Australia-Brazil Agribusiness Forum 2009
Brazil has become globally recognized as one of the largest growth regions for food production in the world, with ideal climate complemented by fertile soils, abundant rainfall and water access. The ABCC is hosting an Agribusiness Forum in Melbourne opened by Victorian State Minister for Agriculture and Small Business, the Honourable Joe Helper MP, highlighting demand for expertise, research and collaboration in this sector as well as opportunities for Australian companies to partner with Brazil.
You will hear from key note speakers from Brazil and Australia focusing on beef & dairy, ethanol & bio-fuels, crops, food & beverage and have the opportunity to take part at our Q&A session and networking at morning tea, lunch and afternoon tea.
For more information you may contact Bernard Baxter (ABCC Victoria) on:
Email: bernardbaxter@aussiebroadband.com.au
Or mobile: 0409 946 240
Click here to download invitation and RSVP
Tuesday, 9 June 2009
Australia-Brazil Carnaval Gala Dinner & Dance 2009 in Melbourne
Date: 31st July from 7pm to midnight
Venue: the Langham Hotel
Special Guests:
Venue: the Langham Hotel
Special Guests:
His Excellency Fernando de Mello Barreto – Embassy of Brazil
Bernard Wheelahan – Chairman - Council on Australia Latin America Relations
Bob Hosking – CEO – Karoon Gas International
Alex Vanselow – CFO – BHP Billiton
Bernard Wheelahan – Chairman - Council on Australia Latin America Relations
Bob Hosking – CEO – Karoon Gas International
Alex Vanselow – CFO – BHP Billiton
Do not miss the opportunity to network with companies doing business with Brazil and enjoy a night of samba, capoeira and great food!
For more information, contact Roxanne Ragazzon on: (03) 9616 7500 or Email: rragazzon@karoongas.com.au
To download invitation and RSVP form click HERE
Feed-back on Queensland-Brazil Business Club Luncheon
Photo 1 - From left to right: Bruno Fiorentini (COO- Yahoo7), His Excellency Fernando de Mello Barreto (Brazilian Ambassador to Australia), Cristina Talacko (President – Australia Brazil Chamber of Commerce), Nigel Alexander (CEO – North Australian Pastoral Company),
Sallyanne Atkinson (Honorary Consul of Brazil in Queensland), Edison Alvares (JBS Swift Australia), Renato Paladino (Global Managing Director , Coal – Vale), Jean Carlo Dilly (Export Sales Manager – JBS Swift Australia), Rob Whiddon (General Manager – Trade Queensland).
On 20th May at the Tattersall's Club in Brisbane, the Australia-Brazil Chamber of Commerce in conjunction with Trade Queensland and supported by JBS Swift hosted a luncheon for the launch of the Queensland-Brazil Business Club (QBBC). A large number of Australian companies with interests in Brazil were present, as well as the 2 largest Brazilian companies in Australia: JBS Swift Australia and Vale Australia, represented by the Global Managing Director of Coal, Renato Paladino .
Cristina Talacko, ABCC president, has opened the event introducing Rob Whiddon, General Manager of Trade Queensland who confirmed the Government's support to the QBBC's activities and discussed the importance Queensland places on the Latin American region. His Excellency Fernando de Mello Barreto, Brazilian Ambassador to Australia, spoke about the global recession and its impacts on Brazil's economy, stating that despite all concerns surrounding the global economic situation, Brazil keeps positive about its economy and will continue growing in 2010. Jean Carlo Dilly and Edison Soares from JBS Swift Australia have given the audience a taste of JBS's large presence in Australia and worldwide and its commitment to quality and family values.
Cristina Talacko, ABCC president, has opened the event introducing Rob Whiddon, General Manager of Trade Queensland who confirmed the Government's support to the QBBC's activities and discussed the importance Queensland places on the Latin American region. His Excellency Fernando de Mello Barreto, Brazilian Ambassador to Australia, spoke about the global recession and its impacts on Brazil's economy, stating that despite all concerns surrounding the global economic situation, Brazil keeps positive about its economy and will continue growing in 2010. Jean Carlo Dilly and Edison Soares from JBS Swift Australia have given the audience a taste of JBS's large presence in Australia and worldwide and its commitment to quality and family values.
The QBBC intends to promote business, investment and relations between Queensland and Brazil by providing a sustainable network to exchange regular information and knowledge from experts in fields as agribusiness, mining, IT, education, infrastructure, etc.
The next QBCC function will be hosted in September focusing on mining and sustainability, followed by an Agribusiness Forum in November.
To take part at the next event, please register your interest with us by sending an email to:abcc@australiabrazil.com.au
To take part at the next event, please register your interest with us by sending an email to:abcc@australiabrazil.com.au
Photo 1 - From left to right: Bruno Fiorentini (COO- Yahoo7), His Excellency Fernando de Mello Barreto (Brazilian Ambassador to Australia), Cristina Talacko (President – Australia Brazil Chamber of Commerce), Nigel Alexander (CEO – North Australian Pastoral Company),
Sallyanne Atkinson (Honorary Consul of Brazil in Queensland), Edison Alvares (JBS Swift Australia), Renato Paladino (Global Managing Director , Coal – Vale), Jean Carlo Dilly (Export Sales Manager – JBS Swift Australia), Rob Whiddon (General Manager – Trade Queensland).
New Members
The ABCC welcomes the following new members
- Andrew Gray, Russell Mineral Equipment Pty Ltd.
- Maria Whaley, Sinclair Knight Merz
- Andrew Gray, Russell Mineral Equipment Pty Ltd.
- Maria Whaley, Sinclair Knight Merz
Business News
Latin America's economies: That fragile thing: a good reputation
A reformed region cannot escape recession but it can mitigate its impact!
