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iShares MSCI Brazil Capped ETF (EWZ)

- NYSEARCA
  • Sep. 11, 2014, 3:36 PM
    • We have been adding to our Brazilian exposure and in particular have been buying Brazilian state-owned enterprises where the outlook is improving and they are priced at deep discounts to their intrinsic value,” says Santander Asset Management's Dipak Chouhan.
    • The Santander Acciones Latinoamerica Fund  - the best performing mutual fund covering that region with a 29% gain YTD vs. the MSCI LatAm Index up 9.4% - has added Petrobas (PBR +1.7%), and increased stakes in Itau Unibanco (ITUB +0.1%), and Estacio Participacoes (OTCPK:ECPCY +0.2%).
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ
    • The fund is also liking Mexico, seeing opportunity and stronger growth amid the opening of the energy market. It's boosted holdings of Alsea (OTC:ALSSF) and Cemex (CX -0.1%), while cutting its stake in Wal-Mart Mexico (OTCQX:WMMVY -0.5%).
    • Mexico ETFs: EWW, UMX, SMK, DBMX
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  • Sep. 9, 2014, 10:37 AM
    • The outlook for Brazil's Baa2 government bond rating is cut to Negative from Stable at Moody's, which notes sustained low growth and worsening debt metrics as suggesting the need for a credit downgrade.
    • Alongside those two factors, says Moody's, is "a marked deterioration in investor sentiment which has negatively impacted fixed capital formation."
    • The Bovespa is lower by 0.25% in early action.
    • ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ, BZF
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  • Sep. 2, 2014, 9:47 AM
    • The HSBC Brazil PMI improved to 50.2 in August from 49.1 in July, "consistent with a fractional improvement in business conditions."
    • HSBC's chief Brazil economist Andre Loes suggests the August gain may have been a rebound following the economic disruption caused by the World Cup. It's the first reading in expansion territory since March.
    • ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ
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  • Aug. 29, 2014, 4:20 PM
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  • Aug. 20, 2014, 3:19 PM
    • For the second time in three weeks, the Central Bank of Brazil injects billions into the banking system as the government grasps for ways to boost the slumping economy ahead of October elections.
    • "It is hoped that the measures will improve small businesses’ access to credit and strengthen foreign trade,” says the bank.
    • Analysts doubt the moves will do a whole lot as the issue, they say, isn't liquidity in the system - there's plenty of that - but that banks are unwilling to lend and borrowers are reluctant to borrow. "No one knows who is going to be president so if you are a businessman why not just wait until November," says Nomura economist Tony Volpon.
    • The Bovespa is ahead 0.5% today.
    • ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ
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  • Aug. 15, 2014, 4:14 PM
    | 1 Comment
  • Aug. 13, 2014, 11:59 AM
    • A private jet carrying Eduardo Campos has crashed, with local TV reporting the presidential candidate was killed.
    • Up earlier in the session, the Bovespa is now lower by 1.3%.
    • Campos was running third in the polls with less than 10%, but his exit from the race is likely to boost current President Rousseff's chances of re-election. Brazilian stocks have been among the strongest globally this year amid optimism Rousseff would fall to her more business-friendly challenger Aecio Neves.
    • EWZ -1.1%. VALE -1.8%, PBR -1.7%
    • ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ
    | 12 Comments
  • Aug. 12, 2014, 2:29 AM
    • The EU is planning to hold talks with Latin American countries to dissuade them of becoming the replacement for Europe’s banned agricultural exports to Russia.
    • EU officials have stated goals of "seeking...a united international front on Ukraine" and to talk to countries that would potentially replace EU exports "to indicate that we would expect them not to profit unfairly from the current situation."
    • Russia has already been courting Latin America for alternative supplies. Brazil has authorized about 90 new meat plants to immediately start exporting chicken, beef and pork to Russia, while Chile is expected to be the replacement for Russia’s embargo on European fish.
    • ETFs: EWZ, RSX, ECH, RUSL, RSXJ, ERUS, RUSS, EU, RBL, BRAQ, BRZU, GUR, BZQ, ESR, UBR, BRZS, DBBR, RUDR, FBZ
    | 7 Comments
  • Aug. 1, 2014, 4:24 PM
    | 1 Comment
  • Jul. 29, 2014, 11:19 AM
    • Brazil’s equity market has soared since mid-March, when the buzz first began that Pres. Rousseff might lose in the October elections; the iShares MSCI Brazil Capped ETF (NYSEARCA:EWZ) has jumped ~30% since then and has gained 16% YTD.
    • Part of the rally is propelled by optimism that the state-owned sector, including Petrobras (NYSE:PBR) and Electrobras (NYSE:EBR) will operate better with a new, more pro-business government; iron ore producer Vale (NYSE:VALE), whose fate is tied to China, is the only high-profile underperformer, not even breaking even this year.
