The Prolifico Report
The Prolifico Report Mar & Apr 2015 May 14 th 2015 EMPOWERED ALLIES Photo: Michel Temer (vice-president of Brazil, PMDB), Eduardo Cunha and Renan Calheiros (presidents of lower and upper houses, PMDB) SUMMARY “It is in our view a good time to buy.” – Ric Clark, Chief Executive of Brookfield’s real estate business (Wall St Journal, May 5 th 2015) “Brazil’s economy will come back, there’s no question about that.” – Brian Porter, CEO of the Bank of Nova Scotia, Canada (Bloomberg, April 9 th 2015) “It does feel like now is an interesting moment…..we’re starting to see some opportunities that we weren’t seeing six months ago…..and once the all clear sounds, it sometimes feels like it’s a bit late.” – Kenneth Caplan, Global CIO of the Blackstone’s Real Estate Group (Wall St Journal, May 5 th 2015) The last 2 months have seen Dilma Rousseff make some bold political moves, such as appointing the president of the coalition party, Michel Temer, as the government’s “political coordinator” , to ease some of the resistance that she has been experiencing with Congress. The bet on Temer has already paid off, since last week, after intense negotiations, Congress approved some of the measures included in the much needed fiscal adjustment elaborated by the new finance minister, Joaquim Levy. Petrobras has finally released its financial statements and now has access to the capital markets again. As for the real estate market, large real estate investors such as Blackstone and Brookfiel d are taking advantage of the political upheaval and economic slowdown in Brazil by bargain hunting in the country.
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