News from Brazil

Archive for the ‘Brazil’ Category

Business & Economy News

In Brazil on March 7, 2014 at 10:47 am

ECONOMY

A positive surprise halted bad expectations for the Brazilian economy, but there is still no end in sight to the slow growth that has been the three last years. The Gross Domestic Product – the production and income measurement in the country – from 2013 showed modest growth of 2.3% thus becoming the worst three-year period since the late 90s. The impetus came from the last quarter, an improvement of 0.7% in comparison to the previous quarter. Until then, the fear was a negative rate, which would allowed for a recession diagnosis. With the discovery that the economy was not as bad, in December, the expectations for this year are likely to improve, due to a more pleasant start point (Folha).

EU28 exports to Brazil in 2012 amounted to 39.7 billion euro and imports to 37.4 bn. The EU28 registered a continuous deficit in trade in goods with Brazil up to 2011, with a peak in 2007, turning to a surplus of 2.3 bn in 2012. The first nine months of 2013 confirm the most recent trend, with EU28 exports to Brazil continuing to increase, from 29.6 bn euro in the first nine months of 2012 to 30.4 bn in the same period of 2013, while imports continued to fall, from 28.8 bn to 24.9 bn over the same period. As a result, the EU28 surplus in trade of goods with Brazil of 0.8bn in the first nine months of 2012 increased significantly to 5.5 bn in the same period of 2013 (Rotterdam Week).

In a sign that Brazil’s commodity players may be close to tapped out on debt, Brazil’s two largest companies, Petrobras and Vale , said they will be investing less this year (Forbes).

Brazil recorded its largest February trade deficit ever, deepening a trade gap this year that underscores the uncompetitiveness of local industry and a voracious appetite for imports. The commodities powerhouse posted a trade deficit of $2.125 billion in February, the trade ministry said, its second straight monthly shortfall (Reuters).

BUSINESS

China has made a significant bet on South America to meet its growing appetite for foreign grain with an agreement to buy a controlling stake in Dutch agricultural trading house Nidera (Rotterdam Week).

A federal court ruled that Germany’s Siemens is prohibited from participating in public auctions and signing government contracts in Brazil for the next five years, company spokesman Alexander Becker said (Bloomberg).

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AGRI ETC.

Drought in the center-south and heavy rains in the center west bread basket states of Brazil have taken a massive toll on the country’s all-important farm sector. According to agribusiness analysts, the country will lose at least R$10 billion (around $4.35 billion) in farm revenues this year because of the odd weather patterns (Forbes).

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MINING

Trafigura Beheer BV, the world’s second-biggest metals trader, is considering new investments in Brazil after gaining control of an iron-ore port as it expands operations in South America. The Amsterdam-based Trafigura is looking into opportunities mainly in mining projects in the world’s second-largest iron-ore exporter, Mariano Marcondes Ferraz, chief executive officer for Trafigura’s DT Group venture, said in an interview in Rio de Janeiro yesterday. The company may consider buying mines or help current producers to boost their production capacity by financing expansions, he said (Bloomberg).

OIL & GAS

Petrobras is set to boost imports as much as 31 percent to supply thermal plants as Brazil’s record drought causes hydro-dams to dry out, Bloomberg reported.

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Local & LatAm News

In Brazil on March 7, 2014 at 10:46 am

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THE LATIN PACIFIC

latam

A new section in Brazil Weekly, aiming top provide information on the latest Latam developments, mainly on the Pacific coast:

An International Monetary Fund (IMF) mission visited Panama City during February 11-21 to conduct the country’s annual consultations. The delegation concluded that Panama’s economic performance remains buoyant, outlook favorable, in spite of certain local and international risks. The IMF therefore thinks a tighter fiscal policy is recommended (Rotterdam Week).

The IMF sees Peru’s economy continuing as a regional high growth leader (Rotterdam Week).

LatAm’s Pacific Alliance was highlighted at Davos (Rotterdam Week).

Stratfor reported on the state of NAFTA: NAFTA and the Future of Canada, Mexico and the United States (Rotterdam Week).

BEST ENGLISH BOOKS ON BRAZIL

Be welcome to check out Brazil Weekly’s book store in cooperation with Amazon.com! Browse the Brazil Weekly Store for highly relevant maps, books on politics, economics and history as well as travel or tourist guides and translated Brazilian literature. Click on the categories and watch our slide shows go by, packed with Brazil Weekly’s picks. You order straight with Amazon, one of the best online stores in the world. Enjoy!

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WEEKEND BREAKS!

Brazil Weekly now offers another new feature: Weekend Breaks! Over the next months we will show you how to enjoy your weekend out of town when staying in Brazil’s biggest business cities. First online was your Weekend Break out of Belo Horizonte, to the famous historic town of Ouro Preto, a must to visit. Our latest addition is your Weekend break from Sao Paulo to Guarujá, check it out!