Happily, Mr Osborne’s view of Latin America is outdated, or at least it now applies in only a few places. Over the past decade, most of the bigger countries in the region have greatly improved their economic policies and the government institutions that implement them. That is the main reason why Latin America was until recently a spectator in the world financial crisis. Its banks are generally conservative and well-regulated. Many countries eschewed their past habit of abusing a boom to borrow. Public finances were mostly in balance, public debt fell and the region ran a current-account surplus. Indeed Chile is one of the world’s best-managed economies by almost any yardstick, but Mexico, Brazil, Colombia, Peru and Uruguay are not all that far behind.
Sadly none of this has shielded the region from the world recession (see article). Most forecasters predict that Latin America’s output will contract this year and recover only modestly next year, so income per head will shrink. Some countries are doing worse than others. Even before the flu outbreak, Mexico had been especially hard hit, because its economy is so closely tied to that of the United States. Brazil is better placed. Argentina, Venezuela and Ecuador have spurned the prudence of their neighbours and antagonised investors. Only the uncertain prospect of Chinese aid stands between these three countries and possible financial crisis next year.
Yet overall, in contrast to its past recessions, Latin America is doing no worse than the world as a whole. In other words, it is not adding to its troubles with internal weaknesses. What’s more, its governments have been able to cushion the blow with counter-cyclical policies of the kind that the rich world has taken for granted since Keynes but which Latin America’s habitual profligacy and lack of credibility denied it in the past. So instead of having to cut spending as tax revenues fall, this time many governments have been able to increase it. Their central banks have earned sufficient credentials as inflation fighters, and many have enough reserves, to cut interest rates without prompting a dangerous weakening of the currency.
Know your limits
Still, there are limits to what governments can do to mitigate the pain. While there’s scope, by and large, for easing monetary policy, fiscal policy is more constrained. The IMF, the World Bank and the Inter-American Development Bank will plug much of the gap this year, but next year looks harder. Tax revenues will have fallen further and Latin American governments’ dodgy past records may hamper their ability to raise money in debt markets that will be heavily oversubscribed.
The priority for those governments should be to maintain their hard-won reputation for financial stability. That will mean keeping a tight rein on budgets. Some of the social gains of recent years will inevitably be lost. But governments can help the poor by focusing spending on, for instance, preventing child malnutrition, discouraging pupils from dropping out of school and beefing up health services.
There is another, harder lesson. Latin America’s recent growth owed much to the outside world, cheap money and high commodity prices. With the world economy facing (at best) several sluggish years, the region will have to look closer to home for growth, by raising its productivity. That needs a huge effort not just to improve education, but also to implement long-postponed reforms of, for instance, labour markets. Such things are never easy in Latin America, where democratic politicians face voters who have to bear the world’s widest inequalities of income. But if the region is to consolidate its still novel reputation for prudent progress and good management, they will have to be done.
Source: The Economist, Apr 30th 2009
Happily, Mr Osborne’s view of Latin America is outdated, or at least it now applies in only a few places. Over the past decade, most of the bigger countries in the region have greatly improved their economic policies and the government institutions that implement them. That is the main reason why Latin America was until recently a spectator in the world financial crisis. Its banks are generally conservative and well-regulated. Many countries eschewed their past habit of abusing a boom to borrow. Public finances were mostly in balance, public debt fell and the region ran a current-account surplus. Indeed Chile is one of the world’s best-managed economies by almost any yardstick, but Mexico, Brazil, Colombia, Peru and Uruguay are not all that far behind.
Sadly none of this has shielded the region from the world recession (see article). Most forecasters predict that Latin America’s output will contract this year and recover only modestly next year, so income per head will shrink. Some countries are doing worse than others. Even before the flu outbreak, Mexico had been especially hard hit, because its economy is so closely tied to that of the United States. Brazil is better placed. Argentina, Venezuela and Ecuador have spurned the prudence of their neighbours and antagonised investors. Only the uncertain prospect of Chinese aid stands between these three countries and possible financial crisis next year.
Yet overall, in contrast to its past recessions, Latin America is doing no worse than the world as a whole. In other words, it is not adding to its troubles with internal weaknesses. What’s more, its governments have been able to cushion the blow with counter-cyclical policies of the kind that the rich world has taken for granted since Keynes but which Latin America’s habitual profligacy and lack of credibility denied it in the past. So instead of having to cut spending as tax revenues fall, this time many governments have been able to increase it. Their central banks have earned sufficient credentials as inflation fighters, and many have enough reserves, to cut interest rates without prompting a dangerous weakening of the currency.
Know your limits
Still, there are limits to what governments can do to mitigate the pain. While there’s scope, by and large, for easing monetary policy, fiscal policy is more constrained. The IMF, the World Bank and the Inter-American Development Bank will plug much of the gap this year, but next year looks harder. Tax revenues will have fallen further and Latin American governments’ dodgy past records may hamper their ability to raise money in debt markets that will be heavily oversubscribed.
The priority for those governments should be to maintain their hard-won reputation for financial stability. That will mean keeping a tight rein on budgets. Some of the social gains of recent years will inevitably be lost. But governments can help the poor by focusing spending on, for instance, preventing child malnutrition, discouraging pupils from dropping out of school and beefing up health services.
There is another, harder lesson. Latin America’s recent growth owed much to the outside world, cheap money and high commodity prices. With the world economy facing (at best) several sluggish years, the region will have to look closer to home for growth, by raising its productivity. That needs a huge effort not just to improve education, but also to implement long-postponed reforms of, for instance, labour markets. Such things are never easy in Latin America, where democratic politicians face voters who have to bear the world’s widest inequalities of income. But if the region is to consolidate its still novel reputation for prudent progress and good management, they will have to be done.
