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Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) and Brazilian Banks Under Pressure: Itau Unibanco Holding SA (ADR) (NYSE:ITUB), Banco Bradesco SA (ADR) (NYSE:BBD)
by Chad Roskin / September 26, 2014
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Shares of Brazilian banks and other stocks such as Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) closed lower Thursday as the Ibovespa (IBOV) hit a six-week low after data showing unemployment in Brazil exceeded estimates dimmed the outlook for companies that depend on domestic demand.
The unemployment rate rose to 5 percent in August, the national bureau of statistics reported today. That’s above the median estimate of 4.9 percent among 19 economists surveyed by Bloomberg.
The unemployment rate in Rio de Janeiro state, home to 16.5 million people, is just 3%. It’s never been so low. It’s almost as if Brazil has developed some sort of China-style full-employment policy. On a national level, unemployment is just 5%. By comparison, China’s official unemployment rate is a little over 4%.
“All data about the Brazilian economy released lately show the situation is very negative,” Fernando Goes, an analyst at the brokerage firm Clear Corretora, said in a phone interview from Sao Paulo. “Those numbers are the reason for investors to want a change in the government. That’s why the trends in the market now are so linked to election polls. We should see more volatility on the way in the next few days.”
The headline unemployment is quite low but I don’t know if the measurement of it is art or science. The trend in employment growth is just as important and that is flat from a year ago,” says Bill Adams, senior international economist for PNC Financial Services Group in Pittsburgh. “It’s probably asking too much to treat these month to month numbers as fact. They’re useful summary statistics, but their ability to capture what is going on in the labor market is limited.”
Brazil’s economy is slowing. It entered into a technical recession in the second quarter, defined by back-to-back quarters of economic contraction. China’s economy is slowing, with Barclays Capital economist Jian Chang in Hong Kong expecting Beijing to lower its official GDP target to 7% instead of 7.5%. Yet, miraculously, unemployment is just 4.1%, unchanged year over year.
Among banks, Itau Unibanco Holding SA (ADR) (NYSE:ITUB), Banco Santander Brasil SA (ADR) (NYSE:BSBR) and Banco Bradesco SA (ADR) (NYSE:BBD) each saw noteworthy decline.
Elsewhere, Cosan Limited(USA) (NYSE:CZZ), TIM Participacoes SA (ADR) (NYSE:TSU) and Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) followed selloff in Brazilian as well as U.S. stocks
http://www.marketsemerging.com/petroleo-brasileiro-petrobras-sa-adr-nysepbr-and-brazilian-banks-under-pressure-itau-unibanco-holding-sa-adr-nyseitub-banco-bradesco-sa-adr-nysebbd/1713659/
Smart & Final Returns To Stock Market With New IPO
By PAUL WHITFIELD, INVESTOR'S BUSINESS DAILY
Posted 06:08 PM ET
California-based Smart & Final Stores (NYSE:SFS) is back on the stock market after a complicated journey.
The company had a French connection when it debuted in the stock market in 1991. France's Casino Guichard-Perrachon acquired Smart & Final's parent firm Thriftimart in 1984.
In 2007, Apollo Management took the company private, ending the French control. Five years later, Ares Management bought Smart & Final from Apollo.
And on Wednesday, the return to the stock market was completed. Smart & Final opened at 13.10 a share after its share offering priced at 12, the low end of an expected range of 12 to 14.
The company operates 250 grocery and food service stores in six Western states, 13 in northern Mexico and 52 Cash & Carry stores.
Cash & Carry is a warehouse food store and, like Smart & Final, has no membership fee.
Smart & Final is in IBD's Retail-Major Discount Chains industry group.
The timing of the IPO isn't ideal. The stock market has shown hesitation recently, and the discount chain industry group is a laggard. As of Wednesday's IBD, the group was No. 160 of 197 groups.
The retail sector was No. 20 of 33 sectors as of Wednesday's paper.
A vigorous market uptrend, a strong industry group and a leading sector can help a stock advance. Smart & Final lacks all three right now.
However, several factors could be shaping up in Smart & Final's favor.
• A new format: Smart & Final is known for its small stores, but the company is converting some outlets to a larger format and opening new stores in the big format. The company reported in SEC documents that margins and same-store sales are higher at the big stores than the traditional stores. A third of Smart & Final's stores are now large format.
• Geography: With stores in the small number of states, the company has room to grow. Management believes the U.S. market could support 1,250 stores, including 100 more in California.
• Mexico: Favorable trends south of the border could offer additional opportunities for Smart & Final.
• Revenue revving up: The company says its has delivered same-store sales growth in 24 of the past 25 years. Last year, same-store sales growth was 4%.
Earnings grew 50% to 3 cents a share in the March-ended quarter and 200% to 15 cents a share in the June quarter. Revenue grew 6% and 10% over the same period.
The June quarter was remarkable because the previous 13 quarters involved earnings gains in the 2 cents to 5 cents a share range.
Company officials were unable to comment on the strong results because of a quiet period related to the current quarter.
Investors, though, should not consider buying this stock until it forms a proper IPO base.
A historical note: When the company was taken private in mid-2007, the stock had rallied 569% from its March 2003 low.
http://news.investors.com/092414-718805-smart-and-final-ipo.htm?ven=yahoocp&src=aurlled&ven=yahoo
WELCOME SFS,Smart & Final Stores, Inc
Smart & Final Celebrates IPO on the New York Stock Exchange
1:51p ET September 24, 2014 (PR NewsWire) Print
Smart & Final Stores, Inc. ("Smart & Final" or the "Company"), a value-oriented food and everyday staples retailer for household and business customers, opened for trading today on the New York Stock Exchange (NYSE) under the ticker symbol "SFS" following its initial public offering. IMC Financial Markets is the Designated Market Marker for the Company's stock.
http://photos.prnewswire.com/prnvar/20140924/148195
Smart & Final Chief Executive Officer David Hirz visited the trading floor, along with his executive leadership team and representatives of majority shareholder Ares Management, to celebrate the first day of trading.
