Weekly Report - 10 March 2016 (WR-16-10)

BRAZIL: Has Rousseff entered the death spiral?

The Real is trading against the US dollar at a three-month high and stocks in parastatal companies such as the oil firm Petrobras have soared. None of the economic fundamentals of Brazil have changed significantly in the last week. Whatever happens in politics over the next few months, Brazil’s economy looks set to continue its slump. But a series of dramatic events over the past seven days have introduced new levels of volatility into the country’s darkening political scenario.

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