News from Brazil

Business & Economy

In Brazil on August 20, 2010 at 11:04 am

ECONOMY

Brazil’s government raised its forecast for economic growth this year to 6.5 percent from 5.5 percent previously, in a periodic revision of its 2010 budget data (Reuters).

Brazil’s economy added 181,796 government-registered jobs last month, the smallest number since January (Bloomberg).

The mergers and acquisitions in Brazil amounted to 84.8 billion reais (48.4 billion U.S. dollars) in the first half of this year, up 43.2 percent year on year (Xinhua).

Brazil will speed up science and technology development as investments in those areas will reach 41 billion reais (23.4 billion U.S. dollars) by the year’s end, Minister of Science and Technology Sergio Rezende said (Xinhua).

Brazil’s tax collection totaled 67.973 billion reais (38.841 billion U.S. dollars) in July, up 10.5 percent month on month, the Federal Revenue Secretariat said (Xinhua).

OIL

Petrobras President José Sérgio Gabrielli admitted this week that there are problems with his company’s platform in the P-33 drilling block which could endanger workers’ safety and operational security. Throughout the week news wires have reported that the platforms are susceptible to corrosion and serious maintenance problems persist in the area (The Rio Times).

Brazilian oil and gas company OGX Petroleo e Gas Participacoes  said it found signs of hydrocarbons in well 1-OGX-15-RJS in the southern part of the offshore Campos basin (Reuters).

Petrobras’s $25 billion share sale may be delayed as Brazil’s state-run oil producer and the government negotiate the financial terms for a related oil- for-stock swap, said two officials familiar with the matter (Bloomberg).

Brazil’s government may price so- called pre-salt oil reserves at $10 to $12 per barrel in an oil- for-stock swap with Petroleo Brasileiro SA (Bloomberg).

Statoil, Norway’s largest oil and natural gas company, expects Brazil to lead production growth in the “short term” as part of the explorer’s overseas expansion (Bloomberg).

Royal Dutch Shell Plc is seeking to sell its stakes in four oil blocks off the coast of Brazil (Bloomberg).

Petrobras lost its spot as the biggest company in Latin America by market value to Vale after concern a planned $25 billion equity offering will dilute investors spurred a slump in the oil producer (Bloomberg).

INFRA

Mitsui, the company coordinating a Japanese group interested in bidding for the license to build and operate a high-speed train in Brazil, sees geological and demand risks in the project and said “ideally” the auction should be postponed (Bloomberg).

Brazil’s three largest construction companies will sign an agreement with the country’s government next week to build 50 percent of the Belo Monte hydroelectric dam project in the Amazon (Bloomberg).

TELECOMS

Portugal Telecomdenied a media report that it has entered a deal to buy a stake in Brazil’s fourth-largest mobile operator, Oi (Reuters).

AVIATION

Embraer and Air Lease Corp., a newly formed aircraft leasing, purchasing and financing provider company led by the legendary Steven Udvar-Hazy, signed a Letter of Intent (LOI) for the sale of 15 EMBRAER 190 jets at the 47th Farnborough International Airshow, in England (Reuters).

Embraer also said it sold seven commercial planes to Brazilian airlines Azul and Trip for about $291 million, underscoring a gradual recovery in demand for new jets (Reuters).

Embraer and TRIP Linhas Aereas announced the closing of a contract for the sale of two EMBRAER 190 jets at the 47th Farnborough International Airshow, in England (Reuters).

Embraer announced its 20-year forecast, today, for commercial aircraft in the 30- to 120-seat segment (Reuters).

BANKING

Itau Unibanco won two major categories of the IR Magazine Awards Brazil 2010: “Grand Prix: Best IR Program for large caps” and Roberto Setubal, president of the bank, received the award of Best IR Performance for a CEO or CFO ” (Reuters).

Brazil’s government will backpedal on plans to use a state-controlled insurer to compete with private companies to broaden policy coverage and slash fees, saying the new company will focus on infrastructure and export financing (Reuters).

MINING

Iron ore producer Vale is likely to gradually cut its stake in the Pecem steelmaking venture to 40 percent, in line with a plan to have minority participation in mills (Reuters).

HEALTH INDUSTRY

Private equity fund Carlyle Group said it had agreed to buy Brazilian health services provider Grupo Qualicorp, seeking to tap into demand from the country’s growing middle class (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