"It is with pride and excitement that we join the New York Stock Exchange today and mark another milestone in Smart & Final's rich history," said Hirz.
Scott Cutler, Executive Vice President & Head of Global Listings, NYSE said, "We are very pleased to welcome Smart & Final to the New York Stock Exchange. One of the longest continuously operated food retailers in the United States and an iconic brand in the markets it serves, Smart & Final is an excellent addition to the NYSE's community of leading companies."
About Smart & Final
Smart & Final is a value-oriented food and everyday staples retailer for household and business customers. The Company is headquartered in Los Angeles, where it was founded 140 years ago, and operates approximately 250 grocery and foodservice stores under the "Smart & Final", "Smart & Final Extra!" and "Cash & Carry Smart Foodservice" banners in California, Oregon, Washington, Arizona, Nevada, Idaho, with an additional 13 stores in northern Mexico operated through a joint venture
Brazil Election Poll Fever: Silva, Rousseff Tie?
12:26p ET September 24, 2014 (Dow Jones)
By Dimitra DeFotis
The latest Brazil voter polls show that presidential candidates Marina Silva and incumbent Dilma Rousseff face a runoff-election dead heat.
The Ibope poll released Tuesday shows each with 41% of the vote in a runoff, which would result in late October if neither candidate nor the third presidential hopeful, Aecio Neves, garners half of the vote on October 5.
Nomura's Tony Volpon favors Silva. He says that for Rousseff to be considered a favorite, she needs a 5% to 10% lead before the second round, when conditions, including TV air time, "should vastly improve" for Silva. Volpon writes:
"Dilma Rousseff is still gradually gaining support, although the question remains: can she build a lead while she has overwhelming campaign advantages? Second, the late surge by the PSDB"s Aecio Neves has stalled: he is stuck at 19%. This is important because many members of the PSDB are more eager to defeat Dilma Rousseff than to elect Neves, but his late surge kept them in the campaign and attacking Marina Silva. Now we think many PSDB members will already be focusing on how to help Ms. Silva ..."
The iShares MSCI Brazil Capped ETF ( EWZ) fell 1% Monday and is flat today. Shares of mining giant Vale ( VALE) are up 1.5%, while the state-controlled energy player Petrobras ( PBR) shares are up 0.33%. Banco Santander Brazil ( BSBR) stock is up 0.89% today.
Shares of Brazil airplane maker Embraer ( ERJ) are down nearly 1.5% after Brazil filed bribery charges against Embraer employees. Portfolio manager Nick Heymann said in an August interview with Barron's that while Boeing ( BA) and Airbus migrate to wide-body planes, "the future of the narrow body is really in the hands of Embraer ... as well as Bombardier ( BDRBF)." See " Nick Heymann: Selectively Bullish on Industrial Stocks," Aug. 9 (subscription required
PBR increased number of shares.Shares Outstanding5: 6.52B to 7.44B +14%(Dilution Shareholders and the EPS of Q3
September 24, 2014 -Techsonian
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) finished last trade at $15.92, losing -1.18%. Trading volume recorded for this company was about 32.18 million shares as compared to its average volume of 34.03 million shares. The share price plunged almost -7.44% in the last one month while its 52 week high is $20.94. The company has the total of 7.44 billion outstanding shares while its market capitalization is now about $109.69 billion.
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920 M shares in three months. This is the problema!
http://www.techsonian.com/active-movers-microsoft-corporation-nasdaqmsft-petroleo-brasileiro-petrobras-sa-adr-nysepbr-pfizer-inc-nysepfe-ford-motor-company-nysef/12294888/
Brazil Shares Close Lower, Led by Eletrobras; Real Weakens Again
4:59p ET September 23, 2014 (Dow Jones)
By Jeffrey T. Lewis
SAO PAULO--Brazilian shares closed lower Thursday, led by power company Eletrobras (EBR, ELET6.BR), and the real weakened for the fifth consecutive day against the dollar.
The benchmark Ibovespa stocks index fell 0.5% to 56540 points. The real exited active trading at 2.4056 reais to the dollar, according to Tullett Prebon via FactSet, after closing at 2.3963.
Brazilian shares and the real are being buffeted by a combination of the weak economy and political uncertainty. A poll released earlier Tuesday showed President Dilma Rousseff ahead of challenger Marina Silva for the first time since mid-August, though the two are still in a technical tie.
Investors say Ms. Rousseff's policies are too interventionist, and financial markets in Brazil have usually reacted negatively to good polling news for the incumbent. Shares in state-controlled companies have been especially sensitive to poll results.
The biggest decliner in the Ibovespa on Tuesday was Eletrobras, a state-controlled electric utility. The company's shares fell 2.9% to 10.18 reais. State-controlled oil company Petrobras (PBR, PETR3.BR, PETR4.BR), the most heavily weighted company in the Ibovespa, was another big decliner, giving up 2.2% to 20.13 reais.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
Last transaction,520,036 in short sell $15.92 red in bid 15:59:59hs +197581 selloff $15.92 16:02 market close
The main chart is bad. The PO Changed from $21.00 to $13.50
Brazilian markets look for Silva lining
September 23, 2014 8:50 am F.Time
By Joe Leahy in São Paulo
The presidential candidate of the Brazilian Socialist Party, Marina Silva presents her project of government on August 29, 2014 in Sao Paulo, Brazil. Brazil's general elections will take place October 5th. AFP PHOTO/Miguel SCHINCARIOL (Photo credit should read Miguel Schincariol/AFP/Getty Images)
©AFP
Marina Silva’s camp has suggested she would adopt more orthodox economic policies
In investment bank trading rooms in Brazil’s financial hub, São Paulo, a calculation of a different kind is keeping dealers busy these days.
