News from Brazil

Business & Economy

In Uncategorized on May 30, 2010 at 12:41 pm

ECONOMY

Brazil’s economy could surge this year by 7%, a stark contrast to the risks the euro zone debt crisis pose to the global economy, the International Monetary Fund’s managing director said (Reuters).

Forecasts for Brazil’s inflation in 2010 were raised further as economists in a weekly central bank survey see a steep rebound stoking consumer prices (Reuters).

The current debt crisis in Europe will hit Brazil’s exports in the near future, as the eurozone is a main destination for its products, the president of the Brazilian Development Bank (BNDES) said (Xinhua).

Brazil needs to invest 183.5 billion reais (99.1 billion dollars) for maintenance work on its road network and construction of new roads and bridges, according to a report released by the Institute of Applied Economic Research (IPEA) (Xinhua).

OIL & GAS

Petrobras signed a Memorandum of Understanding with the Turkish Petroleum Corporation (TPAO), aiming to expand deep-water exploration research in the Black Sea region of Turkey (Petrobras).

Petrobras said it had discovered two separate reserves of light crude in Brazil’s offshore Campos Basin which it estimated contain around 105 million barrels (Reuters).

China reached an loan-for-oil agreement with Petrobras. The Brazilian oil company agreed to export oil to China Petrochemical Corp. for 10 years, the report said. China Development Bank will make a 10-year, $10 billion loan to Petrobras (Bloomberg).

ENI, Italy’s biggest energy company, sold Gas Brasiliano Distribuidora SA to Petrobras Gas SA for $250 million and said it will continue upstream activities in Brazil (Bloomberg).

BUSINESS

Spanish billionaire Enrique Banuelos has taken control of Maeda, one of Brazil’s biggest cotton and grain producers, in a deal that could spark further consolidation in the sector (Reuters).

General Electric Co has selected Brazil as the base for its fifth research and development center due to geographical advantages, tax breaks and chances for government contracts to grow (Reuters).

ArcelorMittal, the world’s largest steelmaker, said it will invest $1.2 billion in Brazil to boost output of steel products for the burgeoning construction industry (Reuters).

Vale, the Brazilian mining company pushing into potash, said that the $1.03 billion purchase of Mosaic’s stake in Brazilian fertilizer producer Fosfertil is likely to be concluded soon (Reuters).

Commodity trader Noble Group will invest about $150 million to build its first soy crushing plant in Brazil (Reuters).

Cosan, the world’s largest sugar-cane processor, said fiscal fourth-quarter net sales rose 87 percent as sales of the sweetener more than doubled and fuel distribution-unit revenue gained (Bloomberg).

Poor weather conditions hitting crops in the world’s two biggest sugar-producing nations, Brazil and India, sent the price of the sweet stuff soaring on international markets (BBC).

TELECOMS

Mexican billionaire Carlos Slim, the world’s richest man, plans to merge his mobile and fixed-line businesses in Brazil in a bid to slash costs (Reuters).

FINANCE

Brazilian insurance company SulAmerica is in advanced talks to buy a controlling stake in the local brokerage unit of Portuguese bank Banif (Reuters).

Banco Santander Brasil may be only the third-biggest private sector bank in Brazil, but it has become No. 1 with some of the world’s top hedge funds as they seek to tap into the Brazilian economic success story (Reuters).

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