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October Economic Activity In Line, Lower Revisions

BRAZIL
  • The monthly figure for October economic activity was in line with expectations, however lower revisions to the September data prompt the annual reading to fall well under expectations, corroborating the recent pessimism over the growth outlook in Brazil.
    • Brazil Oct. economic activity indicator falls 0.40% on month; Est. 0.40%
    • Brazil Oct. economic activity indicator falls 1.48% on year; Est. -0.70%
  • Central bank has held spot auctions and credit line auctions to ease the pressure caused by dollar outflows tied mostly to seasonal dividend payments companies send abroad and while providing support for the real, USDBRL still hovers close to the October highs above 5.70.
  • In local news, China will resume imports of Brazilian boneless beef products from cattle under 30 months of age, according to a notice from the Chinese customs Wednesday. For reference, Brazilian beef shipments to China halted on Sept. 4 after two “atypical” cases of mad cow disease were reported. (BBG)

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