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Global X Brazil Consumer ETF (BRAQ)

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  • Yesterday, 10:01 AM
    • Brazil's economy shrank 1.9% in Q2, missing forecasts for negative 1.7%. Investment fell 8.1% - its eight straight quarter of decline and the longest streak since the current data series started in 1996. Household consumption dropped 2.1%, its worse decline since 2001. Government spending rose 0.7%. The year-over-year inflation rate was 9%.
    • "The drop in consumption shows the crisis of confidence the economy is facing," says an economist. "This is going to be an intense and prolonged recession and I don't see a recovery this year."
    • The lame economic activity could spell doom for Brazil's credit rating - currently just above junk status.
    • The Bovespa is lower by 0.4%. EWZ -1.15%
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 3 Comments
  • Tue, Aug. 25, 5:58 PM
    • Petrobras (NYSE:PBR) is among the Brazilian borrowers most at risk of seeing leverage ratios swell as the country's real posts the world’s biggest currency losses, according to a Bloomberg analysis.
    • For PBR, electric utility Eletrobras (NYSE:EBR), airline Gol Linhas Aereas Inteligentes (NYSE:GOL) and mall operator General Shopping Brasil (OTC:GBRAF), every 10% depreciation in the real boosts the companies’ debt-to-earnings ratio by a factor of 1x, Fitch Ratings says.
    • The companies, with a combined $60B of overseas bonds outstanding, are vulnerable to a falling real because they have high levels of foreign currency debt while most of their sales are in the local tender.
    • PBR’s $2.5B in bonds due 2024 have dropped ~9% YTD, EBR's $1.75B of bonds due 2021 have tumbled 13% since December, while GOL’s $325M in notes due 2022 have shed 17%.
    • ETFs: EWZ, BRZU, BRXX, BRAQ, BZQ, BRAF, UBR, DBBR, FBZ
    | 1 Comment
  • Mon, Aug. 24, 8:08 PM
    • Economists in Brazil forecast inflation will accelerate to a 5.50% rate in 2016 and GDP will fall 0.24%.
    • The revised outlook marks the third consecutive week the estimate for inflation has been raised, while the view on GDP has been trimmed amid a weak local currency.
    • Multinationals, including automakers and consumer products companies, banking on a pre-Olympics economic rush in Brazil have had to pull back expectations.
    • ETFs: EWZ, BRF, BRZU, BZF, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ.
    | 6 Comments
  • Thu, Aug. 20, 2:47 AM
    • Brazil's Senate has approved a bill to roll back corporate tax breaks, as President Dilma Rousseff's looks to reduce a gaping fiscal deficit and restore confidence in the face of record-low popularity ratings, a spreading corruption scandal and looming recession.
    • The measure will boost revenue by 10B reais ($2.9B) annually and aims to save Brazil's threatened investment grade credit rating.
    • ETFs: EWZ, BRF, BRZU, BZF, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | Comment!
  • Mon, Aug. 17, 4:13 AM
    • Hundreds of thousands of Brazilians took to the streets on Sunday calling for the impeachment of President Dilma Rousseff, although turnout appeared significantly lower than two massive protests staged earlier this year.
    • Demonstrators denounced widespread corruption among the country's political and business elites and called for the end of more than 12 years of Workers' Party rule.
    • Barely seven months into her second term, Rousseff has seen her approval rating drop to just 8%, while the Ibovespa stock index has plunged 10% over the same period
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 1 Comment
  • Fri, Aug. 14, 4:00 AM
    • Brazil President Dilma Rousseff is poised to face another key test as allegations of corruption and incompetence swamp her government, and plummeting commodity prices sap the country's economy.
    • Hundreds of thousands of angry citizens are expected to descend on central squares on Sunday, marking this year's third mass protest calling for her impeachment.
    • A strong showing could help support an ouster and deepen a selloff in the financial markets. Brazil's benchmark Ibovespa stock index has plunged 17.2% since she was re-elected last October.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 3 Comments
  • Tue, Aug. 11, 4:27 PM
    • Weaker-than-expected economic performance, the upward trend in government spending, and lack of consensus on government reform are teaming up to make the country's debt situation "deteriorate materially" this year and next, says Moody's, cutting Brazil's credit rating to Baa3 from Baa2. With the cut, the outlook is upgraded to stable from negative.
    • Not mentioned by Moody's is last night's devaluation of the yuan and how that might (negatively) impact exporters.
    • EWZ +1.9% in active after hours trading. The ETF is lower by about 50% over the past year.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | Comment!
  • Wed, Jul. 29, 2:53 AM
    • Standard & Poor's has warned Brazil it could lose its coveted investment-grade rating in the coming year if fallout from a number of corruption investigations further stymies economic growth and implementation of austerity measures.
    • The agency has now put the country's foreign currency rating, which is rated one notch above junk, on negative outlook for possible downgrade.
    • The Brazilian real slid 2% to 3.43 per dollar following the announcement, its weakest level in more than 12 years.
    • ETFs: EWZ, BRF, BRZU, BZF, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 1 Comment
  • Fri, Jul. 24, 11:48 AM
    | 21 Comments
  • Fri, Jul. 17, 3:59 PM
    • Brazil's political crisis deepens as Eduardo Cunha, the head of Brazil’s lower house, said today he is breaking with the ruling coalition.
