Corruption Probes Slow Down Brazilian Bulls

Latin American markets closed the day mixed, with Brazil and Argentina rising while Mexico edged lower on Wall Street weakness and modest profit-taking pressure.

Despite the gains in Brazil, investors remain worried about corruption investigations which threaten to derail economic reforms. Also, Chile reported strong economic growth for the first quarter.

Brazil’s benchmark Bovespa Index jumped 330.35 points, or 1.36%, while Mexico’s benchmark Bolsa Index shed 8.86 points, or 0.07%. Argentina’s Merval Index rose 8.54 points, or 0.59%.

Brazilian shares were higher, snapping back from recent selling pressure. Concerns that a series of corruption and misconduct scandals affecting members of the government will slow economic reforms continued to hang over the market, however.

Late yesterday, a judge on the Supreme Court asked federal police to open an investigation into Social Security Minister Romero Jucá’s alleged fraudulent use of public financing. An investigation is also looking into Central Bank President Henrique Meirelles for tax irregularities.

Turning to corporate developments, Embratel is planning to buy the entire 37.11% stake of local pay television company Net Serviços de Comunicação, currently owned by their parent company Telmex. Embratel will use its own shares to pay Telmex if the two sides reach an agreement.

Also, Korean steel giant Posco signed an agreement to advance studies of a proposal to build a large steel plant on the coast of Northern Brazil with the Brazilian mining giant CVRD. CVRD said the plant would have the capacity to produce up to 7.5 million tons of steel slabs per year.

Mexican markets were mixed to lower, tracking a similar performance in the U.S., as the market reacted to the minutes from the last Federal Reserve policy setting meeting.

The committee stated its ongoing belief that current monetary policy is accommodative and that “the current level of short-term rates remained too low to be consistent with sustainable growth and stable prices in the long run.” Still, many brushed off the report as offering no new insight into where rates are headed.

In local inflation news, the consumer price index for the first half of May fell 0.42%, compared with expectations for a decline of 0.30%.

Shares of Cintra were active, with the stock continuing to build on its gains for the year amid expectations that the government will sell its main holdings in the airline holding company. Cintra runs both AeroMexico and Mexicana.

Turning to Argentina, the market edged up modestly as investors continue to await the finalization of the debt swap. In economic news, super market sales climbed 3.4% in April over the year-prior period, but were down 0.9% from the prior month. Shopping center sales were up 9.4% on the year, but down 0.8% on the month.

Finally, Chilean economic growth rose 5.7% in the first quarter, well above the 5.1% figure the Central Bank had been anticipating, but in line with analyst predictions. Domestic demand jumped 10.8% in the quarter, while gross capital formation jumped 26.1%.

Thomson Financial Corporate Group –



  • Show Comments (7)

  • Petrus

    Bring Brazil’s arrogant Jewish Embratel RJ CFO Isaac Berensztejn and his family to justice
    “I want justice from the Brazilian authorities and those in New Zealand to deal with Isaac Berensztejn and his daughter Julia.” said Peter Robb who spent ten years getting paying his way through a double degree at the University of Otago. ” My degrees are useless now as a result of the old believer Berensztejn lying to University Authorities about a dumb picture. They should not be allowed to creat a cess pit of crime and corruption at the University of Otago and PUC- Rio over his daughter’s vexatious and sexualised remarks

  • Eric Kalume

    slowdown brazil and argentina
    Hey I have a question concerning the economic slowdown and what factors could have countributed to it? for Brazil and Argentina

  • Jim Stubbs

    Dear Peter
    You are pathetic.

    What you have is a mental illness.

    Get help.

  • eelco

    lol. peter spouting again
    dear god. get some help peter. googling your sorry ass after reading about the german woman who fled from you, i find all this *** about you harassing some other woman.

    1: you are 54. not 32, 33, 34 or any other age. 54. at least. deal with it. get some dignity.

    2: spamming porn sites with the search phrase “julia roiter ***s peter robb” isnt gonna make it happen man. its just pathetic. shes less than half your age you creepy ***.