Instead of the usual obsession with economic or corporate data, traders are trying to predict the likely outcome of an epic battle between the two women who are leading this year’s presidential election – the incumbent head of state Dilma Rousseff and upstart candidate Marina Silva.
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Polls show Silva, a former senator, environmentalist and social democrat with a more orthodox economic agenda, will finish behind in the first round run-off of the election scheduled for October 5, but that she retains a narrow 1 or 2 percentage point lead in the second and deciding round on October 26. Ms Rousseff, from the centre-left Workers’ party who is unpopular with markets for her allegedly interventionist policies, is catching up. Every improvement in her chances elicits a violently negative reaction from the markets.
“We have people going crazy up there,” says the head of one foreign bank in São Paulo of the traders on the floor above his office. “People are making bets on the polls and then getting ready to jump out the window if they get it wrong.”
São Paulo’s benchmark Ibovespa stock index has gained more than 10 per cent since January, nearly touching a high of 62,000 points this month, before ceding the advances. The losses follow speculation Ms Rousseff will make a comeback in the polls.
The markets have become so sensitive to the election that local media point to an “electoral kit” of stocks whose fortunes are closely linked to government regulation.
These include Petrobras, the state-owned oil company, which is being forced to offer a fuel price subsidy by the government without compensation, electricity provider Electrobras, which investors worry is also subject to government interference on price controls, and the major banks, Itaú-Unibanco, Banco do Brasil and Bradesco, which have also suffered from intervention over the past four years.
The real has traded at between R$2.20 and slightly above R$2.40 during the year, with recent weakening said to be due more to negative sentiment on emerging markets generally than Brazilian factors.
Many analysts say the central bank maintains a “dirty float” of the real, controlling the exchange rate through a huge swap programme backed by its large store of external reserves.
The capital markets like Ms Silva’s proposed economic programme, which would largely follow the inflation-targeting model of the two most successful presidents in Brazil’s recent history, Luiz Inácio Lula da Silva and Fernando Henrique Cardoso.
Ms Rousseff was criticised for departing from this model by stimulating the economy through ad hoc tax breaks, while trying to control inflation not only through monetary policy but through the currency and fuel and energy prices. During her tenure, the central bank has not sustainably reduced inflation to the centre of its target range of 4.5 per cent plus or minus 2 per cent.
With economic growth slipping into recession in the first half of the year, economists are concerned about what might happen under a second Rousseff administration.
“To us, the real uncertainty is not with how Silva would govern, but with President Dilma,” said Tony Volpon, economist with Nomura, in a note this week.
Ms Rousseff’s government blames an adverse global economy for Brazil’s problems. But economists say no matter who wins the election, the next president will face stark choices.
“The maintenance of the policies observed since 2009 would probably lead to Brazil losing its investment grade status and to another debt crisis after 2016,” says Marcos Casarin, Latin America economist with Oxford Economics.
He says that between 2011 and 2014, government non-financial expenditure outpaced gross domestic product by 2 percentage points, helped by tax breaks for industry. The real was kept artificially strong at below R$2.35 against the dollar to help with inflation.
He adds that if the next government maintains these policies, as well as a policy of allowing minimum wage increases based on the previous year’s inflation plus GDP growth, Brazil would cease booking a primary surplus – a budget surplus before interest payments – in 2016.
By the next election in 2018, public debt would reach 70 per cent of GDP, not excessive by developed country’s standards but problematic for Brazil with its high interest rates.
Economic growth would continue to muddle along at about or under 2 per cent a year and unemployment would begin to rise.
If Brazil, however, began making tough adjustments next year, such as increasing the primary surplus to 2-3 per cent of GDP, it would receive a credit ratings upgrade by 2018. Giving the central bank independence as Ms Silva is proposing would enable it to deliver a shock to inflation, reducing it to about 3.5 per cent in four years. The benchmark Selic interest rate could then fall to an all-time low of about 5.5 per cent.
“Whether or not Brazil experiences a debt crisis by 2016-17 remains to be seen,” Mr Casarin says in a report. “What we know for sure is that it can be avoided, but the adjustment needed will involve some short-term pain.”
The same goes for markets. Few believe that, should Ms Rousseff win, there will be an attack on the real given the central bank’s iron hold on the currency. But any surprises on the positive or negative side will send an already giddy Bovespa reeling further.
PBR:Outside North America, Halliburton's international operations remain mixed
Moody's Global Credit Research - 23 Sep 2014
Outside North America, Halliburton's international operations remain mixed. In Latin America, revenues fell 7% in the first half of 2014 compared to the year-ago period with operating income down over 23%. The outlook heading into 2015 remains challenging given project delays in Mexico (Pemex, A3 stable) and Brazil (Petrobras, Baa1 negative) with the prospects for comprehensive energy reform providing a potential positive catalyst over the longer-term. Somewhat offsetting the extended headwinds in Latin America, Halliburton's operations in the Eastern Hemisphere continue to exhibit positive trends led by increased activity in Saudi Arabia. Still, the potential for activity disruptions or extended project delays in Iraq and Russia raise execution risk over the next 12-18 months. The rising political tensions in these regions have had a minimal impact on Halliburton's financial results through the first half of 2014, and management remains steadfast on executing its long-term business strategy focused on its three pillar approach to capitalize on growth opportunities across mature fields, unconventional resource and deepwater plays. Less
The main chart shows sharp drop. The PO changed from $ 21 to $ 13.50
freefall!
http://stockcharts.com/freecharts/gallery.html?s=PBR
PBR, resistance begins. Can be the beginning of a positive rebound
Resistance in $15.87
Disappearing Dinner Helps Rousseff Win Low-Income Voters
7:27 am 9/19/2014
Brazil's economy is in recession, inflation is above the target range, consumer confidence is the lowest since 2009 -- and Dilma Rousseff is gaining support for re-election by telling voters things could get worse.
