Replies to post #3723 on 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.

[DewDiligence]

PBR replaces CEO:

http://www.realclearmarkets.com/news/reuters/finance_business/2012/Jan/22/brazil_s_petrobras_replaces_ceo_gabrielli__report.html

This is presumably another power play by Dilma Rousseff’s administration, as was the case when VALE replaced its CEO last year (#msg-61382413, #msg-61715133).

I continue to stand by the opinion in #msg-51214642 that PBR will end up screwing its minority shareholders at some point.