    • But strategist Geoff Dennis is skeptical of the Brazilian rally, and thinks it's time to sell; the new government is not likely to have a big mandate, the election is too close to call at present, and Brazil is no longer cheap, trading at 11.2x forward earnings a 33% premium to its recent average of 8.5x.
    | 16 Comments
  • Jul. 24, 2014, 1:26 PM
    • It's been a nice run for emerging markets since mid-March with iShares' EEM ahead 18.7%, about 1000 basis points better than the S&P 500. Vanguard's (NYSEARCA:VWO) did even better, returning 20.9%.
    • Looking at individual markets, WisdomTree's India Earnings Fund (NYSEARCA:EPIrose 30.1%, iShares' Turkey ETF (NYSEARCA:TUR44.2%, and iShares' Brazil Capped ETF (NYSEARCA:EWZ33.2%.
    • The trouble, according to UBS, is these markets have been rallying as analysts at the bank have been cutting earnings forecasts, now seeing 12.5% earnings growth, down from 15.3% estimated in April. Consensus forecasts during the same time frame have fallen to 9.6% from 14.7%. "We believe EM equities need a rebound in earnings momentum in time to justify a further strong upside breakout."
    • On the good side, the team is increasingly assured that corporate margins bottomed in 2012; they rose 10-40 bps last year and should pop another 30-40 bps this year.
    • ETFs: EEM, VWO, EDC, EDZ, SCHE, IEMG, EEV, ADRE, EUM, EET, GMM, EEME, DBEM, EMCR, FEM, EWEM, EMLB, EMSA, EMDR, EMFT
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  • Jul. 18, 2014, 4:19 PM
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  • Jul. 18, 2014, 8:49 AM
    • Petrobras (NYSE:PBR+4.8% premarket as the first poll released after the humiliation of Brazil's World Cup team shows Pres. Rousseff continuing to lose ground with potential voters and raising the odds that she will face a runoff in October's presidential election.
    • A new survey published by a Sao Paulo newspaper shows Rousseff reducing her advantage over main contender Aecio Neves, and nearly in a dead heat in a potential runoff scenario.
    • Brazil's lackluster economy has voted concerned about losing their jobs, even though the unemployment rate remains close to historic lows.
    • Yesterday, PBR reported that it is in talks to sell its 40% stake in natural gas distributor Gasmig to Companhia Energetica Minas Gerais.
    • ETFs: EWZ, BZF
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  • Jul. 17, 2014, 3:27 AM
    • The IMF praised the formation of the New Development Bank and reserves fund launched by BRICS countries (Brazil, Russia, India, China and South Africa) yesterday, and announced that it would like to work together with the monumental project.
    • So far the new fund has pooled together $100B in reserves from the five countries with the intention of reshaping the Western-dominated international financial system.
    • ETFs: EWZ, RSX, EPI, INDY, RUSL, PIN, EZA, INP, INDL, RSXJ, ERUS, RUSS, DSUM, CHIX, INXX, INDA, RBL, BRZU, BZQ, UBR, BRZS, DBBR, CHLC, FBZ, RUDR
    | 1 Comment
  • Jul. 16, 2014, 3:58 AM
    • The long-awaited New Development Bank has been launched after BRICS (Brazil, Russia, India, China and South Africa) leaders put their finishing touches on the $100B bank and currency reserve pool aimed at reshaping the Western-dominated international financial system centered around the IMF and World Bank.
    • The launch marks the first big accomplishment by BRICS countries, which account for almost half the world's population.
    • The bank is scheduled to start lending in 2016. Membership is open to other countries but the capital share of the BRICS cannot fall under 55%.
    • ETFs: EWZ, RSX, EPI, INDY, RUSL, PIN, EZA, INP, INDL, RSXJ, ERUS, RUSS, DSUM, CHIX, INXX, INDA, RBL, BRZU, BZQ, UBR, BRZS, DBBR, CHLC, FBZ, RUDR
    | 4 Comments
  • Jun. 30, 2014, 10:46 AM
    • The central bank's weekly survey of 100 economists finds them cutting their GDP growth estimate this year to 1.1% from 1.16%, and the 2015 outlook to 1.5% from 1.6%. It's the fifth straight reduction in 2014 prospects and the sixth straight for 2015.
    • At the same time, inflation forecasts remain locked in at 6.46% this year and 6.1% in 2015.
    • The benchmark Selic interest rate is still expected to be 11% at the end of this year and 12% at the end of 2015 (it's 11% currently).
    • One of the globe's hot performers from February through mid-June (as markets anticipated the end of central bank rate hikes), the Bovespa has taken a little bit of a breather since the World Cup got underway. EWZ -0.6% in morning action.
    • ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRZU, BRAZ, BZQ, BRAF, UBR, BRZS, DBBR, FBZ
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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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