WORLD CUP & OLYMPICS

FIFA has been left with a huge challenge following Brazilian delays in building stadiums for the 2014 World Cup, secretary general Jerome Valcke said (Reuters).

ATLANTICO WEEKLY

Be welcome to visit Brazil Weekly’s sister publication Atlantico Weekly, with news about Angola, Mozambique and Cape Verde, three upcoming Portuguese speaking countries.

PROJECT OF THE WEEK

4seasonspaiva

Render of the Four Seasons Paíva Hotel & Resort for Cabo de Santo Agostinho, PE.

SAO PAULO

The University of São Paulo (USP) has fallen in the Times Higher Education (THE) world reputation rankings for science. Last year, USP was ranked between 61st and 70th position, whereas this year the university has fallen to between 81st and 90th. Harvard University remains in first place in the rankings. Despite the fall, USP is the only South American university to appear in the top hundred (Folha).

Deutsche Bank struck a deal with the prosecutors and the city of São Paulo to indemnify the public treasury with US$ 20 million to be used to move values that, according to the prosecution, were misappropriated by former mayor Paulo Maluf (PP-SP) between 1993 and 1998 (Folha).

Politics & Government News

In Brazil on February 21, 2014 at 10:12 am

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POLITICS

The approval rating of President Dilma Rousseff fell for the first time in seven months. Rousseff’s approval rating dropped to 55 percent in February from 58.8 percent in November, according to a MDA poll commissioned by the National Transport Confederation (Bloomberg).

INTERNATIONAL

The US, Germany, Poland, Brazil and Mexico are among next year’s Best Countries for Business. Rotterdam Week in cooperation with Atlantico Business Development (an international consultancy based in Rotterdam) has selected the best 15 markets of 2014/15 for your direct investment or for exporting your products. Find it here.

BRAZIL WEEKLY STORE

Check out the Brazil Weekly Store, our online shop in cooperation with Amazon.com. Now listing books on Brazil and Brazilian music cds!

OPINION

Be welcome to check out Brazil Weekly’s interview with Professor Bolivar Lamounier and find out Why you shouldn’t get too excited about Brazil’s new middle class…

ROTTERDAM WEEK

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Political Risks & Business Opportunities

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CITY BRIEFS

Check out Brazil Weekly’s new feature City Briefs, a series of introductions to the country’s main economic centers, packed with relevant info for business travelers. First to hit the net were the Brazil Weekly City Briefs on Brasilia, the federal capital of Brazil, Belo Horizonte, the country’s third economic centre and Sao Paulo, the global megacity. Latest City Brief deals with Rio de Janeiro, the Marvelous City!

SOCIAL

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Business & Economy News

In Brazil on February 21, 2014 at 10:12 am

ECONOMY

Positive news about Brazil’s economy is hard to find these days. In fact the bad news is piling up. A recent report by the Financial Times of London, quoting Brazil Central bank figures, suggests the country has entered technical recession more than 7 months ago by shrinking slightly for two consecutive quarters in 2013. So how serious should you take these reports and what can you do to protect your business in Brazil? Read our editor’s column at Rotterdam Week.

Brazil might be heading for a recession, according to the emerging markets Americas research team at Nomura Securities in New York. Tony Volpon, a managing director at Nomura, said in a note Thursday that thanks to increasing interest rates in 2013, the economic growth in the first half of 2014 should disappoint Brazilian investors. He lowered his GDP forecast target to 1.3% from 1.5% and expects the Central Bank to stop the hiking cycle this month, pushing interest rates to 10.75% (Forbes).

Brazil has promised to cut $18.5bn in public spending, as a former star of emerging markets struggles to win back investors’ trust. After cancelling his trip to the Group of 20 meeting in Australia this weekend, in order to finalise the country’s fiscal policy, Guido Mantega, Brazil’s finance minister, announced a new primary surplus goal of 1.9 per cent (Financial Times).

Private equity and venture capital groups have slashed fundraising for Brazil by more than 70 per cent over the past two years as the country’s gloomier economic outlook drives away larger companies such as London-based 3i. About $2.3bn was raised last year to invest in Brazil, down from $3.6bn in 2012 and $8.1bn in 2011, according to the Latin American Private Equity and Venture Capital Association (Lavca) (Financial Times).

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BUSINESS

Not everyone has been put off by the Eike Batista’s corporate failure, The Economist reports. This week, as OGX filed its recovery plan with a court in Rio de Janeiro, Cerberus, an American private-equity firm, was reported to be sizing up Mr Batista’s shipbuilder, OSX. It is said to be ready to give a large cash injection to the operation, currently in bankruptcy protection.

