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 market.
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 government's plans.
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 on
pay for Brazil's investment bankers.