News from Brazil

Business & Economy

In Brazil on August 1, 2010 at 10:15 am


Brazil’s economy is settling into a new, slower rate of growth, with lower risks of inflation, the country’s central bank said (Reuters).

When, in 2001, Goldman Sachs dreamt up the acronym BRICs for the largest emerging economies, the country that most people said did not belong in the group was Brazil. Today, the leading candidate for exclusion is Russia. But some prominent observers are still sceptical about Brazil’s prospects. But The Economist provides four reasons to still believe in Brazil.

How to get children out of jobs and into school. The limits of Brazil’s much admired and emulated anti-poverty programme. Read more about the Bolsa Familia at The Economist.


Repsol YPF SA, Spain’s largest oil company, is seeking to raise about $4 billion from an initial public offering of its Brazilian business, valuing the unit at about $10 billion (Bloomberg).

Brazilian Environmental Minister Izabella Teixeira announced on July 26th that the National Contingency Plan (PNC) for open sea oil exploration and production will be in place by September. The Plan takes into account new global parameters regarding deep-water drilling as influenced by the Gulf of Mexico disaster (The Rio Times).

Petroleo Brasileiro SA, Brazil’s state-controlled oil company, found more evidence of oil in an onshore well in Brazil’s Seriema field, the Brazilian petroleum regulator said (Bloomberg).


Carlyle Group, the world’s second- largest private-equity firm, and Banco do Brasil SA created a 400 million-real ($225.5 million) fund in Brazil. Carlyle and Banco do Brasil will seek to buy control of medium-sized companies with potential to expand abroad, the newspaper said (Bloomberg).


Oi, Brazil’s largest phone group, expects savings of 600 million reais ($340.5 million) by the end of the year after integrating with Brasil Telecom, Chief Financial Officer Alex Zornig said (Reuters).

Telefonica finally took over PT’s shares in Vivo, but Portugal Telecom got the better deal (The Economist) and ends up as a major shareholder in Oi.


TAM Linhas Aereas, Brazil’s largest airline, said that its controlling shareholders would pump as much as 144.4 million reais ($81 million) in fresh capital through the purchase of new shares (Reuters).

TAM has finalised an order for 25 more Airbus planes provisionally announced last month. The order is for 20 A320-family single-aisle planes and five A350-900 future wide-body planes worth a total $2.8 billion at list prices (Reuters).

Embraer, the world’s No. 3 jet maker, should report a slight increase in
second-quarter profit because of a pickup in aircraft orders and cost controls, according to analysts surveyed by Reuters.

Brazil’s airline industry is increasingly concerned that the country will not have adequate airport capacity for the 2014 soccer World Cup because of slow expansion and growing demand for travel (Reuters).

American Airlines is applying for the use of three routes between the US and Brazil (Reuters).


A record 115 vessels were waiting to load 3.53 million metric tons of sugar at Brazil’s six main ports on July 27, according to consultant Santos Associados Consultoria Ltda. and shipping company Unimar Agenciamentos Maritimos Ltda (Bloomberg).


Intended to be ready in time for the 2014 World Cup to alleviate the inter-city transportation concerns, the construction of TAV RJ-SP (Rio-São Paulo High-Speed Rail) is now estimated by some for late 2016 with only a hope of having some key parts operational by the2016 Rio Olympics (Rio Times).

Brazil will invest 18.7 billion U.S. dollars in infrastructure for the 2014 FIFA World Cup, Brazilian Minister of Sports Orlando Silva Jr. said (Xinhua).

Work finally began on the long-discussed and debated new Rio metro underground link in Barra, with Governor of Rio Sergio Cabral inaugurating the project in front of the massed media. The project forms a key part of the city’s strategy for the 2016 Olympics, as well as the city’s transportation as a whole, seeking to eliminate at least some of the Barra-Zona Sul congestion that blights commuters daily (Rio Times).


Vale, the world’s largest iron ore producer, offered to pay 2 billion reais ($1.13 billion) to buy out copper smelter Paranapanema as part of plans to diversify its sources of revenue (Reuters).


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