The Economist writes about high frequency trading coming to Emerging Markets, such as the Bovespa. These trading strategies may improve market efficiency by adding liquidity in the very short term. THE merits of high-frequency trading (HFT) are under scrutiny in America, thanks to the “flash crash” of May 6th when the Dow Jones Industrial AverageContinue reading “Emerging Market High Frequency Trading”
Category Archives: Brazil
Race & Law; Bolsa Familia
The Economist notes controversy over the race and law in Brazil. As well, The Economist covered Bolsa Familia in a long article, distinguishing between impact in rural and urban areas. These two articles give some context for understanding the emerging middle class, an important Global Macro theme to watch. On race and law: BRAZIL’S SupremeContinue reading “Race & Law; Bolsa Familia”
BNDES needs greater transparency?
The Economist has a piece on BNDES, advocating greater transparency, and noting the influence of the organization. EIKE BATISTA, Brazil’s richest man, calls BNDES, the country’s state-owned development bank, “the best bank in the world”. But a former BNDES chairman, Luiz Carlos Mendonça de Barros, says it is a serpent’s egg—a reference to a filmContinue reading “BNDES needs greater transparency?”
A country of “Nouveaux Riches” .. yet Brazil is 3rd income inequality
Luxury items? Doing fine thank you. A recent survey by consulting firm PonteEstratégia revealed that middle class Brazilians(earning R$1,500-R$5,000 per month) spend 30% to 60% of their income on luxury items. On the same note, GFK institute and MCF consultancy announced that the luxury market in Brazil will grow more than the economy as a whole; 23%Continue reading “A country of “Nouveaux Riches” .. yet Brazil is 3rd income inequality”
Informal economy represents 18% of GDP in Brazil
Heavy taxes and a lot of bureaucracy. Those are the thoughts that came to my mind when I saw the latest FGV estimate; Brazil’s informal economy is R$578bn, or the equivalent to Argentina’s total GDP. The good news is that although sizeable, the statistic reveals a more formalized economy than in 2003, when 23% of GDP was estimated to be informal.
BRAZILGLOBAL.NET 