News from Brazil

Brazil Business & Economy News

In Brazil on October 21, 2011 at 10:32 am
ECONOMY

Brazil’s central bank cut its benchmark Selic interest rate by 50 basis points to 11.50 percent, a potential inflation and growth play for investors (Reuters).

Brazil has exported $202.07 billion worth of goods in 2011, surpassing last year’s record-setting total of $201.92 billion, the Ministry of Industry, Development and Foreign Trade said (Latin American Herald Tribune).

Brazil created more jobs than economists expected in September, led by the services and civil construction sectors. Brazil generated 209,078 registered jobs last month, up from 190,446 in August. The number was higher than the median forecast of 168,625 jobs from 10 economists surveyed by Bloomberg. The job creation figure was the lowest for the month of September in five years (Bloomberg Businessweek).

The Brazilian Statistics Institute has a great site, also in English!

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BUSINESS

Forbes presents a list compiled by experts of the top 10 Startups in Brazil. Even if you are not tech savvy, these companies should be on your radar since they promise extremely rapid growth. The list is attention-grabbing, to say the least. There are companies that cause little surprise, such as Peixe Urbano and BuscaPé, and others that are not yet so famous, like Shoes4You. Most of the startups are in the area of electronic commerce, one of the most promising segments in Brazil (Forbes).

After writing an article on things that must be considered before hiring in Brazil, The Brazil Business has decided to talk about the costs of firing in Brazil.

Jorge Paulo Lemann, the founder of 3G, 72, is an iconic figure in Brazilian finance. In 1971, when Brazil was under military rule, he founded the country’s first modern investment bank, Banco de Investimentos Garantia SA, Bloomberg Markets magazine reports in its November issue. In subsequent decades, he emerged as one of Brazil’s most prolific dealmakers. Read his bio at Bloomberg.

Brazil’s supreme court delayed a steep tax increase on imported cars until December. President Dilma Rousseff’s administration announced in September that it would raise a tax on autos with less than 65 percent local content in a move to support domestic industrial jobs amid a sharp slowdown in Latin America’s largest economy (Reuters).

AGRI ETC.

Federal prosecutors have issued a warning to Brazil’s largest slaughterhouse for accepting cattle raised illegally. The Attorney General’s Office says in a statement that JBS S/A slaughterhouse in the western state of Mato Grosso is not fulfilling an agreement to stop using cattle raised illegally (AP).

Sugar-cane growers in Sao Paulo state, which accounts for more than half the country’s output, are seeing “very deficient growth” in the newly planted crop, industry researcher Datagro Ltd. said (Bloomberg).

AVIATION

American Airlines is gearing up for a busy tourist season by reintroducing its daily nonstop New York–Rio de Janeiro route throughout the Brazilian summer. The revamped service will run from November 15th, 2011 to April 2012, according to the company, and is following a trend of increased flights from the U.S. to Brazil (The Rio Times).

Embraer closed out the third quarter of 2011 having delivered 28 commercial and 18 executive jets. On September 30, 2011, the firm order backlog totaled USD 16 billion (Embraer).

Brazil’s national development bank, or BNDES, will provide financing for investments at local airports under concession, local financial newspaper, Valor Economico, reported Thursday, quoting Civil Aviation Secretary Wagner Bittencourt. According to Bittencourt, BNDES may finance up to 70% of the investments at three airports to be privatized. They are the Guarulhos and Viracopos airports in Sao Paulo state, and the Brasilia international airport. These investments will focus on infrastructure projects to expand the passenger capacity at each airport, including making the Viracopos airport the largest in Latin America (Fox).

Brazil’s main airlines are revising down their forecast for air traffic next year due to the effects of a global economic slowdown (Reuters).

TAM Airlines, Brazil’s largest airline, has finalized a purchase agreement for 32 eco-efficient Airbus A320 aircraft, comprising of 22 A320neo and 10 A320 Family aircraft, the France-based aircraft maker said (Xinhua).

INFRA

President Dilma Rousseff said that her administration plans to invest 30 billion Reais (17 billion dollars) in urban transportation projects across Brazil. Rousseff made separate trips last week to the south-eastern cities of Curitiba and Porto Alegre to announce plans to build the first metro lines in those metropolitan areas (MercoPress).

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WORLD CUP & SOCCER SPECIAL

With less than three years before the World Cup is scheduled to start, critics say Brazil is not taking full advantage of hosting what is considered the world’s biggest sporting event. Construction experts and local government officials are among those who say that bureaucracy and a lack of planning have proved costly, leading to a series of missed opportunities in a soccer-mad nation that last hosted the World Cup in 1950 (New York Times).

The former World Cup striker, now a member of parliament, Romario has criticised Brazil’s 2014 World Cup preparations, denounced chief organiser Ricardo Teixeira and lashed out at the government’s weakness in its dealings with soccer’s ruling body FIFA (Reuters).

Football is undoubtedly the most popular Sport in the world and maybe the one holding more Power, because it can unite races, raise hopes and transcends cultures. Between 26 and 30 November, the world of football is going to be completely Carioca, where the Forte de Copacabana fort is hosting the 2nd edition of Soccerex in Brazil. The future stage of bog sports competitions, including the 2014 FIFA World Cup, during the convention; Rio de Janeiro is further welcoming representatives of all the Brazilian cities that are hosting matches during the football world cup. There are also going to be many of the world’s main football clubs taking part in the event (Rio Official Guide).

Fifa unveiled the 12 Brazilian cities which will host – stadiums and infrastructure permitting – the 2014 World Cup at a slick presentation overshadowed in grey, chilly Zurich by corruption allegations relentlessly levelled against the organisation and the head of Brazil’s organising committee, Ricardo Teixeira (The Guardian).

Players and fans face huge journeys around Brazil after 2014 World Cup organisers decided countries must play their group games in different venues. Some journeys will be up to 2,000 miles after Fifa decided against basing teams in single venues (BBC).

SPLIT SECOND POLL

Sao Paulo will host the opening match of the 2014 World Cup and Rio de Janeiro’s Maracana stadium, where Uruguay in 1950 knocked out the host’s dream of its first Cup, will stage the final, FIFA announced (MercoPress).

Ricardo Teixeira has dominated Brazilian football for so long that, like many of the best players, he is known by just one name. They call him the “cartola,” literally the “top hat,” a title given to football bosses that instil respect and fear in equal measure and can carry more than a hint of shadiness. But now Brazil’s ‘beautiful game’ fans want big boss ‘cartola’ out (MercoPress).

A BBC Panorama investigation claimed that former Fifa president Joao Havelange and his son-in-law Ricardo Teixeira, a Fifa executive committee member and chairman of the World Cup organising committee for Brazil 2014, were paid kickbacks in return for granting ISL lucrative World Cup television and sponsorship rights during the 1990s. The programme said Teixeira received £6m in bribes via a front company called Sanud which was registered in the tax haven of Liechtenstein. The Brazilian Fraud Squad has now opened an investigation into the allegations (BBC).

FIFA also announced the locations of the 2013 Confederations Cup in Brazil. The nation’s capital, Brasilia, will hold the opening match of the precursor to the 2014 World Cup. Only five other cities will host the Confederations Cup. They are Belo Horizonte, Fortaleza, Recife, Rio de Janeiro and Salvador (Xinhua).

 

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