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iShares MSCI Brazil Capped ETF (EWZ)

- NYSEARCA
  • Nov. 8, 2013, 4:27 PM
    | 1 Comment
  • Nov. 3, 2013, 7:25 PM
    • "By April or May, when credit rating agencies visit Brazil, fiscal accounts will have improved," Bloomberg says, summing up comments from Guido Mantega, Brazil's finance minister.
    • In an effort to address concerns about the country's budget deficit, Mantega says Brazil's state lender BNDES will cut lending by a fifth in 2014.
    • Next year, the development bank will give out around $66.6B in new loans, slightly less than it provided in 2012.
    • Both S&P and Moody's have cut their outlook on the country this year amid concerns about rising debt levels tied to public lending.
    • Brazil ETFs - EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU
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  • Oct. 23, 2013, 9:52 PM
    • Taking advantage of the quick change in sentiment towards emerging markets in general and Brazil in particular, the Brazilian government today issued $3.2B in bond dues 2025. The paper was priced to yield 4.305%. About one billion of the total will be fresh cash for the government, the rest will pay off existing debt.
    • With developed market interest rates on the rise this summer, few had interest in emerging market debt, but the last several weeks have seen the taper delayed, the nomination of Janet Yellen to lead the Fed, and a sharp drop in interest rates. With U.S. rates looking like they're staying lower for longer, emerging market yields - no matter the risk (Brazil's credit rating outlook was lowered from positive to stable by Moody's this month) - become more enticing.
    • Also helping is a Brazilian central bank refocusing on inflation - it hiked its benchmark rate to 9.5% this month and gave every indication 10% is coming in November.
    • Brazil ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU, BZF.
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  • Oct. 10, 2013, 11:36 AM
    • It's the 5th consecutive rate hike for the central bank, which raised the benchmark Selic 50 basis points to 9.5%. No changes were made to the accompanying statement, implying #6 is coming at November's meeting.
    • Economist consensus has rates at 9.75% by year's end, and many foresee double-digits in 2014. The most recent CPI data has annualized inflation at 5.86% - lower than a couple of months ago - but still well above the 4.5% marking the top end of the target level.
    • The Bovespa is lagging most major markets today, +0.5%.
    • EWZ +1.6%, BRF +1.9%.
    • Other ETFs: EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU, BZF.
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  • Oct. 3, 2013, 1:10 PM
    • Moody's cuts its outlook on Brazil's Baa2 credit rating to Stable from Positive, citing deterioration in key credit metrics, an economy unable to break out of a slow-growth phase, and "deterioration in reporting quality of the government accounts."
    • The government's debt-to-GDP ratios and the country's investment-to-GDP ratios are weaker than those of sovereigns with just a Baa rating, says Moody's. "Even though there are signs that the Brazilian economy may be starting to recover, Moody's view is that, if and when the upturn materializes, it is unlikely that it will be strong enough to restore a positive trend in Brazil credit metrics, a condition necessary to merit a positive outlook on the country's sovereign rating."
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ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU, BZF.
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  • Oct. 1, 2013, 10:37 AM
    • Brazil's PMI edges up to 49.9 in September from 49.4 previously. New orders and export orders both remained in contraction territory, but at a slower pace of decline, and output rose for the first time in three months.
    • Input prices however, accelerated sharply amid the decline in the real (BZF), with the index jumping to its highest level in nearly 5 years.
    • Brazil ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
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  • Sep. 27, 2013, 3:28 PM
    • Petrobras (PBR) investors now have another reason to drown their sorrows after a nearly 20% decline in the Brazilian company’s shares over the past year: PBR has lost its spot as the most valuable brand in Latin America, falling behind the region’s top beer brand, according to a ranking by BrandAnalytics.
    • Mexico's Corona beer, produced by Anheuser Busch Inbev (BUD) and Constellation Brands (STZ), marched into the top spot with a brand value of $6.6B, up 29% Y/Y, according to the survey; PBR suffered a 45% drop in its brand value to $5.76B.
    • Brazil’s lackluster economic growth, reliance on commodities exports and government meddling has taken a toll on brand value in 2013.
    • ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
    | 1 Comment
  • Sep. 25, 2013, 7:39 AM
    • The famously bearish-on-China Jim Chanos and Goldman's former sunny BRIC evangelist Jim O'Neill spent half an hour talking China at a Bloomberg conference last night.
    • China will have a "credit event" in five years, says Chanos; the Chinese economy will double in five years to $16T (the size of the U.S.), says O'Neill.
    • I can't really argue with being short the 'old' China," says O'Neill. Any slowing of the economy is being done deliberately in order to shift from a focus on investment to one on consumption. The "new" China will lead to investment opportunity.
    • If you think the macro picture in China is ugly, wait until you look at he micro picture, says Chanos.
    • Among the points the two agree on is mining - the industry will face difficulties. Those countries (Brazil and Australia come to mind) with exposure to iron ore will be in trouble over the next 12 months, says Chanos.
