,” OPEC Secretary General Abdullah El-Badri told in Paris´ oil summit .
WHAT MARKETS ARE TALKING ABOUT
OIL CONTINUES RECOVERY
WTI Crude oil trades at 44.2 USD/BBL as US output dropped to lowest since October 2014 to 8.95 million barrels a day in the week ended April 15. In addition Iraq said OPEC could renew talks of output freeze in May, this in despite of OPEC´s secretary-general, Abdullah El-Badri, saying cartel may discuss oil freeze until June´s (Austria) meeting. El-Badri expects oil market to begin rebalancing in 3Q16 and a turnaround in 2017. Oil recovery during 2016 has boosted stock gains in LatAm however current prices still poses risk to oil producers.
CEMEX reported 1Q16 results that were in-line with analysts´estimates. The Mexican cement maker posted first first-quarter profit in seven years. EBITDA reached $583 mn with results supported by US sales. The stock is 36.2% Year-to-date.
IS TEMER SEEING WHAT IS COMING?
Looking past the euforia of Dilma Rousseff´s impeachment Brazil´s economic situation is really challenging, to say the less, the National Treasury along with most of the states are broke, Petrobras´ survival seems posible only through a capital increase and banks are in a delicate position. Michel Temer as a potential president will face a extremely difficult scenario and he is already having trouble forming an economic team… would you join?