Nada

Political risks

Increased uncertainty about an exchange of oil stocks linked to a huge stock offering by Petrobras, scheduled for September.

The Government has disagreed with Petrobras on the price of oil to be transferred within the capitalization program.

For the state, he needs money and oil to develop an ambitious plan to exploit the billions of barrels of oil equivalent in thedeep seabed, a higher price to $ 6 per barrel could become too expensive and risky initiative and detract from their titles.

The Government's legislative framework to exploit new oil reserves has been stalled in the Senate and will not be voted until after the election.

The proposal aims to increase state control over some of the largest recent oil finds and to ensure that the profits aredirected to the State to help finance investments in areas such as infrastructure, education and programs for poverty reduction. If approved, the measures are likely to reduce competition in the sector, but at the same time boost the role of state oil company Petrobras, offering fewer but still attractive opportunities for foreigners.

Critics say the new laws would threaten the efficiency of thesuccessful Brazilian oil sector to stagnate investments and increase the dangers of corruption and political interference.

What to monitor?:

- The price to be paid by Petrobras in the oil-for-equity swap.
- Signs that Congress can agree on how to distribute oil revenues among the federal government and the states, paving the way for the oil law approved after the elections.CONGRESSIONAL SUPPORT

Rousseff coalition is expected to win a clear majority in Congress and advance his legislative agenda. But progress will depend on how well the inexperienced candidate can deal with allies often undisciplined.
If Serra wins the October elections, Lula's government lost its majority in Congress as some lawmakers move to the coalition of President-elect. This could create aparliament stalled, with little chance of passing important bills before Lula leaves office on January 1, 2011.

CORRUPTION

Image attacks and corruption scandals often arise during election campaigns in Brazil and have the potential to paralyze Congress and affect any of the major candidates.

level of political stability

Brazil today has a consolidated democracy, built on soundinstitutions, a stable political environment and guarantor of the state of individual rights. In 508 years, is a country that combines a high degree of institutional maturity, politically and economically to a huge potential for growth and investment. Today, the country is leading in the global economy, with the establishment of an intensive dialogue between groups such as the G-20.

After a period of 21years under a dictatorial regime, the restoration of democracy occurred in 1984 and was consecrated in 1988 with the enactment of a Democratic Constitution and Citizenship; a landmark in the process of reducing social inequalities existed. Since then, the country is a full democracy with a republican system of controls that led to impeachment of a President of the Republic in 1992, through aprocess led by the legislature. In the 20 years of democratic normality prevailed, with a sequence of five regular presidential elections.

Without institutional fractures, democracy continues. There is in the political history of active episodes of society, as in the case of the national referendum on the governance, conducted in 1993 so that people could choose the form of government, with optionsranging from presidentialism, parliamentarism and the monarchy. The decision was to maintain the presidency. Thereafter, they were elected presidents of different ideological and partisan hues, which fully met their mandates and put emphasis on process control of inflation, your clients are in education, efficient macroeconomic management, improved business environment and reduction social...