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iShares MSCI Brazil Capped ETF (EWZ)

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  • Mar. 27, 2014, 2:44 PM
    • A sharp boost in the central bank's inflation forecast - suggesting the rate hike cycle will continue - isn't enough to halt the big rally in Brazilian stocks, with the Bovespa's 3.2% gain today putting the index higher by nearly 15% over the last two weeks.
    • The central bank now sees inflation of 6.1% this year, 50 basis points higher than its previous estimate. The 2015 inflation forecast is lifted to 5.5% from 5.4%. Both guesses are well above the 4.5% inflation target. The benchmark Selic rate has been raised 350 bps since April to 10.75%, and watchers are calling for another 25-50 bps next week and maybe another boost in May.
    • EWZ +4.4%
    • ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ
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  • Mar. 27, 2014, 2:39 PM
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  • Mar. 24, 2014, 6:23 PM
    • Standard & Poor's cuts Brazil's sovereign debt rating to BBB-, the agency's lowest investment-grade rating, citing a combination of fiscal slippage, the prospect that fiscal execution will remain weak amid subdued growth in the coming years, a constrained ability to adjust policy ahead of the October presidential elections, and some weakening in Brazil's external accounts.
    • S&P changes its outlook to stable from negative, meaning further downgrades are unlikely for now.
    • The downgrade was expected, but the timing prior to the October election, in which Pres. Rousseff will seek re-election, may pose a headache for her government.
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ
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  • Mar. 21, 2014, 4:15 PM
    | 1 Comment
  • Mar. 10, 2014, 10:45 AM
    • The 8.3% dive in the price of iron ore to $104.70 per ton is the 2nd largest one-day decline on record, and came following weekend data showing an 18.1% Y/Y slump in Chinese exports in February (a gain of 7.5% was expected). While miners like BHP and RIO remain optimistic about supply/demand dynamics (though dour on price prospects), Goldman - picking one analyst team - sees the market moving into surplus in H2 and prices falling below $100 per ton.
    • The Shanghai Composite fell 2.9% overnight and Brazil's Bovespa is down 2% in the early-going. Australia (EWAdeclined 0.9% and the aussie (FXA) is off 0.6% to $0.9017.
    • The steelmaking ingredient is off 22% YTD and at its lowest price since October 2012.
    • In the meantime, the rumors are flying, including speculation a mill in China's Shanxi province defaulted on Friday and shut five to six furnaces. There's also chatter about banks looking to call in 20% of loans to private steel companies.
    • EWZ -2.1%, VALE -2.8%.
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ
    • Base metal mining ETFs: XME, JUNR, PICK
    | 1 Comment
  • Mar. 7, 2014, 4:35 PM
    | 2 Comments
  • Feb. 26, 2014, 7:08 PM
    • Brazil's central bank has upped its benchmark interest rate by another 25 bps to 10.75%.
    • 325 bps worth of rate hikes were carried out in 2013 in an effort to keep a lid on inflation. Brazil's 2013 inflation rate was 5.9%, handily exceeding a 4.5% target.
    • Better-than-expected January unemployment data raised expectations another rate hike would happen.
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BZQ, BRAZ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ
    | 2 Comments
  • Feb. 20, 2014, 8:34 AM
    • The unadjusted jobless rate in January rose to 4.8% from 4.3% in December, but was below forecasts for 5.1%. The seasonally adjusted rate was flat month-over-month.
    • The good economic news might be bad news for those hoping for an end to the rate hike cycle. "It's a tough message for the central bank," says economist Carlos Kawall. While the economy doesn’t seem to be going onto a very strong path, unemployment is still very low, and wages are still moving up. So it creates a real dilemma for the bank.”
    • Inflation accelerated to 5.91% in 2013 vs. the 4.5% target, and policymakers responded by hiking the benchmark Selic 325 basis points to 10.5%.
    • EWZ -0.7% premarket
    • Related ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BZQ, BRAZ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ
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  • Feb. 7, 2014, 4:42 PM
    | 1 Comment
  • Feb. 3, 2014, 8:30 AM
    • The PMI edges higher to 50.8 in January from 50.5 previously, but New Orders jumped to an 11-month high of 52.4 (and from 50.7 previously). Output rose, but pace was the slowest since September.
    • Despite gains in orders and production, employment contracted for the 10th consecutive month.
    • Prices rose at their fastest pace in three months amid the real's depreciation - falling 2.5% in just January.
