Brazil

The Brazilian economy has lost as much as 10,000 jobs in October according to AP.

Nonetheless, the Brazilian government is confident that the Brazil economy is uniquely positioned to weather the global economic crisis yet many expect further job losses as demand in leather products, shoes and furniture continue to decline.

In addition, Cyrela Brazil Realty SA, Brazil’s largest real estate developer has recently announced that it expects a rapid decline in building projects over next few months.

The Brazilian government expects the Brazil economy to grow 4 percent in 2009 compared to its original forecast of 5 percent according to AP.

The Brazilian economic outlook by the Brazil government is significantly higher as many independent analysts are projecting only a 3 percent growth rate for the Brazilian economy in 2009.

Nonetheless, the Brazilian government including the Central Bank President Henrique Meirelles is optimistic that the Brazilin economy will weather the global economic crisis storm.

Ford, the US based automaker, has announced that it will continue to invest in Brazil according to the Dow Jones Newswires.

The Brazil investment news comes as the world faces the threat of global recession and as Ford continues to see its share price deteriorate to just above $2.

Nonetheless, Ford plans to invest $1.5 billion in South America and the Mercosur trade bloc of which 85 percent is ear-marked for investment in Brazil.

Ford is currently the number 4 auto seller in Brazil and is expecting to sell over 300,000 cars by the end of 2008. [Read more →]

The Brazilian government maintains its 2009 growth forecast of 4 to 4.5 percent for the Brazil economy according to Reuters.

The statement comes as many other emerging economies are revising growth estimates down in the wake of the global financial crisis,

Nonetheless, a bigger threat to the Brazilian economy is the sharp decline in commodity prices. [Read more →]

South Korea’s biggest auto maker and the world’s fifth largest, Hyundai Motor Co, has announced plans to invest in Brazil according to Reuters.

The firm stated the Brazil investment will produce an annual capacity of 100,000 units and will cost $600 million to build a new automobile factory.

The factory is set to start production in 2011 and will be located in Piracicaba City just 100 miles outside of Sao Paulo. [Read more →]

US based Tyson Foods, the world’s largest processor and marketer of chicken, beef, and pork, has announced it will invest in Brazil according to Reuters.

The Brazilian investment involves the acquisition of three local Brazilian companies yet the names of neither the companies nor the acquisition values were disclosed.

The deal uniquely positions Tyson as Brazil is the world’s largest chicken and beef exporter. [Read more →]

Sara Lee Corp., the US based packaged-food giant, has announced it will acquire the Brazilian coffee producer Cafe Moka according to the Chicago Tribune.

While the size of the Brazil investment by Sara Lee was not disclosed, the deal does strenghten Sara Lee’s competitive position on the Brazilian market as Cafe Moka current sales account for aprroximately $65 million per year. [Read more →]

Magnesita Refractories, Latin America’s largest maker of specialty tiles, has announced its Brazilian investment of Germany’s LWB Refractories for $394 million according to Bloomberg.

The Brazilian investment deal is expected to make Magnesita the third-largest refractory-tile maker in the world with approximately $642 million in annual sales.

Magnesita currently controls 70 percent of the Brazilian market for tiles used in steelmaking. [Read more →]

The Brazil government has declined an invitation to join the cartel of the Organization of Petroleum Exporting Countries (OPEC) according to the Economic Times.

While the move would certainly enhance Brazil trade of oil, the political implications with the US at this time are likely not worth an acceptance as the invitation comes directly from the Iranian government.

Brazil’s newly found offshore oil fields discovered late last year expect Brazil export of oil to reach the same levels as Nigeria and possibly Venezuela which are current OPEC members. [Read more →]

Brazil industrial production output rose 8.5 percent year over year beating estimates according to Bloomberg.

The Brazilian economic news leads to expectations that the Brazilian central bank will likely raise interest rates next week further impacting the Brazil economy by slowing growth.

Brazil inflation for August is expected for released later this week and continues to creep up on the Brazilian government’s target upper range of 6.5 percent as Brazilian consumer prices in July hit 6.37 percent in July. [Read more →]

The Brazil government has requested that the WTO impose Brazil trade sanctions against the United States of up to $4 billion according to Forbes.

The WTO Brazil trade sanctions involve illegal cotton subsidies that the Brazil government claims are not compliant with WTO rules.

In addition, the Brazilian government believes the United States cotton grower ranking as the world’s second largest producer is largely due to its $12.5 billion in subsidy payments to American farmers between the years of 1999 and 2003.

Brazil trade of cotton places Brazil fifth in the world with China as number one. [Read more →]

The world’s largest retailer, Wal-Mart Stores Inc., announced it will invest in Brazil an estimated $1.1 billion according to Bloomberg.

The Brazil investment will go towards the opening of 90 new stores in 2009 which represents a 28 percent increase to Wal-Mart’s existing 318 stores in Brazil.

Wal-Mart ranks as Brazil’s third largest retailer and this Brazil investment is expected to generate 9,000 new Brazilian jobs. [Read more →]

ArcelorMittal, the global steel producer, announced it will invest in Brazil $1.6 billion to increase steel production according to The Statesman.

The added capacity from the Brazil investment would equate to a capacity of 6.5 million tons of crude steel production capacity as opposed to ArcelorMittal’s current 3.9 million ton output.

The Brazilian investment is expected to expand the existing Minas Gerais Monlevade plant with a completion date of within 30 months. [Read more →]

The Brazil economy saw Brazilian consumer spending slow twice the rate of GDP between 2008 and 2009 according to Bloomberg.

