Daily Archives: Mar 4, 2015

Brazil, it seems, simply can’t put its house in order. The real hit R$3 to the US dollar during trading on Wednesday for the first time in more than a decade, after Renan Calheiros, president of the Senate, rejected a presidential decree that would have raised payroll taxes. The measure is seen as essential to meeting ambitious fiscal targets set by Joaquim Levy, the market-friendly finance minister installed in January to rescue the economy, and was the subject of a public rift between Levy and President Dilma Rousseff last weekend.

Failure to meet those targets – or even the fear of failure – puts Brazil’s hard-won investment grade credit rating in jeopardy. Markets were especially jittery on Wednesday, economic daily Valor Econômico reported, as a team from Standard & Poor’s, one of the three global ratings agencies, arrived in Brazil to evaluate the country’s credit risk. Read more

By Zsolt Kuti and Imre Ligeti of the National Bank of Hungary

The upgrades in Hungary’s credit outlook last year, first by Standard & Poor’s and then by Moody’s, represent a turnaround in the history the country’s credit ratings. The earlier, negative trend was halted, and all three major credit rating agencies now assign a stable outlook to Hungarian debt.

We think this presages an upgrade for Hungary. Here is why. Read more

China is no stranger to internet sensations, but a documentary highlighting the scale of the country’s chronic air pollution seems to have shaken the trees all the way to Beijing’s highest branches.

Under the Dome, the 104-minute film made by journalist Chai Jing, has already been seen by 160m people on Tencent’s video page, and garnered praise from government ministers and state media. Investors are also taking note. Read more

** FT News **

* Israel PM warns against Iran nuclear deal | Obama administration reacts angrily to Israeli prime minister’s speech to Congress

* Ukraine sharply raises rates to 30% | Move aims to shore up the plunging currency and temper spiralling inflation Read more