News from Brazil

Business & Economy

In Brazil on September 24, 2010 at 9:22 am


Brazilian inflation will end 2011 at 4.95 percent, up from a week earlier forecast of 4.90 percent, according to the median forecast in a September 17 central bank survey of about 100 economists (Bloomberg).

The unemployment rate in Brazil dropped to 6.7 percent in August, compared to 8.1 percent in the same period last year, the Brazilian Institute of Geography and Statistics (IBGE) announced (Xinhua).


Drought in Brazil, the world’s biggest producer of coffee, sugar and orange, is harming crops and drying the Amazon River to its lowest in 47 years (Bloomberg).

Cosan plans to expand sugar-cane proccessing capacity to between 100 million metric tons and 110 million tons in the next few years (Bloomberg).


The performance of the Brazilian banking system has mirrored the strong recovery of the country’s economy with expectations for relatively improved profitability and growth over the next quarters, according to Fitch Ratings (Reuters).

Global private equity investors, buoyed by Brazil’s fast-growing economy, are ramping up takeover and fund-raising activity despite uncertainty in the run-up to the country’s presidential election, which they are treating broadly as a nonevent, industry executives said (Reuters).

UBS, the world’s second-largest money manager for the rich, relaunched its wealth management unit in Brazil, as the fastest economic expansion in almost two decades is boosting the number of millionaires and demand for specialized investment advice (Reuters).

Sales of securities backed by Brazilian real estate assets are surging to a record as homebuilders and mall owners expand amid the fastest economic growth in two decades (Bloomberg).

Bank of Nova Scotia, Canada’s third-largest lender by assets, agreed to buy Dresdner Bank Brasil SA to enter the Brazilian investment-banking market (Bloomberg).


Not only will Brazil retain its position as the world’s top exporter of ethanol through 2020, Brazil will be THE leading country in a position to consistently supply the global ethanol market (Reuters).


The Boston Consulting Group says Vale has created more value than any other large firm in the world over the past decade. That Vale has kept its success quiet is partly an accident of history  (The Economist).

Vale announced the successful commissioning of its two large nickel projects, Vale New Caledonia (VNC), formerly Goro, and Onça Puma. VNC is the largest operation in the world based on a nickel laterite limonite deposit, located in New Caledonia in the South Pacific, with an estimated nominal capacity to produce 60,000 metric tons per year of nickel contained in nickel oxide and 4,600 metric tons of cobalt as a by-product. Onça Puma is a nickel operation built on deposits of nickel laterite saprolite in the Brazilian state of Pará, with an estimated nominal production capacity of 58,000 metric tons per year of nickel contained in ferro-nickel, its final product (Vale).

Vale exercised an option to purchase a 51% stake in Sociedade de Desenvolvimento do Corredor do Norte SA (SDCN), owned by the Mozambican company Insitec SGPS SA (Insitec). This acquisition will enable the necessary logistics infrastructure for transporting the output coming from the second phase of Moatize coal project (Moatize II) development (Vale).

Brazil is studying possible changes to mining royalties but will not formally present them until after Congress approves a separate overhaul of mine licensing, Brazil’s mines and energy minister said (Reuters).

Anglo American Plc expects its Minas Rio iron-ore project in Brazil to come on stream in the “foreseeable future,” following delays and cost overruns (Bloomberg).


You can also follow Brazil Weekly on Twitter at brazilweekly.

Be very welcome to join the Brazil Weekly networking and discussion group on Linkedin: Click here.


Brazilian state oil company Petrobras raised $70 billion in the world’s biggest share offering, giving the company the financial muscle it needs to tap vast offshore oil reserves (Reuters).


Brazil’s initiative to boost broadband availability will significantly improve access to broadband service over the next four years, but it is likely to fall short of the government’s aggressive goal of 40 million broadband households by 2014, according to a new report from Pyramid Research (Reuters).


The Indian vehicles giant Tata Motors studies the set up of a vehicles plant in Brazil. Ravi Kant, the company’s number 2, confirmed that Tata  will launch a second wave of globalization of its production. According to Kant, lack decide whether the new plant will be locate in Brazil or in Mexico (IndiaBrazil Chamber).

Chery Automobile Co., a Chinese automaker, signed an agreement with Sao Paulo state government to invest as much as $400 million in a car plant in Jacarei. The plant will produce 50,000 cars a year by the end of 2013 (Bloomberg).


Leave a Reply

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

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

Google+ photo

You are commenting using your Google+ 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 )


Connecting to %s