In a TV advertisement the president's campaign began airing Sept. 9, a voice gravely intones that opposition candidate Marina Silva's proposal for an independent central bank would give it power over their jobs and salaries. A family grimaces as their dinner vanishes from the table.
More from Bloomberg.com: LIVE RESULTS: The Scottish Independence Vote
That's just one of the Workers' Party salvos that have eroded a lead in the polls Silva enjoyed two weeks ago and turned the race into a dead heat. The ads remind tens of millions of voters who have been lifted from poverty by social welfare programs that they could still slip backward. If those from families earning 1,448 reais ($612) or less give Rousseff the same level of support as the equivalent group did in 2010, she should win the election, according to Mauro Paulino, managing director at polling agency Datafolha.
"This attempt to show Marina as a threat to achievements should prevail until the end of the campaign to keep voters faithful, keep them voting for Dilma," Paulino said by phone from Sao Paulo. "The Workers' Party ads have to convince that group the safer change is to maintain Dilma."
More from Bloomberg.com: Ellison Becomes Oracle Chairman as Catz, Hurd Split CEO Job
Narrower Gap
Polls indicate the ads have helped Rousseff narrow the gap. A survey of 3,010 people released Sept. 16 by Ibope Inteligencia showed Rousseff trails Silva in a likely runoff by three percentage points, whereas Silva led by nine in a poll released Aug. 27. The survey had a margin of error of plus or minus two percentage points, meaning the two are technically tied. Senator Aecio Neves is polling third with 19 percent in the first round.
Rousseff's support among those earning 1,448 reais or less rose to 47 percent from 40 percent in that period, while Silva's support fell to 37 percent from 39 percent. Rousseff had 56 percent support from that group in the final poll before the 2010 election. Sixteen percent remain either unsure, are voting blank, nullifying their vote or didn't respond to the poll.
More from Bloomberg.com: Costco Stores in Canada to Stop Taking American Express
In a Datafolha poll published on the website of the Folha de S.Paulo newspaper today, Silva would win 46 percent of votes in a runoff, compared with Rousseff's 44 percent. The survey of 5,340 people conducted Sept. 17-18 has a margin of error of plus or minus two percentage points. Silva's lead was four points in the last Datafolha poll published Sept. 10, also within the margin of error.
Besides arguing that full independence for the monetary authority would "give bankers great decision-making power over your life and family," Rousseff's campaign has tried to raise doubts about Silva by saying she lacks experience, would cut back social programs, and that she might privatize state-controlled oil company Petroleo Brasileiro SA. (PBR)
Stunned Children
Another ad says Silva would reduce the importance of producing oil from deep-sea fields, which could mean 1.3 trillion reais less in royalties earmarked for health and education. Stunned children around a library table watch a book's pages turn blank as the narrator says they're losing a unique opportunity for development. "Is that what you want for Brazil's future?" he asks.
Silva's poor, rural background is akin to that of Rousseff's predecessor and mentor, Luiz Inacio Lula da Silva. After the criticism began, she invoked the declaration "hope conquered fear" he made after triumphing over attacks in 2002.
"Every day there is an ad telling a lie, saying I will do a truckload of terrible things to Brazilians," Silva said in a question-and-answer session on Facebook Sept. 17. "They know no limits."
Choked Up
In a television ad that started airing this week, Silva recounts in a choked-up voice how she and her family faced hunger when she was a child living in the Amazon forest. "All my mother had for eight children was one egg, a little flour and salt with some chopped up onion peel," she said, adding that it's a lie she would cut social welfare programs.
Silva's campaign declined to comment on both its strategy and Rousseff's.
The Ibovespa stock index dropped 6.2 percent last week, the most since May 2012, when polls showed Silva lost her lead in the second round. This week, with surveys indicating the race stabilizing, the Ibovespa has risen 2.5 percent.
Additional Gains
Rousseff has reached a point at which additional gains become more difficult, Joao Augusto de Castro Neves, an analyst with political risk consulting firm Eurasia Group, said by phone from Washington.
Still, Eurasia sees Rousseff, whose larger coalition in Congress gives her six times more free minutes on television than Silva in the first-round campaign, as the slight favorite to win.
"There is still an argument to be made that people are better off today than they were 12 years ago," said Castro Neves. "There's a diffuse desire for change among voters, but not any kind of change."
The United Nations' Food and Agriculture Organization on Sept. 16 removed Brazil for the first time from its World Hunger Map of nations with prevalent undernourishment. Under Rousseff and Lula, 36 million Brazilians emerged from extreme poverty, according to her campaign. The middle class swelled to more than half the population, and people got credit to buy their first homes and cars. Average real monthly income jumped 34 percent in the last decade.
Outsourcing Jobs
The ads aren't personal attacks on Silva but rather criticisms of her program that would mean dismantling industry and outsourcing jobs, according to Rui Falcao, president of the Workers' Party.