    3: people not wanting you, bad things happeing to you etc, is not a conspiracy of police harassment, its a reflection on your own behaviour. of course you are way too narcissistic to ever believe you are not 100% correct.

    i dont know you, and have no interest in you, and no associations with anyone that does, but i’ve sure met a few control freaks with god complexes.

    anyone who knows this guy, should run a 10 miles and NEVER have contact with him again. they dont get any better, only worse. do not challenge his illusions about himself in person, as they can get violent when you do this (sociopaths)

  • Petrus

    correction- Daughter of Embratel CEO in Rio de Janiero at centre of international sex scandal
    Julia Roiter Berensztejn daughter of control freak Isaac Berensztejn CFO of Embratel RJ, by recent admission never actually laid a complaint with the police. In a blossoming unhealthy relationship with Constable Max Holt, Julia merely went for advice, but her inquiries were contrived into a complaint once the Deputy Proctor Andrew Ferguson who decided to abuse the Student Code of Conduct at the University of Otago in September 2007. The University has now admitted Mr Isaac Berensztejn liad a complaint against Peter Robb, Julia’s group project partner and friend. Peter Robb was tresspassed for over three months and missed all his final exams as a result.Peter Robb, double degree graduate was expelled in 2008 indefinitely over the ongoing fallout regarding the incident.He has appealed the decisions.

  • petrus

    Daughter of Embratel CFO, not CEO.
    Correction- Issac Beresztejn is the Chief Financial Officer ( CFO) for Embratel not the CEO.

  • Petrus

    Daughter of Embratel CEO in Rio de Janiero at centre of international sex scandal
    Embratel’s CEO in Rio de Janiero, Issac Berensztejn sent his daughter to University of Otago from PUC Rio PontifÀƒ­cia Universidade for semester 2 in 2007.

    The daughter an undergraduate in Design Studies laid a false complaint to the police about a collegue a Design Studeies double degree graduate she worked with on a project with, while she stayed at Cumberland College.
    University authorities turned the harmless activities of the two [subject of the complaint] into a sex scandal that now has the double graduate arrested and put in Jail on criminal harassment charges.
    Peter Robb B.A & B.C.Ap.Sc was released from custody and appeared in the Dunedin District Court on Thursday, April 24th 2008 and adjourned until May 8th 2008 for a hearing. Mr Robb faced considerable corruption from authorities up to the level of a judge involved with the police complaints authority in New Zealand. He had no idea the woman was the daugther of CEO for Embratel Communications listed on the brazlian stock exchange.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Embraer Gets Certification for Phenom 100 Jet in Brazil. US Is Next

Brazil-made Embraer's Phenom 100 entry level executive jet received its Type Certificate from Brazil's ...

Coming Up in Brazil – Serra Versus Dilma?

The world’s eye may be on the presidential contest in the United States but ...

Artists, Musicians and Chefs Give Washington DC a Monthful of Brazil

Brazil Moves, a month long celebration of Brazilian life, arts, food and culture is ...

Brazil’s Fallen Finance Minister Talks About Meanness Against Him

Brazil’s Ministry of Finance released the entire text of the resignation letter that former ...

Brazil Cuts a Rhode Island Worth of Amazon or Much More in 3 Months

Preliminary data reported this Wednesday, January 23, by the Brazilian Environment ministry and the ...

Brazil Expects Foreign Investments to Fall US$ 10 Billion in 2009

Brazil's estimated trade surplus (positive balance of exports less imports) for 2008 has been ...

Brazil’s Giant Petrobras Gets Another Piece of Argentina

The Executive Director of Petrobras Argentina, Alberto Guimarães, said that Petrobras is awaiting authorization ...

Brazil Has a Lot to Learn from the US Primaries

The U.S. presidential candidates in the general election debate only a few times, but ...

Brazil Gives Australia a Hand on Biofuel Prospects

The Australian government will create a study group to examine the impacts of ethanol ...