According to Itau analyst, it is estimated that Brazilian personal consumption may slow 7.9 percent this year to 5.2 percent in 2009.

Nonetheless, despite the concern that the Brazil government’s attempt to control inflation will negatively impact the growth of the Brazilian economy; rising incomes and low unemployment have spurred spending as retail sales hit 10.5 percent in May. [Read more →]

Brazilian government officials balked at the idea of cutting tariffs on agricultural imports on day one of the World Trade Organization’s (WTO) Doha round of talks according to the Telegraph.

The proposed agricultural import tariff cut was 60 percent and was dismissed by Brazil government officials as propaganda by the EU while EU officials consider the offer considerable.

The crux of the conflict over tariffs on agricultural imports is that developing nations believe tariffs and subsidies are keeping farmers in poverty and undermine free trade. [Read more →]

Inflation in the Brazil economy slowed unexpectedly in June according to Reuters.

A 0.74 percent rise in June compared to the 0.79 percent increase in May offers some psychological relief to the Brazilian economy and the Brazil government.

Nonetheless, food and beverage prices rose 2.11 percent in June up from 1.95 percent in May leaving the Brazil economy vulnerable to further consumer pain. [Read more →]

Brazilian President Luiz Inacio Lula da Silva spent time to visit with member of the Vietnamese government to promote Brazilian trade according to AFP.

The visit is the first from a Brazilian president since 1989 and comes after a visit in February by Brazil’s Foreign Minister Celso Nunez Amorim to promote Brazil trade, healthcare and social affairs.

Nonetheless, Brazil trade with Vietnam reached only $323 million in 2007. [Read more →]

Spain’s biggest oil company, Repsol, has announced a Brazil investment of $1.5 billion to drill new oil deposits according to Bloomberg.

The Brazilian investment by Repsol will focus on extracting oil from the Santos Basin deposits discovered last year.

It is estimated the Repsol Brazil investment could produce [Read more →]

Brazil central bankers expect the Brazil economy to experience 6.3 percent inflation by the end on 2008 according to Bloomberg.

The forecast is slightly higher than that of a week earlier and falls in line with the Brazilian government’s target of 4.5 percent Brazil inflation plus or minus 2 [Read more →]

Goodyear Tire & Rubber Co, the largest U.S. tire maker, has announced it will invest in Brazil according to Reuters.

While the amount of the Goodyear Brazil investment was not disclosed, the company will invest as much as [Read more →]

Caterpillar Inc, US based heavy machinery maker, has announced it will purchase MGE Equipamentos & Servicos Ferroviarios Ltda according to Reuters.

While the amount of the Brazil investment by Caterpillar was not disclosed, MGE makes motors and components for locomotives and train cars and employs about 400.

The investment in Brazil expands Caterpillar’s presence in rail services outside the U.S. and aligns with the Brazil government’s [Read more →]

Bayer, the German pharmaceutical and chemical firm, has announced it will invest in Brazil $156 million according to International Herald Tribune.

The Brazil investment will go towards modernization and technical upgrading of existing Brazil operations in the Belford Roxo plant as well as additional sites.

Currently, Brazil contributes approximately a third of the [Read more →]

Brazil inflation hit 5.58 percent in may as the benchmark IPCA index increased more than expected by 79 basis points according to Bloomberg.

The Brazil inflation increase adds the Brazil economy to the list of other global economies’ that are experiencing higher inflation.

The Brazil central bank inflation target is [Read more →]

The Brazil government and the Brazil Central Bank have raised Brazil’s interest rate by a half a basis point according to the International Herald Tribune.

Despite the impact that a rate hike may have on the growth expectations of the Brazil economy, the move is welcome considering the concern over consumer demand which could ignite inflation and overheat the Brazil economy. [Read more →]

Brazil has won a billion-dollar Brazil trade dispute against the US according to the NY Times.

The Brazil trade dispute is over unfair subsidies by the US government to American cotton growers and is a blow to the US as the World Trade Organization (WTO) voted against the US appeal on Monday.

The WTO decision now allows the Brazil government to request the authorization of retaliatory trade sanctions on the US worth [Read more →]

The Brazil government as announced it will take steps to restrict Amazon land ownership by Brazil companies that are controlled by foreign capital according to AFP.

The move comes as the Brazil government sees [Read more →]

Temasek Holdings, Singapore’s state-linked investment company, plans to invest in Brazil by expanding is presence into Brazil according to Forbes.

Currently, Temasek’s investment portfolio is 20 percent invested in Western economies with the remainder of the $100 billion in Asia.

The Brazil investment will place a [Read more →]

The Brazil central bank is expected to raise interest rates according to Bloomberg.

The intended move comes as inflation continues to threaten Latin America’s biggest economy with the expectation that consumer prices will increase 5.12 percent this year.

Brazil’s current interest rate is at 11.75 percent. The Brazil central bank is expected to [Read more →]

The Brazil government has announced that it expects Brazil trade of ethanol to increase 23 Percent according to AFP.

Despite pressure that biofuels are causing the run up on food prices, the Brazil government and the Agriculture Ministry expect ethanol exports to [Read more →]

Standard & Poor’s (S&P), the US ratings agency, has announced that it is raising its Brazil investment grade rating according to AFP.

The move by the S&P will significantly help drive Brazil foreign direct investment as the rating goes from BB+, or so-called junk bond status, to BBB-.

The key driver of the Brazil investment grade change is due to the continued management maturity of the Brazil economy. [Read more →]