Brazil Well Positioned to Weather Global Financial Crisis and Provides Opportunities for Value Investors, According to BNY Mello
April 06 2009 - 10:57AM
PR Newswire (US)
Reforms, Demand for Commodities Help Build Financial Cushion NEW
YORK, April 6 /PRNewswire-FirstCall/ -- Brazil's reforms over the
past decade have helped position the country to weather the global
economic crisis, and several factors suggest that the equity
markets are providing opportunities for value investors, according
to BNY Mellon ARX, the BNY Mellon Asset Management unit focused on
Brazil. "The benefits of the Real Plan of the 1990s, the commodity
boom, and the growing buying power of the expanding middle class
have all contributed to strengthening the country's economy," said
Jose Alberto Tovar, managing director of BNY Mellon ARX. "The Real
Plan has tamed inflation and significantly improved Brazil's
external account position. Rising demand for commodities has helped
Brazil build a large cushion of foreign exchange reserves, and the
economy has become more diversified as the manufacturing and
service sectors have grown." Looking at equity valuations, Tovar
said, "They are at their lowest level in a decade and there are
many reasons to conclude the markets have good value
opportunities." The BNY Mellon ARX team noted that Brazil's debt
has achieved an investment grade rating from Standard & Poor's
and Fitch, foreign direct investment remains strong, and monetary
policy has positioned the country so that it has considerable room
to ease interest rates. "We are expecting Brazil's economy to
recover faster than the global average, with Brazil's Institute of
Statistics predicting four percent GDP growth in 2010," Tovar said.
Controlling inflation has created positive ripples throughout the
economy. "Besides lower interest rates, we have seen an expansion
in credit, Tovar said. "Corporations and individual investors are
making long-term decisions with greater comfort and the foundation
is in place for greater gains in real income and productivity."
Notes to Editors: BNY Mellon Asset Management is the umbrella
organization for The Bank of New York Mellon Corporation's
affiliated investment management firms and global distribution
companies. The Bank of New York Mellon Corporation is a global
financial services company focused on helping clients manage and
service their financial assets, operating in 34 countries and
serving more than 100 markets. The company is a leading provider of
financial services for institutions, corporations and
high-net-worth individuals, providing superior asset management and
wealth management, asset servicing, issuer services, clearing
services and treasury services through a worldwide client-focused
team. It has $20.2 trillion in assets under custody and
administration, $928 billion in assets under management, services
more than $11 trillion in outstanding debt, and processes global
payments averaging $1.8 trillion per day. Additional information is
available at http://www.bnymellon.com/. All information source BNY
Mellon Asset Management as at 31 December 2008. This views
represented in this document are those of BNY Mellon ARX
Investimentos Ltda and do not necessarily represent the views of
the BNY Mellon Asset Management umbrella organisation. This press
release is issued by BNY Mellon Asset Management to members of the
financial press and media and the information contained herein
should not be construed as investment advice. Past performance is
not a guide to future performance. A Bank of New York Mellon
Company DATASOURCE: The Bank of New York Mellon Corporation
CONTACT: Mike Dunn, +1-212-922-7859, , or Sarah Deutscher,
+44-20-7163-2744, Web Site: http://www.bnymellon.com/
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