    • Cunha accused Pres. Rousseff's administration of pressuring prosecutors to implicate him in the widening corruption scandal at Petrobras scheme; late yesterday, the federal judge leading the investigation broadcast testimony from a defendant who turned state’s evidence alleging that Cunha took bribes.
    • The move comes after a series of recent defeats in congress for Rousseff as lawmakers turned aside efforts to contain spending and raise taxes as she seeks to preserve Brazil’s investment-grade credit rating.
    • PBR -5.5%, VALE -2.2%, EBR -2.1%, ELP -2.9%, CIG -5.8%, CPL -2.1%, SBS -2.9%, BSBR -1.1%, BBD -2.2%, ITUB -1.5%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 8 Comments
  • Thu, Jun. 25, 3:57 PM
    • Brazil's financial markets were routed today after a news report that former President Luiz Inacio Lula da Silva could be arrested as part of the sweeping corruption scandal involving Petrobras (PBR -4.7%).
    • Investors were spooked by a report that a habeas corpus legal filing had been made on behalf of Lula to protect him from unlawful arrest in the corruption investigation; spokespersons later said the proceeding had not been filed by the ex-president or his representatives and that they had no prior knowledge of it.
    • Also, Brazil's non-seasonally adjusted jobless rate rose in May to 6.7%, the highest since 2010, from 6.4% in April, reinforcing worries that the country is on the verge of a recession.
    • Also: PBR.A -5%, VALE -3.6%, EBR -4.5%, ELP -2.5%, CIG -4.6%, CPL -2.6%, SBS -2%, BSBR -2.5%, BBD -1.1%, ITUB -2.7%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 34 Comments
  • Fri, Jun. 19, 11:37 AM
    • Brazilian police today arrested Marcelo Odebrecht, head of Latin America's largest engineering and construction company - and Otavio Marques Azevedo, head of Brazil's second-largest construction firm, Andrade Gutierrez.
    • Lead prosecutor Carlos Fernando dos Santos Limas, has "no doubt" the two led a "cartel" which overcharged Petrobas (NYSE:PBR) for work, using the extra money to grease executives and politicians as necessary.
    • Calling the arrests the most significant to date, Eurasia's Christopher Garman and Joao Augusto de Castro Neves suggest a 40% chance the ballooning corruption probe could push the economy into a deeper-than-expected recession. The arrests, they say, means the investigation could be getting closer to former President Lula.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 8 Comments
  • Thu, Jun. 4, 9:19 AM
    • As expected, the Copom last night hiked its benchmark Selic rate by 50 basis points to 13.75%, the highest since January 2009. The bank also signaled more rate hikes could be in the offing as it tries to pull inflation back to the 4.5% center of its target range by next year.
    • Over the past six months rates have been lifted by 275 basis points despite pressure from a number of sides that growth and the government debt load are larger worries. The Brazilian economy is forecast to contract 1.3% this year.
    • EWZ is lower by 9% YTD and 28% Y/Y.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | Comment!
  • Fri, May 22, 12:34 PM
    • Brazil stocks are sharply lower after Eletrobras (EBR -4.5%), the country’s largest utility by revenue, was cut to junk by Moody’s.
    • While EBR showed “some financial improvement” in its Q1 earnings, its credit metrics remain too weak to remain at investment grade, Moody’s said, also citing an investigation on alleged bribes involving the former head of a subsidiary.
    • Meanwhile, Pres. Rousseff is trying to salvage her presidency as things go from bad to worse amid the Petrobras (PBR -3.8%) corruption scandal, with a new poll finding that 63% of Brazilians favor impeachment proceedings.
    • Brazilian opposition lawmakers are considering impeachment, either as an accessory to the corruption or for crimes of “irresponsibility” with finances.
    • Also: PBR.A -3.8%, EBR.B -6.6%, VALE -0.2%, ELP -1.2%, CIG -3.3%, CPL -2%, SBS -4.7%, BSBR -2.7%, BBD -2.6%, ITUB -2.3%.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 26 Comments
  • Tue, May 19, 5:21 PM
    • China confirms it is extending billions of dollars in loans and investment to Brazil, including $7B in financing for Petrobras (NYSE:PBR), as part of a major foray into Brazil's energy, infrastructure and mining industries.
    • The countries also finalized a deal to sell 22 Embraer (NYSE:ERJ) commercial jets to China’s Tianjin Airlines, while Vale (NYSE:VALE) announced extended cooperation with China on maritime transport of iron ore.
    • The news unveiled during Chinese premier Li Keqiang's official visit is a ~$50B boon for Brazil as it endures a fifth straight year of low growth.
    • ETFs: EWZ, BRF, BRZU, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
    | 17 Comments
  • Thu, Apr. 30, 8:11 AM
    • Focused on inflation instead of the sputtering economy, Brazil's central bank boosts its benchmark interest rate by 50 basis points to 13.25%. WIth economic conditions continuing to worsen, the consensus is looking for one more rate hike at June's meeting and then a stop.
    • In the 12 months through mid-April, inflation is up 8.22% vs. the central bank's target range of 2.5-6.5%.
    • The Brazilian stock market may already be discounting the next easing cycle - it's up 18% since the end of January.
    • ETFs: EWZ, BRZU, BRXX, BRAQ, BZQ, BRAF, UBR, DBBR, FBZ
    | Comment!
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BRAQ Description
The Global X Brazil Consumer ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Consumer Index.
See more details on sponsor's website
Country: Brazil
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