Brazil

"We're Going To Do It, F**k It" - Venezuela's Maduro Orders Military Exercises For Next Weekend

"Comrades, I am ready to hand over to communal power the factories that some conservative big wigs in this country have stopped. An idled factory is a factory handed over to the people. We are going to do it, fuck it" Venezuela President Maduro boomed at a weekend rally during which he warned that "trouble-makers were fomenting violence to justify a foreign invasion" and ordered military exercises for next weekend.

Goldman Cuts 2017 Oil Price Forecast Due To Slower Market Rebalancing

"We expect that the return of some of these outages as well as higher Iran and Iraq production will more than offset lingering issues in Nigeria and our higher demand forecast. As a result, we now forecast a more gradual decline in inventories in 2H than previously and a return into surplus in 1Q17, with low-cost production continuing to grow in the New Oil Order. This leads us to lower our 2017 forecast with prices in 1Q17 at $45/bbl and only reaching $60/bbl by 4Q17."

Maduro's Last Stand: Venezuela Declares State Of Emergency

From extending the weekend, to rationing electricity, to running out of money to print money, we've been covering the real-time events that have occurred in Venezuela as it devolved into a completely failed state. Sadly, last night as starving citizens looted marketplaces in search of food, we predicted that a civil war was almost inevitable, and that Nicolas Maduro would do what he could to hang on for dear life (literally). Today we learn, with his entire socialist utopia literally crumbling beneath him, Venezuelan president Maduro has declared a 60-day state of emergency.

Another US-Sponsored Coup? Brazil's New President Was An Embassy Informant For US Intelligence

As much as we would like to believe that Michael Temer is simply the real world version of Frank Underwood, there is a much simpler explanation for the 75-year-old's dramatic ascent to the peak of Brazil's power elite. As it turns out, the Temer presidency may be nothing more than the latest manifestation of the US state department's implementation of yet another puppet government. We know this because earlier today, Wikileaks released evidence via a declassified cable that Brazil's new interim president was an embassy informant for US intelligence and military.

Genscape: "Inventories At Cushing Are Close To Maximum Operating Capacity"

Inventories at Cushing are close to maximum operating capacity, and on May 3, 2016 reached utilization just shy of 80 percent, a record high since Genscape began monitoring the hub in 2009. Genscape has never observed capacity utilization higher than 80 percent based on historical data, though utilization may breach 80 percent depending on the utilization of merchant capacity, or capacity that is leased by an owner to other users.

 

Everyone Is Still Selling: Biggest Monthly Outflow From Global Stocks Since US Downgrade

One recurring question over the past few weeks has been "who is buying" stocks in a world in which not only the smart money, but everyone else too is selling. The latest Lipper data will not provide the answer because as BofA reports, in the latest week there was another $7.4bn in outflows (the 5th straight week) driven by $4.8bn in mutual fund outflows and $2.7bn ETF outflows, leading to a $44bn equity exodus past 5 weeks, which as Michael Hartnett points out is the "largest redemption period since Aug’11", or when the US downgrade sent US stocks into a bear market tailspin.

Bloody Start To Friday The 13th For Global Markets

Global stocks have started Friday the 13th on the wrong foot, with not only Hong Kong GDP unexpectedly tumbling by 0.4%, the worst print in years while retail sales fell for a thirteenth straight month in March, the longest stretch since 1999 as the Chinese hard landing spreads to the wealthy enclave, but also following a predicted collapse in Chinese new loan creation, which will reverberate not only in China but around the globe in the coming weeks. The latest overnight drop in the Yuan hinted that should the recent USD strength continue, China will have no choice but to repeat its devaluation from last summer and winter. 

What's Next For Big Oil Now Brazilian President Rousseff Is Suspended?

For the oil industry, nothing is clear. While the industry is seeking reforms on a number of levels, including changes to rules that require state-run Petrobras to have a 30-percent operating stake in all sub-salt projects and changes to tough local content rules, nothing is likely to be decided until Rousseff’s status is definitive. At the same time, there were already indications that the oil industry was gaining ground with the current government.

Futures Halt Selloff, Levitate Higher On Another USDJPY Spike; Oil Rises

If yesterday's selloff had a specific catalyst, namely some of the worst consumer retail earnings seen in years, it merely undid the Tuesday rally which levitated global risk with no fundamental driver, aside for a 200 pip spike in the USDJPY.  Some central bankers may even say it was a "magical" levitation. Fast forward to the overnight session when following a muted Asian session, it was once again up to the "magical" USDJPY to send stocks well into the green without any actual catalyst whatsoever, but what merely appears to have been another "magical" intervention session by the BOJ.

Brazil President Rousseff Suspended, To Be Put On Trial After Losing Impeachment Vote

In a vote whose outcome was largely expected, moments ago the Brazilian Senate concluded a marathon 21 hour session with a 55 to 22 vote to suspend President Dilma Rousseff from office to face an impeachment trial, ushering in a new government to take command of Latin America’s largest economy. Rousseff will be tried on allegations she illegally doctored fiscal accounts to mask the size of the budget deficit.

Brazilian Soccer Star Warns Olympic Visitors "Stay Home, Your Life Is At Risk Here"

"Things are getting uglier here every day, I advise everyone with plans to visit Brazil for the Olympics in Rio — to stay home. You'll be putting your life at risk here. This is without even speaking about the state of public hospitals and all the Brazilian political mess. Only God can change the situation in our Brazil."

What Manipulation Does To The Free Market

Had the federal government held a constant measuring stick rather than "tinkering, engineering, distorting" key government calculations such as the size of the economy (GDP), the rate of inflation, level of unemployment, or size of federal deficits and federal debt...the reality we face would be plain and honest choices needed.  Instead, the responsibility of those working for "the people" has been breached via falsifying and distorting each of these (over decades).  This consistently improves the output and does not allow a true means to quantify and qualify the nations health.  Simply put, the government has continually tinkered, tampered, and distorted the accounting so as to mislead or create a falsely positive appearance. 

France Discusses Ban Of Imported U.S. Shale Gas

After French media accuses government of hypocrisy, French Energy Minister Segolene Royal is discussing with French parliament a potential ban on the import of U.S. shale gas.