Bribery Charges Hit Brazil’s Finance Minister and Markets

Latin American markets were mixed to lower on the day, as Brazil posted another fall on concerns the country’s ongoing political scandal may ensnare Finance Minister Antonio Palocci.

Still, Brazil came off earlier lows toward the close of the session. U.S. markets, meanwhile, were little changed. Mexico and Argentina rose on the day.


Brazil’s benchmark Bovespa Index tumbled 255.97 points, or 0.95%, while Mexico’s benchmark Bolsa Index advanced 58.18 points, or 0.40%. Argentina’s Merval Index jumped 10.76 points, or 0.72%.


Brazilian shares endured another negative session amid the latest developments in the country’s ongoing political scandal. This time, allegations reached market friendly Finance Minister Antonio Palocci.


Brazil newswire Broadcast reported that São Paulo state prosecutors received testimony from a former aide to Palocci when he was mayor of Ribeirão Preto, in the interior of São Paulo, in the 1990s.


The aide said that Palocci received kickbacks from contractors and then gave the money to the Workers Party. Subsequently, Palocci “vehemently denied” receiving kickbacks in a written statement.


On the corporate front, state-run oil firm Petrobras announced that it will raise the price of gas that is imported from Bolivia and then sold to distributors in Brazil.


Petrobras will implement a 13% hike on September 1st and then an additional 10% rise on November 1st. Separately, the firm announced that its U.S. unit, Petrobras America, won 53 offshore oil and gas exploration and production blocks in the Gulf of Mexico as a result of an auction by the U.S. Minerals Management Service.


Elsewhere, CVRD will take a 10% stake in Germany-based ThyssenKrupp Stahl AG’s 1.5 billion euro steel mill project in Brazil. ThyssenKrupp’s supervisory bodies today approved the deal, which is set to produce about 4.4 million metric tons of slabs a year.


Mexico added to gains posted yesterday, bolstered by telecom issues. In economic headlines, the National Statistics Institute, or Inegi, said that unemployment rose to 4% in July from 3.6% in June.


A mining and steel union official warned that Mexican mines, including those of Grupo Mexico, could face a second round of work stoppages on Monday if talks regarding the recent strikes do not move forward.


In research news, a major investment bank upgraded supermarket operator Controladora Comerci to “buy” from “neutral,” due to the firm’s better sales outlook.


Argentine issues advanced on the last day of the expiration of options contracts, which can sometimes lead to market volatility. In economic reports, the national statistics agency, or INDEC, said that industrial production rose a disappointing 6.7% year-on-year on a seasonally adjusted basis. July’s result follows a 6.4% advance in June’s output.


Thomson Financial Corporate Group – www.thomsonfinancial.com

Tags:

  • Show Comments (0)

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.

Ads

You May Also Like

Brazil Looking Forward to Argentina Leader’s Visit

The president of Argentina, Néstor Kirchner, will arrive in Brazil on January 18 for ...

Being and Becoming

Mario Quintana is probably the greatest poet in (at least) the history of his ...

Surplus Times Are Gone. Brazil’s Trade Balance in the Red

Exports from Brazil in the third week of January totaled US$ 2.276 billion (daily ...

Beyond Ouro Preto

Thanks to the wonderful potions prepared by Loira, Loira and Roque postponed old age ...

Brazil Discusses SIVAM, Its 4-year-old Amazon Vigilance Program

A senior government official from Brazil will discuss how the country partnered with industry ...

Brazilian Presidential Candidates Can’t See Eye to Eye on Mercosur’s Usefulness

Dilma Rousseff, the Brazilian presidential candidate handpicked by president Luiz Inácio Lula da Silva ...

Lula’s Popularity and Interests Fall, But Brazil Stock Hits Record High

Latin America collectively moved higher on the day, with Brazilian and Mexican markets hitting ...

Brazil and Argentina Unite to Counter US Soy Prices

Joint soy production between Brazil and Argentina is greater than that produced by the ...

Brazil Offers to Help Bring Venezuela and US Closer Together

Brazil’s presidential aide for International Affairs, Marco Aurélio Garcia, says he spoke with Robert ...

Brazil Top 10 in Entrepreneurship. 13% of Brazilians Have Own Business

In 2007, Brazil has come closer to the main countries in entrepreneurship in the ...