>> short dollar brazil. basically longollar brazil should start to do well. >> better bread with water than cake with trouble. >> ooh. >> like that one? >> -- cake though. >> -- [ inaudible ] >> tough one. >> we'll bring you the decision live here on cnbc. stay tuned for that. >> meanwhile earnings, first quarter not profits for sanofi rose by 6% on the year. the french drug maker says it hopes medivation will constructively engage in deal talks after it made an unsolicited $9.3 billion bid for the company. >> astrazeneca have dropped 12%. that was in line with expectations. as it comes under pressure from expiring patents. revenue inching up by 1% thanks to the sale of rights to certain medicines. >> and posted a slight beat in first quarter operating profit on sales which were broadly in line with expectations. but the pharma cut its forecast due to currency moves. >> we basically had a negative impact from a number of the emerging markets impacts. and also the full year a slight decline in the u.s. dollar will be a drag

dollar. the market has come a long way with brazil since the start of the year.he time to walk away from the trade, do you think? pricingnk the market is and fairly optimistic outcomes in terms of political change in policy change. that is leading to much better economics. i think we have much more would to chop before we reach those outcomes. clearly, the market does front run and will not wait for the better data to arrive. in most cases, i think the balance of probabilities in this case is now beginning to tilt in favor of actually walking away from that particularly in the equiti. if you look across the assets spectrum, i do think there is more juice. credit has come a long way. interest rates can be cut. brazil has enjoyed a conference of factors. also, it has enjoyed to the federal reserve having a different function. it has enjoyed, of course, china getting much better data. particularly oil prices going up. this improvement in the brazil gives room to the central bank to become more dovish. i think the debt trading can run, equities have become expensive

dollars and having secret swiss bank accounts where he stashed it all. the political class in brazil, the ordinary brazillians don't see hope there.. >> sreenivasan: are people concerned for theÑi longmrm stability for the region because of how powerful brazil is? >> brazil is extremely powerful, the largest democracy and economy in south america and central america, so it is extremely worrying for many people and instability is a big concern. the economy is in a free fall, as we mentioned, but the political class seems to be frozen and let's not forget they're dealing with the zika virus, they don't have the alth inminister now. they are dealing with the olympics. they had to replace the ports minister. if the new government comes in and rousseff is removed from office, how much legitimacy will a new government have especial after the political class look at who enacted the impeachment proceedings and see themselvesse many are themselves being investigated. >> sreenivasan: yesterday it was almost like a soccer team, people painted with flags, i'm with this or the other team, but as you mentioned there are deep systemic problems. what are the people on the street you speak to concer

long. worst performing assets in the coming weeks are going to be down there. you cannot talk about the turmoil in brazil without looking at the real. it is the best-performing stock 12inst the dollarr 13% so far this year. it is a real winner. mike moran says it will continue to gain amid policy changes he expects following the impeachment. if you have an appetite for risk and these are very risky assets, he says goal long on petrobras and banko do brazil bonds. citigroup is recommending that trade. petrobras, it's said to go after the dirty year bonds. just the 30 year bonds. you have to be ready to take losses because things are volatile. citigroup analyst says petrobras may have the biggest upside from a regime change but has been embroiled in scandal. there is the biggest brewing company in latin america. it could have a lot to gain. ubsd analys team says it's a by no matter what. ev is a beacon of light in a dark stump of the company mostly has beers. they say no matter what, this is a good buy because people drink whether they are happy or sad. the principal person behind it has been pretty successful. he partnered with warren buffett. 3g has done well. matt: are there still