Postcard from Brazil: Headwinds will persist

Neville Shaw, emerging markets manager at Mirabaud Asset Management, reports on his recent trip to Brazil and explains why investors should remain cautious.

Brazil plunged into its deepest recession in decades with the economy (the world's ninth largest) shrinking by more than 7% between 2015 and the fourth quarter of 2016. At the same time, the now infamous Lava Jato, or "Operation Car Wash", scandal broke and quickly snowballed from a basic money laundering case into arguably one of the largest corruption scandals in history, ensnaring dozens of corporate and political leaders and leading to a seismic shift in the Brazilian political landscape. Brazil: The big opportunities and risks as reform agenda gathers momentum It engulfed form...