Source: The Economist, Apr 30th 2009
HSBC names Brazilian to head Australian operationsChris ZapponeMay 26, 2009
HSBC has named a Brazilian executive as chief of the Australian unit of the global bank, taking over the role from Stuart Davis. Paulo Maia comes to the job from his current position as deputy chief executive of HSBC Brazil. Previously, Mr Maia headed HSBC's personal financial services in the South American country as well as its commercial banking business. He will begin the Australian role on July 1.
''Paulo Maia will continue to grow HSBC's business in Australia, focusing on new and existing business opportunities within Personal Financial Services, Commercial Banking and Global Banking and Markets where the HSBC Group's global size and on-the-ground presence provide us with a natural advantage in this market,'' said HSBC Asia Pacific Sandy Flockhart in a statement.
Outgoing chief of HSBC Australia Mr Stuart has been appointed CEO of the Hongkong and Shanghai Banking Corporation in India.
HSBC Australia operates 35 offices and branches in the country. It posted a pre-tax profit of US$176 million ($225 million) in 2008.
Source: Smh.com.au http://business.smh.com.au/business/hsbc-names-brazilian-to-head-australian-operations-20090526-bl83.html
Economy
BRAZIL - The Orient Express
By Alexandre Schwartsman - 5511-3012-5726 - aschwartsman@santander.com.br
While Brazilian exports in general have dropped significantly since 3Q08, exports to China, after a sharp adjustment late in 2008, have rebounded strongly, reaching in April higher levels than seen in 2008, in sharp contrast to exports to the rest of the world.
Not by chance, Brazilian primary products exports (driven essentially by the performance of iron ore and soy) are the only ones to display an increase relative to the same period of 2008. A closer inspection reveals that primary exports growth is also associated with China.
Indeed, whereas exports to China represent about 10% of exports registered in the 12-month period ended in April 2009 (and 20% of primary exports), they also account for more than one-third of the increase in exports (and primary exports) observed between April 2008 and April 2009. At any rate, China has become the largest market for the expansion of Brazilian exports, chiefly of primary products.
At the margin this expansion can be explained essentially by the increase of Brazilian exports’ market share in the Chinese market, as imports during the past 12 months are essentially unchanged compared with early 2008. At the margin, however, Chinese imports appear to be recovering from the doldrums recorded during the last quarter of 2008, possibly due to the process of rebuilding inventories depleted last year. Moreover, the signs of industrial recovery, as expressed by PMI readings above the “50” critical threshold in March and April, suggest further expansion in the near term. This should help push Brazilian exports even further in the months to come.
That said, the profile of Brazilian exports to China is very different from the average. While primary products represent about 39% of total exports in the past 12 months, they account twice that share (79%) of exports to China, suggesting that export growth to that country should materialize essentially as primary (non-industrial) export growth. However, our past estimates assign to weak industrial exports a great deal of the decline in industrial output since the third quarter of 2008.
Thus, the good performance of exports to China should help the balance of payments, but is unlikely (directly at least) to help much in terms of providing demand growth for the industrial sector.
By Alexandre Schwartsman - 5511-3012-5726 - aschwartsman@santander.com.br
While Brazilian exports in general have dropped significantly since 3Q08, exports to China, after a sharp adjustment late in 2008, have rebounded strongly, reaching in April higher levels than seen in 2008, in sharp contrast to exports to the rest of the world.
Not by chance, Brazilian primary products exports (driven essentially by the performance of iron ore and soy) are the only ones to display an increase relative to the same period of 2008. A closer inspection reveals that primary exports growth is also associated with China.
Indeed, whereas exports to China represent about 10% of exports registered in the 12-month period ended in April 2009 (and 20% of primary exports), they also account for more than one-third of the increase in exports (and primary exports) observed between April 2008 and April 2009. At any rate, China has become the largest market for the expansion of Brazilian exports, chiefly of primary products.
At the margin this expansion can be explained essentially by the increase of Brazilian exports’ market share in the Chinese market, as imports during the past 12 months are essentially unchanged compared with early 2008. At the margin, however, Chinese imports appear to be recovering from the doldrums recorded during the last quarter of 2008, possibly due to the process of rebuilding inventories depleted last year. Moreover, the signs of industrial recovery, as expressed by PMI readings above the “50” critical threshold in March and April, suggest further expansion in the near term. This should help push Brazilian exports even further in the months to come.
That said, the profile of Brazilian exports to China is very different from the average. While primary products represent about 39% of total exports in the past 12 months, they account twice that share (79%) of exports to China, suggesting that export growth to that country should materialize essentially as primary (non-industrial) export growth. However, our past estimates assign to weak industrial exports a great deal of the decline in industrial output since the third quarter of 2008.
Thus, the good performance of exports to China should help the balance of payments, but is unlikely (directly at least) to help much in terms of providing demand growth for the industrial sector.
Brazil Managing Crisis ‘Extremely Well,’ Pimco Says
May 19, 2009
Brazil is managing the financial crisis “extremely well” and emerging as an engine of global growth, said Mohamed El-Erian, chief executive officer of Pacific Investment Management Co.
“People certainly feel the crisis is a major stress test for Brazil and that they’ve done extremely well so far,” El- Erian said in a phone interview from Newport Beach, California. “People are starting to take Brazil very seriously, not just as a stand-alone country, but for the impact it can have on the global economy as a whole.”
Brazilian bonds have outperformed other emerging-market debt in the past year as President Luiz Inacio Lula da Silva’s buildup of record foreign reserves of more than $200 billion helped maintain investor confidence in Latin America’s biggest economy. Brazil’s foreign bonds returned 3.1 percent in the past 12 months while emerging-market bonds on average declined 2.2 percent, according to JPMorgan Chase & Co.