Telecoms company Grupo Oi SA plans to raise about 14 billion reais ($5.9 billion) in a share offering. The capital raising will be part of Oi’s merger process with Portugal Telecom, which will subscribe at least 7 billion reais in Oi shares in the operation, Reuters reported.

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AGRI ETC.

The BNDES and Finep – Innovation and Research – are launching a public call-to-submission for business plans aimed at agricultural-technological innovation in the sugar-based ethanol sector (PAISS Agriculture). Together, the two institutions will allocate R$ 1.48 billion for the 2014-2018 period. The budget will allocate R$ 1.4 billion in reimbursable financing, which includes all the credit lines offered by the BNDES and Finep, as well as the variable-income instruments of both institutions (BNDES).

AVIATION

Air France-KLM SA will invest $100 million in Brazilian airline Gol Linhas Aereas Inteligentes SA. Both companies expect to obtain regulatory approval within the next three months, in time for the start of the World Cup in June. The transaction, which involves an exclusivity agreement for Gol and Air France-KLM in European and Brazilian markets, will allow both companies to increase their reach to up to 318 destinations and more than 115 countries (Reuters).

International airlines are worried the Brazilian government may hit them with a flurry of fines during the World Cup over delayed flights and lost bags at already overcrowded airports, the head of a global airline association said. Less than four months before kickoff, Brazil’s busiest airport, in Sao Paulo, is still racing to finish a new terminal and other airports are preparing temporary tents to receive the influx of passengers (Reuters).

BANKING & FINANCE

Wealthy Brazilians are increasing their holdings outside the country as the real weakens, with Consenso Investimentos’s clients almost doubling international purchases in the past year, the investment firm said. Families with assets managed by the Sao Paulo-based company boosted assets abroad to 26 percent of their total from 14 percent at the start of 2013, according to Luiz Alberto Hess Borges, a founding partner at Consenso. The firm, which manages about 11.6 billion reais ($4.8 billion), is the biggest multifamily office owned entirely by Brazilians (Bloomberg).

Grupo BTG Pactual SA , Latin America’s largest independent investment bank, posted fourth-quarter net income that missed analyst estimates in a Reuters poll. The São Paulo-based bank, controlled by billionaire financier André Esteves, earned 768 million reais ($320 million) in the quarter, compared with 746 million reais in the third quarter, according to a securities filing. A Reuters poll of three analysts expected profit at 792 million reais.

INFRA

The Brazilian Development Bank (BNDES) approved a R$ 1.8 billion bridge loan for the project to implement the Port of Açu, controlled by the company Prumo, of the EIG Group. The US group took control of the Port of Açu during the restructuring process of the EBX Group. The bridge loan is for a set of investments that will allow port works to continue in the municipality of São João da Barra, in Rio de Janeiro.

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OIL & GAS

Petrobras has announced that well 9-SPS-77, in the Santos Basin pre-salt Sapinhoá Field, came on-stream last Tuesday, February 18th, 2014 at 5:15 pm. The well, producing 33,000 barrels per day (bpd), is connected to FPSO Cidade de São Paulo by a pioneering system in which the output pipeline riser is supported by a submerged buoy, anchored to the seabed and located at a depth of 240 meters. The well is at a water depth of 2,118 meters.

IHC Merwede has launched the pipelaying vessel Sapura Topázio in a ceremony at the company’s shipyard near Rotterdam. is the second in a series of five fully integrated offshore vessels, which will be completely designed, engineered and built by IHC Merwede. After delivery, the Sapura Topázio is – like her sister vessel, the Sapura Diamante – destined to go to Brazilian waters to develop deep-sea oilfields of up to 2,500 metres on behalf of Petrobras.

Local & LatAm News

In Brazil on February 21, 2014 at 10:11 am

SUPPORT BRAZIL WEEKLY AND BOOK YOUR HOTEL IN BRAZIL HERE

THE LATIN PACIFIC

latam

A new section in Brazil Weekly, aiming top provide information on the latest Latam developments, mainly on the Pacific coast:

The IMF sees Peru’s economy continuing as a regional high growth leader (Rotterdam Week).

LatAm’s Pacific Alliance was highlighted at Davos (Rotterdam Week).

Stratfor reported on the state of NAFTA: NAFTA and the Future of Canada, Mexico and the United States (Rotterdam Week).

BEST ENGLISH BOOKS ON BRAZIL

Be welcome to check out Brazil Weekly’s book store in cooperation with Amazon.com! Browse the Brazil Weekly Store for highly relevant maps, books on politics, economics and history as well as travel or tourist guides and translated Brazilian literature. Click on the categories and watch our slide shows go by, packed with Brazil Weekly’s picks. You order straight with Amazon, one of the best online stores in the world. Enjoy!

