News from Brazil

Business & Economy

In Uncategorized on June 20, 2010 at 11:04 am

ECONOMY

Brazil’s economy will grow solidly in 2010, but a slowdown from the first quarter will allow the government to bring inflation back to target by year-end, Finance Minister Guido Mantega said (Reuters).

Brazil’s central bank took too long to raise the benchmark overnight rate this year to head off inflation, which has increased the risk of an asset bubble, the chief economist of Citigroup told Valor Economico newspaper (Reuters).

Brazil plans to extend until December tax cuts on the sale of trucks, tractors and pick-up trucks to boost sales (Bloomberg).

OIL

Petrobras and Portugal’s largest bank CGD are preparing to seal a deal to buy a 33.3 percent stake in Portuguese Galp Energia held by Italy’s ENI (Reuters).

Petrobras found more evidence of oil in an onshore well in Brazil’s Guriri field, the Brazilian petroleum regulator said (Bloomberg).

BANKING

Banco do Brasil said Brazil’s sovereign wealth fund would buy nearly 18 percent of the bank’s stock in a proposed share offering (Reuters).

BUSINESS

Brazilian phone group Oi has won the support of President Luiz Inacio Lula da Silva to prevent a possible buyout attempt by Portugal Telecom (Reuters).

Toyota Motor Corp is set to resume construction of car assembly plants in Brazil and Mississippi which were put on hold amid the global financial crisis (Reuters).

Growing risk aversion and the worsening of the sovereign debt crisis in the euro region probably led Brazilian steelmaker CSN to put off the long-awaited listing of its iron ore unit, which the company had planned for the first half of this year (Reuters).

A Brazilian federal court ruled that steelmakers CSN and Usiminas harmed competition by agreeing to raise prices for some steel products in 1996 and 1997, upholding a previous ruling by the antitrust agency (Reuters).

Brazilian processed foods company Marfrig Alimentos SA said it reached an agreement to buy major U.S. distributor Keystone Foods for $1.26 billion, in a bid to expand as a supplier to some of the world’s largest restaurant chains (Reuters).

Cosan, the world’s biggest sugar-cane processor, and 84 more Brazilian ethanol makers this month will seek authorization to build a 3 billion-real ($1.7 billion) pipeline to ship fuel to a southeastern port from producing areas in Sao Paulo state (Bloomberg).

Vale SA, the world’s largest iron- ore producer, is driving borrowing costs relative to BHP Billiton Ltd. down from a one-month high by reducing its dependence on China (Bloomberg).

Brazil’s Vale mining company and German steel maker ThyssenKrupp started constructing a huge steel-making complex, the largest of its kind in Latin America (Xinhua).

REAL ESTATE

Brazil’s property market continues to prosper, prices continue to rise, and real estate is of course becoming big business. There are a lot of companies out there to choose between, however, and the quality of service varies enormously, particularly in comparison to the USA or UK. Often they don’t publish their information in English either, so it can be a very frustrating process to go through as a foreign buyer (The Rio Times).

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