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iShares MSCI Brazil Capped ETF (EWZ)

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  • Dec. 5, 2014, 12:02 PM
    • November inflation of 0.51% rose from 0.42% in October, but was less than forecasts for 0.54%. Annual inflation slowed to 6.56% from 6.59%.
    • The central bank hiked the benchmark Selic rate another 50 basis points to 11.75% this week, and Capital Economics' Neil Shearing suggests today's inflation report won't change the bank's perception that any future hikes "should come sparingly."
    • The Bovespa is up 0.75% in today's session.
    • ETFs: EWZ, BRZU, BZQ, UBR, DBBR, FBZ
    | Comment!
  • Nov. 28, 2014, 8:01 AM
    • GDP grew at a 0.3% annualized rate in Q3, exiting recession, but at a pace roughly half of that forecast by economists.
    • “The worst is behind us in terms of growth, but the situation is still very bad,” says Enestor dos Santos, principal economist at BBVA. “We’re going to see the negative impact of the fiscal adjustment everybody’s celebrating. I view this positively, but in the short term this shock (the administration's pledge to cut the budget deficit) is negative news for growth.”
    • EWZ -2% premarket, with PBR -6.4% as the price of oil plummets.
    | 2 Comments
  • Nov. 25, 2014, 12:31 PM
    • Brazil Pres. Rousseff reportedly will appoint former treasury secretary Joaquim Levy as finance minister later this week, a move that has moved major Brazilian stocks higher although the move had been anticipated.
    • Levy, head of Bradesco Asset Management, is considered a fiscal hawk who helped Brazil obtain its investment credit grade as treasury secretary; he will replace Guido Mantega, who said he will step down for personal reasons.
    • PBR +1.8%, VALE +0.4%, BBD +0.7%, BSBR +5%, ITUB +0.5%, GOL +1.3%.
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
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  • Nov. 21, 2014, 4:21 PM
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  • Nov. 21, 2014, 10:06 AM
    • Petrobras (PBR +7.2%) and Vale (VALE +9.6%) surge higher in anticipation that Brazil may appoint a new market-friendly finance minister today, perhaps signaling a shift away from the leftist, interventionist policies blamed for Brazil's stagnant economic growth in recent years.
    • One of three reported finalists for the job is University of Chicago-trained Joaquim Levy, CEO of Bradesco Asset Management, an arm of Banco Bradesco (BBD +4.9%); he is considered a fiscal hawk who helped Brazil obtain its investment credit grade in a previous stint at treasury secretary.
    • The other contenders are said to be central bank president Alexandre Tombini and Nelson Barbosa.
    • Also: ITUB +3.8%, BSBR +2.9%, GOL +4.6%.
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 1 Comment
  • Nov. 19, 2014, 3:09 PM
    • “The Brazilian economy is in a perilous state," says Nomura's Tony Volpon after a recent visit. Among the red flags: A weakening labor market, inflation above target, a primary government budget deficit, a trade deficit, and a corruption scandal engulfing the country's largest corporation, Petrobas. "One could conclude that the Brazilian economy is unraveling."
    • Maybe more important than the political consequences of the Petrobas investigation are the economic ones, says Volpon, noting the probe is spreading to companies in the electricity and financial sector which do business with the giant. While the scandal is good for clearing out the pipes in the medium-term, in the short-term, there's the chance of "a negative supply-side exogenous shock of unknown proportions."
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 3 Comments
  • Nov. 14, 2014, 4:38 PM
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  • Nov. 14, 2014, 10:23 AM
    • "It will be difficult to maintain the investment-grade rating even under best case scenario,” says Siobhan Morden, head of Latin America strategy at Jefferies.
    • Crucial at the moment is who will be appointed finance minister, says Morden, as the selection will tell us whether newly-elected President Rousseff is committed to fiscal restraint.
    • As for the stock market and the real (both currently under pressure), they may have already discounted the negative headline risk on cabinet appointments, says Morden.
    • The Bovespa is lower by 1%. EWZ -2.25%
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, UBR, BRZS, DBBR, FBZ
    | 1 Comment
  • Oct. 30, 2014, 9:28 AM
    • The central bank had been expected to leave policy unchanged, but instead last night hiked the benchmark Selic rate by 25 bps to 11.25%. The move comes following the re-election of Dilma Rousseff, which rattled Brazilian markets.
    • "Very well done," says Goldman's Alberto Ramos. "This definitely is a great step forward to rebuild the credibility of the inflation-targeting regime ... This is market friendly."
