02 August 2012Download report
The word in Brasília
Government financing worth tens of billions of dollars will create opportunities from trains to smart ticketing. The political mood is also warming towards public-private partnerships.
Our survey shows that consumers remain in third gear, with an acceleration in spending yet to arrive.
Office rent rises accelerated in 2Q, and the sector should benefit from lower interest rates and new funding models. But some developers are cautious.
Equity International, which helped create BR Malls (BRML3:SAO), says it is now looking for a fresh investment in new open-air developments.
June’s data has led to hopes of improvement in credit quality.
Bulls and Bears
As investors await renewed guidance, management caution may prevail.
Key data releases precede the Copom’s rate decision on August 29.
Current stimulus plans would not address the real problems of Brazil’s vehicle industry, says Paulo Cardamone of IHS Automotive in São Paulo.
Best of local comment
The "trial of the century" has transfixed Brazilian commentators, but offers only limited insight into today’s politics.
Local commentators criticise civil servants’ wage demands.
Local commentators debate how much rebalancing Brazil’s economy needs.