News from Brazil

Brazil Politics & Government News

In Brazil on January 27, 2012 at 11:52 am

POLITICS

As President Dilma Rousseff summoned her government to the annual ministerial meeting to take stock of the past year, and set out plans and goals for 2012, she must have been only too conscious of the balancing act her government will have to perform this year with keep the economy booming, the populace spending and public services improving (The Rio Times).

Black Brazilians are much worse off than they should be. But what is the best way to remedy that? Read on at The Economist.

The Economist also interviewed Fernando Henrique Cardoso, Brazil’s president from 1995-2002, on the future of Brazil. Read the interview here.

Petrobras ousted chief executive Jose Sergio Gabrielli, the man who oversaw the discovery of the largest oil find in the Americas in decades. Gabrielli will be replaced by Maria das Graças Foster, a Petrobras executive close to Brazilian President Dilma Rousseff (Reuters).

Foster, 58, plans to replace Gabrielli, 62. Petrobras Chairman and Finance Minister Guido Mantega will present Foster’s name to the board of directors of the state-run company on Feb. 9 (Bloomberg).

Dilma Rousseff wanted to have her as cabinet chief, but at the moment Lula da Silva convinced the incoming president to name Antonio Palocci, a former Finance minister who was later forced to resign because of corruption allegations (MercoPress).

Gabrielli, who studied economics at Boston University, is being prepared to replace Bahia Governor Wagner in 2014 (Forbes).

The semi-public Brazilian energy corporation headquartered in Rio, Petrobras, looks set to welcome their first female CEO in the coming weeks. Maria das Graças Silva Foster has been selected to replace the outgoing José Sérgio Gabrielli at the largest company in Latin America by revenue, which is 54 percent owned by the Brazilian government (The Rio Times).

The fight against Brazil’s Pinheirinho squatter camp eviction can be an inspiration. The left has been too slow to criticise the government’s growth-fixated policies. The squatters provide a lesson in resistance (The Guardian).

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INTERNATIONAL

Brazil granted a tourist visa to Yoani Sánchez, a dissident Cuban author and blogger, ahead of a trip to Cuba this month by Brazil’s president, Dilma Rousseff. The request by Ms. Sánchez to travel to Brazil for the screening of a documentary had emerged as a test of Cuba’s restrictive travel policies for its own citizens and Brazil’s willingness to prod a friendly government on a prominent human rights issue (New York Times).

After President Mahmoud Ahmadinejad of Iran took a four-country tour of Latin America this month, during which he met with several outspoken critics of the United States but was notably not invited to stop in Brazil, one of his top advisers took a public swipe at Brazil’s president, Dilma Rousseff, saying she had “destroyed years of good relations” between the two nations (New York Times).

Brazilian Foreign Minister Antonio Patriota denied that his country’s relations with Iran are shaken. The statement was in response to an interview with Iranian presidential media advisor Ali Akbar Javanfekr published in the daily Folha de Sao Paulo. Javanfekr for his part said Brazil-Iran relations have deteriorated under President Dilma Rousseff (Xinhua).

The initial round of negotiations on the proposed outcome document for Rio+20 began in order to pave the way for a successful conference of world leaders in June on sustainable development. This informal round is the first of four more negotiating sessions in March, April, May and June in the lead-up to the Rio+ 20 conference in Brazil on June 20-22 (Xinhua).

Reacting to Brazil’s trade minister Fernando Pimentel comments describing Argentina as “a permanent problem” Industry Minister Debora Giorgi said that “the trade balance reality between Argentina and Brazil does not warrant Pimentel’s complaints” (MercoPress).

Fundação Getulio Vargas (FGV), based in São Paulo and Rio de Janeiro, ranks 27th in the list of the World’s Top Think Thanks, followed by the Chinese Academy of Social Sciences (CASS). Both institutions lead their respective regions, South America and Asia. In the theme-specific evaluations, FGV ranks in the 30 most influential think tanks in the areas of international development (13th), domestic economic policy (18th) and social policy (18th). A mere ten years ago, such a prominent role for an institute in Brazil would have been unthinkable (Post Western World).

DEFENSE & SECURITY

A Jane’s expert said that there may be long-term interest from Brazil (among other countries) for Lockheed Martin’s F-35 Stealth Fighter (Washington Post, page 2 of the article)).

Bolivia has signed an agreement with the US and Brazil to help reduce the production of illegal cocaine. The US and Brazil will provide technical assistance, including satellite monitoring of coca crops. The agreement comes more than three years after Bolivia expelled the US Drug Enforcement Administration, accusing it of political interference (BBC).

The Brazilian Army and Navy have not handed over documents dating back to the years of the military dictatorship (1964/1985), in spite of an official request from former president Lula da Silva five years ago (MercoPress).

Brazil is speeding its research and development programs to perfect a tactical transport aircraft to rival the C-130 Hercules amid predictions the global market needs no less than 700 substitutes. The C-130J isn’t the only potential rival for Embraer’s KC-390. As the demand outlook becomes clearer and more enticing, at least four contenders want the same market share that the Brazilian aircraft maker seeks (UPI).

