SELIC (Sistema Especial de Liquidação e de Custódia) or the Special System for Settlement and Custody, is the Brazilian Central Bank’s vehicle for undertaking open market operations — much like the Federal Open Market Committee of the United States Federal Reserve.
Second quarter earnings season results in Brazil show weak data and a drop in companies’ earnings per share, according to a report from Santander bank.
Thursday’s best web covers the Russian natural gas exporting monopoly, increases in steel production by Jindal, Apple’s launch of the new iPad in China, new rules for Indonesian banks, and trouble in Brazil’s FIDC market.
Analysts at Credit Suisse have sounded the alarm over Brazilian banks as credit default rates climb and interest rate spreads squeeze profitability. The report focuses on two problems within the industry: slower growth than recent years and lower interest rate spreads.
With the banking sectors in two of the four BRIC markets — Brazil and China, facing short and long-term systemic challenges, Indian lenders have held up better than their counterparts, only to falter in the last few weeks.
Brazil’s largest independent investment bank BTG Pactual is set to offer the world’s fourth largest initial public offering for the year 2012 in Brazil this week. The bank is looking to raise around $2 billion in the oversubscribed offering.
Stocks around the emerging world have had a tough week, but the Brazilian financial sector has been lagging the rest of the Bovespa, not to mention banks elsewhere. There’s a good reason for this, and it hasn’t been reported widely.