Brazil’s plan to focus on sales of 10- and 30-year bonds in international markets is part of an economic “maturation” that should also boost the country’s savings, investment and growth, El-Erian said. The government sold $1.78 billion of 10-year notes in January and May, and may offer more bonds this year, according to Deputy Treasury Secretary Paulo Valle.‘Broken Out’
“Brazil has broken out of the low-growth equilibrium,” El-Erian said. “The development of a complete yield curve in different markets is very much consistent with the broader secular journey we’ve been predicting.”
El-Erian, 50, returned to Pimco in January 2008 after leaving two years before to run Harvard University’s endowment. His Pimco Emerging Markets Bond Fund posted a 19 percent annualized return in the five years through October 2005, beating more than 90 percent of competitors, according to data compiled by Bloomberg.
Pimco may increase holdings of Brazil corporate debt “over the long term” depending on relative valuations, El-Erian said.El-Erian made a bet on Brazil in 2002 that helped Pimco outperform most of its competitors in emerging markets, tripling the firm’s Brazilian holdings in the first half of that year as the country’s bonds tumbled on speculation of a default. The price on Brazil’s benchmark bond due in 2040 rose almost threefold to 117.6 cents on the dollar in the next three years. He also serves as co-chief investment officer with Pimco founder Bill Gross.
By Joshua Goodman
Source: Bloomberg (www.bloomberg.com)
May 19, 2009
Brazil is managing the financial crisis “extremely well” and emerging as an engine of global growth, said Mohamed El-Erian, chief executive officer of Pacific Investment Management Co.
“People certainly feel the crisis is a major stress test for Brazil and that they’ve done extremely well so far,” El- Erian said in a phone interview from Newport Beach, California. “People are starting to take Brazil very seriously, not just as a stand-alone country, but for the impact it can have on the global economy as a whole.”
Brazilian bonds have outperformed other emerging-market debt in the past year as President Luiz Inacio Lula da Silva’s buildup of record foreign reserves of more than $200 billion helped maintain investor confidence in Latin America’s biggest economy. Brazil’s foreign bonds returned 3.1 percent in the past 12 months while emerging-market bonds on average declined 2.2 percent, according to JPMorgan Chase & Co.
Brazil’s plan to focus on sales of 10- and 30-year bonds in international markets is part of an economic “maturation” that should also boost the country’s savings, investment and growth, El-Erian said. The government sold $1.78 billion of 10-year notes in January and May, and may offer more bonds this year, according to Deputy Treasury Secretary Paulo Valle.‘Broken Out’
“Brazil has broken out of the low-growth equilibrium,” El-Erian said. “The development of a complete yield curve in different markets is very much consistent with the broader secular journey we’ve been predicting.”
El-Erian, 50, returned to Pimco in January 2008 after leaving two years before to run Harvard University’s endowment. His Pimco Emerging Markets Bond Fund posted a 19 percent annualized return in the five years through October 2005, beating more than 90 percent of competitors, according to data compiled by Bloomberg.
Pimco may increase holdings of Brazil corporate debt “over the long term” depending on relative valuations, El-Erian said.El-Erian made a bet on Brazil in 2002 that helped Pimco outperform most of its competitors in emerging markets, tripling the firm’s Brazilian holdings in the first half of that year as the country’s bonds tumbled on speculation of a default. The price on Brazil’s benchmark bond due in 2040 rose almost threefold to 117.6 cents on the dollar in the next three years. He also serves as co-chief investment officer with Pimco founder Bill Gross.
By Joshua Goodman
Source: Bloomberg (www.bloomberg.com)
Brazil Primary Budget Surplus Widens To BRL11.6B
May 01, 2009
Buoyed by rising tax revenue, Brazil's public sector primary budget surplus widened in March to 11.6 billion Brazilian reals ($5.3 billion), the Brazilian Central Bank said Thursday.
Tax revenue rose in March to BRL53.3 billion from BRL45.1 billion in February, traditionally a weak month for tax collections because of holidays. Brazil's public sector primary budget surplus in February was BRL4.1 billion.
However, Brazil's 12-month primary budget surplus narrowed to BRL95.92 billion in March from BRL99.7 billion in February.
The 12-month figure as of March was equal to 3.29% of gross domestic product, slightly lower than the 3.4% represented by the February figure.
As of March, Brazil's primary budget surplus was well within the government's target for the year, which calls for a surplus equal to at least 2.5% of GDP. Earlier this month, the government altered the target to 2.5% from a previous 3.8% in order to free up funds for public works spending in the face of a persistent recession.
In March, the central government contributed BRL5.82 billion to the primary surplus, while state and municipal governments contributed BRL2.23 billion and corporations owned by government agencies contributed BRL3.57 billion.
Primary budget figures do not include debt service payments. With debt service payments included, Brazil posted a March nominal public sector deficit of BRL2.5 billion. The March figure narrowed considerably from BRL6.07 billion in February.
The 12-month nominal deficit as of March was BRL65.2 billion, or 2.23% of GDP. Those figures widened from February's 12-month deficit of BRL58.7 billion equal to 2.02% of GDP.
Brazil's net public sector debt was stable in March against the February figure at BRL1.1 trillion. However, the March figure represented 37.6% of GDP, up from 37.1% as of February as the government lowers its GDP expectations.
By: Gerald Jeffris and Tom Murphy
Source: Dow Jones (www.dowjones.com)
May 01, 2009
Buoyed by rising tax revenue, Brazil's public sector primary budget surplus widened in March to 11.6 billion Brazilian reals ($5.3 billion), the Brazilian Central Bank said Thursday.
Tax revenue rose in March to BRL53.3 billion from BRL45.1 billion in February, traditionally a weak month for tax collections because of holidays. Brazil's public sector primary budget surplus in February was BRL4.1 billion.