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SOCIAL

The middle class in Brazil during the last decade expanded to reach 90 million out of a population of almost 200 million, according to paper from consultants Datafolha (MercoPress).

Brazil Business & Economy News

In Brazil on January 27, 2012 at 11:45 am

ECONOMY

President Dilma Rousseff has made 4 percent economic growth her government’s main mission this year and is willing to cut taxes, take stimulus measures and possibly sacrifice other targets if needed, government sources tell Reuters.

Brazil will make room for a more “flexible” monetary policy as the government seeks to ensure economic growth of at least 4 percent this year, Finance Minister Guido Mantega said (Bloomberg).

Brazil’s unemployment rate fell to a record-low 4.7 percent in December from the 5.3 percent in the same period in 2010, the government’s statistics agency said (Xinhua).

But the Brazilian economy generated 1.944 million formal jobs in 2011, down 23.5 percent from 2010, the country’s Labor Ministry said (Xinhua).

Brazil posted a record-high current account deficit in 2011 on rising profit remittances by multinational companies and massive spending abroad by Brazilian tourists, but the deficit was more than covered by another record, this time for foreign direct investment, the central bank said (MercoPress).

The BNDES’ disbursements closed the year 2011 at R$ 139.7 billion. The result was within the Bank’ expectations and allowed the institution to continue contributing to the expansion of investments in the Brazilian economy, with emphasis on the infrastructure sector (BNDES).

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BUSINESS

Peixe Urbano, the largest Brazilian online daily-deal provider, is loading up on capital, recruiting U.S. engineers and investing in new products to fend off Groupon Inc.’s expansion on its home turf (Bloomberg).

Contax Participacoes SA, Brazil’s largest call-center company, plans to step up hiring and add 12,000 jobs this year to expand in Latin America and into technology help-desk services, Chief Financial Officer Marco Schroeder said (Bloomberg).

What makes an entrepreneur? BBC Brazil’s Julia Carneiro and Tom Santorelli hear from Jacqueline De Biase, 49, who started making her own bikinis at home as a teenager and now runs one of Brazil’s leading bikini brands (BBC).

Brazilians are snapping up luxury goods at a staggering rate. Industry sales were up 33% last year to $12 billion. So one would assume that the big, domestic brands would treat Brazil’s own consumers as a priority. Not Osklen, the sought-after maker of sportswear founded in 1989 by the orthopaedic physician Oskar Metsavaht (Forbes).

AGRI ETC

Brazilian Agriculture Minister Jorge Mendes Ribeiro Filho said he is “not worried” about U.S. testing of orange juice imports for fungicide. The U.S. Food and Drug Administration has started testing juice imports including shipments from Brazil, the world’s biggest producer, for amounts of the fungicide carbendazim that exceed import standards. The FDA had collected 45 samples since Jan. 4, and 12 have been cleared for entry, the administration said last week (Bloomberg).

Orange juice futures barreled to a record high close due to speculation the United States might ban Brazilian juice imports for using a fungicide that U.S. regulations prohibit (Reuters).

AUTOMOTIVE

Germany’s BMW Ag., the world’s largest luxury carmaker plans to build cars in the Brazilian state of Santa Catarina from 2014 reports Automobilewoche (MercoPress).

AVIATION

India’s GMR Infrastructure has withdrawn its bid to modernise and expand an airport in Croatia, but is preparing to bid on similar projects in Brazil, a company official said (Reuters).

The board of directors of the Brazilian Development Bank (BNDES) has approved the basic financial support conditions for public services concessions  in expanding, maintaining and exploring the international airports in Brasilia (Federal District), Campinas and Guarulhos (satellite cities both in the state of São Paulo) (BNDES).

Demand for flights in Brazil has nearly tripled in the past decade. That is straining a system that is under pressure to prepare for the 2014 World Cup and 2016 Olympics. Brazil’s civil aviation agency said demand for air travel rose 194 percent in 10 years. Demand in 2011 alone increased 16 percent over the previous year (Washington Post).

BIOFUELS

Petrobras will invest as much as 28 million reais ($16 million) to expand its Montes Claros biodiesel plant (Bloomberg).

ENERGY

EDP-Energias do Brasil SA and MPX Energia SA, an energy company controlled by Brazilian billionaire Eike Batista, said the country’s power regulator Aneel allowed the companies to postpone the start of operations of the Pecem thermoelectric plant. Energia Pecem, as the plant is known, is located in Brazil’s northeastern state of Ceara, and it’s a joint venture with equal stakes by EDP and MPX. It has an installed capacity of 720 megawatts (Bloomberg).

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SPLIT SECOND POLLS

MINING & STEEL

A Chinese consortium acquired a fifteen percent stake in the Companhia Brasileira de Metalurgia e Mineração (Brazilian Metallurgy and Mining Company, CMBB) in September 2011, it has been revealed, the world’s biggest producer of niobium, a rare and strategically important metallic element (The Rio Times).

OIL & GAS

A Brazilian prosecutor plans to file criminal charges against Chevron Corp and some of its local managers within weeks, adding the threat of prison sentences to an $11 billion civil lawsuit as punishment for a November offshore oil spill (Reuters).

