News from Brazil

Brazil Business & Economy News

In Brazil on October 14, 2011 at 10:34 am


Coming off a year in which it recorded its highest growth in a quarter century, Brazil is faced with rising inflation, an overvalued currency and an industrial sector losing competitiveness to cheap Chinese imports. But Ms. Rousseff’s promising efforts to fix those problems could be undermined in the coming months as the government embarks on one of its biggest spending sprees in decades (New York Times).

Prices in Brazil keep rising and so does anxiety. Bloomberg lists some worrying reports.

Economic activity in Brazil slid in August from July with activity in previous months also weaker than first thought, data showed, in the latest sign of a slowdown (Reuters).

The Brazilian government will likely cut its 2011 economic growth forecast to between 3.5 and 4 percent from a previous outlook of 4.5 percent (Reuters).

The Brazilian National Industry Confederation (CNI) revised down its forecast for Brazil’s economic growth this year to 3.4 percent from 3.8 percent due to the effects of the world economic crisis (Xinhua).

Finance Minister Guido Mantega said that the country will regain momentum of higher economic growth in the 4th quarter this year following poor performances in the previous two quarters (Xinhua).


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Japanese beermaker Kirin says it has been cleared by a court to buy a majority stake in family-run Brazilian brewer Schincariol. Kirin will spend $2.6bn (£1.7bn) on buying 50.45% of the beer and soft-drink maker, after an injunction halting the deal was overturned (BBC).

Brazil has agreed to negotiate changes in a higher tax on car imports to accommodate auto makers that have disclosed billions of dollars in new investments in the world’s fourth-largest vehicle market, but critics of the higher tax say the damage to competition, and the consumer, has already been done (Wall Street Journal).

Taiwan’s Foxconn confirmed it will start producing iPads in Brazil in December but is still negotiating a multibillion-dollar expansion plan in the country, senior company and government officials said (Reuters).

Hitachi Ltd is mulling a joint venture in Brazil with a local heavy machinery manufacturer to produce monorail cars there, the Nikkei business daily reported (Reuters).


Brazil’s government will lend a total of 2 billion reais ($1.1 billion) for cane mills to stock ethanol through the end of the interharvest, in March 2012, a government source told Reuters.


Embraer signed a firm order for 13 Legacy 650 executive jets with China’s Minsheng Financial Leasing Co., Ltd. The first aircraft is expected to be delivered by the end of this year, with the remainder to be delivered within the next five years (Embraer).

Embraer and GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric Company, have signed a contract for six firm orders and six options of the EMBRAER 190, with the right to convert to the EMBRAER 195. The total value of the deal, which will be included in Embraer’s fourth quarter of 2011 backlog, is USD 256.8 million, at list price, and could double, if all options are confirmed. Delivery of these aircraft will begin in the fourth quarter of 2012 (Embraer).

Brazil sets tough rules for three airport terminals concessions. Operators interested in running Brazil’s largest airport will be required to make a minimum bid of 1.3 billion dollars, Brazil’s aviation authority said (Mercopress).

The final words of three terrified pilots on board an Air France jet which crashed into the Atlantic Ocean have emerged today for the first time. In a scandal which is set to shock all those who work or travel on commercial flights, they reveal absolute panic and ignorance among those in charge of the aircraft (Daily Mail).

Indonesian flag carrier PT Garuda Indonesia said it is in talks with Canada’s Bombardier Inc and Brazil’s Embraer to buy 18 small-sized planes worth up to $720 million (Reuters).


Vale launched its iron ore distribution centre in Teluk Rubiah, which will cater for demand of steel industries in the Asia Pacific region. The centre will have a maximum throughput capacity of 60 million tons per year. Vale is  investing US$ 1.4 billion (RM 4 billion) in the first phase of the project, which will create approximately 3,000 jobs in Perak during the next three years before completion (Vale).


Brazil, which is maintaining investments to increase oil production even as turmoil hits financial markets in Brazil and around the world, is leading a shift in Latin America’s oil industry with the potential to alter the geopolitics of energy. By the 2020s, if the stars align in Brazil’s favor, the country could emerge as the fourth-largest oil producer after Russia, Saudi Arabia and the United States (New York Times).

The Consortium operating Block BM-S-11, formed by Petrobras (65% – Operator) in partnership with BG Group (25%) and Petrogal Brasil S.A. – Galp Energia (10%), has opened up the Lula-Mexilhão gas pipeline. The system connects the Lula field to the Mexilhão platform, located in shallow Santos Basin waters. With a capacity to take off up to 10 million m3 gas per day, the pipeline will transport gas produced in the Pre-Salt Cluster (BW/Petrobras).

In an interview to Brazilian magazine IstoE, Gabrielli highlights innovation as the key factor to Petrobras’ success, published by Forbes.

A subsidiary of state-owned China National Petroleum Corporation has begun talks on developing deposits in an oil-rich region off the coast of the Brazilian state of Sao Paulo (Latin American Herald Tribune).

Italian oil services group Saipem SpA will invest about $300 million in a site in Guaruja, Sao Paulo,  to build a construction yard for its offshore structures. The 35 hectares in Guaruja, within the port and industrial hub of Santos Bay, will serve as a logistics base and a site to build subsea and floating structures to complement the ultra-deep water fleet recently built by Saipem (Reuters).


Telecommunication products are required to have a certification and homologation by the Brazilian Telecommunication Agency (Anatel) in order to be legally commercialized and used in the country (The Brazil Business).


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