News from Brazil

Business & Economy

In Brazil on August 14, 2010 at 9:34 am

ECONOMY

Brazil’s central bank chief Henrique Meirelles said the bank had not given wrong signals to the market prior to its decision to raise interest rates by less than expected last month. The markets made the wrong interpretation, he said (Reuters).

Brazil’s red-hot economy is evening out after rapid growth in the first quarter, data showed, reinforcing the view that the central bank may refrain from more interest rate hikes (Reuters).

Brazil’s industrial employment grew 2.4 percent in the first half of 2010 compared to the same period last year, the Brazilian Institute of Geography and Statistics (IBGE) said (Xinhua).

BANKING

Banco do Brasil said in a regulatory filing it will team with local private-sector giant Banco Bradesco and Portugal’s Banco Espirito Santo (BES) in a joint venture to tap Africa’s growing appetite for consumer loans, credit cards and other products (Reuters).

AVIATION

Brazil’s largest airline TAM Linhas Aereas plans to merge with Chilean rival LAN, a deal that would create the biggest carrier in Latin America (Reuters).

An Ocean Air executive jet crashed into Rio de Janeiro’s Guanabara Bay while attempting to land. All three people aboard were rescued (Bloomberg).

In light of the rapidly approaching World Cup and the 2016 Olympics, airlines are already preparing for the expected increase in travel to Rio de Janeiro. In upcoming months, various airlines will be launching several new direct connections between Galeão, Rio’s international airport, and popular destinations in Europe, the United States and South America (The Rio Times).

OIL & GAS

Brazilian industrialist Eike Batista said his oil and gas company OGX may have found enough natural gas to nearly double the country’s reserves, but added the figures were his own estimate (Reuters).

Brazil’s oil regulator said it halted operations of state oil company Petrobras’  offshore P-33 platform, citing safety concerns (Reuters).

A federal prosecutor said he has launched a probe to determine if state oil company Petrobras’ oil-for-shares capital plan could harm public coffers, renewing doubts over the company’s proposed share offering (Reuters).

Petrobras increased profits 11% over the first half of 2009 mainly due to the higher Brent price in the period, which reached $77.27 per barrel (up from $51.60/bbl a year ago), and to the recovery in the sales volumes in the Brazilian market, which rose 11% (Petrobras).

MINING

Mining companies will invest a record $62 billion in Brazil through 2014, the country’s mining industry association said, boosting a previous forecast of $54 billion for the same period (Reuters).

BUSINESS

Brazil’s IT services market is expected to continue to grow strongly in 2010, with total spending of around US$8.9bn (Reuters).

Vodafone, the world’s largest mobile operator by revenue, is unlikely to bid for Brazilian wireless carrier TIM Participacoes as it has become harder for newcommers to enter Latin America’s largest telecom market (Reuters).

Saab Automobile is seeking to appoint an importer to supply the Brazilian market as it continues to move forward as an independent car manufacturer (Reuters).

Brazil’s Spring Wireless, which developed “mobility software” to help clients stay productive while stuck in the constant gridlock of the nation’s business capital, is contemplating a Nasdaq listing in a couple of years to help fund an expansion overseas (Reuters).

AGRI

Brazil expects its agricultural export to achieve a record-high level in 2010, Agriculture Minister Wagner Rossi said. He expected the annual export this year to surpass the record-high 71.4 billion U.S. dollars registered in 2008, despite many severe natural disasters (Xinhua).

SHIPPING

Sugar loading at the main ports in Brazil restarted after rains that disrupted shipments ceased, easing a record backlog of vessels (Bloomberg).

REAL ESTATE

Securities firm BTG Pactual and real estate developer BR Properties bought an office compound in Rio for 680 million reais ($382 million), as demand for high-end office space soars (Reuters).

ENERGY

Brazilian power generation and distribution company Neoenergia, partly controlled by Spanish company Iberdrola, has submitted a bid to buy Brazilian energy distributor Elektro (Reuters).

ETHANOL

Cosan, the world’s biggest cane sugar and ethanol producer, should soon finalize a deal with oil giant Royal Dutch Shell over a $12 billion joint venture in biofuels (Reuters).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s