    • The Bovespa is higher by 2% in the early going. EWZ +3.2% premarket
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 3 Comments
  • Oct. 29, 2014, 3:15 AM
    • In line with an earlier statement from Moody's saying it is in no rush to decide whether to cut Brazil's rating, newly re-elected President Dilma Roussef affirmed that the country will avoid a downgrade in her second term, and that the economy will recover.
    • Brazil currently stands two notches into investment-grade zone for Moody's and Fitch, although Standard & Poor's previously cut the government's debt to near-junk level.
    • Meanwhile, Brazil's central bank will likely keep interest rates steady for a fourth straight time today, holding its ground until Rousseff announces changes to economic policy.
    • ETFs: EWZ, BRZU, BZQ, UBR, BRZS, DBBR, FBZ
    | Comment!
  • Oct. 28, 2014, 2:24 PM
    • "I think we'd be crazy not to," says Jim Chanos, still short Brazil, but taking some profits after a near 20% dive in the Bovespa over the last couple of months which may or may not have had its denouement in yesterday's post-election plunge.
    • Among the individual names Chanos had in the past talked about being short were Petrobas (PBR +4.3%) and Vale (VALE +0.6%), from which the Bovespa is heavily weighted. The two combine to represent about 8% of the assets in the iShares MSCI Brazil Capped ETF (EWZ +5.6%).
    • "I think a lot of [Rousseff's reelection] is priced in already now," says Chanos.
    • ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | Comment!
  • Oct. 27, 2014, 7:08 PM
    • If Goldman's new forecast for Brent crude oil prices of $85 in 2015 and ~$90 in the long term proves correct, it would be a big problem for Petrobras (NYSE:PBR), since it has sunk tens of billions of borrowed dollars into development of barrels for future production, Heard On The Street's Liam Denning writes, noting that Morgan Stanley estimates marginal costs on Brazilian fields range from ~$75/bbl to more than $100.
    • While lower global oil prices should alleviate some of PBR’s downstream losses, the net effect is still negative; UBS estimates that even including some benefits, a Brent price of $80-$90 cuts the company’s net asset value by 20%-40%.
    • Lower long-term oil price assumptions also could reduce the incentive to develop new fields; IEA projections for Brazil to contribute 16% of the growth in non-OPEC oil production during 2013-20 may now have to come down, which would add yet another headwind to Brazil’s economy.
    • ETFs: EWZ, BRZU, BZQ, UBR, BRZS, DBBR, FBZ
    | 4 Comments
  • Oct. 27, 2014, 10:31 AM
    • It's an ugly open for Petrobras (PBR -14.2%) following Pres. Rousseff's re-election as Brazil's president, as hopes are dashed for a regime change that might have helped investor confidence in the country and the company.
    • Rousseff's victory "was not totally priced in yet," Loomis Sayles analyst Bianca Taylor says, adding that she expects a slump in Brazil assets as a whole in the next few days.
    • PBR and state-controlled utility Centrais Eletricas Brasileiras (EBR -12.3%) were the two worst performing stocks in the 834-member MSCI Emerging Markets Index this morning.
    • Also: VALE -5.9%, ITUB -6.5%, BBD -8.1%, GOL -7.6%.
    • Brazil ETFs: EWZ -6.7%, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    | 6 Comments
  • Oct. 27, 2014, 7:12 AM
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  • Oct. 26, 2014, 8:41 PM
    • Incumbent Dilma Rousseff is re-elected to a second term as Brazil's president, winning about 51% of the votes, according to the official count. It could be bad news for Brazilian stocks, or just maybe her victory was already priced in.
    • The Bovespa had been about 2014's strongest major global market through roughly August as polls showed support evaporating for Rousseff, but the index has slumped more than 15% over the past two months as a victory by her more conservative challenger Aecio Neves looked less and less likely.
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, BRZS, DBBR, FBZ
    • Among individual stocks: Petrobas (NYSE:PBR), Vale (NYSE:VALE), Itau Unibanco (NYSE:ITUB), Banco Bradesco (NYSE:BBD), Gol Linhas (NYSE:GOL).
    • Broad Latin American ETFs: ILF, LBJ, GML, EEML, FLN
    | 8 Comments
  • Oct. 24, 2014, 4:14 PM
    | 1 Comment
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EWZ Description
The iShares MSCI Brazil Capped Index Fund (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Brazil 25/50 Index (the “Underlying Index”).
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Country: Brazil
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