- The University of Chicago-trained Joaquim Levy - nicknamed "Scissorhands" for his budget-cutting abilities - caused a stir yesterday afternoon on word he would skip this weekend's G-20 meeting of finance ministers in Turkey. Though that decision was reversed later, speculation is growing he could resign just eight months after taking the helm at Brazil's finance ministry.
- It would be another blow to the Rousseff administration, where Levy is about the only one in government with the support of investors. His exit would likely mean the country's credit rating being cut to the junk level at some point.
- “Levy is persistent, so if he fails to drive through the adjustments needed, it’s a very bad sign," says Goldman's chief LatAm economist Alberto Ramos. "If he can’t do it, then who can?”
- The Bovespa is lower by 2.1% today, EWZ -4.5%. Among bank ADRs: Banco Bradesco (BBD -5.6%), Itau Unibanco (ITUB -6.3%), Banco Santander Brasil (BSBR -7.2%).
- ETFs: EWZ, BRZU, BRXX, BRAQ, BZQ, BRAF, UBR, DBBR, FBZ