In face of the still-challenging macro outlook in Brazil, investors still wonder whether the worst, in terms of loan provisioning, has indeed passed, we believe that is likely the case. Continue reading Brazilian Banks: The Worst Is Behind, But Caution Still Advised
Latin America’s major oil producers have seen declines of almost 400,000 bpd y/y. Without Brazil, production trends in the region would be more dramatic. Continue reading Latin America’s Oil Output Shocks
Summary: For all countries excluding Mexico, analysts are expecting the reversal of their tightening cycles and are trying to predict the beginning of rate cuts. Even bonds considered extremely toxic could offer an interesting opportunity. Latin America is likely to continue offering attractive returns for the time being in order to compensate investors for the region’s inherent risk.
Mexico’s EWW down 3.3% last week as 2Q16 results disappointed. AMX plunged 8.3% while Cemex rose 10.9%. Brazil´s EWZ continues uptrend posting a weekly gain of 1.2%. VALE ´s results surprised while Ambev missed estimates. Continue reading Heatmap Weekly Summary (July 29)
Weekly update and analysis on what is happening in our all-LatAm ADR sample. Main LatAm markets continued rallying as the IMF revised upward GDP growth Continue reading Heatmap Weekly Summary (July 22nd)
A common question for many Mexicans in the past months has been “Why is it that the inflation index (INPC) keeps showing moderate price increases while everyone struggles to make it with the same budget?” We present some of the facts that allow for an explanation of why inflation as measured by INEGI (Mexican Statistics Agency) could be understated. Continue reading Why Mexico INEGI´s reported inflation may be understated
The perception that LatAm as a region is less fundamentally exposed to the Brexit fiasco than other emerging markets is borne out by the data. Brazil and Colombia conduct a large amount of trade with the U.K. and the rest of Europe as a share of their total Continue reading Brexit and Latin American Exports