Month: August 2019

Volkswagen to invest $577 million in Brazil plant

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SAO PAULO — Volkswagen will invest 2.4 billion reais ($577 million) in one of its Brazil factories, Sao Paulo state governor Joao Doria said on Thursday during a visit to the automaker’s headquarters in Germany.

Sao Paulo state is the heart of Brazil’s auto industry, although its relevance has been in decline in recent years as other states have offered more generous tax incentives.

 

Via Automotive News Europe

 

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Brazil sets sights on China’s ethanol market, but high volumes unlikely

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SAO PAULO (Reuters) – Brazil’s ethanol industry is looking to grab a chunk of China’s ethanol market as the Asian nation targets a 10% blend in gasoline to improve air quality, but a short-term jump in exports is unlikely, according to people following the matter.

China wants to add 10% of ethanol to all gasoline used in the country by 2020, a policy that could sharply boost the country’s ethanol market and potentially increase imports, since local production capacity is too small to meet the target.

 

By Marcelo Teixeira via WSAU

 

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Brazil beats expectations with 0.4 per cent expansion

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Brazil avoided falling into recession on Thursday with the release of new economic data showing South America’s largest economy grew by 0.4 per cent quarter-on-quarter in the three months to June, a better than expected performance. The figures showed that Brazil’s economy moved back into expansion after shrinking by 0.2 per cent in the first quarter, and its performance was better than analysts had expected; economists polled by Reuters had forecast 0.2 per cent growth.

The figures showed that Brazil’s economy moved back into expansion after shrinking by 0.2 per cent in the first quarter, and its performance was better than analysts had expected; economists polled by Reuters had forecast 0.2 per cent growth.

 

By Bryan Harris and Andres Schipani via Financial Times

 

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Exclusive: Brazil’s Petrobras refineries sale lures trading companies, PetroChina, Saudi Aramco – sources

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SAO PAULO/RIO DE JANEIRO (Reuters) – Brazil’s planned privatization of eight Petroleo Brasileiro SA (PETR4.SA) refineries has lured several of the world’s largest trading and oil companies as prospective bidders, two sources with knowledge of the matter said.

Around 20 companies have signed non-disclosure agreements granting them access to the refineries’ data and signaling that they are considering a bid, the sources added, speaking on condition of anonymity to disclose private details of the sale.

 

By Tatiana Bautzer and Rodrigo Viga Gaier via Reuters

 

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Ministry of Agriculture signs agreement with Banco do Nordeste to finance innovation projects

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The Ministry of Agriculture, Livestock and Supply (MPLSa) has signed an agreement with Banco do Nordeste (BNB) to subsidize public and private innovation policies aimed at the sustainable development of agriculture in the Caatinga biome. The partnership will allow the structuring of the Strategic Intelligence, Management and Territorial Monitoring System (SITE), which will gather scientific data from the region.

The agreement was signed on Friday (23) by Minister Tereza Cristina, the president of BNB, Romildo Rolim, the president of the Brazilian Agricultural Research Corporation (Embrapa), Celso Moretti, and the Foundation for Support for Research and Development ( Faped).

 

Via DATAGRO

 

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Brazil utilities lean on bonds to finance growth, reducing state role

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SAO PAULO, Aug 26 (Reuters) – Brazilian power companies are raising a record amount of debt in local markets this year to finance construction of generation assets and transmission lines.

Tax-exempt local infrastructure bonds have been the main instrument to finance power investment in the country. Power companies have issued 12 billion reais ($2.9 billion) of the local bonds in the first seven months of the year, 83% of the total amount issued across all industries.

 

By Luciano Costa via Reuters

 

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Brazil to Speed Up Privatizations With Billions on the Line

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Brazil is readying a plan to accelerate the sale of state-controlled assets as well as partnerships with private companies, as part of President Jair Bolsonaro’s push to shrink the public sector and spark investments.

The federal government will put state development bank BNDES in charge of organizing and paying for feasibility studies, which are mandatory for asset sales and auctions and are crucial for their success. BNDES will also be able to hire outside consulting companies based on technical capacity and not just price.

 

By Simone Preissler Iglesias via Bloomberg

 

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Brazil and Norway study technical cooperation in the aquaculture sector

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The Secretary of Aquaculture and Fisheries of the Ministry of Agriculture, Livestock and Supply, Jorge Seif Júnior, is in Norway to attend the Aqua Nor 2019 fair, which takes place in Trondheim. According to Seif, Brazil and Norway are studying the possibility of establishing a technical cooperation that facilitates and promotes the development of Brazilian fishery, aquaculture and fishery health.

