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The Bovespa slid over 5% this morning.

The fear of the turmoil spreading from US financial institutions would have been enough to spark selling in Brazil today, but with an economy so heavily tied to oil, gas and biofuels the post-Ike sell-off in crude only adds insult to injury.

Central Bankers raised the benchmark SELIC rate by 75 basis points last Wednesday in an attempt to control inflation –the 4th time the rate has been raised since April. That intervention may not be enough to help this BRIC find a soft landing.

Andrew Barber
Director