MEET BRAZIL WEEKLY’S CONSULTANCY

Are you planning on doing business in Brazil? Get there with

Atlantico Business Development

  • business diplomacy
  • economic intelligence
  • political risk assessment
  • market scans

more here.

WEEKEND BREAKS!

Brazil Weekly now offers another new feature: Weekend Breaks! Over the next months we will show you how to enjoy your weekend out of town when staying in Brazil’s biggest business cities. First online was your Weekend Break out of Belo Horizonte, to the famous historic town of Ouro Preto, a must to visit. Our latest addition is your Weekend break from Sao Paulo to Guarujá, check it out!

WORLD CUP & OLYMPICS

President Dilma Roussef announced that the armed forces may be called on to deal with violent protests during the World Cup beginning in June, Folha reported.

Brazilian authorities face a ‘big challenge’ to build a credible doping lab in time for the 2016 Olympics in Rio de Janeiro, the head of the Swiss anti-doping lab, Martial Saugy, said. Saugy’s lab is responsible for testing samples during next year’s soccer World Cup in Brazil after the Rio lab was stripped of its WADA licence to test for banned substances last year. The scientist, however, said building a lab from scratch capable of processing the thousands of tests conducted during Olympic Games in time for the 2016 Olympics would be a “tremendous task”, even with more than two years to go (Reuters).

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ATLANTICO WEEKLY

Be welcome to visit Brazil Weekly’s sister publication Atlantico Weekly, with news about Angola, Mozambique and Cape Verde, three upcoming Portuguese speaking countries.

AMAZON

As Brazil struggles to solve land disputes between Indians and farmers on the expanding frontier of its agricultural heartland, more tensions over forest and mineral resources are brewing in the remote Amazon. The government of President Dilma Rousseff gave eviction notices to hundreds of non-Indian families in the Awá-Guajá reserve in Maranhão state in January and plans to relocate them by April, with the help of the army if necessary, Indian affairs agency Funai says (Reuters).

PROJECT OF THE WEEK

jardimdasperdizes

Render of the Jardim das Perdizes residential project for Sao Paulo.

NORTH EAST

Vale SA may sell a $4 billion potash fertilizer project in Brazil’s northeastern state of Sergipe if it is unable to reach a tax accord with municipal authorities, Chief Executive Officer Murilo Ferreira said (Reuters).

RIO

Leaning on a police car shot eight times by a machinegun, a UPP (Pacifying Police Unit) officer in Rocinha summarized a gun battle that lasted more than eight hours in the slum in Rio’s south zone, to Folha.

More than 16 million people living in the Rio de Janeiro State will benefit from a new US$48 million loan approved today by the World Bank Board of Directors. The loan will finance a project designed to improve the delivery of public services. The Rio State Strengthening Public Management and Integrated Territorial Development Technical Assistance Project will provide technical assistance for the development of fiscal and infrastructure reforms designed to achieve better integration between the 19 municipalities of Rio de Janeiro’s Metropolitan Area. It will also support the installation of an early warning system for heavy rainfall events that will cover all municipalities of the State (Rotterdam Week).

Politics & Government News

In Brazil on February 14, 2014 at 9:50 am

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POLITICS

On February 10th the water levels in the south-east and centre-west, home to 70% of the country’s reservoirs and half its people, dipped below 37% of capacity, the lowest since 2001. With no rain in sight, they are set to drop further. Meanwhile consumption has soared. In January Brazilians used 10% more energy than in the same period in 2013. Peak demand reached an all-time high of 86GW on February 6th. The Economist reports on Dilma’s options.

Brazil’s electricity regulator ANEEL proposed a 4.6 percent increase in rates paid by consumers to help cover power subsidies, a move that could add pressure to already-high inflation in Latin America’s top economy (Reuters).

Jonas Tadeu, the lawyer representing Caio Silva de Souza, the man accused of lighting the firework that killed the cameraman Santiago Andrade, 49, revealed to Folha that his client and other young people were paid at least R$150 (USD $62) for each protest in Rio in which they participated. Tadeu said that the payments are part of a scheme which aims to promote violence and criminal damage during the protests. He also suggested that politicians are involved.

Street protests by Brazil’s landless movement in the capital, Brasilia, forced the temporary suspension of a Supreme Court session and police used tear gas to prevent the building from being taken. The Supreme Court session resumed an hour later as demonstrators left the area. Globo TV estimates 20,000 people joined the protest by the MST landless movement to demand distribution of land (Bloomberg).

INTERNATIONAL

The US, Germany, Poland, Brazil and Mexico are among next year’s Best Countries for Business. Rotterdam Week in cooperation with Atlantico Business Development (an international consultancy based in Rotterdam) has selected the best 15 markets of 2014/15 for your direct investment or for exporting your products. Find it here.

