Brazil’s real dropped the most in emerging markets as the widest government budget deficit in four years revived concern that fiscal deterioration will lead to a reduced credit rating.
Brazil’s economy grew in the fourth quarter more than economists forecast as an increase in investment offset a drop in industrial production.
Brazil’s central bank halved the pace of key rate increases yesterday, signaling the end of its tightening cycle is near as policy makers seek to tame inflation without further jeopardizing growth.
Weir Group Plc rose to the highest price in more than 24 years as the U.K.’s biggest supplier of pressure pumps forecast a return to underlying growth this year, citing better prospects in its energy business.
Mota-Engil SGPS SA, Portugal’s biggest construction company, plans to sell 34.3 million shares in a private offer to investors to bolster its balance sheet and fund international expansion.
Steadily improving economies in Germany and the U.K. stand in contrast to a slowdown in China, while Mother Nature thwarts further progress in the U.S., data this week are projected to show.
Brazil’s consumer prices accelerated faster than economists forecast in the month through mid- February, driven by a jump in education costs and household articles. Swap rates rose.
Brazil’s unemployment rate in January was lower than all estimates from economists surveyed by Bloomberg, as the labor market remained strong amid rising interest rates.
Espirito Santo Saude SGPS SA, a Portuguese healthcare company, said its share sale will raise as much as 150 million euros ($204 million) if an over-allotment option is exercised.
Brazil’s swap rates climbed as a central bank official said the outlook for inflation is elevated, adding to speculation that policy makers will keep raising borrowing costs.
"Given the slowdown in organic growth and cut to guidance we expect the shares to be weak on these results."
- Espirito Santo on Jul 18, 2012