Good morning! The government announced a massive privatization plan, which included Petrobras. But is it for real? Plus, how the Amazon is being burned in recent years. And the rising number of people killed by Rio de Janeiro cops. (This newsletter is for platinum subscribers only. Become one now!)
Don’t believe the Petrobras privatization hype
Yesterday, shares of Brazilian state-owned companies were the sensation of the São Paulo stock market after the government unveiled its plan to privatize many of them by the end of the year — and also because of a report by newspaper Valor stating the government wants to sell oil and gas firm Petrobras, Brazil’s crown jewel, before the end of Jair Bolsonaro’s term.
Petrobras shares (PETR4) jumped from BRL 24.54 to 25.96 in a matter of minutes, closing at BRL 25.45 (+5.95%).
Why it matters. Petrobras is Brazil’s biggest company and is responsible for 93% of the oil produced in the country. The company has always been vulnerable to political interference in its pricing policy and corruption scandals.
- Some experts believe that a private Petrobras would be more efficient, “having to make the right call,” as Vladimir Fernandes Maciel, coordinator of the Economic Freedom...