Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Bolsa de valores de Sao Paulo  >  JBS SA    JBSS3   BRJBSSACNOR8

JBS SA (JBSS3)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

JBS : Risks to Brazil's Temer subside after bungled JBS plea bargain

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/14/2017 | 01:07am CEST

BRASILIA (Reuters) - The arrest on Sunday of Joesley Batista, a billionaire meatpacker who implicated President Michel Temer in a corruption scandal, has actually improved the Brazilian leader's prospects of surviving graft allegations and serving out his term through 2018.

But the three-month political crisis triggered by the plea bargain allegations by Batista, formerly chairman of meatpacker JBS SA, has consumed precious time that Temer has to pass legislation to overhaul Brazil's costly pension system and avoid a fiscal crisis in Latin America's largest nation.

Temer and his coalition allies in Congress are confident they can block a second corruption charge that Brazil's top prosecutor, Rodrigo Janot, is expected to file against the president by the end of the week.

A Supreme Court judge on Tuesday authorized a new probe of Temer for suspected corruption involving a decree regulating ports, a day after a separate police probe into Temer's allies kept pressure on the president.

Yet as long as Temer is in office, any charges against the president must be approved by the lower house of Congress in which he has retained enough backing to avoid trial by the Supreme Court.

"Temer's political standing in Congress has improved a lot, because the economy is starting to grow again and the pressure of another corruption charge is falling," said the government's deputy whip in the lower house, Beto Mansur.

"The prosecutor's case has been weakened and the next charge will arrive here with little credibility," he told Reuters.

A new poll by Arko Advice consultancy, however, shows that most lawmakers do not expect pension reform to clear Congress until 2018, and passing the unpopular measure in the run-up to next year's elections may be an uphill struggle.

A proposed overhaul of the pension system, the main contributor to Brazil's record budget deficit, was headed for approval in the lower house of Congress until accusations against Temer in May derailed his plans.

In a bombshell plea bargain agreement in May, Batista confessed to bribing hundreds of politicians and gave prosecutors a taped conversation of the president. The recording appeared to show Temer condoning hush money payments to silence a witness in a sprawling corruption scandal.

Just two weeks ago, however, another tape inadvertently submitted to prosecutors by Batista with other documents appeared to show he had been helped by a close aide to Janot in crafting the deal. The Supreme Court revoked his immunity and ordered his arrest for concealing other crimes.

Beyond the embarrassment to Janot in his last days in office - he steps down as top prosecutor on Sunday - the revelation has given Temer's lawyers an opening to try to dismiss evidence provided by Batista, while strengthening the president's hand in Congress to fight any further charges.

The credibility of Temer's accuser was further undermined on Wednesday by the arrest of Batista's brother Wesley, the chief executive officer of JBS SA, for alleged insider trading to avoid hefty losses related to the May plea bargain.

WIDER CONGRESSIONAL BACKING

Temer mustered enough support to block Janot's initial corruption charge from putting him on trial, in a 263-227 vote in the lower house on Aug. 2. That margin is expected to widen if a second charge comes before the house.

"There is no motivation in Congress to remove president Temer. Many of the politicians who will vote are being investigated, so why would they empower the public prosecutors at this time?" said Lucas de Aragão, a political scientist and partner at Arko Advice.

Still, Aragão said fighting the next charge will cost Temer more pork barrel and patronage for lawmakers and at least a 30-day delay for pension reform, leaving the Senate with little time to pass the bill in 2017.

No less than 83 percent of lawmakers believe pension reform will not be passed this year, according to an Arko poll of 201 Congressmen last week.

Temer has ordered his minister to restart the pension reform debate in Congress immediately so that it can be put to the vote in the house my mid-October.

"The country lost 90 days. The economy could be recovering faster and growth would have been more robust if it had not been for this artificial crisis," said a Temer aide who requested anonymity because he was not authorized to speak publicly.

Speaker Rodrigo Maia is expected to expedite the pension bill after Temer signed off on a bailout for his bankrupt state of Rio de Janeiro, a source on the economic team said.

(Reporting by Anthony Boadle; Additional reporting by Silvio Cascione; Editing by Matthew Lewis)

By Anthony Boadle

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on JBS SA
06/09China slaps anti-dumping deposit on Brazilian chicken
RE
05/16JBS : Brazilian prosecutors charge JBS shareholder with corruption - source
RE
05/02JBS SA : Ex-dividend day for final dividend
FA
03/26Citi, Goldman and rivals ramp up Brazil banker poaching war
RE
03/05Argentina drought bakes crops, sparks grain price rally
RE
02/21LIVESTOCK HIGHLIGHTS : Top Stories of the Day
DJ
2017JBS : Meat packer JBS says IPO not ruled out
AQ
2017JBS : Brazil's JBS Says Operations Resumed at 7 Slaughterhouses
DJ
2017RATING ACTION : Moody's downgrades JBS S.A. ratings to B3; negative outlook
AQ
2017Blacklisted by Brazil, Dublin funds find new ways to invest
RE
More news
News from SeekingAlpha
05/15JBS S.A. 2018 Q1 - Results - Earnings Call Slides 
05/15JBS (JBSAF) Q1 2018 Results - Earnings Call Transcript 
05/15JBS S.A. reports Q1 results 
03/29JBS' (JBSAF) Management on Q4 2017 Results - Earnings Call Transcript 
03/29JBS S.A. 2017 Q4 - Results - Earnings Call Slides 
Financials ( BRL)
Sales 2018 180 B
EBIT 2018 10 009 M
Net income 2018 3 603 M
Debt 2018 42 422 M
Yield 2018 3,67%
P/E ratio 2018 6,94
P/E ratio 2019 6,81
EV / Sales 2018 0,38x
EV / Sales 2019 0,35x
Capitalization 25 459 M
Chart JBS SA
Duration : Period :
JBS SA Technical Analysis Chart | JBSS3 | BRJBSSACNOR8 | 4-Traders
Technical analysis trends JBS SA
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 13
Average target price 11,9  BRL
Spread / Average Target 28%
EPS Revisions
Managers
NameTitle
José Batista Sobrinho Vice Chairman & Chief Executive Officer
Jeremiah Alphonsus O'Callaghan Chairman & Head-Investor Relations
Gilberto Tomazoni Chief Operating Officer
Sérgio Roberto Waldrich Independent Director
Gilberto Meirelles Xandó Baptista Director
Sector and Competitors
1st jan.Capitalization (M$)
JBS SA-4.38%6 744
TYSON FOODS-14.42%25 505
HORMEL FOODS-1.87%19 241
HENAN SHUANGHUI INVESTMENT & DEVELOPMENT--.--%13 792
WH GROUP LTD-27.59%12 027
PILGRIM'S PRIDE CORPORATION-36.74%4 892