Ray Dalio is a strong believer and proponent of the fact that debt, another name for credit, drives economic swings in a country.
in Brazil’s case, growth almost instantly triggers inflation. Inflation increases to levels that are detrimental to growth.
Brazil (EWZ) is in a state popularly known as “stagflation.” The economy is characterized by low growth, high unemployment levels, and a rising inflation rate.
During Rousseff’s first four years of service, the Brazilian economy witnessed a marked slowdown. The Petrobras scandal was associated with Rousseff’s first term.
Brazil (EWZ) is rich in commodities. It’s among the top producers and exporters of iron ore, crude petroleum, soybeans, sugar, and meat.
A sovereign credit rating downgrade was already in the cards for Brazil. The stock markets did react, but not substantially.
On September 9, Standard & Poor’s downgraded Brazil’s sovereign credit rating to “junk” status. Brazilian stocks fell at the close of trade on September 9.
Petrobras (PBR.A) was the biggest loser of the day, falling 6.80% on September 10. The company is at the epicenter of Brazil’s corruption scandal, which was revealed in 2014.
Brazil, Latin America’s largest economy and one of the emerging markets of the BRICS countries, was downgraded by Standard & Poor’s to junk status on September 9, 2015.
While the component sectors of SPY declined on August 18, Aetna (AET) continued its upward trend. Aetna’s figures boost confidence.
A percentage of what US manufacturing companies operating in China earn in yuan will be lost once converted to US dollars. As a result, company earnings will be reduced.
The Chinese stock market meltdown is just one of the indicators of how fragile the Chinese economy is.
The Dow Jones Latin America Financials Index (DWLAFN) has plunged 20.03% year-to-date. This poor performance is largely due to Brazilian Financials.
Worsening economic conditions in Brazil and Venezuela hit economic growth in Latin America in the first quarter of 2015.
NAFTA is FCAU’s largest market, accounting for more than 58% of its shipments. Fiat Chrysler’s North American operations have risen in sales for more than 60 months.
SunEdison had capital expenditures of $94.4 million in 2013. Capex for the Solar Energy segment was $1,586.6 million, compared with under $500 million in 2013.
Approximately 25% of the 2,800 companies listed on Chinese stock markets Shanghai and Shenzhen filed for a trading halt by close of trading on Monday, July 6.
While the risks of a contagion spreading here are small, US stock markets here could be affected by what happens to European stocks because of the crisis in Greece.
Shake Shack stated that it will double its company-operated store count over the next three years. It expects that number to triple in the next five years.
A company’s valuation reflects the market’s view of the company’s growth prospects. It also helps us understand if a company is overvalued or undervalued.