BRZU

Many of the biggest quant strategies in the stock market these days are plagued by doubt and debate. In fixed income, they just got a $25 trillion endorsement.

Unlike other central banks around the world such as the U.S. Federal Reserve, Brazil's Central Bank has just one responsibility: to keep inflation low.Credit lines and other forms of borrowing, such as debt issuing, are fundamental for a country's economic growth as they allocate capital to expanding companies.In Brazil, inflation is measured by the IPCA (National Consumer Price Index), which grew to 2.44% for the trailing twelve months.

U.S. stocks tumbled and bonds soared after President Donald Trump said he is ending stimulus talks until after the election, just hours after Federal Reserve Chairman Jerome Powell renewed his warning that the economy will stumble without additional fiscal support.

Countries around the world have responded to the economic downturn by implementing fiscal stimulus.This intervention has led to a deterioration of fiscal finances everywhere.However, even by these relative standards, Brazil and South Africa look particularly dismal.