News from Brazil

Business & Economy

In Brazil on November 5, 2010 at 1:37 pm

ECONOMY

President Luiz Inacio Lula da Silva could implement unpopular economic measures in his final two months to ensure a smoother start for his elected successor in January, Folha de Sao Paulo said (Reuters).

Brazilian Finance Minister Guido Mantega said that the country’s GDP will expand 7.5 to 8 percent in 2010 (Xinhua).

With it’s thriving economy and growing middle class, Brazil is becoming more attractive to foreign investment. To do business in Brazil however, it is essential to set up a registered company, and while new options exist it is not a process free of legal hurdles. The Rio Times looks at the options.

Finance Minister Guido Mantega said he was worried that the congressional budget committee’s move to raise its revenues forecast for next year could lead to more government spending (Reuters).

Brazil has better corporate governance and transparency than Russia, India and China, said Will Landers, who oversees about $10 billion in Latin American stocks at BlackRock Inc (Bloomberg).

BIOFUELS

Following the recent stakeholders’ consultation organized by the European Commission to address the issue of indirect land use change (ILUC), the Brazilian Sugarcane Industry Association (UNICA) calls on the Commission to review modeling work and ensure scientific robustness to calculate ILUC (UNICA).

The strong appreciation of its local currency has stripped Brazil, the world’s top exporter of sugar, of its long-held title as the lowest-cost producer, sugar and ethanol giant Cosan said (Reuters).

Cosan plans to hike capacity at its sugar terminals at the country’s largest port after a surge in demand this year led to long queues of ships waiting to load (Reuters).

MINING & STEEL

Posco, South Korea’s largest steel producer and one of the world’s biggest steelmakers, signed a Memorandum of Agreement (MoA) with Vale and Dongkuk, establishing the terms for its entry in Companhia Siderúrgica do Pecém (CSP) (Vale).

Brazil will export a record amount of iron-ore this year as companies such as Vale SA boost shipments to help satisfy rising demand for the steelmaking ingredient from China, Banco Santander SA said in a note to clients (Bloomberg).

AVIATION

Embraer and Republic Airways Holdings, the operator of the largest fleet of E-Jets in the world, have completed contract negotiations for the purchase of up to 24 EMBRAER 190 jets, plus 24 options, with conversion rights to EMBRAER 195s (Embraer, pdf).

OIL

Brazil said its Libra field may hold “gigantic” reserves of as much as 15 billion barrels, almost twice initial estimates, which would make it the biggest discovery in the Americas in more than three decades (Businessweek).

Venezuelan state oil firm PDVSA said it had an initial contribution of $400 million ready for a joint venture refinery with Brazil’s Petrobras (Reuters).

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OTHER

Anheuser-Busch InBev, the world’s largest brewer, said weakness in Europe and expansion costs capped the rise of third-quarter profits after “drinking in Brazil surged” (Reuters).

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