Good morning this Thursday February 27. Emerging markets are out performing global markets by 1.6% despite concerns in Eastern Europe. Watch the EEM level as we approach the $40 level once again and be sure to tune and to see how we are play China and what areas are marketing making money.
Petrobras (PBR, quote) stock on the move after earnings slump on higher import fuel costs. The stock has rocketed through the 200 day moving average this morning and hasn’t seen this type of strength through that average since January of 2012.
Taking a look at Gazprom (OGZPY, quote) versus Petrobras (PBR, quote). If 5 years ago you asked most investors globally which companies had the best chance to become the world’s first company to hit a $1 trillion market cap, Gazprom and Petrobras would have been in the top 3 or 4 names being bandied about.
Petrobras (PBR, quote) issuing $11 billion in debt to set a record for an emerging markets debt offering. The company is using the opportunity of negative real rates in Brazil (officially no, but in terms of true cost of living, YES), and most of the world to tap a global debt market starving for yield.
Petrobras (PBR, quote) announced that the company is boosting cashflow-negative and loss-leading gasoline imports at their fastest pace ever in attempt to hold down prices for alternative fuels, while trying to block investment in alternatives, or at least make investments in these kinds of products– namely, ethanol — unattractive.