GlobalSource Partners | Country Insights

The South African Reserve Bank (SARB) has once again announced that it is keeping the benchmark interest rate unchanged following this week’s conclusion of its Monetary Policy Committee’s (MPC) third meeting of the year. The repo rate remains at 3.5% and the prime lending rate at 7%. The decision...

CPI considers further action against testifiers, Bolsonaro compliments Salles, and Administrative Reform proposal should be voted on next week

BRAZIL POLITICS · Report · 21 May 2021

Pazuello performs well in the COVID CPI in the Senate, and senators consider taking action against the Committee’s testifiers. The Eletrobras privatization was approved in the House and should be sent to the Senate for analysis. The Administrative Reform proposal is expected to be approved and wi...

GULF WEEKLY: US-Iran deal imminent, Covid surges in Bahrain, Oman’s EDO to raise $5bn

GULF COUNTRIES · Report · 21 May 2021

A skimmable summary overlaid with our analysis and links. Headlines: * We now see the chances of a US-Iran deal by May 28 as close to 50%, and 80% by July. * Bahrain’s Covid cases continued to rise sharply despite its rapid vaccine rollout. * Vaccinated Saudis were permitted to travel, incl...

Major Russian supermarkets amalgamating

RUSSIA / FSU POLITICS · In Brief · 21 May 2021

On May 19 it was announced that the chains are uniting. Magnit is buying the discount stroe Dixy for USD 1.25 billion. Mon May 20 Lenta announced it will buy the Billa stores for USD 263 million. Magnit is Russia's main supermarket brand.The Russian supermarket sector was fragmented. That is now ...

Legislative Commissions Finally Conformed

ECUADOR · In Brief · 20 May 2021

After two days of lack of consensus, the new majority formed by Creo-Independents, Pachakutik and Izquierda Democratica finally achieved the exact 70 necessary votes to conform the 15 specialized legislative commissions. However, presidents of these commissions that have nine members, were not ap...

US worried over Russian Military in Arctic

RUSSIA / FSU POLITICS · In Brief · 20 May 2021

On May 20 the Arctic Council met. The US expressed its dismay at Russian Military drills in the Arctic. Most members of the Arctic Council backed Washington. The US says the organization should emphasize ecology, safety at sea and the welfare of the autochthonous people.Russia wants to control th...

There are no conditions to implement a tax reform in 2021.

DOMINICAN REPUBLIC · In Brief · 20 May 2021 · 2 responses

In a long interview to review the first 9 months of his administration, President Luis Abinader indicated that there are no conditions for a tax reform in 2021 and that it is necessary to reach an agreement to see when is the best time to implement said reform. He said that the social forces of t...

Privatization of Eletrobras approved in the House, Pazuello resumes testimony in COVID CPI and Salles under investigation

BRAZIL POLITICS · Report · 20 May 2021

The provisional measure on the privatization of Eletrobras was approved in the House and will now be analyzed in the Senate. Pazuello perfomed well in the COVID CPI yesterday and should have another long day in the Committee today. Salles is being investigated for a corruption scheme to illegally...

Sberbank gives strongest shareholder returns in the world

RUSSIA / FSU POLITICS · In Brief · 20 May 2021

On May 19 Boston Consulting Group (BCG) published a study that showed that the Russian bank's performance since 2016 has provided higher dividends than any other bank anywhere. Sberbank is state controlled and it is a major lender. Sberbank is also Russia's biggest publicly listed company. It has...

Russia’s current account to strengthen in 2021

RUSSIA ECONOMICS · In Brief · 20 May 2021

The Central bank estimated that Russia’s current account widened to $28.1bn in 4m21 as an estimate of the 1Q21 balance of payments published earlier suggested that the current account surplus was at $16.8bn. If so, then the current account was particularly strong in April. Meanwhile, according to...

A negotiations bazaar

VENEZUELA · Report · 19 May 2021

Maduro’s government is negotiating with multiple parties. The signals sent by his important recent concessions, an outcome of ongoing negotiations, were listened to attentively by the international community, governments and think-tanks, forcing the interim government and the G4 to stop ignoring ...

Progress towards an Iran nuclear deal hits oil

GULF COUNTRIES · Report · 19 May 2021 · 1 response

We predict a 40% chance of a revived JCPOA nuclear deal closing next week, with an 80% chance of it happening by July, after the June 18 Iranian presidential elections. The oil market is finally beginning to wake up to the threat but hasn't yet priced it in. This presents both a fiscal and a poli...

Instead of calling for the discussion of the Fiscal Pact, the Government begins discussion of a Social Pact with workers and employers.

DOMINICAN REPUBLIC · In Brief · 19 May 2021 · 1 response

Yesterday, the Government launched the call for the discussion of a Social Pact with the participation of representatives of the business and labor sectors. The agenda of the discussion is the revision of the Labor Code and the Social Security Law, the first with 30 years of validity and the seco...

Former Minister of Health, Eduardo Pazuello, to testify in the COVID CPI and Congress should vote on Eletrobras privatization

BRAZIL POLITICS · Report · 19 May 2021

The longest serving Minister of Health during the pandemic was granted a habeas corpus from the STF, granting him the right not to answer Senators’ questions. The provisional measure on the privatization of Eletrobras is expected to be approved and should be sent to the Senate this week.

No new US sanctions on Nord Stream 2: rumors

RUSSIA / FSU POLITICS · In Brief · 19 May 2021

On May 18 Axios reported that the United States shall not impose further sanctions on the gas pipeline. The US Government will not sanction Nord Stream 2 AG - the Swiss company controlled by Gazprom - that is involved in building pipeline. The US is refraining from sanctioning the firm due to nat...