“It is one of the largest fish producers in the world, with different technology in both fisheries and aquaculture. It has an excellent health defense system, including some of the best laboratories in the world,” says Seif.

 

Via DATAGRO

 

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New Member: The Chamber welcomes Imagination!

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Imagination The Americas Inc.

Imagination Ltd. is a global independent experience agency founded in 1968. With 13 offices worldwide, Imagination has specialized in designing experiences that change how people think, feel, and act. Whether it be increasing brand reputation and preference, driving sales or shaping product design, ultimately, Imagination believes in the power of experience to transform behavior. We measure the impact of everything we do, ensuring our experiences are insight driven, optimized and aligned to our clients’ objectives.

Additionally, Imagination’s dedicated Investor Communications team has over 40 years of unrivaled roadshow experience, spanning over 700 roadshows that have included some of the world’s most high-profile transactions. Our integrated creative agency team provides end-to-end IPO marketing and investor communications support, delivering on all facets of the IPO, from: design and development of the management roadshow slide deck and prospectus covert art; to production of the roadshow management presentation video (and accompanying opening video, modules, sizzle and walk-in video for a clear and compelling investment case); to group meeting brand experiences, production and events surrounding listings.

The Investor Communications team can continue to add value after listing for the investor relations, finance, and marketing teams, maintaining a dialogue with the investment community through IR presentations, annual and corporate responsibility reports, investor and analyst events, and annual general meetings. Imagination is proud to have partnered with a wide variety of public companies providing end-to-end investor and corporate communications support.

Learn more here

Brazil eagerly awaits surge in Asian demand to pig meat

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Brazil’s pig industry is eagerly awaiting the foreseen surge in demand to pig meat from China. Currently, Brazil is not really feeling the effects of the African Swine Fever crisis in Eastern Asia yet. Although prices grew over the first 6 months of 2019 by 70%, in July the prices dropped again by 15.6%.

The main reason for this phenomenon is that prices are still on ‘speculation’ levels and that the demand has not really started increasing. As a result, the generalised expectations of a non-stop increasing margins for Brazilian pig meat and quotes have started to drop.

 

By Daniel Azevedo via Pig Progress

 

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“Silent Revolution” to Fuel Brazil M&A Business for Years

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A “silent revolution” in Brazil will drive the mergers-and-acquisitions business for the next three years as the government privatizes state-owned assets at a pace far exceeding early estimates, according to one of the nation’s top M&A advisers.

“What we’ve seen so far is nothing compared to what’s yet to come,” Ricardo Lacerda, chief executive officer of investment-banking boutique BR Partners, said in an interview in Sao Paulo. “Even assets that are considered crown jewels will end up being sold.”

By Cristiane Luccchesi and Pablo Rosendo Gonzalez via Bloomberg

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Brazil gets moving on gas competition

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Brazil is finally getting serious about loosening the hegemonic grip of Petrobras, the state-owned oil and gas company, on the country’s gas industry, almost ten years since regulatory reforms failed to kickstart greater market competition.

Allowing Petrobras to sell off assets and get out of non-core sectors is central to the government’s natural gas strategy. In July, Brazilian President Jair Bolsonaro inaugurated the New Gas Market programme, aimed at cutting the domestic price of gas 40pc within two years, guaranteeing participation of new entrants and attracting greater investment to the natural gas sector.

 

By Charles Waine via Petroleum Economist

 

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China Ramps Up Brazil Soybean Imports, Rebuffing U.S. Crops

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China this week put in a large order of Brazilian soybeans as it increasingly turns to the South American nation to fill a supply gap after halting purchases from the U.S., according to people familiar with the situation.

Chinese companies have already bought between 25 to 30 cargoes of soy from Brazil so far this week, which is equivalent to about 1.5 million to 2 million tons, the people said, asking not to be identified as the deals are private. Buyers are looking for more Brazilian supply and still haven’t bought enough to cover their needs through October, the people said.

 

Via Bloomberg

 

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Brazil’s Resultados Digitais Reaffirms Investor Confidence With New Round

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Brazil-based software-as-a-service firm Resultados Digitais (RD) has raised a new investment round led by Riverwood Capital following a “significant shift” in international interest in the country’s tech ecosystem.

The investment of 200 million reais ($50 million) is the company’s fifth funding round and brings it closer to the coveted valuation of $1 billion. The transaction includes the firm’s existing backers TPG Growth, DGF Investimentos, Redpoint eventures, Astella Investimentos and Endeavor Catalyst.

