News from Brazil

Brazil Business & Economy News

In Brazil on February 25, 2011 at 5:16 pm

ECONOMY

The president of private bank Itau brushed aside risks of a credit bubble in the country and underlined that sustained economic growth will be rewarded by an expansion of between 15% and 20% in its credit portfolios in 2011 (Mercopress).

Arminio Fraga, a former president of Brazil’s central bank, warned that some new consumer lending in the country needs greater scrutiny, the Financial Times reported, citing an interview with Fraga (Bloomberg).

“Protectionist” Brazilian government initiatives to shore up local industry amid rising imports would hurt retailers while benefiting makers of industrial goods, JPMorgan Chase & Co. said (Bloomberg).

AGROPECU

Biotech crop acreage grew another 10 percent last year worldwide, driven in part by strong growth in Brazil, where farmers have been rapidly switching to genetically engineered varieties of corn and soybeans (DesMoinesRegister).

AUTOMOTIVE

Hyundai Motor Co. will begin construction of its first plant in Brazil as South Korea’s largest carmaker expands factories in emerging markets to meet rising demand (Bloomberg).

AVIATION

Embraer’s Legacy 650 large executive jet has just received certification from the U.S. Federal Aviation Administration (FAA). In October 2010, Brazil’s ANAC (National Civil Aviation Agency) and the European Aviation Safety Agency (EASA) had already granted their certifications (Embraer).

Embraer celebrated the opening of its first U.S. aircraft final assembly plant  at Melbourne International Airport in Melbourne, Florida. The new 80,000-square-foot hangar and modern paint shop facility is dedicated to the executive jet business in the Company’s largest market, where it will begin operations with the production of the Phenom 100 entry level executive jet (Embraer).

International Airlines Group, formed by the merger of British Airways and Iberia, will look to buy out smaller European carriers before pursuing major deals further afield. TAP Air Portugal appears to be their prime target, because of its profitable routes to Brazil (Reuters).

INFRA

Siemens is being investigated by Brazilian state prosecutors for allegations it had paid bribes to win public contracts, German magazine Der Spiegel said (Reuters).

MINING & STEEL

Vale reports a stellar performance in 4Q10 and 2010. It is the company’s best ever annual result, characterized by all-time high figures for operating revenues, operating income, operating margin, cash generation and net earnings. Net earnings for 2010 were the greatest ever in the mining industry (Vale).

Steelmaker Usiminas will seek to cut costs and lower domestic price discounts to arrest the steepest tumble in profit margins in six quarters (Reuters).

OIL

Brazil’s proven oil reserves rose 10.65% in 2010 to nearly 14.25 billion barrels, the biggest annual increase in the past eight years, the ANP oil regulator announced. Total reserves, overwhelmingly offshore, which also include probable and possible reserves, soared 34.57% to 28.47 billion barrels (Mercopress).

Brazil’s state-controlled oil and gas giant Petrobras is analyzing future cooperation opportunities with Chinese companies, the company’s CEO Jose Sergio Gabrielli said (CRI).

China’s Sinopec Corp said it planned to participate in Brazil’s next oil and gas bidding rounds, which should be resumed after the passage of a reform of the country’s oil law expected this year (Mercopress).

Petrobras announced the start up of the Extended Well Test (EWT) for the Tracajá reservoir, located 124 km off the coast of Rio de Janeiro, in the pre-salt area of Marlim Leste field, in Campos Basin (BW).

Brazilian oil company HRT Participacoes said that it is acquiring Canada’s UNX Energy for 1.3 billion reais ($781 million), according to a filing with the securities regulator CVM (Reuters).

Advertisements