09 March 2013

BRASIL: Dilma Cuts Federal Tax On Food Staples; 3 Oil States Upset At Congress Redistribution Override.

    In a continuing effort to stimulate Brasil's lagging economy and slow inflation... President Dilma Rousseff cut the 9.25% federal tax on staple foods.
    Inflation there recently neared 6.5%.
    Brasil delivered a miserable .9% GDP growth...in 2012.
    This week state run oil giant Petrobras finally increased the price of diesel by 5%...delighting  markets and sending PBR's languishing stock higher.
      ALSO: The 3 major oil/gas producing states...Rio de Janiero, Espirito Santo and Sao Paulo...are in an uproar after the Congress overrode President Rousseff's veto of their plan to redistribute oil royalties.
      Oil rig supply helicopter flights were briefly blocked at 2 major state airports.
      The 3 states are threatening to cut-off all oil supplies...if their multi-billion royalties are cut.
     Rio state would lose $1.6 billion in 2013. 
     It alone accounts for 67% of all oil and gas.