Electoral Calm

September 2006 | Risk Summary

The Brazilian elections are at hand - and our political and economic risk ratings are largely unchanged from last month. Interestingly, the two risk readings are converging, as the accompanying chart indicates. The downward trend in the short-term political risk rating reflects the inherent risk with any approaching election, while the sustained upward movement of the short-term economic risk rating parallels our own bullish views on the economy, as inflation remains stable and interest rates continue to decline. The good news is that we believe that both are likely to head up over the rest of 2006, as the election

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