Dilma Rousseff’s economic team reassures suddenly nervous investors that it will indeed stick to fiscal and monetary rectitude (The Economist).
After weeks of speculation, Brazil’s president-elect Dilma Rousseff has finally confirmed that she will be changing the central bank’s governor, paving the way for big interest rate cuts. Forcing the departure of inflation hawk Henrique Meirelles is Ms Rousseff’s most decisive move so far (BBC).
Brazil’s incoming economic policy team surprised financial markets by promising deep cuts to budget spending, moving to shore up the main weakness in the country’s booming economy (Reuters).
Brazil may be one of the world’s hottest emerging markets, but there is at least one area in which it is not yet ready for prime-time — infrastructure. President-elect Dilma Rousseff will have to make vast regulatory improvements and boost incentives for private-sector investment in overstretched roads, ports and airports if Brazil is to sustain the commodities-driven growth of recent years (Reuters).
Brazil’s government must immediately adopt tough measures to reverse a currency rally and rising imports of manufactured goods that are stripping its businesses of market share. National Industry Confederation chief Robson Andrade said the government must adopt restrictions, including nontariff barriers, to halt mainly Chinese imports that were eliminating domestic jobs (Reuters).
Wall Street favorite Antonio Palocci is to become the chief of staff in the incoming government of Brazilian President-elect Dilma Rousseff, an influential position that is likely to please financial markets (Reuters).
A Lula da Silva Institute will be fully involved in Africa, the world’s poorest continent, and President Lula will be fully dedicated to that task when he steps down from office next January first (Mercopress).
The Brazilian government questioned UK’s “unilateral actions” regarding the (Falklands) Malvinas Islands and called for the sovereignty “long standing dispute” to reach “as soon as possible a solution” (Mercopress).
Bridges, railroads, petrochemicals, steel mills, electricity, aqueducts, agriculture, meat-processing plants, ship building and even cable cars: Brazil’s powerful entrepreneurial arm is reaching towards the Caribbean, via Venezuela, where the Hugo Chávez government is working to build what it calls “21st century socialism” (IPS).
Iran’s greatest achievement in Latin America is its strong ties with oil-rich Venezuela and its burgeoning friendship with rising great power Brazil. This bid for greater influence in the U.S. backyard has not yet led to a direct confrontation. But with a nuclear agreement still up in the air, Iran’s “Latin connection” may well pose an unwelcome challenge to the Obama administration (Foreign Policy in Focus).
President Luiz Inacio Lula da Silva said Eletricas do Norte do Brasil SA plans to build a hydroelectric power plant on the border with Guyana. The two South American countries signed a memorandum of understanding to determine where the plant will be located, Lula said during a speech in Georgetown, Guyana (Bloomberg).
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The Brazilian navy is planning to build and incorporate in the next decades a fleet of six nuclear powered and 20 conventional submersibles (15 new and five refurbished), making it the most dissuasive fleet of South America (Mercopress). More information on the submarines can be found at Defense Industry Daily, including news about the submarine base to be built in Itaguai.
Scorpene-class submarine (Source: DCNS)
Defense Minister Nelson Jobim said that “transfer of technology” will be the main factor in the government’s decision on the purchase of 36 fighters for the Air Force (FAB). The Minister added that France has “a more credible offer” in this regard. He said the choice between competitors from France, Sweden and the United States will be announced before Dec. 19. According to Jobim, President Lula has said he wants to have a meeting in the next weeks. Jobim present the three competitors and the decision will be taken by Lula in agreement with president-elect Rousseff. In fact the Brazilian political year ends on December 19 with a long holiday break, so the policy decision has to be taken before that date (BW).
Boeing is offering to partner with Brazil’s Embraer on a new fighter jet, in an effort to strengthen its bid for a multi-billion-dollar Brazilian defense contract. Joseph McAndrew, Boeing’s vice president for Europe, Israel and America, told business publication Valor that the firm proposed 10 partnership projects with Brazil’s aviation leader, including building a new plant in the country to build parts for Boeing’s F/A-18 Super Hornet (Defensenews).
South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) has entered discussions with the Brazilian Navy about its requirement to procure frigates, offshore patrol vessels (OPVs) and logistics support ships, Jane’s understands. A source close to the development said on 18 November that DSME put forward a detailed formal proposal to meet the requirements in late September and that a series of meetings has taken place (Janes).
Spanish company Tecnobit has secured its biggest military simulation contract to date, to develop and equip two artillery simulation centres for the Brazilian Army. The deal, signed at the Brazilian Army’s HQ on 9 November by Army Chief of Staff General Enzo Martins Peri and Tecnobit president Luis Mayo, is also the first to take place directly between the army and a Spanish company (Janes).
President-elect Dilma Rousseff’s government may create an agency or secretariat for aerospace. The agency would report directly to the presidential palace. Currently, aerospace issues are distributed across several government bodies reporting to different ministries (Bloomberg).