News from Brazil

Business & Economy

In Brazil on October 15, 2010 at 9:43 am


Brazil’s economy may expand 7.5 percent this year, up from a previous forecast of 7 percent, as domestic demand ensures non-inflationary growth in coming years, Finance Minister Guido Mantega said (Bloomberg).

Brazil’s currency has continued to rally. After soaring more than 100 percent since President Luiz Inacio Lula da Silva took office in 2003, the real is now the most overvalued major currency in the world, according to Goldman Sachs (Reuters).

The combination of abundant access to international capital by large domestic firms, increasing interest of foreigners in Brazil and consolidation in various sectors of the economy made the market for mergers and acquisitions within the country experience strong growth in the year through September (India-Brazil Chamber).

Brazil’s state development bank BNDES and the government are preparing measures to promote long-term credit in the private sector, the bank’s president Luciano Coutinho said (Reuters).

Economists forecast the benchmark IPCA inflation index at 5.15 percent for 2010, compared with the 5.07 percent rate the previous week (Reuters).

Brazil’s retail sales rose more than expected in August from a month earlier, fueled by record low unemployment and credit expansion. Sales rose 2.0 percent in August from July (Bloomberg).


Brazil’s agricultural exports reached record-high levels in the last 12 months, mainly due to growth in sugar and meat exports, the Agriculture Ministry said (Xinhua).


Embraer and Air Lease Corp., a newly formed aircraft leasing, purchasing and financing provider company have signed the final agreement for the acquisition of 15 EMBRAER 190 jets. First delivery is scheduled to take place in June 2011 (Embraer, pdf).

Brazil remains hopeful that Beijing will give aeronautics firm Embraer the nod to build bigger passenger planes in China, the office of President Luiz Inacio Lula da Silva said (France24).

The Ministry of Defence of Angola is negotiating with the Brazilian aircraft manufacturer Embraer for the purchase of six reconnaissance Super Tucano planes (Atlantico Weekly).


Banco Santander Brasil SA expects its revenue growth to beat that of Itau Unibanco Holding SA and Banco Bradesco SA this year and in 2011 as it expands retail services such as credit cards, as well as investment banking, said Vice-President for Finance Carlos Lopez Galan (Bloomberg).


Danish industrial enzymes producer Novozymes said it would work with Brazil’s Petrobras to develop new ways of producing advanced bioethanol from sugarcane bagasse (Reuters).

Brazil’s ethanol production will continue to grow and will be a source of an increase in oil supply outside the Organization of the Petroleum Exporting Countries, the International Energy Agency (IEA) said (Reuters).


China’s State Grid utility company is in talks with Brazil state-controlled utility Centrais Eletricas Brasileiras, or Eletrobras, to build generating capacity, Estado de S. Paulo newspaper reported (WSJ).


Vale, through its joint-venture with African Rainbow Minerals (ARM), officially launched the US$ 400 million Konkola North Copper Project, located in the Chililabombwe district, Copperbelt province, Zambia. The estimated nominal capacity of the project, which is expected to reach full potential in 2015, is 45,000 metric tons per year of copper in concentrates. Construction work started in August 2010 and the first copper ore extraction is scheduled for 2013 (Vale).

Norsk Hydro ASA, Europe’s third- largest aluminum maker, is considering expansion in Brazil and Argentina after it completes the purchase of $4.9 billion of assets from Vale SA (Bloomberg).


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After its initial launch in Delhi, Surya Brasil products are now available in the metros. “Besides Big Bazzar, we are also moving to smaller towns and cities”, says Fernanda Drumond, whose mandate is to take the product pan India (India-Brazil Chamber).


The Brazilian government has tried to boost the country’s self-sufficiency in fertilizer production for years as a matter of national security, and industry players said a protective tariff may be needed to boost local capacity that only meets a third of farmers’ needs (Reuters).


Brazilian oil and gas start-up OGX  has increased the number of wells it plans to drill in Brazil by 2013 to 87 from 51 (Reuters).

Petrobras said it may cut the price it charges for natural gas because of an increase in supply from the pre-salt crude oil fields (Bloomberg).


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