However, Brazil's 12-month primary budget surplus narrowed to BRL95.92 billion in March from BRL99.7 billion in February.
The 12-month figure as of March was equal to 3.29% of gross domestic product, slightly lower than the 3.4% represented by the February figure.
As of March, Brazil's primary budget surplus was well within the government's target for the year, which calls for a surplus equal to at least 2.5% of GDP. Earlier this month, the government altered the target to 2.5% from a previous 3.8% in order to free up funds for public works spending in the face of a persistent recession.
In March, the central government contributed BRL5.82 billion to the primary surplus, while state and municipal governments contributed BRL2.23 billion and corporations owned by government agencies contributed BRL3.57 billion.
Primary budget figures do not include debt service payments. With debt service payments included, Brazil posted a March nominal public sector deficit of BRL2.5 billion. The March figure narrowed considerably from BRL6.07 billion in February.
The 12-month nominal deficit as of March was BRL65.2 billion, or 2.23% of GDP. Those figures widened from February's 12-month deficit of BRL58.7 billion equal to 2.02% of GDP.
Brazil's net public sector debt was stable in March against the February figure at BRL1.1 trillion. However, the March figure represented 37.6% of GDP, up from 37.1% as of February as the government lowers its GDP expectations.
By: Gerald Jeffris and Tom Murphy
Source: Dow Jones (www.dowjones.com)
Brazil Government Launches My House My Life Housing Plan
posted by Tom James on April 28, 2009
The Brazilian Government has, after huge amounts of speculation, launched The National Housing Plan, thee Minha Casa, Minha Vida scheme that aims to increase the number of homes available all over Brazil.
The National Housing Plan has been a long time coming and lately, with the housing deficit in the country worse than ever, the need has been sky rocketing.
Set to benefit millions of Brazilians on a lower income, the £10 million ‘My House, My Life,’ programme aims to build one million properties in Brazil for those earning low wages.
Although initially aimed at towns with a minimum of 100,000 inhabitants, following much criticism and pressure from the opposition, President Lula da Silva has opened the scheme for all towns in Brazil. This will now include smaller towns where the housing deficit is just as much of a problem as in the bigger cities but isn’t so visible.
Although it will now apply to all towns, the scheme will be run according to demand – for example – smaller towns in the poorer Northeast of the country could reap the rewards before some big cities as the demand is desperate there. The southern region, the most populated in the country, will receive 363,984 units. The northeastern region, the poorest in Brazil, will receive 343,197 units.
More than 400,000 units will be built for families each with a monthly income of less than £416. As long as these families pay 10 per cent of their monthly income, they can move into the new homes. Families each with a monthly income between £416 and £1388 will be able to receive subsidies from the Government and pay as much as 20 per cent of their monthly income for the access to the new homes. The elderly and disabled will have priority when it comes to allocating the new houses, the Government said.
The National Housing Plan will also boast interest rates that will be far lower than the 13 per cent currently applied by Brazilian banks – though there are plans to lower those rates. If a family was to lose their jobs once they had been allocated a home, they don’t have to worry about the monthly payments as the Government has released a special fund of £294 million for covering their defaults.
News submitted by Dan Johnson, the Move Channel
posted by Tom James on April 28, 2009
The Brazilian Government has, after huge amounts of speculation, launched The National Housing Plan, thee Minha Casa, Minha Vida scheme that aims to increase the number of homes available all over Brazil.
The National Housing Plan has been a long time coming and lately, with the housing deficit in the country worse than ever, the need has been sky rocketing.
Set to benefit millions of Brazilians on a lower income, the £10 million ‘My House, My Life,’ programme aims to build one million properties in Brazil for those earning low wages.
Although initially aimed at towns with a minimum of 100,000 inhabitants, following much criticism and pressure from the opposition, President Lula da Silva has opened the scheme for all towns in Brazil. This will now include smaller towns where the housing deficit is just as much of a problem as in the bigger cities but isn’t so visible.
Although it will now apply to all towns, the scheme will be run according to demand – for example – smaller towns in the poorer Northeast of the country could reap the rewards before some big cities as the demand is desperate there. The southern region, the most populated in the country, will receive 363,984 units. The northeastern region, the poorest in Brazil, will receive 343,197 units.
More than 400,000 units will be built for families each with a monthly income of less than £416. As long as these families pay 10 per cent of their monthly income, they can move into the new homes. Families each with a monthly income between £416 and £1388 will be able to receive subsidies from the Government and pay as much as 20 per cent of their monthly income for the access to the new homes. The elderly and disabled will have priority when it comes to allocating the new houses, the Government said.
The National Housing Plan will also boast interest rates that will be far lower than the 13 per cent currently applied by Brazilian banks – though there are plans to lower those rates. If a family was to lose their jobs once they had been allocated a home, they don’t have to worry about the monthly payments as the Government has released a special fund of £294 million for covering their defaults.
News submitted by Dan Johnson, the Move Channel
Brazil to Sell 10-, 30-Year Bonds to Set Benchmarks, Valle Says
May 18, 2009
Brazil may offer more 10- and 30-year bonds in international markets this year, tapping into demand for the country’s most-traded securities, Deputy Treasury Secretary Paulo Valle said.
“Our strategy is to keep offering 10- and 30-year bonds,” Valle, 45, said in a phone interview from Brasilia. “That helps improve the liquidity in these important benchmark points.”
The government sold $1.78 billion of 10-year notes in January and May, part of a wave of new issues by developing nations as the global financial crisis eased. Developing-nation governments and companies sold more than $57 billion of debt this year through the first week of May, up from $34.8 billion during the same period in 2008, according to data compiled by Bloomberg.
