Corruption Probes Slow Down Brazilian Bulls

    Latin American markets closed the day mixed, with Brazil and Argentina rising while Mexico edged lower on Wall Street weakness and modest profit-taking pressure.

    Despite the gains in Brazil, investors remain worried about corruption investigations which threaten to derail economic reforms. Also, Chile reported strong economic growth for the first quarter.

    Brazil’s benchmark Bovespa Index jumped 330.35 points, or 1.36%, while Mexico’s benchmark Bolsa Index shed 8.86 points, or 0.07%. Argentina’s Merval Index rose 8.54 points, or 0.59%.

    Brazilian shares were higher, snapping back from recent selling pressure. Concerns that a series of corruption and misconduct scandals affecting members of the government will slow economic reforms continued to hang over the market, however.

    Late yesterday, a judge on the Supreme Court asked federal police to open an investigation into Social Security Minister Romero Jucá’s alleged fraudulent use of public financing. An investigation is also looking into Central Bank President Henrique Meirelles for tax irregularities.

    Turning to corporate developments, Embratel is planning to buy the entire 37.11% stake of local pay television company Net Serviços de Comunicação, currently owned by their parent company Telmex. Embratel will use its own shares to pay Telmex if the two sides reach an agreement.

    Also, Korean steel giant Posco signed an agreement to advance studies of a proposal to build a large steel plant on the coast of Northern Brazil with the Brazilian mining giant CVRD. CVRD said the plant would have the capacity to produce up to 7.5 million tons of steel slabs per year.

    Mexican markets were mixed to lower, tracking a similar performance in the U.S., as the market reacted to the minutes from the last Federal Reserve policy setting meeting.

    The committee stated its ongoing belief that current monetary policy is accommodative and that “the current level of short-term rates remained too low to be consistent with sustainable growth and stable prices in the long run.” Still, many brushed off the report as offering no new insight into where rates are headed.

    In local inflation news, the consumer price index for the first half of May fell 0.42%, compared with expectations for a decline of 0.30%.

    Shares of Cintra were active, with the stock continuing to build on its gains for the year amid expectations that the government will sell its main holdings in the airline holding company. Cintra runs both AeroMexico and Mexicana.

    Turning to Argentina, the market edged up modestly as investors continue to await the finalization of the debt swap. In economic news, super market sales climbed 3.4% in April over the year-prior period, but were down 0.9% from the prior month. Shopping center sales were up 9.4% on the year, but down 0.8% on the month.

    Finally, Chilean economic growth rose 5.7% in the first quarter, well above the 5.1% figure the Central Bank had been anticipating, but in line with analyst predictions. Domestic demand jumped 10.8% in the quarter, while gross capital formation jumped 26.1%.

    Thomson Financial Corporate Group –



    • Show Comments (7)

    • Jim Stubbs

      Dear Peter
      You are pathetic.

      What you have is a mental illness.

      Get help.

    • eelco

      lol. peter spouting again
      dear god. get some help peter. googling your sorry ass after reading about the german woman who fled from you, i find all this *** about you harassing some other woman.

      1: you are 54. not 32, 33, 34 or any other age. 54. at least. deal with it. get some dignity.

      2: spamming porn sites with the search phrase “julia roiter ***s peter robb” isnt gonna make it happen man. its just pathetic. shes less than half your age you creepy ***.

      3: people not wanting you, bad things happeing to you etc, is not a conspiracy of police harassment, its a reflection on your own behaviour. of course you are way too narcissistic to ever believe you are not 100% correct.

      i dont know you, and have no interest in you, and no associations with anyone that does, but i’ve sure met a few control freaks with god complexes.

      anyone who knows this guy, should run a 10 miles and NEVER have contact with him again. they dont get any better, only worse. do not challenge his illusions about himself in person, as they can get violent when you do this (sociopaths)

    • Petrus

      Bring Brazil’s arrogant Jewish Embratel RJ CFO Isaac Berensztejn and his family to justice
      “I want justice from the Brazilian authorities and those in New Zealand to deal with Isaac Berensztejn and his daughter Julia.” said Peter Robb who spent ten years getting paying his way through a double degree at the University of Otago. ” My degrees are useless now as a result of the old believer Berensztejn lying to University Authorities about a dumb picture. They should not be allowed to creat a cess pit of crime and corruption at the University of Otago and PUC- Rio over his daughter’s vexatious and sexualised remarks

    • Petrus

      correction- Daughter of Embratel CEO in Rio de Janiero at centre of international sex scandal
      Julia Roiter Berensztejn daughter of control freak Isaac Berensztejn CFO of Embratel RJ, by recent admission never actually laid a complaint with the police. In a blossoming unhealthy relationship with Constable Max Holt, Julia merely went for advice, but her inquiries were contrived into a complaint once the Deputy Proctor Andrew Ferguson who decided to abuse the Student Code of Conduct at the University of Otago in September 2007. The University has now admitted Mr Isaac Berensztejn liad a complaint against Peter Robb, Julia’s group project partner and friend. Peter Robb was tresspassed for over three months and missed all his final exams as a result.Peter Robb, double degree graduate was expelled in 2008 indefinitely over the ongoing fallout regarding the incident.He has appealed the decisions.

    • petrus

      Daughter of Embratel CFO, not CEO.
      Correction- Issac Beresztejn is the Chief Financial Officer ( CFO) for Embratel not the CEO.

    • Petrus

      Daughter of Embratel CEO in Rio de Janiero at centre of international sex scandal
      Embratel’s CEO in Rio de Janiero, Issac Berensztejn sent his daughter to University of Otago from PUC Rio Pontifícia Universidade for semester 2 in 2007.

      The daughter an undergraduate in Design Studies laid a false complaint to the police about a collegue a Design Studeies double degree graduate she worked with on a project with, while she stayed at Cumberland College.
      University authorities turned the harmless activities of the two [subject of the complaint] into a sex scandal that now has the double graduate arrested and put in Jail on criminal harassment charges.
      Peter Robb B.A & B.C.Ap.Sc was released from custody and appeared in the Dunedin District Court on Thursday, April 24th 2008 and adjourned until May 8th 2008 for a hearing. Mr Robb faced considerable corruption from authorities up to the level of a judge involved with the police complaints authority in New Zealand. He had no idea the woman was the daugther of CEO for Embratel Communications listed on the brazlian stock exchange.

    • Eric Kalume

      slowdown brazil and argentina
      Hey I have a question concerning the economic slowdown and what factors could have countributed to it? for Brazil and Argentina

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