News from Brazil

Brazil Business & Economy News

In Brazil on March 4, 2011 at 10:20 am

ECONOMY

Brazil is managing effectively the risks of overheating in its fast-growing economy, IMF chief Dominique Strauss-Kahn said (Reuters).

Brazil’s Treasury will lend an additional 55 billion reais ($33.2 billion) to the country’s national development bank in 2011 to ensure companies have access to funding for long-term investment (Bloomberg).

The Federative Republic of Brazil announced that its economy saw a 7.5 percent increase in annual real gross domestic product (GDP) in 2010 as compared to the previous year, the highest level of growth since 1986. According to data from the Brazilian Institute of Geography and Statistics (IBGE), the total output of goods and services in Brazil for the year 2010 reached R$ 3.67 trillion (approximately US$ 2.1 trillion, using the 2010 average exchange rate). In the fourth quarter of 2010, GDP rose 0.7 percent from the third quarter of that year (3.0 percent in annualized rates), in the seasonally adjusted series (Portal Brasil).

Brazil’s upgrade by Moody’s from its Baa3 rating will depend on the new government’s ability to reverse a “spending binge” by former President Luiz Inacio Lula da Silva in 2010 (Reuters).

Brazil’s central bank has raised its key interest rate to 11.75% in a bid to hold down inflation in one of the world’s fastest-growing economies (BBC).

Brazil plans to require that imported goods present the same technical certification Brazilian products are required to have, Valor Economico newspaper reported, citing an interview with Trade Minister Fernando Pimentel (Bloomberg).

AUTOMOTIVE

Toyota is recalling 145,000 Corolla cars in Brazil for fuel leaks in the latest in a slew of global quality problems ailing the world’s biggest automaker (Washington Post).

AVIATION

Brazil’s civil aviation authority passed the planned combination between Brazilian airline TAM and Chilean rival LAN with no restrictions, giving a boost to their project to create Latin America’s largest airline (Reuters).

Brazil’s TAM Linhas Aereas has signed a memorandum of understanding to buy 32 Airbus A320s, including 22 re-engined A320neos, and ordered two Boeing 777s (Seattlepi).

Embraer has signed a new contract with TRIP Linhas Aéreas for the sale of four EMBRAER 190 jets. With this order, the total E-Jets ordered by TRIP comes to 24, taking into consideration aircraft acquired directly from Embraer or through leasing companies. This year, alone, TRIP will receive nine EMBRAER 190 aircraft, thus doubling its fleet of E-Jets (Embraer).

Embraer’s growing U.S. fleet of Phenom 100, Phenom 300, Legacy 600 and Legacy 650 executive jets now have a third option of Embraer fully owned maintenance center in addition to the other existing two – Mesa, AZ, and Fort Lauderdale, FL – in operation since 2008. The Company’s Bradley International Airport service center in Windsor Locks, CT, inaugurated in 2008, is expanding its activities (Embraer).

BIOFUELS

A shareholders’ agreement was signed to set up Logum Logística S.A., the company to be responsible for deploying an extensive multimodal logistics system for the transportation and storage of ethanol. It will be a private limited company, with shares distributed as follows: Petrobras, 20%; Copersucar S.A., 20%; Cosan S.A. Indústria e Comércio, 20%; Odebrecht Transport Participações S.A., 20%; Camargo Correa Óleo e Gás S.A., 10%; Uniduto Logística S.A., 10% (BW).

Mexican sugarcane producers want to establish new partnerships with the Brazilian sugar-energy industry in order to learn more about the technologies in use and promote expansion at home. The objective topped the agenda during a visit to the headquarters of the Brazilian Sugarcane Industry Association (UNICA) by the newly appointed Mexican Consul-General to São Paulo, José Gerardo Traslosheros (Unica).

ENERGY

The Brazilian Development Bank (BNDES) approved R$ 790.3 million in financing for nine wind parks, of which eight will be built in the state of Ceará, with total installed capacity of 211.5 MW. The ninth wind park, in the city of Tramandaí, in the state of Rio Grande do Sul, will have 70 MW of installed power (BNDES).

MINING & STEEL

A consortium of Japanese and South Korean firms are to take a share of a Brazilian rare earth mining company. The group includes Japan’s Nippon Steel and South Korea’s Posco and National Pension Service (NPS). They will pay $1.95bn (£1.19bn) for a 15% stake in Brazil’s Companhia Brasileira de Metalurgie e Mineracao (CBMM) (BBC).

Gerdau, Brazil’s largest maker of long steel products, will invest 2.5 billion reais ($1.5 billion) on expanding a wire rod and rolling mill in Rio de Janeiro state, which will see some of the country’s most ambitious infrastructure projects in coming years (Reuters).

OIL & GAS

Petrobras CEO, José Sergio Gabrielli de Azevedo, was nominated Petroleum Executive of 2011 by Energy Intelligence, a renowned information service for the energy sector. Gabrielli was chosen from leaders of many of 100 largest oil companies in the world (BW).

OGX Petroleo & Gas Participacoes SA, the oil company controlled by Brazilian billionaire Eike Batista, said it will test wells that may surpass the 40,000 barrel-a-day OGX-26 discovery at its Waimea field (Bloomberg).

Petrobras, said it will invest $706 million in a liquefied natural gas terminal in the northeast state of Bahia (Bloomberg).

PORTS

Rains will ease this week in Paranagua, Brazil’s second-largest port, allowing farmers to ship grains such as soybeans and corn and clearing up a 19 kilometer-backlog (Bloomberg).

Advertisements