Brazil

Back in December we warned that Brazil faced a "disastrous downgrade debacle" that would eventually see the beleaguered South American nation cut to junk by all three major ratings agencies. 

S&P had already thrown the country into the junk bin and just six days after our warning, Fitch followed suit.

Between the country's seemingly intractable political crisis and worsening public finances, the outlook is exceptionally dire and just moments ago, Moody's cut Brazil to junk as well.

Well another day, another horrible piece of economic data out of Brazil.

Core retail sales in South America’s most important economy slid 2.7% M/M in December, erasing a meager gain the country eked out in November when the numbers got a boost from promotions.

Broad retail sales, meanwhile, declined 0.9% marking the eleventh decline in thirteen months. They’re now off more than 16% since peaking in August of 2012.

Submitted by Alicia Chavy via Global Risk Insights,

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