Nobody knows what is going on with the currency in Brazil. After months of targeting a weaker real, the Brazil Central Bank may be changing course, and they may have to.
Thursday’s best web covers jumpstarting the Brazilian economy, new ETFs, foreign investment in Bulgaria, Samsung releasing the new Galaxy Note 10.1 in Korea and surprising growth in Malaysia.
Brazil unveiled a new round of temporary tax cuts this week aimed at jump-starting an economy that has underperformed its BRIC and other emerging market peers.
In this morning’s markets update, the rally continued overnight with moderate gains in Asia thanks to no additional news out of the euro zone, combined with China’s growth initiatives.
Brazil’s policy of weakening its currency to make exports more competitive has worked – maybe too well.
Once considered “market friendly,” Brazilian President Dilma Rousseff has started to unnerve investment banks and drive the Bovespa into a deep correction. Expect downgrades and maybe a few bottom feeding opportunities.
American markets tumbled on the back of disappointing jobs data, a gloomy growth outlook, and nervousness going into European elections this weekend.