 

By Angelica Mari via Forbes

 

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Chinese demand heats up Brazil’s ethanol industry

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There are 332 million cars on the road in China, more than anywhere in the world. Most run on pure petrol, but from next year Chinese fuel companies will add 10% ethanol, a move that could have far reaching implications for the consumption of fossil fuels.

Brazil’s biofuel industry is the world’s second largest behind the US. In recent years it has suffered from fuel price shocks resulting from shifts in government policy, but it has been buoyed by the enormous potential of the Chinese market.

 

By Sarita Reed and Vinicius Fontana via China Dialogue

 

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Becoming part of a global community

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Sid Efromovich, member of our Young Professionals Committee, has just launched his online course on how to learn any foreign language.

A few years ago, he delivered a TEDx talk on how to learn foreign languages. It became the most viewed TED talk by a Brazilian in history, and the 19th most viewed talk on the TEDx channel with other 10 million views. He has now taken everything he knows about language learning and created the 6 Techniques course. It’s a quick 6 hour course that can teach anyone how to learn any language faster and better.

“Languages let us build a bridge to other cultures, and allow us to open up so much more of people’s hearts and minds.”

Learn more here

UPDATE 1-Brazil’s Banco BTG Pactual reports sharply higher profit on trading gains

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SAO PAULO, Aug 13 (Reuters) – Latin America’s largest independent investment bank, Banco BTG Pactual SA, reported a 50.2% jump in second-quarter recurring profit on Tuesday, as trading and proprietary investment gains increased as well as management fees.

Recurring net income, which excludes one-time items, rose to 1.029 billion reais ($258 million) from 685 million reais a year earlier.

 

By Carolina Mandl via Reuters

 

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First Time to Brazil? Consider a Visit to Salvador.

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Thanks to the Brazilian government waiving the visa requirement for U.S. citizens – and those from Canada, Australia and Japan, too – in June 2019, planning a trip to Brazil has gotten easier. While Rio de Janeiro can first come to mind, perhaps followed by San Paulo, as a destination, there is another city within Brazil that offers much culture and cuisine, and sand and surf. It’s Salvador.

Within Brazil’s northern state of Bahia, Salvador is a coastal destination that is ushering in new developments while maintaining its past. A convention center to be named Antonio Carlos Magalhães is anticipated to open at the end of 2019. This spring, LATAM began offering a new direct flight from Miami to Salvador, departing on Sunday afternoons and returning to Miami early Monday mornings.

 

By Michelle Herrmann via Forbes

 

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How Brazil can prepare for a US trade deal

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When U.S. Commerce Secretary Wilbur Ross toured Latin America, President Trump hinted to reporters of his main mission: “We’re going to work on a free trade agreement with Brazil.”

Trade agreements that reduce barriers for the exchange of goods, services, and terabytes have the ability to raise incomes and boost opportunities for all countries involved, if they play by the rules.

 

By Philip Thompson via Washington Examiner

 

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SOYBEAN, CORN AND BRAN SHIPMENTS BOOST EXPORTS FROM PARANÁ PORTS IN JULY

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The Ports of Paraná handled in July this year about 5.36 million tons of cargo. The volume represents an increase of 19% compared to the same month of 2018, when the movement reached almost 4.5 million tons. The segment with the highest increase in the period is the solid bulk, both import and export, with a high of 23%.

In 31 days, almost 3.75 million tons of this type of cargo were handled – the volume reached just over 3 million tons in July of the previous year.

Considering only the main solid export bulk together – bran, corn and soybeans together – the increase in handling, compared to July 2018 and 2019, was 33%. Exports of the three products totaled almost 2.4 million tons exported.

Grain sugar also stands out. In July this year almost 334,600 tons left the Port of Paranaguá to other countries, 20% more than the 279,600 tons handled in the same month last year.

Sugar in bustling sack in the Port of Antonina is also high. There were just over 17.7 thousand tons in July 2019 and almost 15.7 thousand tons in July of the previous year.

Via DATAGRO

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Venture capital fuels Latam ‘unicorns’ expansion beyond borders

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Surging venture capital investment in Latin American startups has financed international expansion across the region and beyond, as business models that do not require large amounts of capital have helped many firms avoid silos common in the region.

New venture capital funding in the region quadrupled over two years to a record $2 billion in 2018, according to the Association for Private Capital Investment in Latin America. And that total has already been matched in the first seven months of 2019.

