Emerging Markets

Negative signals still come from China, with the service sector, in May shows a slower pace. While the manufacturing industry continues to falter, the indicator on services adds uncertainty about the direction of the second largest economy in the world.

In May, the Purchasing Managers Index (PMI) service managers developed by Caixin and Markit fell to 51.1 from 51.8 in April, indicating a slowdown in the nation’s service sector. It has disappointed the expectations were for a level 52.
The figure differs slightly from the official services PMI, which, in May, fell to 53.1 from 53.5 in April.

OPEC fails to take any decision regarding the production, despite the efforts of Saudi Arabia’s accession to merge towards a freeze of the production ceiling. The oil is reacting very badly to this news and collapses on today’s minimum: WTI yields 1.7% to $ 48.16 a barrel and Brent 1.2% to $ 49.09.

After 4 hours of debate, the 13 OPEC oil ministers have not found the agreement. At the opening of the debate this morning, the Minister of Qatar Mohammed Bin Saleh al-Sada said that the cartel expects a sharp decline in non-OPEC production in 2016.

Credit Suisse retired from private banking activities in Panama: the local advisory units, which includes about twenty employees, will be closed, indicated a spokesman for the bank, confirming a news released by the Swiss portal Finews financial news.

According the press officer, withdrawal from the Central American country had long planned and therefore is not a decision following the Panama scandal Papers, confidential documents on popular offshore company last April.

In Brazil, Petrobras scandal strikes again: yesterday evening, the Brazilian Minister of Transparency, Fabiano Silveira, resigned after an interception by leaked his critical investigation on the oil giant.

It is the second part of the interim government to fall for Petrobras scandal. On 23 May, the Minister of Planning, Romero Juca, was dismissed by the government after an interception in which he argued that it would take a "pact" to force President Dilma Rousseff to step down to stop the investigations.

Fighting poverty in China over the next five years: the Agricultural Development Bank of China (Agricultural Development Bank of China, ADBC) plans to allocate 3 trillion yuan (about 460 billion US dollars) to fight poverty among the Chinese population, reports state newspaper "People’s Daily."

Also according to the newspaper, by 2020, the Chinese leadership has set a goal to get out of poverty 70 million people. At the end of 2014, 70 million and 170 thousand Chinese residents in rural areas were living below the poverty line while the their annual income amounted to $ 376.

The newspaper said some of the funds will be used for transfer to other areas of the population, to support programs to tourism and education, for assistance to farmers and the construction of infrastructure in rural areas, which should help reduce poverty of the population.

The IMF cut its growth forecast of Saudi Arabia, raising the deficit, as a result of the negative impact exerted by low oil prices.

The warning was launched by the experts of the IMF during the annual mission to Riyadh, which shows a growth estimate of 1.2% compared to 3.5% in 2015. At the same time, experts have raised their estimate on the current account deficit, arising from exchanges of goods and services and financial flows to 9% of GDP and the budget deficit to 14% of GDP.

According to Goldman Sachs, known until now for being particularly bearish, "black gold" market has completed the period of excess supply because of production disruptions last period, which occurred in Nigeria and Venezuela, not to mention the United States and Canada.

After the publication of the report, the price of crude rose: Brent travels around $ 50 a barrel and WTI of around $ 48.

The Brazilian Senate has voted in favor of impeachment of Dilma Rousseff, 55 votes to 22. The suspension from office of the first woman president goes down, after 13 years, even the leadership of the Workers Party, which began with the election of Inacio Lula De Silva. Suspended from office for 180 days, period within which will be processed, Dilma Rousseff will be replaced immediately by Vice President Michel Temer. That in the event of dismissal of Rousseff and if not you will go to early elections, will complete the presidential term will end January 1, 2019.

The verdict came after a lengthy parliamentary debate that lasted 16 hours without interruption. The charges against Dilma Rousseff are based on the alleged irregularity of some fiscal measures the government between 2014 and 2015.