News from Brazil

Business & Economy

In Uncategorized on June 13, 2010 at 11:45 am

ECONOMY

President Luiz Inacio Lula da Silva praised this week’s gross domestic product data, calling it well-deserved “exuberant growth,” but some say such rampant expansion could be a curse, not a blessing (Reuters).

Brazil’s booming economy grew at its fastest clip in at least 14 years in the first quarter, beating expectations and signaling robust growth for 2010 in contrast to the struggling European and U.S. economies (Reuters).

Brazil has boosted funds available for rural credit in 2010/11 by 8 percent for its massive agricultural sector, with more loans for investment in carbon-cutting farming and on-farm silos to hold grains (Reuters).

Brazil plans to step up job training for those receiving minimum income from the government, President Luiz Inacio Lula da Silva said. In his weekly radio show, Lula told the nation an initiative to that end is the “Next Step” program, which will train beneficiaries of Bolsa Familia program to work for civil construction projects (Xinhua).

OIL

Brazil’s Senate passed a plan that creates a production-sharing model to replace the existing concession system in future oil projects, boosting government control over massive deepwater reserves off the country’s coastline (Reuters).

Brazil could benefit from the BP Gulf of Mexico spill as a U.S. moratorium on offshore drilling boosts available rigs for the country’s deep water oil exploration program (Reuters).

BANKING

Banco Santander Brasil SA plans to spend 450 million reais ($243.5 million) on a technology and research center in Sao Paulo as Brazil’s third-largest private-sector bank expands its business in the country (Reuters).

Banco Votorantim, the financial services division of Grupo Votorantim, plans to boost its investments-banking team by 50 percent this year as part of a plan to increase the unit’s share in total sales (Bloomberg).

AVIATION

TAM, Brazil’s largest air carrier, is poised to order Airbus aircraft worth just under $3 billion (Reuters).

Eight of Brazil’s major metropolitan airports have been described in a recent report as facing an imminent inability to cope with increased traffic that could lead to a complete “logistical blackout” (The Rio Times).

RESEARCH

In a move that underscores the growing importance of emerging markets and the globalization of innovation, International Business Machines Corp. said it will open a research laboratory in Brazil with the cooperation of the country’s government (Wall Street Journal).

COMPUTING

Global IT services provider HCL Technologies (HCL) said it will aggressively focus on expanding its infrastructure services in the Brazil market (Times of India).

TELECOMS

Monopoly in the telecommunications sector in Brazil has caused service to be offered at inappropriately high prices compared with people’s income, an official study showed (Xinhua).

REAL ESTATE

The booming real estate industry in Brazil remains untouched by the economic fall out of the 2008 credit crunch. Partly due to foreign speculation as a result of the forthcoming 2014 World Cup and 2016 Olympics on these shores, partly due to the boost in domestic demand amongst increasingly affluent Brazilians, housing prices have risen in a manner never before witnessed in the country (The Rio Times).

SHIPBUILDING

Petrobras has approved a lease agreement for the Inhaúma Shipyard, also known as the Ishibras yard, with Companhia Brasileira de Diques – CBD, for a term of 20 years and for approximately R$4 million per month. The shipyard is located in the Guanabara Bay, it has a draft (depth) of 7 meters, is inserted into the urban network of the city of Rio de Janeiro, and may be used to convert vessels into FPSOs (Floating Production, Storage, and Offloading units), a procedure which today is done abroad (Petrobras).

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