Former president Luis Inacio Lula da Silva tried to convince foreigners to invest in Brazil yesterday in front of an audience of American investors and Brazilian businessmen gathered in New York. The day before, the U.S Federal Reserve had classified Brazil as the most vulnerable emerging market to external shocks out of 15 nations, coming second only after Turkey. Lula told investors that the recent predictions by economists had been exaggerated. He highlighted the country´s growth over the past 11 years, since the Worker´s Party (PT) has been in power (Folha).

Odebrecht Infrastructure – Latin America concludes its port revitalization project in Cuba. Carried out by Odebrecht Infrastructure – Latin America in partnership with Quality, a company linked to the Cuban government, the project added an International Container Terminal to the Port of Mariel. In addition to the dredging works in the Entrance Channel and the Maneuvering Basin, the project also included the construction of 700 meters of docks for the Container Terminal, a cargo center and patio, water supply and waste treatment systems and the entire infrastructure for electricity supply.

BRAZIL WEEKLY STORE

Check out the Brazil Weekly Store, our online shop in cooperation with Amazon.com. Now listing books on Brazil and Brazilian music cds!

OPINION

Be welcome to check out Brazil Weekly’s interview with Professor Bolivar Lamounier and find out Why you shouldn’t get too excited about Brazil’s new middle class…

ROTTERDAM WEEK

terminal

Check out our new Publication

ROTTERDAM WEEK

Brains & Brawn from a Virtual City State!

Un-Dutch Reporting

on

Political Risks & Business Opportunities

in the Americas, Europe & Southern Africa!

SUBSCRIBE, IT’S FREE!

You request a free subscription to Brazil Weekly here and get email notifications on updates.

Brazil Weekly is also Facebook. You can like us here and join our group there.

You can also follow Brazil Weekly on Twitter at brazilweekly.

And be very welcome to join the Brazil Weekly networking and discussion group on Linkedin: Click here to join.

CITY BRIEFS

Check out Brazil Weekly’s new feature City Briefs, a series of introductions to the country’s main economic centers, packed with relevant info for business travelers. First to hit the net were the Brazil Weekly City Briefs on Brasilia, the federal capital of Brazil, Belo Horizonte, the country’s third economic centre and Sao Paulo, the global megacity. Latest City Brief deals with Rio de Janeiro, the Marvelous City!

SOCIAL

Brazil is a violent country, in both urban and rural areas. The issue of violence in the South American nation has become so deep rooted that it is now an obstacle to growth, as a 2013 study by the Center for Hemispheric Policy of the University of Miami pointed out. “As in most of Latin America, the police and security forces [in Brazil] are poorly paid and poorly trained,” the study said (Forbes).

avatar

Do we need intercultural communication or should we just be yourself? Read the column at Rotterdam Week.

Business & Economy News

In Brazil on February 14, 2014 at 9:50 am

ECONOMY

Positive news about Brazil’s economy is hard to find these days. In fact the bad news is piling up. A recent report by the Financial Times of London, quoting Brazil Central bank figures, suggests the country has entered technical recession more than 7 months ago by shrinking slightly for two consecutive quarters in 2013. So how serious should you take these reports and what can you do to protect your business in Brazil? Read our editor’s column at Rotterdam Week.

The Ifo/FGV Economic Climate Index for Latin America (ECI) advanced, though for Brazil things worsened (Rotterdam Week).

Higher interest rates and a slower China has economists souring on Brazil’s growth outlook this year. The weekly Focus survey from the Central Bank, which polls senior economists at the major financial institutions in the country, shows the market now expects 1.90% growth, down from a 1.99% estimate last month. For 2015 growth, economists are now forecasting 2.2% from 2.5%. Brazil grew 2.5% last year (Forbes).

It has been a rough time for emerging market equities, but only China has the real power to upset the apple cart for investors this year, says Robeco’s chief economist. Rate hikes in countries such as India and Turkey to try to prop up their currencies and cut capital flows have sent stock prices plummeting. Much of the malaise has been blamed on the US Federal Reserve (Fed) for beginning its tapering program (Rotterdam Week).

Brazil’s December retail sales declined for the first time in 10 months, surprising economists, as the central bank continues to boost interest rates to tame above-target inflation. Sales fell 0.2 percent from the previous month, after rising a revised 0.6 percent in November, the national statistics agency said today in Rio de Janeiro. The number was below the median estimate from 36 economists surveyed by Bloomberg, who predicted a 0.3 percent increase. Retail sales rose 4 percent from the same month last year, below the median forecast of 5 percent.

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AGRI ETC.

The Ministry for Agriculture announced that Brazil must overtake the United States and become the world´s leading soya producer. The announcement was made during President Dilma Rousseff´s visit to the region of Mato Grosso. Estimates for 2014 are for a harvest of 193.6 million tons of grain of which only 90 million are of soya. According to the US Department of Agriculture, production for the United States is estimated at 89.51 million tons (Folha).

President Dilma Rousseff also said an auction for an essential stretch of road for soy and corn exports through Mato Grosso state will happen this year. The new stretch, connecting the region with new river ports northward, is still being paved, but will be auctioned to bidders interested in running and maintaining the road (Reuters).

AVIATION

Embraer S.A. has signed a definitive agreement with India’s Air Costa for a firm order for 50 E-Jets E2s with an additional 50 purchase rights. The acquisition is a mix of 25 E190-E2s and 25 E195-E2s and has an estimated value of USD 2.94 billion based on 2014 list prices. The purchase rights are for an additional 25 E190-E2s and 25 E195-E2s, bringing the total potential order to up to 100 aircraft and can reach USD 5.88 billion if all are exercised. This transaction raises the total E-Jets E2 orders to 200 firm and 200 options/purchase rights since the launch of the E2 program, in June 2013.

Embraer Commercial Aviation forecasts that airlines in Asia Pacific, including China, will take delivery of 1,500 new jets in the 70 to 130-seat segment over the next 20 years (valued at US$70 billion at list prices), representing nearly 20% of the worldwide demand for the segment in the period. Of the region’s new deliveries, 65% are expected to support market growth while 35% will replace ageing aircraft being retired. The Asia Pacific market will become more affluent, competitive and liberal, further stimulating airlines to seek system efficiencies, brand differentiation and improved service levels. In this context, the 70 to 130-seat jet segment will play a key role to support the intra-regional development in Asia Pacific.

Avianca Brasil, the closely held airline that offers free food, is talking with planemakers from outside Brazil along with domestic manufacturer Embraer about an order of as many 50 regional jets, Bloomberg reported.

BANKING & FINANCE

The Brazilian Development Bank (BNDES) has revised its Operational Policy (OP) aligning it to suit investment trends in the country, the national financial industry’s experience and the need to serve companies more efficiently and provide higher quality services. The new rules (fees, terms of loan and shares) are already available on the BNDES website (BNDES).

Banco do Brasil SA expects to lend less this year due to flagging demand for credit among households and companies, a further sign that a weak economy and rising loan loss provisions will likely cut profits at Brazil’s largest lender by assets. The state-run lender, which reported unexpectedly weak fourth-quarter results on Thursday, unveiled guidance for loan book expansion between 14 percent and 18 percent this year, down from a range of 17 percent to 21 percent last year, Reuters reported.

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OIL & GAS

Petrobras president Maria das Graças Silva Foster was placed fourth in Fortune’s list of the world’s 50 most powerful women in business. For the first time ever, the magazine compiled a unified global list of executives, instead of just one list for the US and one for other countries. Graça Foster is the first non-American on the list, topped by Mary Barra, president of General Motors, followed by Ginni Rommety of IBM and Indra Nooiy of PepsiCo.

Late last week Dutch media began reporting on alleged corruption practices involving SBM Offshore deals in Brazil, Angola, Equatorial Guinea and other countries. The info was apparently published by a former employee of the company on the SBM Offshore company profile page on Wikipedia. On Friday February 7th, the company issued the following statement (Rotterdam Week).

Creditors of Eike Batista’s oil producer, including Pacific Investment Management Co., agreed to put up fresh capital to keep the Brazilian company running in a deal that will strip control from the former billionaire. The arrangement with bondholders entails the issuance of $215 million of debentures by Oleo & Gas Participacoes SA subsidiary OGX in two tranches, with the first $125 million expected in mid-February, the oil company said in a statement. Creditors include Pimco, the world’s biggest bond fund, while Deutsche Bank AG will act as an intermediary in the transaction, according to two people with knowledge of the deal (Bloomberg).

Local & LatAm News

In Brazil on February 14, 2014 at 9:49 am

ADVERTISEMENT

SUPPORT BRAZIL WEEKLY AND BOOK YOUR HOTEL IN BRAZIL HERE

THE LATIN PACIFIC

latam

A new section in Brazil Weekly, aiming top provide information on the latest Latam developments, mainly on the Pacific coast:

The IMF sees Peru’s economy continuing as a regional high growth leader (Rotterdam Week).

LatAm’s Pacific Alliance was highlighted at Davos (Rotterdam Week).

Stratfor reported on the state of NAFTA: NAFTA and the Future of Canada, Mexico and the United States (Rotterdam Week).

BEST ENGLISH BOOKS ON BRAZIL

Be welcome to check out Brazil Weekly’s book store in cooperation with Amazon.com! Browse the Brazil Weekly Store for highly relevant maps, books on politics, economics and history as well as travel or tourist guides and translated Brazilian literature. Click on the categories and watch our slide shows go by, packed with Brazil Weekly’s picks. You order straight with Amazon, one of the best online stores in the world. Enjoy!

MEET BRAZIL WEEKLY’S CONSULTANCY

Are you planning on doing business in Brazil? Get there with

Atlantico Business Development

  • business diplomacy
  • economic intelligence
  • political risk assessment
  • market scans

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WEEKEND BREAKS!

Brazil Weekly now offers another new feature: Weekend Breaks! Over the next months we will show you how to enjoy your weekend out of town when staying in Brazil’s biggest business cities. First online was your Weekend Break out of Belo Horizonte, to the famous historic town of Ouro Preto, a must to visit. Our latest addition is your Weekend break from Sao Paulo to Guarujá, check it out!

WORLD CUP & OLYMPICS

FIFA is preparing alternatives to relocate the World Cup matches scheduled to take place at the Arena da Baixada, a stadium at risk of being excluded from hosting Cup games. Folha learned that the organization has outlined plans to distribute matches among the other 11 hosts of the Cup for the four games that would be in Curitiba. In these projects, FIFA is trying to avoid as much as possible any dismantling of the logistical plans put in place by national teams, who have already set there accommodations and have practically nailed down their movements within the country.

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ATLANTICO WEEKLY

Be welcome to visit Brazil Weekly’s sister publication Atlantico Weekly, with news about Angola, Mozambique and Cape Verde, three upcoming Portuguese speaking countries.

PROJECT OF THE WEEK

itajai

Render of the Absolute Business & Hotel project for Itajaí, Santa Catarina.

RIO

With just 29 days remaining until Carnival, shouldn’t you be thinking about planning your trip? The closer to the date, the harder it gets to find a hotel at a decent price, not only in famous destinations like Rio de Janeiro and Recife, but in less well-known spots too. According to the Ministry of Tourism, 6.4 million Brazilians are due to travel during the period. It’s one of the busiest times of the year, along with the school holidays in July and the New Year’s celebrations. The figure excludes those who will remain in their cities, choosing to party with samba schools and carnival groups in their local streets, as well as those who intend to travel by car but don’t plan on staying at a hotel (Folha).

More than 16 million people living in the Rio de Janeiro State will benefit from a new US$48 million loan approved today by the World Bank Board of Directors. The loan will finance a project designed to improve the delivery of public services. The Rio State Strengthening Public Management and Integrated Territorial Development Technical Assistance Project will provide technical assistance for the development of fiscal and infrastructure reforms designed to achieve better integration between the 19 municipalities of Rio de Janeiro’s Metropolitan Area. It will also support the installation of an early warning system for heavy rainfall events that will cover all municipalities of the State (Rotterdam Week).

Politics & Government News

In Brazil on February 7, 2014 at 11:13 am

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POLITICS

Brazil’s president has left herself little room for economic manoeuvre ahead of a difficult re-election campaign, The Economist’s new columnist Bello reports.

Concerned with the potential effects of Brazilian economic performance on her re-election campaign, President Dilma Rousseff on Monday reiterated her government’s commitment to fiscal responsibility, demanding renewed effort from Congress in controlling public finances and inflation. In her message to Congress at the opening of the legislative year, Rousseff said that Brazil has what it takes to overcome the financial crisis currently affecting emerging economies. She also criticized the developed nations, arguing that it is not possible to reconstruct the world economy in isolation (Folha).

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INTERNATIONAL

A Cuban doctor working in Brazil has sought political asylum in the office of a conservative party complaining that Cuba’s communist government takes too big a slice of her pay, a party official said (Reuters).

The US, Germany, Poland, Brazil and Mexico are among next year’s Best Countries for Business. Rotterdam Week in cooperation with Atlantico Business Development (an international consultancy based in Rotterdam) has selected the best 15 markets of 2014/15 for your direct investment or for exporting your products. Find it here.

BRAZIL WEEKLY STORE

Check out the Brazil Weekly Store, our online shop in cooperation with Amazon.com. Now listing books on Brazil and Brazilian music cds!

OPINION

Be welcome to check out Brazil Weekly’s interview with Professor Bolivar Lamounier and find out Why you shouldn’t get too excited about Brazil’s new middle class…

ROTTERDAM WEEK

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CITY BRIEFS

Check out Brazil Weekly’s new feature City Briefs, a series of introductions to the country’s main economic centers, packed with relevant info for business travelers. First to hit the net were the Brazil Weekly City Briefs on Brasilia, the federal capital of Brazil, Belo Horizonte, the country’s third economic centre and Sao Paulo, the global megacity. Latest City Brief deals with Rio de Janeiro, the Marvelous City!

