Moody’s Downgrades Brazilian and Mexican Giant Financial Institutes

Continuing with its strategy to Globally review Financial Institutions, Moody’s has downgraded 11 Financial Institutions up to three notches. The main reason of this evaluation is related to their exposure to public debts

Affected banks include, but is not limited to, giants such as BRADESCO, Banco do Brasil, Banco Itau and Santander.

http://www.moodys.com/research/Moodys-reviews-Mexican-and-Brazilian-banking-and-insurance-groups-for--PR_238792

The power of BRICS

If you have not paid attention to the BRICS (Brazil, Russia, India, China and South Africa together), we recommend you to do so. At least huge economies such as EEUU and Europe are connected with decision madden during this week in Delhi, where they are met to discuss important subjects such as the creation of a BRICS development bank, that should help to develop infrastructure of participant countries and also could give them more autonomy then even before. The reason why they really matters is not only because of their sizes now (together they represent 40% of Global population), but also because projections say that by 2018 their PIB together would surpass EEUU PIB and by 2025 they would represent 50% of Global PIB. Additionally, they can make great business together as their power are complimentary. A good example is that Brazil and Russia are great exporters of raw materials, while China and India have their strength as low cost service providers and huge importers of Raw Materials.

Take a look on recent news and get connected to this Global power to the best of your investment decisions.

This week you should pay carefully attention to Brazilian Government and emerging markets Central Bankers’ news

We have been talking about the importance of Brazil in the emerging markets, especially considering the upcoming opportunities due to events such as World Cup and Olympic Games as well as the current economic situation. Even affected by economic crisis in Euro zone and USA, Brazil has just reported stronger February manufacturing results with PMI index increasing to 51.4. Also Government announced measures to contain US dollar currency devaluation, extending from 2 to 3 years the IOF (financial transaction tax) to loans, which should support local producers and manufacturing to continue being competitive in Export and also in local market as dollar weakness increases the competitiveness in both sides.

Now, we should pay attention to this week news, as Brazil should report next Tuesday, the 06th the GDP figures for fourth quarter and full year as well as on next Wednesday, the 7th The Brazilian Central Bank is expected to lower the SELIC target rate from 10.5 to 10.0%.

Get to know those numbers that will help us to understand how Brazil is being affected by the Global economic crisis and the actions taken to continue supporting their growth, so we can understand possible (if any) impact in our emerging markets portfolio.

Central Bankers / Government of Colombia, China, Korea, Peru and Indonesia are also set to release news on rates and economic situation for consumers / producers this week. Good listening !!!!

Infrastructure market in Brazil

Have you ever think about investing in Latin America Region? How about Brazil? Considering the beginning of the year and the great time to re-balance your portfolio, selling some positions and acquiring gains and even selling some with losses but you don’t think it will recover properly in the near future, you might take a look and study emerging markets and have in mind some important information regarding Brazil. Infrastructure market there is in a great time as they are going to host World Cup in 2014 and the Olympic Games in 2016. Lots of soccer play stadium being built and remodeling, lots of residential buildings and hotels also, plus investments in security, roads, etc. All about infrastructure. So if you have funds composed by stocks or even stocks related to infrastructure market in Brazil it might be a good adding in your studies and analysis to see what it going to be in and out of your portfolio in 2012. Also there are international players that are participating in these Brazilian opportunities through partnerships and/or public auctions. A good example can be the international airports auctions which the winners were some South Africa, French and Argentinean company together with Brazilians ones for the international airport of Brasilia, Sao Paulo and Campinas. Another good example is the construction market which is so saturated that is accepting workers from Haiti to be trained and then work on thousands of constructions around the country. Good search !!