News from Brazil

Business & Economy

In Uncategorized on June 27, 2010 at 8:45 am


Brazil’s total stock of bank credit climbed in May in the latest sign a credit expansion is helping fuel growth (Reuters).

Brazil’s economy expanded nearly 11 percent in April compared to the same month a year ago, a central bank indicator showed (Reuters).

Brazil’s unemployement rate was higher than economists expected in May even as officials said the economy is showing signs of labor shortages in some industries (Bloomberg).

Brazil is aiming to cut inflation- adjusted borrowing costs to 4 percent under the next president, less than half the level in 2006, as the economy expands and the government reins in spending (Bloomberg).


Petrobras will add 1.2 million barrels per day (bpd) of refining capacity by 2020 to meet growing demand for oil products in South America (Reuters).

Petrobras expects more stringent government regulations in Brazil on offshore drilling, following BP’s oil spill in the Gulf of Mexico (Reuters).

The Brazilian government is “in no rush” to approve BP’s $7 billion purchase of Devon Energy’s assets in the country as it assesses the impact of BP’s oil spill in the Gulf of Mexico (Reuters).

Brazil’s National Petroleum Agency (ANP) announced they are set to review the deal between BP and Devon in light of the on-going clean up operations in the Gulf of Mexico. The ANP have said that the review is normal procedure, though it seems certain the decision was influenced by the prolonged environmental disaster and ensuing political conflict between the oil company and US government as regards their liability (The Rio Times).

Petrobras said its seventh well in the offshore Tupi field confirmed the potential of light oil in pre- salt reserves (Bloomberg).

Petrobras plans to invest $224 billion through 2014 as it seeks to develop the Americas’ largest discovery in three decades and more than double output (Bloomberg).

Petrobras CEO Sergio Gabrielli said the company will meet its investment plan for 2010 despite a delay in its massive stock offering (Bloomberg).

OGX, the oil company controlled by Brazilian billionaire Eike Batista, may begin producing crude in Colombia in 2012 as government efforts to reduce guerrilla attacks on pipelines and other infrastructure lure investment (Bloomberg).


Please note the Brazil Weekly team will be on holidays during the month of July. The next edition of Brazil Weekly will therefore arrive early August.


Petrobras said it will invest 420 million reais ($239 million) in two units of the Sao Martinho milling group, the second major tie-up for the oil company in ethanol in as many months (Reuters).


Portuguese Prime Minister Jose Socrates has instructed state bank Caixa Geral de Depositos to reject a bid by Spain’s Telefonica for Portugal Telecom’s stake in Brazil’s Vivo (Reuters).

Telefonica’s expansion plans foundered after associate Portugal Telecom (PT) rejected its takeover bid for Vivo, Brazil’s leading mobile phone operator (Xinhua).

Robert Bosch Gmbh may make acquisitions in Brazil and plans to invest 45 million reais ($25 million) this year in fixed assets in the country (Bloomberg).

Maquina de Vendas SA, Brazil’s second-biggest retailer created by a merger this year, agreed to buy electrical-appliances chain City Lar, increasing the number of its stores to 750 (Bloomberg).


ICAP Plc, the world’s largest broker of transactions between banks, plans to buy brokerages in Brazil this year (Bloomberg).


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