Analysts say fundraising rounds this year could double 2018’s total, thanks to Japan’s SoftBank Group Corp (9984.T), which launched its $5 billion Latin America fund in March, the region’s biggest-ever venture capital deployment.

SoftBank’s investments this year have helped to mint a new wave of Latin “unicorns,” or tech startups valued at more than $1 billion, with high expectations hinging on their potential beyond their headquarter countries.

Reporting by Tatiana Bautzer; Additional reporting by Carolina Mandl; Editing by Nate Raymond and Grant McCool via Reuters

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Banco do Brasil prepares $2 billion share offering: sources

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Brazilian state lender Banco do Brasil SA (BBAS3.SA) is readying a secondary share offering that may raise up to 7.9 billion reais ($2 billion), three people familiar with the matter said.

One of the sources, who spoke on condition of anonymity because the transaction has not been announced, said the banks are planning to price the offering by the end of September.

The investment banking units of Itau Unibanco Holding SA (ITUB4.SA), XP Investmentos SA, Caixa Economica Federal, Credit Suisse Group AG (CSGN.S), JPMorgan Chase & Co (JPM.N) and Banco do Brasil have been hired to manage the deal, sources said.

State bank Caixa Economica Federal has said it is looking to sell a 2.4% stake in Banco do Brasil held by a workers severance fund, according to a Tuesday securities filing. The transaction could raise nearly 3.1 billion reais for the FI-FGTS fund, which Caixa manages, based on Monday’s closing share price.

Reporting by Carolina Mandl and Tatiana Bautzer; editing by Jonathan Oatis via Reuters

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Brazil auto production jumps 14.2% in July from June

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Automobile production in Brazil jumped 14.2% and sales grew 9.1% in July from June, the best performance for the month since 2014, the national automakers’ association Anfavea said on Tuesday.

Brazil’s auto industry is recovering from a crushing depression that cost the country its place as one of the world’s five biggest auto markets, even as automakers are still struggling with low margins.

Auto exports to depressed Argentina, Brazil’s largest foreign destination for its cars, are down 38.4% so far in 2019 compared to a year ago, Anfavea said.

Trade rules in Brazil are changing under a right-wing government that has promised to open up one of the world’s largest but most closed economies. Automakers are figuring out what to do following an initial trade deal with the European Union, as well as changes in trade rules with Mexico, both of which could usher a flood of foreign vehicles into the country.

Reporting by Marcelo Rochabrun; Editing by Bernadette Baum and Nick Zieminski via Reuters

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MINISTRY OF AGRICULTURE WILL BRING TECHNICAL ASSISTANCE TO PRODUCERS ASSISTED BY IRRIGATION PROJECT IN BAHIA

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The Minister Tereza Cristina (Agriculture, Livestock and Supply) reported on Friday (02) that the ministry will bring technical assistance and projects for farmers served by the Public Project Irrigation Ceraíma, Bahia. Alongside the Minister of Regional Development, Gustavo Canuto, the minister participated in the launch of the restructuring and modernization works of the project in Guanambi (BA).

Tereza Cristina stressed that the ministry today is one and works to support small, medium and large farmers in the country, with emphasis on those who need more help.

“We need to give the door to those who can produce, those who can earn from their sweat. And with the help of public policies so that you have the dignity and freedom to produce, sell and dream more and more for you, your children and your grandchildren, ”he said.

According to the Ministry of Regional Development, about 3,000 people are expected to benefit from the project in the cities of Guanambi, Urandi, Pindaí and Caetité. In the region, there is cultivation of mango, banana, guava, pumpkin, cassava and vegetables. The irrigation project has been in operation since the 1970s. Investments for the new works amount to R$ 15.9 million, from the Parnaíba and São Francisco Valleys Development Company (Codevasf).

Via DATAGRO

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Brazil’s Larger-Than-Expected Rate Cut Is a Sign of More to Come

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Brazil’s central bank on Wednesday delivered its strongest message yet that it’s poised to pump more stimulus into an ailing economy after lowering its key rate by a half percentage point.

The bank’s board, led by its President Roberto Campos Neto, cut the benchmark Selic to a record low of 6%, as forecast by 18 of 45 economists surveyed by Bloomberg. The others expected a smaller reduction or even no cut at all. While stating that their next move will depend on activity and inflation data, policy makers signaled that forecasts for below-target consumer prices in 2020 leave the door open to more easing.

By Mario Sergio Lima via Bloomberg

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