CANADA MAY RETAILS -0.8% VS FORECAST -0.6%, PRIOR +0.6%

MNI: Canada June Retails Fall And May Biggest Drop In A Year

MNI China Daily Summary: Friday, July 19

MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: BAKER HUGHES US RIG COUNT 586; OIL RIGS 477; GAS RIGS 103

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Local Assets Underperforming As Fiscal Risks Continue To Weigh

BRAZIL
BulletEM BulletEmerging Market NewsHomepage
  • Local media are reporting today on the difficulty Finance Minister Haddad is having in pushing through his fiscal agenda amidst ongoing tensions with congress. As noted previously, the Senate has filed an appeal against the recent Supreme Court ruling, which suspended some sections of the law that extended the payroll tax exemption, and Haddad has said that he’s been trying to talk to mayors about the tax exemption since October.
  • Meanwhile, the Senate is due to vote today on the renewal of a benefit for the events sector. It is also due to debate soon the framework which allows the government to increase spending further. O Globo report that the government may need an extra BRL 65bn next year to close its accounts.
  • Against this challenging backdrop, Brazilian assets are underperforming today, with USDBRL currently up by over 1% and DI swap rates rising by another 15bp or more across much of the curve. Data wise, March Federal debt data are due at 1830BST.
162 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Local media are reporting today on the difficulty Finance Minister Haddad is having in pushing through his fiscal agenda amidst ongoing tensions with congress. As noted previously, the Senate has filed an appeal against the recent Supreme Court ruling, which suspended some sections of the law that extended the payroll tax exemption, and Haddad has said that he’s been trying to talk to mayors about the tax exemption since October.
  • Meanwhile, the Senate is due to vote today on the renewal of a benefit for the events sector. It is also due to debate soon the framework which allows the government to increase spending further. O Globo report that the government may need an extra BRL 65bn next year to close its accounts.
  • Against this challenging backdrop, Brazilian assets are underperforming today, with USDBRL currently up by over 1% and DI swap rates rising by another 15bp or more across much of the curve. Data wise, March Federal debt data are due at 1830BST.