    • Brazil ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
    • Aussie ETFs: EWA, EWAS, KROO, AUSE, FAUS, Bonds: AUD, AUNZ, FXA, GDAY, CROC.
    • China ETFS: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYPHAO, ECNS.
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  • Sep. 20, 2013, 4:25 PM
    • The week's ETF movers - Gainers: EWS +4.07%. EWZ +4.00%. TAN +3.85%. WPS +3.59%. PHO +3.22%.
    • ETF Losers: VXX -4.41%. GDXJ -3.15%. OIL -3.07%. USO -2.75%. SIVR -2.53%.
    | 1 Comment
  • Sep. 19, 2013, 6:15 PM
    • More on Brazil's planned auction of the Libra oil prospect: Only 11 companies registered to participate - far fewer than the expected 40 - and some of the biggest firms backed out, including Exxon (XOM), Chevron (CVX) and BP (earlier).
    • Asian state-owned companies dominate the list of participants: India's ONGC, Malaysia's Petronas, Colombia's Ecopetrol (EC), China's Cnooc (CEO) and China National Petroleum (PTR); China's Sinopec (SNP) will take part through joint ventures with Brazilian units of Spain's Repsol (REPYY.PK, REPYF.PK) and Portugal's Galp Energia (GLPEF.PK).
    • Also taking part: Shell (RDS.A, RDS.B), Total (TOT) and Mitsui (MITSY.PK, MITSF.PK).
    • Analysts blame the lack of interest on new rules drawn up by Brazil's government that place development and profits under greater state control; too many companies don't want "the trouble of dealing with Petrobras (PBR) and the government. You can get good oil assets elsewhere without that."
    • ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
    | 10 Comments
  • Sep. 17, 2013, 3:47 PM
    • Brazil's President Rousseff calls off a state visit to the U.S. originally planned for next month, the latest fallout from the spying allegations have strained U.S. relations with its Latin American ally.
    • Over the last two weeks, a Brazilian television news program revealed what it described as NSA slides it said were provided by Ed Snowden that appeared to show direct spying both on Rousseff and on state-run oil company Petrobras (PBR +0.9%).
    • ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
    | 2 Comments
  • Sep. 6, 2013, 4:39 PM
    • The week's ETF movers - Gainers: TAN +9.20%. EPI +7.49%. BRF +7.40%. EWZ +6.84%. FXI +6.40%.
    • ETF Losers: VXX -5.40%. URA -5.34%. GAZ -2.93%. TLT -2.77%. UNG -2.16%.
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  • Sep. 5, 2013, 11:08 AM
    • Brazil’s government confirmed this week it will hold an auction Oct. 21 to sell the huge Libra offshore oil field, estimated to hold 8B-12B barrels of recoverable crude oil, which would make it the largest deepwater oil field ever discovered - and possibly the most expensive project ever developed, with payback unlikely for more than a decade.
    • The sale is expected to generate significant interest from the world's largest oil companies, but they likely would have to team with the bumbling Petrobras (PBR).
    • Brazil may be a coming energy superpower, but previous high production expectations haven’t been fulfilled despite massive discoveries.
    • ETFs: EWZ, BRF.
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  • Sep. 3, 2013, 7:34 AM
    • The Bovespa was yesterday's big winner,  surging 3.7% following faster-than-expected weekend manufacturing data out of large customer China. VALE - whose top export market is China - gained 3% (the ADRs are +2.4% premarket).
    • "Most of the risk for a China slowdown is already priced in," says fund manager Nick Robinson. "China will probably keep growing at a pace that's fast enough to support commodities prices."
    • EWZ +1.4% premarket.
    • Other Brazil ETFs: BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU, BZF.
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  • Aug. 30, 2013, 8:25 AM
    • Q2 GDP rose 1.5% from Q1 vs. expectations of 0.9%. For the full year GDP is ahead by 3.3% vs. 2.5% forecast.
    • Brazil's central bank overnight hiked its benchmark lending rate 50 basis points to 9% (as expected). It's the 3rd consecutive increase and the policy statement left the door open for further moves as the bank combats rising inflation/slipping real (BZF). This GDP report will do nothing to dissuade that policy course.
    • MSCI Brazil Index ETF (EWZ) +1.6% premarket.
    • Other Brazil ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
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  • Aug. 23, 2013, 4:46 AM
    • Brazil's central bank will today embark a $60B program aimed at supporting the real (BZF), which has dropped 9.1% vs the dollar in this month alone.
    • On Monday-Thursday, the bank will sell $500M worth of foreign-exchange swaps every day, while on Friday it will auction $1B of dollar loans.
    • The program adds to swap and credit-line actions of $45B that the bank has already announced this year, not that they've done much good. The USD-BRL is up almost 26% since it hit a 2013 low of 1.9419 in March. It's now at 2.4428.
    • ETFs - EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU
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EWZ vs. ETF Alternatives
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”).
See more details on sponsor's website
Country: Brazil
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