Brazils Rate Rise Shows Rousseff Courting Markets

The transcript discusses economic decisions and market dynamics in Latin America. Policy makers raised the benchmark rate to manage inflation following President Rousseff's reelection. Valet SA, a major iron ore producer, faced financial losses due to a weaker Brazilian real and falling commodity prices. The iron ore market saw a significant price drop as major producers increased supply.

What was the primary reason for policymakers to raise the benchmark interest rate after President Dilma Rousseff's reelection?

• To increase foreign investments

• To improve the inflation outlook

• To reduce unemployment

• To boost economic growth

What unexpected financial result did Valet SA report?

• Stable earnings

• A surprise loss

• Increased revenue

• A significant profit

How did the weaker Brazilian real affect Valet SA?

• It improved their market share

• It reduced their production costs

• It boosted dollar-denominated debt

• It increased their export sales

Since when have iron ore prices fallen by more than half?

• 2011

• 2012

• 2013

• 2010

What strategy are companies like Valet, Rio Tinto, and BHP Billiton using to attract customers?

• Boosting supply

• Diversifying products

• Reducing production

• Increasing prices