"When people learn about her proposals, that's what should intimidate them -- we're not trying to stimulate fear of anyone," Falcao, who is coordinating Rousseff's campaign, told reporters in Sao Paulo on Sept. 13. "Every day we show what we're going to do and point out the risks of a program that would mean going backward."
Rousseff has denied assailing her rival. "I have no intention of attacking the candidate, everyone knows that's not my style," Rousseff said in her televised Independence Day message aired Sept. 7. "But I find myself obligated as president to alert the population that if her government program is put into practice, Marina could dismantle the Brazil that cost us so much to improve."
Desire Change
Seventy percent of Brazilians desire change, according to the Ibope poll. More than a million people took to the streets last year to protest corruption, transport prices, and poor health and education services.
Silva has tapped into such sentiment by criticizing Rousseff policies that have led to stagflation. Inflation (BZPIIPCY) in August was 6.51 percent, above the upper limit of the government's target range, and growth this year is estimated at 0.33 percent in the latest central bank survey of economists.
Brazil's consumer confidence as measured by the Getulio Vargas Foundation fell in August to its lowest level since April 2009, which shows people are concerned their standard of living will worsen, according to Armando Castelar, the institute's coordinator of applied economic research.
Rousseff's negative ads that target the poorest won't be enough to secure re-election, according to Rafael Cortez, a political analyst at consulting firm Tendencias.
"There's nothing for now that changes the trend that favors Marina, which is expressed in lower rejection rate for her compared to Dilma," Cortez said.
Global Crisis
Voters who say they would not vote for Rousseff under any circumstances made up 41 percent of the Ibope poll, compared with 25 percent for Silva.
Rousseff responds to criticism of Brazil's economic performance by saying that despite the lingering global economic crisis, her government has maintained unemployment at near-record lows. Even before Silva entered the race, Rousseff was playing to people's wish for renewal with her slogan "More Changes, Better Future." She says her government has prepared Brazil for a new cycle of growth.
Her campaign in the last week has won over Noelma Perino Pereira, 35, who has mopped the floors of Sao Paulo's Congonhas airport since moving from Bahia state to a slum nearby.
"I was more for Marina, but then I said it has to be Dilma," said Perino, who earns about 700 reais per month and is pregnant with her second child. "I think she's better, she did very good service for the poor. Marina up until now is just promises."
To contact the reporter on this story: David Biller in Rio de Janeiro at dbiller1@bloomberg.net
To contact the editors responsible for this story: Andre Soliani at asoliani@bloomberg.net Harry Maurer, Randall Woods
More from Bloomberg.com
PBR:Situation in Brazil today
Brazilian shares fell, and the real weakened against the dollar, ahead of the release Thursday night of poll on voting intentions for the country´s October presidential elections. Decliners included Brazilian banks Banco Bradesco SA (BBDO) whith fell 2.6% to $16.02 and Itau Unibanco Holding SA (ITUB), which fell 1.8% to $16.62 and Petroleo Brasileiro SA (PBR) decresed nearly 3% to $17.09
Dow Jones Newswire
09-18-14 18:21 ET WSJ
How Will Shell (RDS.A) Stock Be Affected By Brazil Legal Requirements?
TheStreet
09/18/14 - 04:45 PM EDT
NEW YORK (TheStreet) -- Royal Dutch Shell (RDS.A_) and Total (TOT_) were directed by Brazil's oil regulator to accept Petrobras (PBR) as a partner in their Gato Do Mato offshore oil prospect under new Brazilian law, Reuters reports.
That could strip Shell of operational control of the resource. Magda Chambriard, Brazil's director general of oil regulation, appeared to contradict recent comments made by Brazilian government lawyers.
On Tuesday the lawyers said recent ANP regulations would allow Shell to remain as operator - or lead partner - in the area despite the 2010 law, Reuters said
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With this socialist policies investors running scared.
We're talking about Shell. Always invested heavily in the region
I do not understand, who heads Petrobras? A monkey at the wheel?
How Will Shell (RDS.A) Stock Be Affected By Brazil Legal Requirements?
TheStreet
09/18/14 - 04:45 PM EDT
NEW YORK (TheStreet) -- Royal Dutch Shell (RDS.A_) and Total (TOT_) were directed by Brazil's oil regulator to accept Petrobras (PBR) as a partner in their Gato Do Mato offshore oil prospect under new Brazilian law, Reuters reports.
That could strip Shell of operational control of the resource. Magda Chambriard, Brazil's director general of oil regulation, appeared to contradict recent comments made by Brazilian government lawyers.
On Tuesday the lawyers said recent ANP regulations would allow Shell to remain as operator - or lead partner - in the area despite the 2010 law, Reuters said
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With this socialist policies investors running scared.
We're talking about Shell. Siemre invested heavily in the region
I do not understand, who heads Petrobras? A monkey at the wheel?
Level 2,Transactions remain in neutral. It is not a good indicator
What's up? Am I wrong?
The main chart changed. All indications, strong fall.
Again below its average 50-day high
http://stockcharts.com/h-sc/ui?s=PBR&p=D&b=5&g=0&id=p26099102557&a=264845671
Credit Agricole Begins Coverage on Petroleo Brasileiro Petrobras SA (PBR)
Posted by Stephan Byrd on Sep 17th, 2014
Equities researchers at Credit Agricole began coverage on shares of Petroleo Brasileiro Petrobras SA (NYSE:PBR) in a research report issued on Wednesday, TheFlyOnTheWall.com reports. The firm set a “buy” rating on the stock.
