Halister News

(Bloomberg) -- Recent BRL depreciation is being triggered by a scenario of stronger USD around the world, in face of expectations on Federal Reserve’s succession and Donald Trump’s tax reform, says Mauricio Oreng, strategist at Rabobank in Brazil, in a telephone interview.

• Main risk for the Brazilian real is the repricing of emerging assets due to changes in U.S. monetary and tax policies
• On the domestic scenario, Oreng believes that markets may not be pricing in the pension reform to pass in 2017, but they certainly are for 2019, 2020
  • It seems that the sense of urgency of political class has diminished: Oreng
• Rabobank sees USD/BRL at 3.20 in YE 2017, 3.40 in YE 2018

To contact the translator on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net To contact the translation editor responsible for this story: Ney Hayashi at ncruz4@bloomberg.net Reporter on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco

(Bloomberg) -- BRL’s recent weakening vs. USD caused mainly by speculation about outlook for Fed’s monetary policy and President Trump’s fiscal plan, but move is not sustainable, Franklin Templeton Investments Brazil’s fixed income CIO Rodrigo Borges says in a telephone interview.

• If the world economy grows robustly, even w/ Fed’s monetary policy generating noise, it’s still going to be a positive scenario for emerging markets: Borges
• For Brazil politics, investors does not believe in a reasonable pension reform
• Elections in 2018 are important and may be keeping Brazilian markets to perform better, but it doesn’t cause great impact to either side yet because it’s still too far away
• NOTE: BRL -2.9% MTD, 3rd-worst performer among emerging currencies

To contact the translator on this story: Daniela Milanese in Sao Paulo at dmilanese@bloomberg.net To contact the translation editor responsible for this story: Daniela Milanese at dmilanese@bloomberg.net; Ney Hayashi at ncruz4@bloomberg.net Reporter on the original story: Josue Leonel in Sao Paulo at jleonel@bloomberg.net Editor responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net

--Washington Newsroom (202) 624-1820

(Bloomberg) -- Seven suspects were arrested in Dec. 2016, including 3 employees or former employees of a defense agency, on suspicion of bribery, fraud and money laundering, police spokeswoman says in text message.

• Police suspect those involved coordinated a defense agency acquisition process to ensure the success of civilian companies in exchange for bribes
• The arrests of those involved were extended from time to time and they have now been freed under various limitations
• A gag order remains in place on all other details of the case

To contact the reporter on this story: Alisa Odenheimer in Jerusalem at aodenheimer@bloomberg.net To contact the editors responsible for this story: Shaji Mathew at shajimathew@bloomberg.net Michael S. Arnold, Jonathan Ferziger

--Washington Newsroom (202) 624-1820