Investors turn on Brazil

Emerging-markets investors have turned their guns on Brazil, sending the real to a two-year low and wiping 15% off the stockmarket in three weeks.

900_MW_P07_Markets

Brazil's stockmarket is now one of the world's cheapest
(Image credit: isitsharp)

Emerging-markets investors have turned their guns on Latin America's biggest economy, sending the Brazilian real to a two-year low against the dollar and wiping 15% off the stockmarket in three weeks. The resignation of Pedro Parente, the head of the state-owned oil giant Petrobras, made "management competence look like an ephemeral blip of commonsense rather than a new beginning", as Martin Langfield notes on Breakingviews. More broadly, the episode also made clear that Michel Temer is a "lame-duck" president whose pro-business reforms to boost growth and reduce Brazil's chronic overspending have run into the sand.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.