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zugzwang

Brazil Economy Contracted 0.5% In 3Q

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The 2nd Great Depression appears to be coming on like christmas.

Have you spotted it yet, Professor Krugman? :lol:

http://uk.finance.ya...-155654359.html

The Brazilian economy contracted 0.5 percent in the third quarter of this year compared with the previous one, the first such contraction since early 2009.

The announcement by the Brazilian Institute of Geography and Statistics was in line with the most pessimistic market expectations.

In the first quarter of 2009, Brazil's GDP had contracted 1.6 percent.

Compared with the third quarter of 2012, the world's seventh largest economy -- and Latin America's biggest -- grew 2.2 percent, the institute said.

Finance Minister Guido Mantega said despite the "volatility" of the results, "the Brazilian economy is on a trajectory of gradual growth which should continue in the next quarters."

He vowed that the fourth quarter would be positive and that it "is perfectly possible to post 2.5 percent growth" next year.

"We expected negative growth in this third quarter, especially after the second quarter which brought an unusual pickup," said Silvia Matos, an analyst with the Brazilian Economy Institute IBRE.

"This is not a recession, but it shows that we are returning to more modest growth, maybe a 0.5 percent advance in the next quarter, which would bring 2.3 percent GDP growth this year, a little worse than what we expected," she told AFP.

"Probably it will be more modest in 2014: 1.8 percent expansion," she noted.

Last year, the economy grew a mere one percent, according to revised data released Tuesday, following 2.7 percent growth in 2011 and a sizzling 7.5 percent in 2010.

This year market analysts are banking on a 2.5 percent expansion and 2.11 percent in 2014.

The government's economic planners must simultaneously spur growth and rein in inflation, which in June reached 6.7 percent, above the 6.5 percent upper range of the official target.

Currently inflation hovers around 5.8 percent.

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They hiked IR's recently.Just sayin' that's all.

http://online.wsj.com/news/articles/SB10001424052702304747004579224602006506112' rel="external nofollow">

WSJ 27/11/13

'

SÃO PAULO—Brazil's central bank raised its benchmark interest rate on Wednesday by half a point to 10% as expected and hinted it may be about to switch gears.

The monetary policy committee unanimously voted to raise its Selic rate for a sixth consecutive time. In a post-meeting statement, the monetary authority reiterated it was "giving continuity" to the rate adjustment process as it tries to bring inflation down to the bank's target of 4.5%.'

Edited by Sancho Panza

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The 2nd Great Depression appears to be coming on like christmas.

Have you spotted it yet, Professor Krugman? :lol:

Looks like it - I work for a large corp who have decided to layoff 10% of their global staff this week (possibly me too).

The orders are just not coming in, they have to now cut their costs in order to justify their record share price.

Earnings $10 million under target:

Rough values:

Market cap $970.00M

Average volume 156,238

P/E ratio 16.00

EPS 1.80

Dividend 0.15

Div yield 2%

Share prices have tripped since 2011, no underlying improvement in performance in fact one large business partner has recently cancelled an order.

I can feel it coming on like the day before a cold.

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Looks like it - I work for a large corp who have decided to layoff 10% of their global staff this week (possibly me too).

The orders are just not coming in, they have to now cut their costs in order to justify their record share price.

Earnings $10 million under target:

Rough values:

Market cap $970.00M

Average volume 156,238

P/E ratio 16.00

EPS 1.80

Dividend 0.15

Div yield 2%

Share prices have tripped since 2011, no underlying improvement in performance in fact one large business partner has recently cancelled an order.

I can feel it coming on like the day before a cold.

What sector ?

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