We’ve already seen how the foxes are often in charge of the henhouse in Brazil’s Congress, with soy farmers running the environmental commission, convicted corruptors sitting in the justice commission and an evangelical pastor accused of racism heading the human rights commission.
But now it appears the foxes are not only running the place but would like to pull down the wire fences safeguarding the integrity of the Brazilian constitution of 1988. Continue reading »
Brazil’s central bank ended an easing cycle that last nearly two years by raising its benchmark lending rate on Wednesday night to tackle rising inflation.
The central bank’s monetary policy committee increased the benchmark Selic rate by 25 basis points. Continue reading »
Roads in Brazil (top) and India. A fair comparison?
Rankings from the World Economic Forum show Brazil as lagging far behind the Brics countries on almost every aspect of infrastructure – the subject of a beyondbrics Chart of the Week. Er … excuse me? I beg to differ.
Brazil’s infrastructure is poor, even dismal in some cases, but this is more relative to its own needs and its income level as a country with a per capita income level among the Brics second only to Russia. At least in my experience, it is not bad in absolute terms when compared with many other developing countries, particularly those in the poorer parts of Asia, such as India. Continue reading »
There are many ways to skin a cat and that includes the Brazilian consumer story.
Kinea, the hedge fund, real estate and private equity arm of the country’s largest private bank, Itaú, has chosen to tap into the country’s still solid consumption sector via Grupo ABC, Brazil’s largest homegrown advertising, marketing and publicity group. Continue reading »
Petrobras has made no secret of its wish to offload international assets. It has been trying to flog off $6bn of its Gulf of Mexico operations, although with little success to date, as part of a $14.5bn asset disposal plan that will also include refineries in Japan and the US.
Now Nigeria seems to be on the cards, according to a Reuters report, with plans to sell $5bn-worth of oil fields in the African country. Petrobras declined to comment. Continue reading »
It’s been nine months in the making. But on Tuesday Brazil and China finally sealed a R$60bn ($30bn) currency swap that was first proposed at last year’s Rio+20 earth summit.
While the swap carries enormous geopolitical and diplomatic symbolism – it essentially represents a monetary consummation of the growing trade between the two giants – in practice though, it will change little. Continue reading »
This month, while Brazil’s attention was focused on getting back to work after the summer and Carnival holidays, something extraordinary happened in Brasília. The government got even bigger.
President Dilma Rousseff is engaged in tough negotiations with her allies over who should assume the mantle of her newest ministerial level position, the secretariat for small and medium enterprises. The post will be her 40th cabinet-level position, giving her enough ministers to staff her own small or medium business. Continue reading »
Is the Brazilian government robbing Peter to pay Paul?
That may sound a bit harsh but it is what Moody’s seems to suggest with its downgrade of BNDES and Caixa Econômica on Thursday. Continue reading »
Another foreign bank is looking to exit at least part of its business in Latin America – this time Citi with its Brazil credit card division.
Brazilian newspaper Valor Econômico reports that the local branch of Santander and domestic institution Bradesco are interested in the division, called Credicard. The group is said to be looking to sell the card unit and its consumer finance division, Credicard Financiamentos, for R$1bn and R$1.5bn in time to clock the sale in its first quarter results. Continue reading »
Riding the gondolas that today serve as public transport in the vast Complexo de Alemão favela in Rio de Janeiro to research an article on soap operas for this Saturday’s edition of the FT Weekend Magazine, I felt a sensation I had not expected. I felt like a tourist.
Not a slum or “poverty tourist” mind you but the ordinary kind, such was the novelty and ease of use of the system, which resembles something on a large French ski resort. Continue reading »
Some people slow down when they hit their 70s. Not Jorge Paulo Lemann. Just as Brazil shakes off its hangover from Carnival comes news that the 73-year-old deal-maker, who pulled off the country’s biggest overseas acquisition in the form of Inbev’s $52bn merger with Anheuser Busch, is on the hunt again, this time for Heinz. Continue reading »
President Dilma Rousseff encouraged markets last year when she decided to invite private sector investors to participate in the overhaul of the nation’s airports.
There was further applause when she announced subsequent infrastructure packages offering companies the chance to participate in concessions to build and operate highways, railways and airports. Continue reading »
What is the dirty not-so-secret secret of Brazil’s capital market? The answer is here in this chart from Dealogic. (see after jump) Continue reading »
Remember the hacker who exposed Lula’s loot? And remember how that wasn’t much of a collection for a president accused of corruption? Well, apparently, Lula has even less property than the hacker claimed. Continue reading »
Brazil’s former president Luiz Inácio Lula da Silva is facing plenty of pressure these days over allegations he was directly involved in the country’s biggest corruption case, the Mensalão.
Now comes an expose of what are supposedly his properties. Continue reading »