Brazilian financial assets took a heavy hit yesterday when news came out that President Dilma Rousseff was re-elected to serve another term. Winning 51.6% of votes, Rousseff defeated Aécio Neves, the leader of the opposition in the closest call of Brazilian election history. Brazil’s benchmark stock index, Bovespa, which measures the health of 50 stocks that are traded on the São Paulo Stock, Mercantile & Futures Exchange, fell by six points as soon as the markets opened yesterday.
Meanwhile, the Next Funds Ibovespa Linked ETF also fell 7% yesterday in reaction to the news. Analysts report that pessimism in the Rousseff administration is linked to Rousseff’s policy of extensive nationalization and governmental manipulation of the economy on a macro scale, thereby scaring away foreign investors.
Xbox Prices Slashed Before Holidays
In anticipation of the holiday season, Microsoft has decided to slash the prices of its Xbox consoles, hoping to generate greater interest amongst consumers looking for the perfect gift. The move is part of a bigger campaign by Microsoft to boost sales, which includes price reductions on several accessories to the Xbox, available for purchase at the Microsoft Store, and other retailers.
Several months ago, Microsoft reduced the price of its Kinect 2 devices, a motion-detecting machine which plugs into the Xbox, and allows users to play video games which automatically detect players’ body movements as they advance through levels. The Kinect 2 was reduced from $499 to $399. Riding on pre-holiday cheer, Yusuf Mehdi, vice president of Microsoft, told reporters: “We’re gearing up for one of our biggest holidays ever and we are thrilled to offer fans up to $150 in savings on Xbox One and some of the biggest blockbuster games of the season.”
ECB At It Again
In the latest effort by the European Central Bank (ECB) to revive the Euro, reports came out yesterday that the ECB purchased €1.7 billion of Covered Bonds. Agustin Martin, an analyst for Banco Bilbao Vizcaya Argentaria SA says, “These figures tell us that the ECB is being aggressive about expanding its balance sheet.”
The EUR/USD is trading today at 1.26980, with slight fluctuation, as investors have heard it all before.
