Wednesday, May 12, 2010

Citigroup (NYSE:C) Says Real Rises on Retail Sales

Citigroup’s (NYSE:C) Dirk Willer said today that increased retail sales aided the Brazilian real in reaching it third gain in the last four days, as retail sales in Brazil rose to their highest levels on record.

Retail sales in Brazil rose by 15.7 percent in March over the year before, surpassing analysts' projections of 14 percent.

The central bank of Brazil raised interest rates in April to combat the expanding economy, increasing benchmark borrowing costs from 8.75 percent to 9.5 percent.

Europe's decision to bailout out the irresponsible, socialist/welfare countries had generated concerns over whether or not investors would ignore assets in Brazil specifically, and Latin America in general.

Willer said, “The market reacted well to retail sales. The pressure point has largely been removed after the European bailout package was announced.”

No comments: