News from Brazil

Business & Economy

In Uncategorized on May 23, 2010 at 10:23 am


A burst of Chinese-level growth cannot be sustained. But it hints at Brazil’s new-found strength, and is perfectly timed for the presidential election (The Economist).

Brazil isn’t prepared for economic growth of 6 percent or 7 percent a year because of inflationary pressures and infrastructure “bottlenecks,” Arminio Fraga, former president of the central bank, said (Bloomberg).

Itau Unibanco, Brazil’s biggest bank by market value, may raise its growth estimate for the country’s economy this year to as much as 8.5 percent, economist Guilherme da Nobrega said (Bloomberg).


Portugal Telecom and Spain’s Telefónica squabble over Brazil (The Economist).

Spain’s Telefonica plans to invest around 5 billion Brazilian reales ($2.78 billion) in fixed and mobile telecommunications in Brazil this year (Reuters).

Brazil will reach 300 million mobile phones by 2013 (Bloomberg).


Sinochem Corp. won the bidding for a $3.07 billion stake in a Statoil offshore oilfield in Brazil, Statoil said, marking China’s second major oil and gas deal in Latin America since March (Reuters).

Petrobras would consider delaying plans to sell as much as $25 billion of shares should global equity markets worsen, Chief Executive Officer Jose Sergio Gabrielli said (Bloomberg).

Petrobras sees domestic oil output rising 6.5 percent in 2010 over the 2009 average as new fields come on line (Reuters).

Petrobras said its board will seek shareholder authorization to issue as much as 150 billion reais ($80 billion) worth of new shares, paving the way for an offering to help fund investments (Bloomberg).


The world’s largest beef processor, Brazil’s JBS,  said exports to the United States from one of its plants had stopped after U.S authorities detected traces of medicine in its meat above permitted levels (Reuters).


Brazil’s Industrias Romi SA, a maker of precision metal-cutting tools, said its sweetened $10-a-share offer for rival Hardinge Inc was “final and best,” and that it intended to let the offer expire on May 26 (Reuters).


Banco Cruzeiro do Sul and some of its shareholders canceled plans to sell stock in primary and secondary offerings, citing current market conditions (Reuters).

Bank of America Corp agreed to sell preferred and common shares of Brazil’s Itau Unibanco in a deal valued at 8.16 billion reais ($4.5 billion), ending a partnership started in 2006 when the Brazilian bank took over the local unit of FleetBoston Financial (Reuters).

Banco do Brasil plans to sell its stake in health insurance company Brasilsaude to joint owner Sul America SA (Bloomberg).


Global agribusiness and food company Bunge Ltd is gauging investor interest for the launch of an investment fund that would buy land in Brazil to take advantage of demand for sugar and sugar-based ethanol, the company’s chief financial officer said (Reuters).

Coffee output in Brazil, the world’s largest producer, will increase 23 percent in the year starting July 1 as trees enter a more-productive phase of a two-year cycle (Bloomberg).


China’s state-run electricity grid firm has agreed to buy seven Brazilian transmission companies from Plena Transmissoras for 3.1 billion reais ($1.72 billion) (Reuters).


Mining giant Vale SA is seeking to raise its stake in Australia’s Belvedere coking-coal project to 75.5 percent by taking over an interest owned by AMCI (Reuters).


 Billionaire investor Sam Zell’s Equity International is seeking to raise about $500 million to step up investment in Brazilian real estate, betting interest rate increases will fail to stem demand as the economy grows at the fastest pace in two decades (Bloomberg).


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