Security Clampdown Won't Deter Investment

BMI View: With the World Cup and Olympic Games drawing closer, the latest efforts to re-establish federal control over two of Brazil's most notorious favelas are unlikely to be the last high-profile security operation. While security will remain a key issue for the foreseeable future, we believe that the latest events are unlikely to have a significant impact on investor perception, with Brazil's security woes already largely priced in.

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