Tag Archives: Petrobras

Brazil`s Auto Sales jumped 39,4 percent to 189 vehicles last month

Brazil has been struggling for a while now. First of all with Dilma Rousseff and her corruption scandal involving the state-controlled oil company Petrobras. All this on top af a terrible recession. Since the Workers’ Party came to power in 2003, there has been a series of corruption scandals in Brazil.

Operation Car Wash has uncovered a widening corruption scandal with dozens of political accused of paying or receiving kickbacks. Former President Luiz Inacio Lula da Silva has been named in connection with the investigation. Let`s take a look at some positive things in Brazil right now.

Auto sales in Brazil jumped 39,4 percent to 189 vehicles last month. Sales rebounded for passenger cars (39 percent vs -8 percent in February). Compared to a year ago, auto sales fell 5,6 percent. Brazil had an all-time high of 420 thousand in 2012.

 

 

Brazil had an all-time high trade surplus in March this year. Brazil recorded a USD 7,145 million trade surplus, which is higher than a USD 4,435 million surpluses in 2016. Exports jumped 25,6 percent YoY and imports rose at a slower 11,9 percent.

Inflation in Brazil is also going the right direction. It rose by 4,76 percent in the year to February 2017, which is down from an increase of 5,35 percent in previous month. It`s also lower than a year ago at 9,39 percent.

Brazil is the largest country in both South America and Latin America. Its the worlds fifth largest country by both area and population of 200,4 million citizens. Unfortunately, the unemployment rate is going the wrong direction.

It reached an all-time high of 13,2 percent in the quarter ended February this year. Brazil has been the largest producer of coffee for the last 150 years. Can they fix the problems? Their economy has not been growing since 2014.

The Brazilians economy shrank 2,5 percent YoY in the fourth quarter of 2016. GDP has been negative for eleven straight quarters and they face a sharp drop in both household consumption and fixed investment.

You can clearly see how bad economy are going hand in hand with crime and frustration. Everybody blame each other for everything and politicians are always a target.

A jump in their auto sales is music in samba ears.

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Filed under Emerging markets, Politics

The new wallets

Apple:

Yes, the new wallets is here. Fact is that the new wallets have been on the market for many years now. Some people expected to see a Near Field Communication chip for mobile payments when Apple launched the new Iphone 5 a couple of year ago, but ended up disappointed.

 

Smartphones are predicted to be the new wallets and forecast for mobile payments in 2014 is $7,5B. In 2013 it was $2,1B, and $0,6B in 2012. If this is taking off we can see mobile payments of $70B in 2016. Mobile payments in China have doubled in 2013 and ended up to 218,6 Billion Yuan.

 

The most critical element in this business is the security, but Apple seems to have the right solution for all the customers waiting to pay by smartphones. Apple signed a new patent (#20140019367) on January 16.

 

What about their competitors like Visa, Mastercard, Paypal and others? They should do something before it is too late. Once Apple start with their new mobile payment solution, the card users will slowly disappear. This threath is too big to ignore I think.

 

Stocks & Commodities:

Petrobras (PBR) plummeted 5,8% yesterday and that is an eight year low level, now trading at 13.85 Brazilian reais ($5.69). This is the lowest since july 29, 2005. The overall markets plummeted yesterday, like they historically do when a new Fed chairman comes in, but Twitter went up +1,16%. What is going on here? Any report surprise?

 

Gold is not taking off despite the bearish markets we see now. Right now the gold is trading at $1.252.80, down -0,52%. Silver is also down today, trading at $19.35, down -0,30%. Copper is trading at $319.85, up today +0,47%.

 

Reports:

10:00:00 Factory Orders Forecast: -1,90% Previous: 1,80%
10:00:00 Economic Optimism Forecast: 46,1 Previous: 45,2

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Filed under Commodities, Stock market, Stocks