    • EWZ -12% YTD, but up 0.9% premarket
    • Related ETFs: EWZ, BRF, BZF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRZU, BRAF, UBR, BRZS, FBZ, DBBR
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  • Jan. 29, 2014, 10:54 AM
    • Who could have thought raising interest rates 425 basis points would be bearish? A curious rally following Turkey's defense of the lira - it jacked rates to 12% from 7.75% - has completely reversed. One feels a 1992-like vibe where the Bank of England hiked like crazy to defend the pound, but then ultimately had to let it go (also creating a bottom in stocks).
    • In Europe, the Stoxx 50 (FEZ) is off 1.3%, with Turkey (TUR) now down 2.3%.
    • South Africa joins the party, unexpectedly hiking its benchmark interest rate by 50 basis points to 5.5%. EZA -2.8%.
    • A check of Brazil (EWZ -1.3%) and India (EPI -1.1%) - where monetary policy has also been tightened this week - finds them lower as well.
    • The money is flowing into U.S. Treasurys which continue a big 2014 rally. The 10-year yield is off five basis points to 2.71%. TLT +0.3%, TBT -0.5%.
    • Europe ETFs: ETFs: FXE, VGK, EUO, FEZ, ERO, EU, DFE, IEV, EPV, EZU, HEDJ, DRR, GXF, FEU, GUR, FDD, EUFX, ESR, UPV, ULE, FEP, ADRU, URR, FEEU, EURZ, DBEU, EURL, FIEU
    • Treasury ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, ZROZ, SBND, TLH, DLBS, VGLT, UBT, TLO, LBND, TENZ, TYBS, DLBL
    | 8 Comments
  • Jan. 24, 2014, 4:48 PM
    | 3 Comments
  • Jan. 9, 2014, 3:51 PM
    • After a rough three year stretch, Brazilian stocks continue to have a tough time of it early in 2014, with the Bovespa off another 2.5% today and the EWZ is down 6% YTD. The real keeps sliding as well - down 10% vs. the dollar over the last 3 months.
    • Of imminent concern is slowing growth and a ballooning budget deficit forcing a ratings downgrade - with analysts at both S&P and Moody's suggesting this week one could come later this year. “We don’t have fixed limits…but if debt-to-GDP ratio gets closer to 65%,” Brazil could be ripe for a credit-rating cut, says Moody's Mauro Leos (it's above 60% now). S&P meanwhile suggests the cut in the country's BBB rating could come ahead of the October presidential election.
    • Related ETFs: EWZ, BRF, BZF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRAF, BRZU, UBR, FBZ, BRZS, DBBR
    | 1 Comment
  • Jan. 7, 2014, 4:13 AM
    • In Sept., Moody's changed Brazil's credit outlook to stable from positive, as persistent low growth interrupted improvement in several economic and fiscal indicators. One important ratio showing deterioration is Brazil's debt-to-GDP measure, which has been climbing towards the 60% mark and Moody's estimates it could reach 62% in 2014.
    • The path debt-to-GDP takes will strongly influence Brazil's sovereign credit outlook. An important question to sovereign credit quality is whether authorities can restore conditions that will eventually lead to a declining trend in the debt ratio.
    • Brazil has limited fiscal flexibility, given a rigid government spending structure and relatively heavy interest burden. The main challenge public finances face is the persistent increase of primary current spending.
    • Protests in various cities around the country in 2013 expressed social discontent with the quality of government and with its ability to deliver public goods and services. However, Moody's does not expect upcoming elections to shift policies drastically given general consensus for preserving macroeconomic stability. Still, Moody's says Brazil faces political challenges related to difficulties in passing reforms necessary to remove structural obstacles that constrain the country's medium-term economic prospects.
    • ETFs: EWZ, BRF, BZF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRAF, UBR, BRZU, FBZ, BRZS, DBBR
    • Source: Moody's
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  • Dec. 17, 2013, 10:47 AM
    • Brazil will get more than 1T Brazilian reais ($429M) in royalties and crude oil over the next 35 years from its share of the massive Libra offshore oil prospect, to be spent on domestic education, health care and social welfare projects President Rousseff says.
    • In October, a consortium that included Petrobras (PBR -0.4%), Total, Royal Dutch Shell, Cnooc and China National Petroleum paid ~$7B as part of the winning bid to develop the field.
    • Rousseff has faced criticism from Brazilians who viewed the sale as delivering Brazil's natural resources into the hands of foreign companies, but the auction also generated lukewarm interest from private-sector companies that balked at the terms of the production-sharing agreements and heavy government oversight of Libra's development.
    • ETF: EWZ.
    | 2 Comments
  • Dec. 6, 2013, 4:48 PM
    | 2 Comments
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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”).
See more details on sponsor's website
Country: Brazil
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