Since output stalled in 2011, Brazil became the economy
that emerging market investors loved to hate. Dismal growth,
erratic policymaking and dire stock market performance have
been the most widespread complaints. In early September,
companies controlled by businessman Eike Batista appeared to be
hurtling towards a major restructuring.
While that group’s troubles are not
representative of other firms, its freefall in the stock market
has only served to further tarnish Brazil’s image.
Some players are starting to take action: as we examine here,
the BM&FBovespa has moved to tackle problems with
the country’s benchmark index.
Still, the performance of the LatinFinance M&E Brazil
Stars index shows there is
value to be found in the country’s stock
Meanwhile, concerns are growing over the
country’s 180 billion real infrastructure
concession program, a year since it was first announced. An
auction for a road concession, expected to be one of the more
attractive on offer, failed mid-September when not a single
investor bid. We look at
investors’ skepticism on the
Since the global financial crisis, anger —
especially in European capitals — has grown over the
huge sums paid to investment bankers. Between state-led
bailouts and a view that investment bankers were largely
responsible for the crisis, politicians and the public have
attacked the largest institutions for what they see as
profligate spending on pay. Regulations that will restrict what
European banks can pay in bonuses are already having an effect
pay for Brazil’s investment bankers.