The Rising Influence of Rising Affluence

[DewDiligence]

VALE—Reports continue to circulate that the federal government of Brazil wants to replace the CEO:

http://www.reuters.com/article/2011/03/22/vale-agnelli-idUSN2219799820110322

A senior government source contacted by Reuters was unaware of any official decision to push Agnelli out, but confirmed that Rousseff's team was seeking material changes in the government's relationship with Vale.

"We don't want a state takeover of Vale," said the source, who spoke on condition of anonymity. "But it's the biggest exporter in Brazil, and it cannot behave in a way that is not in line with national interests."

This kind of government meddling has long been my main concern about investing in VALE.