Brazil’s World Cup: inching along

May 23, 2012 9:34 pm by Samantha Pearson

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The tension of the 2014 football World Cup final will be nothing compared to the nail-biting race to see if Brazil can actually finish the stadiums on time, it seems.

With 755 days now to go until the tournament kicks off, Brazil’s ministry of sport has released another update on its preparations.

Of the 101 World Cup projects Brazil has planned, which include everything from new stadiums to transport improvements, construction has still not begun on about 41 per cent of them. Continue reading »

Tags: Brazil infrastructure, Brazil World Cup, infrastructure, World Cup Posted in Brazil, LatAm | Permalink

Brazilian cocoa to make a come-back?

May 23, 2012 1:03 am by Samantha Pearson

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It’s a study that has gone relatively unnoticed but one that could have huge consequences for Brazil’s cocoa industry and chocolate lovers everywhere.

Researchers at the University of Campinas (Unicamp) in São Paulo state appear to have discovered exactly how the deadly fungus witches’ broom operates, paving the way for a possible cure. Continue reading »

Tags: cocoa, commodities Posted in Brazil, LatAm | Permalink

Brazil: a $10bn economic band-aid

May 22, 2012 2:45 am by Samantha Pearson

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There’s no doubt that Brazil’s economy needed fixing. Despite its image as a booming Bric, Brazil has barely been growing at all for almost a year now.

But the government’s way of going about it late on Monday night is likely to raise a few eyebrows. Continue reading »

Tags: Brazil auto, Brazil economy, cars, reform, stimulus Posted in Brazil, LatAm | Permalink

Vale: Lean, mean mining machine?

May 19, 2012 1:15 am by Samantha Pearson

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Photo: Bloomberg

When Murilo Ferreira took over as the chief executive of Vale about a year ago and promised more efficiency nobody paid much attention.

Firstly, it’s the kind of thing CEOs like to say a lot. Secondly, investors at the time were far too busy being alarmed about the circumstances that put Ferreira in that position. Would the government continue to steer the company according to its needs? Continue reading »

Tags: Vale Posted in Brazil, LatAm | Permalink

Brazil: Transparency for banking

May 18, 2012 12:50 am by Samantha Pearson

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Brazil’s new freedom of information law can only be good news for a country still struggling with corruption and inefficient public spending.

But for the central bank, the new regulations that came into effect this week could actually lead to less transparency, not more, it seems.

At every interest rate meeting from now on, in accordance with the new law the bank will publish the names of the board members who voted in favour and against the final decision. Continue reading »

Posted in Brazil, Global, LatAm | Permalink

Social gifting comes to Brazil

May 15, 2012 7:37 pm by Samantha Pearson

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Walk into any internet café in Brazil – be it in São Paulo’s banking district or in one of Rio’s favelas – and you can bet that at least somebody will be on Facebook.

Take that into account, as well as the country’s national love of shopping and obsession with trying new stuff, and you have the perfect market for ecommerce apps. Continue reading »

Tags: ecommerce, internet Posted in Brazil, LatAm | Permalink

Brazil’s currency war: don’t call it victory yet

May 14, 2012 10:55 pm by Samantha Pearson

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Bravo Mantega, you did it! On Monday the Brazilian real weakened past R$2 to the dollar for the first time since July 2009.

After touching R$2.0022 per dollar during the trading session, the currency closed around R$1.99, extending its losses for the year to about 6.3 per cent.

Those declines may have had more to do with the central bank’s recent easing cycle and fears over Greece, but for Guido Mantega, who has waged a war against Brazil’s strong currency for over two years, it means victory. Continue reading »

Tags: Brazil economy, Brazilian real, EM currencies Posted in Brazil, LatAm | Permalink

Brazil central bank: we really are independent!

May 10, 2012 1:07 am by Samantha Pearson

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When a central bank has to release a press statement reminding everyone that it remains an autonomous institution and is not under political pressure from the government, you know something is up. Continue reading »

Tags: Brazil central bank, Brazil economy, Tombini Posted in Brazil, LatAm | Permalink

BTG bulks up with Bodytech stake

April 30, 2012 10:31 pm by Samantha Pearson

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With year-round sunshine and some of the world’s skimpiest bikinis, it’s no wonder Brazil is full of fitness clubs (as well as plastic surgeons and laser hair removal clinics).