Rolls-Royce Holdings Plc plans to invest as much as $200 billion in projects linked to Brazil’s pre-salt oil reserves, Valor Economico reported. The investment relies on the company winning contracts with Petrobras, building a plant in the city of Rio de Janeiro to produce turbo power generators for oil platforms, and opening a training center close to the factory (Bloomberg).

Brazil Weekly’s Brazil Culture & Regional News

In Brazil on January 27, 2012 at 11:44 am

PROJECT OF THE WEEK

Render of a building for the Casa das Caldeiras redevelopment project in the Perdizes area in Sao Paulo (Skyscrapercity).

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CINEMA

Sergio Mendes, who scored an Oscar nomination for his song “Real In Rio,” says the animated film will most likely have a sequel. Mendes said “Rio” director Carlos Saldanha may want to tie the sequel to the 2014 World Cup, which will take place in Brazil (Washington Post).

MEDIA

The Press Freedom Index 2011 shows Brazil plunging 41 places to 99th because the high level of violence resulted in the deaths of three journalists and bloggers (Press Freedom Index).

AMAZON

Since Dilma Rousseff was elected president in late 2010, there have been signs of a shift in the government’s attitude toward the Amazon. A provisional measure now allows the president to decrease the lands already created for conservation. The government is granting more flexibility for large infrastructure projects during the environmental licensing process. And a proposal would give Brazil’s Congress veto power over the recognition of indigenous territories (New York Times).

BRASILIA

On December 7, 1987, Brasilia was named a World Heritage Site by the United Nations Organization for Education, Science and Culture – Unesco. Today there are 936 properties worldwide considered “great landmarks… the cultural or natural heritage of all mankind… having outstanding universal value.” The government of the Distrito Federal, where Brasilia is located, has designated this year a celebration of the 25th anniversary of the event (“Ano da Valorização de Brasília como Patrimônio Cultural da Humanidade”) (Agencia Brasil).

RECIFE

While most of the world considers Carnival synonymous with Rio’s Sambódromo shows, there are celebrations happening all across Brazil, notably in São Paulo and Salvador. The capital city of the northeastern state of Pernambuco, Recife, is known to have perhaps the most democratic Carnival in the country (The Rio Times).

RIO

Rescuers recovered four bodies from the rubble of three buildings that collapsed in downtown Rio, highlighting the creaky infrastructure of the city that will host the 2014 soccer World Cup and the 2016 Olympics. The buildings, one 20 floors high, collapsed on Wednesday night in a cloud of dust behind the city’s 100-year-old Belle Epoque-style Municipal Theater (Reuters).

Approximately 5,800 municipal vans are registered in the city of Rio, and there are thought to be hundreds if not thousands more operating illegally. Safety regulations appear loose and seldom enforced according to recent reports, but they serve a vital role in city transportation system, especially to some of the outer communities (The Rio Times).

Construction on Superporto do Açu has been underway since 2007 and is reported to be a US$1.6 billion project, originally planned to come online in 2012. The massive port and industrial complex being built by LLX – the logistics subsidiary of Eicke Batista’s EBX which is building the port 250 miles north of Rio – is also drawling controversy on how it is affecting the community in São João da Barra (The Rio Times).

The news that three people had been arrested for public urination at a pre-Carnival bloco in Copacabana last Friday was met with mixed feelings by Rio residents. On the one hand it showed that the city is taking action to deal with general public disorder that goes along with the city’s “Street Carnival” blocos events in recent years (The Rio Times).

On 27 February the most complete retrospective exhibitions by the Campana brothers is beginning at CCBB Rio. The exhibition, with 200 works (from 1989 to 2009), was held at the Vitra Design Museum, Weil am Rhein, a German museum, where it was open until February 2010. It has been through European and Brazilian museums and finally it is the carioca’s turn (Rio Official Guide).

Brazil plans to build Christ the Redeemer replica statue in London. The statue – yet to get planning permission – would mark the moment London hands the Olympic mantle to Rio de Janeiro (The Guardian).

The illegal gambling game in Brazil known as jogo do bicho, or the animal game, occupies an important, if shady, place in popular culture. In the run-up to Carnival in February, Rio de Janeiro police have been targeting alleged gambling chiefs in an operation called Dedo de Deus, or Finger of God (BBC).

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SAO PAULO

Criticism is growing of a Brazilian police operation to clear some 6,000 people from an illegal settlement in Sao Paulo state. Officers moved in to retake the land for its private owners. Authorities say the police action was justified and within the law. Amnesty International said the eviction violated “a raft of international standards” and urged officials to urgently address the needs of the families left homeless (BBC).

São Paulo, city of skyscrapers and urban canyons, isn’t exactly famous for its historic buildings. But look between the glass-and-steel high-rises and you’ll discover splashes of history, encapsulated in a small but rewarding set of churches, houses, and museums (Time Out Sao Paulo).

SOUTH

Santa Catarina is one of three states in Brazil’s Região Sul (South Region), along with Paraná and Rio Grande do Sul. It is a place of contrasts, boasting beautiful beaches, stunning scenery and quaint cities that are home to southern Brazil’s melting pot of European migration (The Rio Times).

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