01 December 2011

BRASIL: Chevron Calls Rio's Oil Spill Response An "Overreaction"; C.Bank Lowers Benchmark To 11%; Foreign Stock Tax Killed.

                                           WSJ/ J.LYONS

      Chevron is fighting back publicly over Brasilia's response to its recent oil spill off Rio's coast.
     A spokesman called the measures...including fines of between $28-58mn, a possible ban, suspension of all drilling and a criminal probe..."overreacting".
     Chevron claims it allowed 2,400 bbls to spill out.
     "I've never seen a spill this small with this size of reaction," he said. "This overreaction is puzzling us."
     "If there is such a magnitude of reaction for this kind of incident, just think what it would be for a spill three times the size," continued the spokesman. "If anyone thinks that this [type of incident] is not going to repeat itself, I would like to talk to them."
      Experts speculate that the massive BP Gulf spill "has changed people's view of everything we do.[Regulators] cannot afford to allow any slips, no matter how small."


FOR Previous Background Post/Link:
http://thehypervigilantobserver.blogspot.com/2011/11/brasil-hedge-funds-gobble-up-petrobras.html


  AND: As widely expected, the central bank voted unanimously to lower its benchmark rate by 50 bps...to 11%. It was the third consecutive rate decrease...as the REAL had weakened recently almost to the $1.90 level.
     The c.bank also signaled there is room for more rate cuts...to keep the economy stimulated...as annual inflation slowed to 6.69%.
   http://www.bloomberg.com/news/2011-12-01/brazil-signals-no-shift-ahead-in-monetary-policy-after-cutting-rate-to-11-.html
 ALSO: The Bovespa jumped up after FinMin Mantegna announced that a tax on foreign stock purchases would be eliminated...because it was hurting exports.
   http://www.bloomberg.com/news/2011-12-01/bovespa-futures-jump-after-brazil-suspends-tax-on-foreign-stock-purchases.html