Shares of Petroleo Brasileiro Petrobras SA (NYSE:PBR) traded up 1.91% on Wednesday, hitting $17.845. The stock had a trading volume of 10,398,428 shares. Petroleo Brasileiro Petrobras SA has a 1-year low of $10.20 and a 1-year high of $20.94. The stock’s 50-day moving average is $17.38 and its 200-day moving average is $14.97. The company has a market cap of $116.4 billion and a price-to-earnings ratio of 13.37. Petroleo Brasileiro Petrobras SA also saw a large increase in short interest during the month of August. As of August 29th, there was short interest totalling 29,251,921 shares, an increase of 22.5% from the August 15th total of 23,885,560 shares. Based on an average daily trading volume, of 28,261,385 shares, the short-interest ratio is presently 1.0 days. Approximately 0.0% of the shares of the company are short sold.
Petroleo Brasileiro Petrobras SA (NYSE:PBR) last released its earnings data on Tuesday, August 12th. The company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by $0.12. Analysts expect that Petroleo Brasileiro Petrobras SA will post $1.91 EPS for the current fiscal year.
A number of other firms have also recently commented on PBR. Analysts at Cowen and Company initiated coverage on shares of Petroleo Brasileiro Petrobras SA in a research note on Thursday, September 11th. They set an “outperform” rating and a $23.00 price target on the stock. Separately, analysts at Zacks reiterated a “neutral” rating on shares of Petroleo Brasileiro Petrobras SA in a research note on Thursday, September 4th. They now have a $21.00 price target on the stock. Finally, analysts at Zacks downgraded shares of Petroleo Brasileiro Petrobras SA from an “outperform” rating to a “neutral” rating in a research note on Wednesday, August 13th. They now have a $20.30 price target on the stock. Five research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $18.50.
Petroleo Brasileiro SA Petrobras (NYSE:PBR) is a Brazil-based integrated oil and gas company.
http://tickerreport.com/banking-finance/298710/credit-agricole-begins-coverage-on-petroleo-brasileiro-petrobras-sa-pbr/
More Brazil Energy Crimes Alleged
2:55p ET September 15, 2014 (Dow Jones)
By Dimitra DeFotis
Brazil energy and industrial entrepreneur Eike Batista has been charged with financial crimes and may see his assets frozen.
Batista's energy exploration enterprise, formerly known as OGX Petróleo e Gás Participações, is in bankruptcy. Federal officials accuse Batista of manipulating financial markets by using privileged information when selling shares of the distressed oil-and-gas company, according to The Wall Street Journal.
Rio de Janeiro prosecutors seek to freeze assets valued at 1.5 billion Brazilian reais ($641 million) belonging to Batista, and people close to him.
Batista, 57, also could face jail time if found guilty. His attorneys say he did nothing wrong. At a minimum, he has mightily disappointed U.S. investor PIMCO and others that poured money into OGX to keep it from liquidation, WSJ reports. Batista lost $30 billion in 2012 and 2013 as OGX failed to meet production goals and his industrial empire collapsed. OGX and another company filed for bankruptcy protection, and other Batista businesses have sold assets.
Last weekend, it was Petrobras ( PBR), the state-run oil-exploration and refining giant, that was embroiled in controversy. A jailed former executive alleges Petrobras made illegal payments to numous politicians, including some in the goverment of Pres. Dilma Rousseff, who is running for reelection Oct. 5.
Shares of Petrobras are up 0.7% today. The iShares MSCI Brazil Capped ETF ( EWZ) is up 0.10%
As Argentine Debt Drama Wears On, Hope For Energy Stocks
1:23p ET September 15, 2014 (Dow Jones)
By Dimitra DeFotis
U.S. shares of Argentine energy companies were volatile Monday as oil prices traded sideways.
The international Brent crude price is flat on the day, while the benchmark U.S. oil price is up 0.3%.
Argentine energy exploration and refining company YPF ( YPF) stock was up 0.5% after rising more than 1.5%, while oil-and-gas exploration company Petrobras Argentina ( PZE) sank 1.5%. Electricity producer Pampa Energia ( PAM) slipped into negative territory, down 0.5%. Shares of the iShares Latin America 40 ETF ( ILF) are down slightly today.
Argentina is No. 3 worldwide in shale-gas reserves, and No. 4 in shale oil, according to the U.S. Energy Information Administration. (see Barron's feature on YPF, " Undervalued Shale Energy Stock Could Triple," Dec. 14, 2013, subscription required.)
Last week, Argentina's legislators approved a plan to circumvent U.S. jurisdiction on its bonds as it works out terms with its creditors, most of which agreed to exchange old claims for new claims worth 30 cents on the dollar. The Argentine government has refused to repay U.S. hedge funds are suing for 100 cents on the dollar, which resulted in another Argentine bond default in July. The hedge funds purchased Argentine bonds on the cheap in the country's 2002 default on about $100 billion in debt, all of which stemmed from the deep economic crisis in 2001. Argentina feels vindicated by United Nations support for a bond restructuring plan, Reuters reported.
The new legislation allows the government to pay its foreign-currency denominated bonds locally or in France. However, the U.S. judge in the case, District Judge Thomas Griesa, could find Argentina in contempt and fine the government, The Wall Street Journal reported
Look the chart!!It marked a low to $ 14. Look at the blue line warning. On the other hand fell below its average of 50 days high.
Zacks:recommendation: 4 down! red strong sell
http://stockcharts.com/freecharts/gallery.html?s=PBR
183,956 shares in short sell $13.46 red in bid
Short seller attak again!
JDSU: The main chart RSI(14)72.65, Overbought
Many short sell
http://stockcharts.com/h-sc/ui?s=JDSU&p=D&b=5&g=0&id=p26099102557&a=264845671
BDBD:S&P Quality Ranking: NR Standard & Poor's Fair Value Rank : 1--Fair Value Calc: $11.50 (Overvalued) Sep 6,2014
.