SOCIAL

As in the rest of the world, Brazilians who become politicians are invariably wealthy, or become wealthy, before they serve in public office. But many build their fortunes through questionable means, and, not surprisingly, as a result Brazilians have developed a sentiment of distrust towards politicians. Half a year after demonstrators climbed onto the roof of Brazil’s Congress in Brasilia, the country’s capital, demanding a clean-up of political deadwood and an end to corruption, the relationship between the Brazilian people and its leaders remains strained. The protests initially began as a public uproar against a hike in bus fares in several major Brazilian cities, and were briefly called a “revolution” by more enthusiastic observers.  Ultimately they were demonstrations against politicians. Here is a list of the country’s richest politicians (Forbes).

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Do we need intercultural communication or should we just be yourself? Read the column at Rotterdam Week.

Business & Economy News

In Brazil on February 7, 2014 at 11:13 am

ECONOMY

Brazil has just registered its worst month ever, in terms of trade. Imports outweighed exports by $4.06bn in January, despite a weaker real that should, in theory, be giving a boost to exports. But how bad is it really? Beyondbrics had a quick dig into the numbers.

As occurred in the 11 previous months, the Trade Confidence Index (TCOI) by the Getulio Vargas Foundation started 2014 below the level recorded in the same period of the previous year. Compared to the last few months, however, the result of January 2014 can be considered favorable: the average index for the quarter ended January was only 1.6% below the same period of the last year, the best result since February last year (-0.9%) on the same basis of comparison. In December 2013, the quarterly interannual variation of the index had been -3.0%.

A failure in the electric grid interrupted part of the energy transmission between the North and South East of Brazil February 4th, causing supply shortages in several cities across four of the country´s regions. The power cut affected over 2 million consumer units. The regions of São Paulo, Rio de Janeiro (South East), Parana (North East) as well as Santa Catarina, Rio Grande do Sul (South), Mato Grosso (Centre West) and Tocantins (North) were all affected. There were also unconfirmed reports in Goias and Espirito Santo (Folha).

Brazil’s latest economic data point to slower growth, Forbes reports.

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BUSINESS

Brazil’s stalled port terminal auctions will weather legal challenges this year and draw about $7 billion in private investment to ease the flow of record grain exports through clogged docks, the country’s ports minister told Reuters. Objections from the federal audit court, or TCU, delayed President Dilma Rousseff’s plan to start leasing public port terminals to private companies last year and some operators threaten additional lawsuits over existing concessions.

A drop in natural gas prices caused by a shale gas boom in the United States is hurting Brazilian petrochemical company profits by reducing pricing power and making them less competitive, the head of the construction and industrial conglomerate Grupo Odebrecht SA said (Reuters).

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AGRI ETC.

Troubles across the Brazilian sugar sector are coming to a head, with investors keeping a nervous eye on troubled credit Aralco – which has been living from coupon payment to coupon payment, and has another coming due in May (Reuters).

AVIATION

Domestic air travel by Brazilian airline companies increased 7.9 percent in December from the same period last year, according to ANAC, the National Agency of Civil Aviation in Brasilia. Air travel is measured in total kilometers of air travel purchased by customers (Bloomberg).

Brazil’s $3 billion plan to build remote airports to handle freight seeks to end dependence on cargo shipments along the Amazon River and potholed roads that contribute to transport costs twice the U.S. average. Auctions will start as soon as April for the rights to operate 270 regional airports to boost air traffic for passengers and cargo, Aviation Minister Wellington Moreira Franco said. Brazil also may offer subsidies to construct airports and for airlines to add regional routes, providing a “big stimulus” for planemaker Embraer, he said (Bloomberg).

BANKING & FINANCE

Itaú Unibanco, Banco do Brasil and Spain’s Santander await judgment by the supreme court over actions a quarter of a century ago. Depositors claim the trio’s subsidiaries took advantage of government efforts to quash hyperinflation to fleece owners of inflation-linked accounts. If the justices side with depositors, other lenders that offered similar instruments may also be on the hook. The bill could reach 150 billion reais ($62 billion), according to the central bank (The Economist).

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MINING & STEEL

Vale approved and will submit to the Board of Directors a proposal for the distribution of a minimum dividend of US$ 4.2 billion in 2014, equivalent to US$ 0.814999890 per share for both common and preferred shares outstanding, to be distributed in two installments, on April 30 and October 31, 2014.

OIL & GAS

Petrobras has announced that its total oil and natural gas production in Brazil, in December of 2013, was 2.362 million barrels of oil equivalent per day (boed), up 0.8% on the 2.342 million boed extracted in November. Oil production averaged 1.964 million barrels per day (bpd), up 0.4% on November’s production of 1.957 million bpd. Including the production managed by Petrobras for its partners in Brazil, total volume in December was 2.493 million boed and oil output was 2.043 million bpd.

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