February 2019

21Feb

Brazil’s pension reform to save $270bn in 10 years

Read alsoLatam FX firms, Brazilian stocks mount recoveryLatam FX weak, Brazil’s real drops ahead of pension reform plans Stocks in Brazil steadied on Wednesday as market focus remained on the government's proposal for pension reform, which is aimed at helping curb the country's mounting fiscal deficit. Latin American currencies were mixed against a slightly softer dollar with investors waiting for the U.S. Federal Reserve's January policymaking minutes expected later in the day. ...

February 21, 2019
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20Feb

Latam FX firms, Brazilian stocks mount recovery

A Latin American equities benchmark rose on Tuesday, bolstered by a rebound in Brazilian shares, while Latin American currencies broadly advanced against a soft dollar. Global currency traders wound back safe-haven dollar holdings on hopes that the fresh round of U.S.-China talks would aid strained trade ties between the world's two biggest economies, setting the stage for Latin American currencies to gain. Brazilian equities climbed back above the 97,000 mark....

February 20, 2019
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19Feb

Latam FX weak, Brazil’s real drops ahead of pension reform plans

Latin American currencies weakened against the U.S. dollar on Monday, with Brazil's real underperforming its peers ahead of anticipated pension reforms to be presented to congress later this week. The real slipped 0.8 percent, underperforming its peers, as President Jair Bolsonaro is expected to face opposition from congress, possibly delaying the passage of reforms seen as essential for shoring up the economy. "Pension reforms are considered crucial by the market with...

February 19, 2019
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15Feb

Brazil stocks fall over pension reform anxiety

Brazilian stocks fell on Thursday as investors were cautious on pension reform progress and markets awaited further hints from tariff talks between the United States and China. A weaker dollar did little to help Latin American currencies, which fell. Stocks on the Bovespa fell 0.7 percent led by declines in financials as investors eyed a meeting between President Jair Bolsonaro and Economy Minister Paulo Guedes where they are expected to...

February 15, 2019
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January 2019

09Jan

Brazil’s real leads Latam FX gains on pension reform hopes

Brazil's real firmed against the dollar on Tuesday, with investors anticipating tougher government proposals on pension reform, while the losses among some Latin American currencies reversed after comments by U.S. President Donald Trump on trade. Financial markets are hoping that new Brazilian President Jair Bolsonaro's government will take steps to make deeper cuts to the country's fiscal deficit than envisaged under the previous government. Bolsonaro, who was elected in October and has been an outspoken proponent of shrinking the deficit, is...

January 9, 2019
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December 2018

05Dec

Brazil. Bolsonaro begins political contacts to address pensions scheme with piecemeal reforms

Right-wing President-elect Jair Bolsonaro said on Tuesday he plans to tackle the overhaul of Brazil's fiscally burdensome pension system with piecemeal reforms that can pass Congress, starting with an increase in the minimum age of retirement. He said reforms should start with the public social security system and advance gradually to make sure they pass Congress. ”The idea is to start with the (minimum) age, attack the privileges and take it forward,“ Bolsonaro said at a news conference, warning that...

December 5, 2018
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December 2017

26Dec

Brazil’s Temer urges pension reform in Christmas message

Brazilian President Michel Temer took advantage of his Christmas message broadcast Sunday night to once again urge congress to approve his controversial pension reform plan. Referencing the recent approval of pension reform in neighboring Argentina, he insisted the issue is not “ideological or partisan” — but rather a “question of the future of the country” to “guarantee pensioners of today and tomorrow their pensions.” The centerpiece policy of scaling back pensions has been met with dismay by most Brazilians —...

December 26, 2017
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19Dec

Brazil tries to avert credit downgrade as pension reform doubts grow

Brazil’s Finance Minister Henrique Meirelles will speak to major credit rating agencies on Thursday as the government scrambles to avoid a sovereign debt downgrade due to growing doubts that its proposed pension reform can rein in surging public debt. A vote on the unpopular bill to overhaul the social security system, seen as vital to closing the fiscal deficit, has been delayed to 2018 after failing to muster support in Congress. Lawmakers have warned that handling the hot-button issue ahead...

December 19, 2017
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08Dec

Temer, congressional leaders delay Brazil pension vote

Brazil's President Michel Temer has agreed with congressional leaders to delay a key vote on pension legislation in the lower house until the week of Dec. 18, the speaker of the body, Rodrigo Maia, said on Thursday. The pension overhaul, a cornerstone of Temer's efforts to reduce Brazil's budget deficit, is seen by investors as crucial to boosting the nation's fiscal health. Brazil's currency and benchmark Bovespa stock index slipped on Thursday amid concerns that Temer lacked support to put the...

December 8, 2017
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07Dec

Brazil. Government Increases Pressure to Get Pension Reform Bill Approved

President Michel Temer has increased pressure on his governing coalition in the lower house of congress by stating that the political environment has changed and is now favorable for the approval of the pension reform bill. However, allies are still holding out on putting the bill - a constitutional amendment proposal (PEC) - to a vote this year. The administration believes that the fate of the bill will be decided on Thursday (the 5th). President Temer will assemble party leaders in...

December 7, 2017
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