Key financial variables to consider in assessing the investment merits of an
industrial company are the following:
Sales: What is the trend? Is future sales growth expected to be greater than the
past 5-year and 9-year growth average? Accelerating sales growth ultimately
provides the fuel behind earnings growth.
Net Margin: As a key measure of company profitabilty, a rising net margin
assesses management capability to wring out more net income from incremental
sales.
% LT Debt to Capitalization: A rising percentage implies greater financial risk, all
else being equal. Rising debt leverage without a concomitant rise in Return on
Equity should raise warning signals of potential cash flow problems. Percentages
above 40%-50% should also be considered a warning.
% Return on Equity: A key perfomance measurement of capital efficiency
assesses what investment returns management can earn on a company's
existing capital base. A sustained percentage above 20% is considered above
average.
The main chart indicates a PO: $ 7.00 well marked on the chart
.
There is a red line which indicates that it can not climb. The blue line is marked at $ 7.00, máximum
http://stockcharts.com/freecharts/gallery.html?s=BDBD
Short sale, activity in medium level. The main chart indicates fall. Point $13.16
http://stockcharts.com/h-sc/ui?s=BDBD&p=D&b=5&g=0&id=p26099102557&a=264845671
Moody’s adds to pressure on Rousseff
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September 9, 2014
Brazil’s President Dilma Rousseff was dealt a fresh blow to her bid for re-election in next month’s election when Moody’s downgraded the outlook on its rating for Brazil’s government bonds to negative from stable.
The agency blamed slow economic growth for its decision which comes as Ms Rousseff is locked in an increasingly tight presidential race with polls showing her lagging behind her nearest rival, the charismatic environmentalist Marina Silva.
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Argentina attacks BNY over debt payments
“While other Latin American countries have also recorded declining growth rates, Brazil’s economic slowdown has been more pronounced and prolonged,” Moody’s said in a statement.
The Workers’ party-led government of Ms Rousseff has failed to wean Brazil’s economy off a dependency on consumption and consumer credit since she came to power in 2011, economists say. Investors, meanwhile, have criticised her for interventionist policies and price controls.
With economists projecting the economy will expand this year at less than half a per cent, her four-year term will have presided over the slowest growth since the presidency of Fernando Collor in the early 1990s.
The weakening economy has left her vulnerable to a surge in support for Ms Silva, who has come to the fore after Eduardo Campos, her presidential running mate died last month in a plane crash.
Polls show her winning in a run-off due a fortnight after the October 5 first round, although Ms Rousseff has regained some ground this week
Ms Rousseff’s reputation as a competent technocrat has also come under fire following the re-emergence of a scandal this week surrounding state-owned oil company Petrobras, which she headed during the government of her predecessor and mentor Luiz Inácio Lula da Silva.
A former executive, accused of accepting kickbacks in return for contracts, is reported to have given state investigators details of payments allegedly made to scores of politicians by private sector companies in return for contracts with Petrobras.
The Moody’s decision follows Standard & Poor’s decision to downgrade the country’s credit rating to one notch above junk in March.
Moody’s said the decision was motivated not only by Brazil’s falling growth rate but by a deterioration in sentiment that has lowered the rate of investment in the country and by a deteriorating fiscal position. “The next administration will face depressed economic conditions,” Moody’s said.
It said on the positive side for Brazil, it had high foreign exchange reserves, limited government foreign debt and a solid banking system.
Petrobras Seeks Access to Testimony of Former Executive
7:11p ET September 8, 2014 (Dow Jones)
Petrobras Seeks Access to Testimony of Former Executive
By Will Connors
RIO DE JANEIRO--Brazil's state-run oil company Petroleo Brasileiro SA said late Monday it has requested access to the testimony of a jailed former Petrobras executive who has made allegations of a massive kickback scheme at the company.
The jailed former Petrobras executive, Paulo Roberto Costa, alleged that dozens of prominent Brazilian politicians took part in a kickback scheme for Petrobras contracts, according to a story published Saturday by a Brazilian weekly. Mr. Costa offered the names as part of a plea deal with investigators, according to the Veja magazine report.
In its first comments since the allegations were made, Petrobras said in a statement it is cooperating with authorities and has requested access to Mr. Costa's testimony from the federal judge involved with the case.
"It is in the interest of company management to see the conclusion of all the ongoing investigations by [the government]," the company said.
An attorney for Mr. Costa didn't respond to requests for comment.
Mr. Costa's allegations, which implicate dozens of Brazilian politicians, are the latest in a string of corruption scandals tied to Petrobras, Brazil's biggest company. The scandals have tainted the re-election campaign of President Dilma Rousseff ahead of October elections. Ms. Rousseff has been forced to address concerns about Petrobras regularly at campaign stops.
Petrobras is also the subject of two congressional inquiries, convened to investigate the 2006 purchase of a Texas refinery.
Shares closed down 5.31% in New York Monday.
Mr. Costa was Petrobras's supply and refining director until 2012, and was arrested in March for allegedly participating in a money-laundering operation.
In its statement Monday, Petrobras said it "continues working normally across all of its operations to meet its business goals," and that "irregular acts that may have been committed by a person or group of people, whether employees of the company or not, do not represent the conduct of Petrobras as an institution or of its workforce, made up of thousands of employees."
Write to Will Connors at william.connors@wsj.com
Last transaction of the day: 3,929,861(block)$18.35 red 16:00:15 + 500 $18.35red 16:00:32+ 48,000$18.50 green 16:00:35 market close
total: 3,978,361 shares in short sell
PBR:Negative break point in the PPO and MACD
PBR in the collapse
It may fall to $ 14
http://stockcharts.com/freecharts/gallery.html?s=PBR
A huge black candle indicating low, is not red.
