Reuters - Video

EDITION: U.S. | U.K. | IN

Breakingviews

Breakingviews: Brazilian bravado

Wednesday, July 10, 2013 - 03:16

July 10 - Jeffrey Goldfarb talks to Christopher Swann about the downfall of Eike Batista's oil empire and how it is emblematic of a bigger problem in Brazil.

▲ Hide Transcript

View Transcript

The bravado that has come to be associated with Brazil now houses poster boy I keep Batiste. Whose empire crumbling before our very eyes but not not before he gave all sorts of bold promises and pledges that it becomes sort of emblematic of the country you kind of stitched together all the pieces here. What exactly did he said he was gonna happen and how does that relate to. What we've come to think of is you know this this boastful -- -- truly think he was found it very content that -- Just a year ago he said he was kind of become the world's richest man they're taking it from -- Carlos Slim eclipsing bar -- buffet at the time he wasn't far away give us your thoughts are when he was at thirteen -- billion dollars. And instead he's broken hold back holds for the cost of slides down the rich list he's probably lost about 25 billion dollars since he made that and he says that even when -- out of ought to be married and his billionaire for all we know it would be very very tragic indeed he may not even be a -- Because the credits as a -- we don't know exactly how much debt he has but it made it looks quite monument. But this is just a symptom of sort of a bigger issue that has become associated with Brazil and you point to. Some other political and investment kind of seems that if -- ball where there's. Over promising and we'll let him do and I'll be TVX president with that Hamas to -- -- -- spending much of his time outside the country texting about how great country walls. He said that had prevailed with that like America in the 1950 night it was expected to have. That's years of uninterrupted growth yet contestants in Europe to place their bets on Brazil's obviously that if it did I would -- had a very. Disappointing time event because PS stock market found about -- he'll say percent since he made his promise and all the things behind it sort of tend to make sense right that's a resource rich country. We had this massive oil find which was supposed to them propel on the back of the minerals agriculture why is -- that the it can't seem to deliver up to expectations. I think what went wrong -- it was a combination of things. Obviously I mean that was a huge amount of hype they just failed to deliver on. They have very very rigid labor laws they have an incredibly low savings rate which means very -- investment test -- we in the country. And -- very dependent on foreign capital. I -- an essentially they dropped the building neglected fairly basic reforms like that cutting back BS state pension system. That you say there have been some achievements obviously a lot of people come out poverty ourselves. And they're still looking to you know I guess build out infrastructure have got two huge. Events that are gonna put the country on the world stage coming up the next couple years that they -- themselves have been rather contentious thing. It's not as they've -- finished without its achievements that he say about fourteen million people on the -- no way lifted out of poverty. Part of that was thanks to a commodity being part of that was thanks -- anti poverty measures that from the government. That the sporting event today and -- to -- in -- -- to simulate the problem and massively paper punches and I haven't fully execute properly on them. We will leave it there we'll keep an eye on I guess what was should now call sort of they have that -- she's low discount that needs to be -- -- result. We're back -- corporate news tomorrow.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: Brazilian bravado

Wednesday, July 10, 2013 - 03:16

Top News »

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Moving Pictures »

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)