Brazilian bonds have outperformed other emerging-market debt in the past year as President Luiz Inacio Lula da Silva’s buildup of record foreign reserves of more than $200 billion helped maintain investor confidence in Latin America’s biggest economy amid the global crisis. Brazil’s foreign bonds returned 3.1 percent in the past 12 months while emerging-market bonds on average declined 2.2 percent, according to JPMorgan Chase & Co.
Brazil sold $1.03 billion of the 5.875 percent bonds due in 2019 in January to yield 6.13 percent, or 3.7 percentage points above U.S. Treasuries, and $750 million at 2.52 percentage points above Treasuries on May 7.
Buyback Program
The Lula administration also plans to keep buying back less-traded bonds with high interest rates such as the securities due in 2020 and 2030 to focus trading in the newly created benchmarks, Valle said.
The government is repurchasing an average of about $100 million of bonds each month, he said. Buybacks in the program, which began in 2006, slowed as credit markets seized up late last year before picking up again in recent weeks, he said.
The older securities trade at a higher yield spread than the newer notes, creating pricing distortions that Brazil wants to eliminate, Valle said. The 2020 bonds, for example, yield 3.14 percentage points above Treasuries, according to JPMorgan. By comparison, the new 2019 bonds yield 2.73 percentage points more than Treasuries -- or 0.41 percentage point less than the 2020 securities.
“These old bonds have distorted our yield curve,” Valle said.
Brazil’s foreign bonds have returned 1.4 percent this year after gaining 5.9 percent in 2008, according to JPMorgan.
‘No Complaints’
The price on the 5.875 percent bonds has climbed to 100.25 cents on the dollar, pushing the yield down to 5.84 percent, from 98.1 cents in the January offering.
The bonds underperformed securities issued by Colombia, Turkey and the Philippines in the first several days after the sale, prompting David Spegel, head of emerging-market strategy at ING Financial Bank NV, to say Brazil sought to price the notes at lower yields than investors were willing to accept.
Valle played down those concerns, saying pricing the notes was difficult because the bond market remained volatile in January amid the global crisis.
“We were the first emerging-market country to offer a new bond in January when volatility was high,” Valle said. He said it was easier to sell the notes in May as demand was more than double that in January. “Things were clearer” in the market, he said. “And we had no complaints.”
By Renato Andrade
Source: Bloomberg (www.bloomberg.com)
May 18, 2009
Brazil may offer more 10- and 30-year bonds in international markets this year, tapping into demand for the country’s most-traded securities, Deputy Treasury Secretary Paulo Valle said.
“Our strategy is to keep offering 10- and 30-year bonds,” Valle, 45, said in a phone interview from Brasilia. “That helps improve the liquidity in these important benchmark points.”
The government sold $1.78 billion of 10-year notes in January and May, part of a wave of new issues by developing nations as the global financial crisis eased. Developing-nation governments and companies sold more than $57 billion of debt this year through the first week of May, up from $34.8 billion during the same period in 2008, according to data compiled by Bloomberg.
Brazilian bonds have outperformed other emerging-market debt in the past year as President Luiz Inacio Lula da Silva’s buildup of record foreign reserves of more than $200 billion helped maintain investor confidence in Latin America’s biggest economy amid the global crisis. Brazil’s foreign bonds returned 3.1 percent in the past 12 months while emerging-market bonds on average declined 2.2 percent, according to JPMorgan Chase & Co.
Brazil sold $1.03 billion of the 5.875 percent bonds due in 2019 in January to yield 6.13 percent, or 3.7 percentage points above U.S. Treasuries, and $750 million at 2.52 percentage points above Treasuries on May 7.
Buyback Program
The Lula administration also plans to keep buying back less-traded bonds with high interest rates such as the securities due in 2020 and 2030 to focus trading in the newly created benchmarks, Valle said.
The government is repurchasing an average of about $100 million of bonds each month, he said. Buybacks in the program, which began in 2006, slowed as credit markets seized up late last year before picking up again in recent weeks, he said.
The older securities trade at a higher yield spread than the newer notes, creating pricing distortions that Brazil wants to eliminate, Valle said. The 2020 bonds, for example, yield 3.14 percentage points above Treasuries, according to JPMorgan. By comparison, the new 2019 bonds yield 2.73 percentage points more than Treasuries -- or 0.41 percentage point less than the 2020 securities.
“These old bonds have distorted our yield curve,” Valle said.
Brazil’s foreign bonds have returned 1.4 percent this year after gaining 5.9 percent in 2008, according to JPMorgan.
‘No Complaints’
The price on the 5.875 percent bonds has climbed to 100.25 cents on the dollar, pushing the yield down to 5.84 percent, from 98.1 cents in the January offering.
The bonds underperformed securities issued by Colombia, Turkey and the Philippines in the first several days after the sale, prompting David Spegel, head of emerging-market strategy at ING Financial Bank NV, to say Brazil sought to price the notes at lower yields than investors were willing to accept.
Valle played down those concerns, saying pricing the notes was difficult because the bond market remained volatile in January amid the global crisis.
“We were the first emerging-market country to offer a new bond in January when volatility was high,” Valle said. He said it was easier to sell the notes in May as demand was more than double that in January. “Things were clearer” in the market, he said. “And we had no complaints.”
By Renato Andrade
Source: Bloomberg (www.bloomberg.com)
Brazil Stocks Gain as Consumer Confidence Climbs; Bolsa Rises
May 26, 2009
Brazilian stocks gained for a second day after the country’s consumer confidence jumped to the highest level in eight months and increases in metals prices sent producers higher.
