& Tobago


Very usefull links


News links




Dow Jones

Oil price



Views and News






Investors racing to Bolsonaro's Brazil as they bolt from AMLO's Mexico


Lopez Obrador, Mexico's president - elect (left) and Jair Bolsonaro, Brazil's president - elect.

- ETFs dedicated to Brazil see strongest inflow since May 2017
- Investors take money out of Mexican underperforming assets

By Aline Oyamada and Carolina Wilson / Bloomberg

Petroleumworld 11 13 2018

On the threshold of populist governments taking office in Latin America's two largest economies, contrasting comments from the incoming presidents are leading money to flow out of Mexico and into Brazil.

Investors added $367 million to U.S. listed exchange-traded funds that track Brazilian stocks and bonds last week, the biggest inflow since May 2017, according to data compiled by Bloomberg. The only emerging-market country to see outflows over that period was Mexico, with $214 million being pulled from ETFs dedicated to the country's assets.

Emerging Market ETF Inflows Reach $2.29 Bln, Most in 10 Months

Mexican assets have underperformed peers since incoming President Andres Manuel Lopez Obrador scrapped a partially built $13 billion airport project, while his party later announced proposals to cut bank fees. Lopez Obrador may not be the only factor depressing Mexican assets though. Brazil's incoming President Jair Bolsonaro is growing on investors amid plans to sell state-owned companies, reform the pension system and narrow the fiscal deficit, potentially attracting funds out of other emerging markets.

“Our overweight in Mexico was naturally reduced to make room in the portfolio for countries like Brazil,” said Raphael Marechal an emerging-market debt portfolio manager at Nikko Asset Management in London.

The Mexican peso and its benchmark stock index are the worst performers among emerging markets over the past month. Assets extended the decline Monday as Lopez Obrador's party reported it intends to push ahead with proposals to reduce bank commissions, despite a statement by the incoming president that there would be no banking law changes in the near future.

Brazil's incoming President, on the other hand, has triggered a huge rally in financial markets, with enthusiasm spreading to bank executives who see a bonanza ahead if the president-elect does what's needed to fix the economy.

“AMLO and his technical team need to be more proactive and send the right and consistent message to reduce policy uncertainty,” said Bertrand Delgado, a strategist at Societe Generale in New York. “Otherwise, his first year in government could unnecessarily be a difficult one.”

Original article


Story by Aline Oyamada and Carolina Wilson from Bloomberg

bloomberg.com 11 12 2018


We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95, '98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter








Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.