But while Brazil has the second highest number of gyms after the US, it is only 10th in terms of revenue. And in the eyes of private equity investors, that means one thing: the potential for consolidation and profit.

It comes as no surprise then that BTG Pactual’s latest investment is in Bodytech, Latin America’s largest fitness chain by revenue with 33 gyms across Brazil. Continue reading »

Tags: Brazil private equity, BTG Pactual, consumer, Latin America private equity, private equity Posted in Brazil, LatAm | Permalink

BTG Pactual: a Brazilian exception?

April 27, 2012 12:16 am by Samantha Pearson

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It has been an IPO done by the book: comfortably oversubscribed, priced right in the middle of the target range, most of the “green shoe” additional shares sold, and a small gain on the first day of trading.

Despite the challenges faced by BTG Pactual in the run-up to its IPO this month, all in all it seems to have been a success. Continue reading »

Tags: Brazilian equities, BTG Pactual, equities, IPOs Posted in Global | Permalink

Santander Brazil: canary in a coal mine?

April 25, 2012 10:39 pm by Samantha Pearson

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Not so long ago, companies would often attribute their growing profits to the strong performance of their Brazilian unit. Now it seems Brazil is to blame for their losses.

Spain’s Santander is due to report its first-quarter earnings before the markets open on Thursday in Madrid, and the results aren’t going to be pretty. According to Bloomberg estimates, net income likely fell about 22 per cent to €1.64bn from €2.11bn a year earlier.

While write-downs on Spanish real estate will have taken their toll, an expected 23 per cent reduction in earnings in the key Brazilian market will also explain the bank’s losses. Continue reading »

Tags: Brazil credit bubble, Brazil economy, Itau, Santander Posted in Brazil, LatAm | Permalink

Brazil’s tale of two IPOs

April 25, 2012 1:36 am by Samantha Pearson

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Brazil’s first two IPOs of the year couldn’t have been more different.

First there was Locamerica, a car rental company looking to raise about $300m. An attractive proposition you might think, given the country’s promising consumer market. However the offer priced 18 per cent below the target range last week and the shares fell on the first day of trading.

Then there was an investment bank, BTG Pactual, whose controlling shareholder was this month fined for insider trading, looking to raise as much as $2bn. Continue reading »

Tags: BTG Pactual, equities, IPOs, LatAm equities, Locamerica Posted in Brazil, Global | Permalink

Has Brazil won the currency war?

April 23, 2012 10:34 pm by Samantha Pearson

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Brazil’s finance minister, Guido Mantega, should have been doing a victory dance around the IMF last weekend rather than threatening further capital controls, it seems.

According to the market, his government is actually winning the currency war. Brazil’s real was trading around 1.88 to the dollar on Monday – roughly its weakest level this year and almost 19 per cent weaker than its recent peak last July. Continue reading »

Tags: Brazil economy, Brazilian real, currency war Posted in Brazil, LatAm | Permalink

Brazil’s rate cutter: don’t stop me now

April 19, 2012 5:41 am by Samantha Pearson

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Brazil’s central bank president, Alexandre Tombini, slashed the country’s interest rate on Wednesday to 9 per cent, bringing it close to a 15-year low. But he’s shown no signs of stopping there.

For the majority of analysts, Wednesday’s rate decision was no surprise. However, what they hadn’t been counting on was the statement that followed. Continue reading »

Tags: Brazil economy, inflation, interest rates Posted in Brazil | Permalink

[Snap]: Brazil cuts rates by 75bp

April 19, 2012 12:31 am by Samantha Pearson

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Brazil’s central bank has cut its benchmark interest rate by 75 basis points to 9 per cent, as expected.

Here’s the accompanying statement:

The Copom (central bank’s monetary policy committee) considers that, at this moment, the risks for the trajectory of inflation remain limited. The committee also notes that, until now, given the fragility of the global economy, the contribution of the external sector has been disinflationary. Given this, and continuing the process of adjusting monetary conditions, the Copom decided, by a unanimous vote, to reduce the Selic rate to 9 percent per year, without bias.

Stay tuned. More to come on beyondbrics.

Tags: Brazil economy, Brazil interest rates Posted in Brazil, LatAm | Permalink

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