Good morning! Today, the ongoing Petrobras drama. Brazil’s lackluster infrastructure investments. And a trial that could completely alter the São Paulo governor’s race.
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Another CEO bites the dust
Markets received the news on Monday that José Mauro Coelho had resigned as the chief executive officer of Petrobras. The move in itself was expected — the government had announced on May 23 that it would swap CEOs and had initiated the process to change the company’s leadership. But how it was done certainly raised eyebrows.
- Petrobras issued a statement just moments before the stock market’s opening bell — which briefly suspended trading of the company’s shares.
- Then, another notice to the market informed that Exploration and Production Officer Fernando Borges had been named interim CEO.
Why it matters. Brazil’s Securities and Exchange Commission (CVM) opened two probes into Petrobras, concerning “news, material facts, and releases.”
Leadership. The government hoped Caio Paes de Andrade — its pick to lead the company — would have been made interim CEO. But markets reacted well to...