Vivo Participacoes SA, Brazil’s largest mobile-phone company, rallied as much as 1.8 percent after the Getulio Vargas Foundation said consumer confidence in May increased to its highest since September. Gol Linhas Aereas Inteligentes SA, Brazil’s second-largest airline, rose for the first time in a week on speculation its finances are improving and as traders increased bets for interest rate cuts. Cia. Siderurgica Nacional SA, Brazil’s third-biggest steelmaker, climbed 1.3 percent as metals prices advanced in Shanghai.
The consumer confidence report “shows that the economy has stopped getting worse,” said Marcelo Mesquita, a partner at Rio de Janeiro-based Leblon Equities Gestao de Recursos Ltda. and former head of Brazil equities for UBS AG. “It’s a good time for stock picking.”
The Bovespa index added 0.5 percent to 50,816.24. The BM&FBovespa Small Cap index gained 0.6 percent to 692.41.
Mexico’s Bolsa index climbed 0.4 percent and Chile’s Ipsa increased 1.4 percent. U.S. markets were shut for a holiday.The Bovespa rose 3.2 percent last week, its 10th advance in 11 weeks. The measure has rallied 35 percent in 2009 on speculation global government stimulus plans, record low interest rates and rising commodity demand will bolster growth.
International Investors
Foreign stock investors bought 9.8 billion reais ($4.8 billion) more than they sold in Brazil this year, according to the exchange’s Web site. In the first 20 days of May, the Bovespa stock exchange had 4.7 billion reais of inflows. That’s the most since a record-setting April 2008, when international investors added 6 billion reais to their Brazilian holdings.
The average value traded today on Brazil’s stock market was 1.6 billion reais, less than half the three-month average of 4.6 billion reais a day, according to Bloomberg data. Markets in the U.S. and U.K. were closed for a holiday.
The Getulio Vargas Foundation said that Brazil’s consumer confidence index rose to 102.1 in May from 97.6 in April.
Vivo added 0.8 percent to 37.70 reais. Redecard SA, which processes credit- and debit-card transactions, advanced 1.4 percent to 26.89 reais.
Gol rallied 1.9 percent to 8.70 reais. The airline’s planned share and bond sale are easing liquidity concerns, said Victor Mizusaki, an analyst at Itau Corretora in Sao Paulo.
Rate Speculation
In the overnight interest-rate futures market, the yield on contracts to January 2010, one of the most-actively traded in the BM&F commodity and futures exchange, declined five basis points to 9.29 percent. Economists forecast Brazil’s gross domestic product will contract 0.53 percent in 2009, compared with a previous estimate of 0.49 percent, according to a weekly central bank survey.
Copper futures gained in Shanghai after London prices rose as a weaker dollar boosted the appeal of alternative investments.
CSN climbed 57 centavos to 43.40 reais. Cia. Vale do Rio Doce, the world’s biggest iron ore miner, added 0.6 percent to 32.65 reais.
Natura, CCR
Natura Cosmeticos SA gained 0.6 percent to 27.15 reais. Brazil’s biggest cosmetics company was rated “neutral” in new coverage by UBS AG, which said it has “an attractive combination of solid long-term growth prospects, strong cash flow generation, solid balance sheet, and exceptional earnings resilience.”
Cia. de Concessoes Rodoviarias, Brazil’s biggest toll-road operator, advanced 1.1 percent to 28.40 reais. China may reduce purchases from the U.S. and increase buying from Brazil in the next few months, said the state-backed China National Grain and Oils Information Center, without elaborating.
The world’s largest soybean buyer may import more than 4 million tons of soybeans in May, the center added in an e-mailed statement today.
In Mexico, Controladora Comercial Mexicana SAB added 4.9 percent to 7.4 pesos. The retailer, which defaulted on debt in October, may be making “strong advances” in its negotiations with creditors, Citigroup Inc. analysts wrote in a note.
Grupo Simec SAB, a unit of Mexico’s largest steelmaker, rose 7.3 percent to 27.67 pesos. Metal prices climbed and Nippon Steel Corp. said steel demand may recover after July.
Cia Minera Autlan SAB, North America’s largest manganese producer, rose 6.8 percent to 28.98 pesos.
Cap SA, Chile’s largest steelmaker, gained 7.4 percent to 13,150 pesos.
“Asian metal prices are up, which could be positive news for Cap,” Sebastian Praetorius, an analyst at Penta Estrategia y Inversiones, said today by telephone from Santiago.
By Alexander Ragir and Hugh Collins
Source: Bloomberg (www.bloomberg.com)
May 26, 2009
Brazilian stocks gained for a second day after the country’s consumer confidence jumped to the highest level in eight months and increases in metals prices sent producers higher.
Vivo Participacoes SA, Brazil’s largest mobile-phone company, rallied as much as 1.8 percent after the Getulio Vargas Foundation said consumer confidence in May increased to its highest since September. Gol Linhas Aereas Inteligentes SA, Brazil’s second-largest airline, rose for the first time in a week on speculation its finances are improving and as traders increased bets for interest rate cuts. Cia. Siderurgica Nacional SA, Brazil’s third-biggest steelmaker, climbed 1.3 percent as metals prices advanced in Shanghai.
The consumer confidence report “shows that the economy has stopped getting worse,” said Marcelo Mesquita, a partner at Rio de Janeiro-based Leblon Equities Gestao de Recursos Ltda. and former head of Brazil equities for UBS AG. “It’s a good time for stock picking.”
The Bovespa index added 0.5 percent to 50,816.24. The BM&FBovespa Small Cap index gained 0.6 percent to 692.41.
Mexico’s Bolsa index climbed 0.4 percent and Chile’s Ipsa increased 1.4 percent. U.S. markets were shut for a holiday.The Bovespa rose 3.2 percent last week, its 10th advance in 11 weeks. The measure has rallied 35 percent in 2009 on speculation global government stimulus plans, record low interest rates and rising commodity demand will bolster growth.
