Brazil’s economy would be shaken and credit might contract by as much as 1 trillion reais ($437 billion) if the nation’s high court rules against banks this week on depositor lawsuits, former Finance Minister Marcilio Marques Moreira said.
Banco do Brasil SA fell to an 11- week low, leading a decline among Brazilian lenders before the Supreme Court starts ruling on depositor lawsuits that could cost the country’s banks 149 billion reais ($65 billion).
Oi SA, the second-worst performing telecommunications service provider in Latin America this year, rose after analysts at Banco Bradesco SA said a drop in costs shows that the company’s turnaround plan is starting to work.
Banco do Brasil SA is trading above analysts’ target price for the first time in four years amid speculation the bank, Latin America’s biggest by assets, is planning an initial public offering for its credit-card unit.
Minerva SA climbed to a six-week high after acquiring two plants in Brazil’s top beef-producing state in a deal that gives BRF SA, the country’s biggest foodmaker, a 15 percent stake in the company and two seats on its board.