The Rising Influence of Rising Affluence

[DewDiligence]

PBR—Correction to #msg-68922211: It was the weak Real and strong US Dollar (relative to 3Q10) that caused PBR’s reported 3Q11 profit to tumble. Because PBR has substantial dollar-denominated debt, a stronger Dollar makes the debt more expensive when measured in reais (PBR’s reporting currency), which causes a hit to reported earnings. This is a non-cash effect, however.