Q3:Average of $ 4 per barrel x 2,05 million barrels per day, in 92 days = $ $754.4 Millon.Revenues lost
.
Making the numbers! Very bad!!
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Brazil's Dichotomy: Growth Lower, Stocks Higher
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3:37p ET September 5, 2014 (Dow Jones)
By Dimitra DeFotis
Brazil slipped into recession in the latest quarter, yet its market keeps moving higher.
Bloomberg's chart of the day Thursday is a big X marking the dichotomy between Brazil's benchmark Ibovespa Index performance and projections for 2015 growth. The index is up 35% from its March 14 low in real, and has rallied 42% in dollars. The big contributors: Petroleo Brasileiro ( PBR) -- whose ADRs are up a whopping 93% from the March low -- and Itau Unibanco Holding ( ITUB), up nearly 62%.
This week, the iShares MSCI Brazil Capped ETF ( EWZ) rose nearly 1.5% for the week. Brazil airline GOL Linhas Aereas Inteligentes ( GOL), which got an upgrade, rallied nearly 13% this week. That compares to the 1.24% rise in the iShares MSCI Emerging Markets ETF ( EEM) for the week.
Stocks have ben rallying on the possibility that if Pres. Dilma Rousseff is unseated, possibly by Marina Silva is a runoff election, reforms and changes could really put a fire under the economy. The latest polls indicate the outcome of the president election, just four weeks away, could be a toss-up.
This week, WSJ explained the latest poll results thusly:
Ms. Rousseff, of the Workers' Party, would get 37% of the vote; Ms. Silva would get 33%; and Brazilian Social Democracy Party candidate Aécio Neves would get 15% in the first round of voting on Oct. 5 ... That result would require a runoff election on Oct. 26, because no candidate would get more than half of the valid votes in the first round, with Ms. Silva defeating Ms. Rousseff 46% to 39% in the second round, according to Ibope.
On Thursday, the Brazilian Central Bank kept its key interest rate unchanged at 11%, in line with the consensus. The rate probably won't change much in the near future, as the need to attack stubborn inflation in Brazil outweighs lower rates that would spur economic growth, the Wall Street
Oil, $ 93.64. PBR At these prices, is losing money
The Q2 is based on prices above $ 100 a barrel oil
Analyst Ratings Network:Consensus Price Target:$29.50
Update:9/4/2014
Ratings Breakdown: 3 Hold Rating(s), 2 Buy Rating(s)
Consensus Rating: Hold (Score: 2.40)
Consensus Price Target: $29.50 3.47% downside)
Price Metrics•52 Week Range: $21.66 - 41.67
•Market Cap: $759.4M
•50 Day Moving Average: $32.0663
•200 Day Moving Average: $33.8386
•P/E Ratio: 55.48
•P/E Growth: N/A
•Consensus EPS: $0.08 per share
•Consensus Price Target: $29.50
Last transaction of the day,20,085 shares, short sell $30.56 green in bid 15:59, 26,461, short sell $30.56 red in bid 16:00:29,Market close.
In the main chart, has a PO of $ 23.00.
Tomorrow, the fall continues
AVAV, is below its average of 50 high days and low days 200. Very bad
http://stockcharts.com/freecharts/gallery.html?s=AVAV
AVAV($30.81) VS MTSN ($2.46)In concept of what, has that price?
AVAV: Revenue of $51.90M vs Loss of $0.18/Share
MTSN:2Q Rev $42M 2Q EPS 3c
ZACKS:Upgrade to sell(4 Red down) from hold 3(Green up)
AVAV: Q1 Adj EPS (18c) vs (21c) Misses (11c) Est
Thursday , September 04, 2014 06:30ET
QUARTER RESULTS
Aerovironment, Incorporated (AVAV) reported Q1 results ended July 2014. Q1 Revenues were $51.87M; +17.57% vs yr-ago; BEATING revenue consensus by +2.41%. Q1 EPS was (16c). Adjusted Q1 EPS was (18c); +14.29% vs yr-ago; MISSING earnings consensus by -63.64%.
Q1 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $51.87M $44.12M +17.57% $50.65M +2.41%
---------- ------------ ------------ ---------- ------------ ----------
EPS: (16c) N/A N/A N/A N/A
Adj EPS: (18c) (21c) +14.29% (11c) -63.64%
---------- ------------ ------------ ---------- ------------ ----------
ORIGINAL EARNINGS RELEASE
Consensus estimate data provided by Reuters.
Visit Knobias.com for more indepth earnings information.
After an hour or tomorrow, falls 25%Leastways!
A horror film Q1
4:30p AeroVironment, Inc. Reports Q1 GAAP EPS of $(0.16), Adj. EPS $(0.18) vs $(0.11) Est; Revenue of $51.90M vs
.
4:32p
*CORRECTION: Aerovironment Reports Q1 Adj. Loss of $0.18/Share (Benzinga)
4:31p
*Aerovironment Reports Q1 Adj. Loss of $0.18/Share (Benzinga)
4:31p
AeroVironment Sees FY15 Rev $250M-$270M AVAV (Dow Jones)
4:30p
*AeroVironment, Inc. Reports Q1 GAAP EPS of $(0.16), Adj. EPS $(0.18) vs $(0.11) Est; Revenue of $51.90M vs $50.65M Est (Benzinga
CORRECTION: Q1 Adj. loss of $0.18/Share
Q1: Adj.Net loss $(0.14) vs $(0.11) Est.
Many short sell. Earning after market. Think his report is not going to be good