International Investors
Foreign stock investors bought 9.8 billion reais ($4.8 billion) more than they sold in Brazil this year, according to the exchange’s Web site. In the first 20 days of May, the Bovespa stock exchange had 4.7 billion reais of inflows. That’s the most since a record-setting April 2008, when international investors added 6 billion reais to their Brazilian holdings.
The average value traded today on Brazil’s stock market was 1.6 billion reais, less than half the three-month average of 4.6 billion reais a day, according to Bloomberg data. Markets in the U.S. and U.K. were closed for a holiday.
The Getulio Vargas Foundation said that Brazil’s consumer confidence index rose to 102.1 in May from 97.6 in April.
Vivo added 0.8 percent to 37.70 reais. Redecard SA, which processes credit- and debit-card transactions, advanced 1.4 percent to 26.89 reais.
Gol rallied 1.9 percent to 8.70 reais. The airline’s planned share and bond sale are easing liquidity concerns, said Victor Mizusaki, an analyst at Itau Corretora in Sao Paulo.
Rate Speculation
In the overnight interest-rate futures market, the yield on contracts to January 2010, one of the most-actively traded in the BM&F commodity and futures exchange, declined five basis points to 9.29 percent. Economists forecast Brazil’s gross domestic product will contract 0.53 percent in 2009, compared with a previous estimate of 0.49 percent, according to a weekly central bank survey.
Copper futures gained in Shanghai after London prices rose as a weaker dollar boosted the appeal of alternative investments.
CSN climbed 57 centavos to 43.40 reais. Cia. Vale do Rio Doce, the world’s biggest iron ore miner, added 0.6 percent to 32.65 reais.
Natura, CCR
Natura Cosmeticos SA gained 0.6 percent to 27.15 reais. Brazil’s biggest cosmetics company was rated “neutral” in new coverage by UBS AG, which said it has “an attractive combination of solid long-term growth prospects, strong cash flow generation, solid balance sheet, and exceptional earnings resilience.”
Cia. de Concessoes Rodoviarias, Brazil’s biggest toll-road operator, advanced 1.1 percent to 28.40 reais. China may reduce purchases from the U.S. and increase buying from Brazil in the next few months, said the state-backed China National Grain and Oils Information Center, without elaborating.
The world’s largest soybean buyer may import more than 4 million tons of soybeans in May, the center added in an e-mailed statement today.
In Mexico, Controladora Comercial Mexicana SAB added 4.9 percent to 7.4 pesos. The retailer, which defaulted on debt in October, may be making “strong advances” in its negotiations with creditors, Citigroup Inc. analysts wrote in a note.
Grupo Simec SAB, a unit of Mexico’s largest steelmaker, rose 7.3 percent to 27.67 pesos. Metal prices climbed and Nippon Steel Corp. said steel demand may recover after July.
Cia Minera Autlan SAB, North America’s largest manganese producer, rose 6.8 percent to 28.98 pesos.
Cap SA, Chile’s largest steelmaker, gained 7.4 percent to 13,150 pesos.
“Asian metal prices are up, which could be positive news for Cap,” Sebastian Praetorius, an analyst at Penta Estrategia y Inversiones, said today by telephone from Santiago.
By Alexander Ragir and Hugh Collins
Source: Bloomberg (www.bloomberg.com)
Energy
Brazil Petrobras Expects To Meet 2009 Output Targets
May 14, 2009
With a fresh daily production record in hand, Brazilian state-run oil firm Petrobras (PBR) expects to hit its domestic oil and gas production targets in 2009, the company's CFO said Wednesday.
The optimism at Petrobras, which has typically struggled to meet its yearly production targets, comes after the company set a daily production record of 2.059 million barrels of crude oil on May 4. That topped the previous record of 2.012 million barrels set March 4.
"We expect the growth in production to continue," Petrobras' Almir Barbassa said during a presentation for analysts in Sao Paulo.
Petrobras domestic oil and gas production target for 2009 is an average of 2.5 million barrels of oil equivalent, or BOE, a day. In the first quarter, the company produced a daily average of 2.261 million BOE.
After the latest daily record, Petrobras reached its target of 2.05 million barrels a day in terms of domestic oil output alone. Maintaining that level of output, however, is the greater challenge, Barbassa said.
"Let's see how the growth in production plays out over the next couple months," Barbassa said, noting that May's record was merely a daily record for production - not the daily average the company uses for its output targets. The company averaged daily domestic oil output of 1.952 million barrels in the first quarter.
But there is some flexibility in the full-year target, according to Barbassa. The company considers itself on target if output falls within a range of plus or minus 2.5% of the official target - which Barbassa said he believed Petrobras was currently within striking distance.
Petrobras has benefited from the installation of three new platforms in the key Campos Basin over the past few months. The Campos Basin produces more than 85% of Brazil's crude oil.
Petrobras' P-53 and "Cidade de Niteroi" platforms entered production in the Marlim Leste field, while the P-51 platform started output in the Marlim Sul field. When the three platforms reach capacity, they will add production of about 460,000 barrels of oil a day.
The three platforms produced an average of 99,000 barrels a day as wells were hooked up and ramp-up continued, Barbassa said.
In addition, two platforms installed in the Roncador field - the P-52 and P-54 - also ramped up output over the past few months.
Earlier this month, Petrobras also pumped the first oil from its Tupi subsalt field, with the "BW Cidade de Sao Vicente" producing about 14,000 barrels a day, Barbassa said.
Later this month, the "Cidade de Sao Mateus" FPSO, or floating production, storage and offloading vessel, is also expected to start daily production of 10 million cubic meters of natural gas at the Camarupim field in the Espirito Santo Basin.
Two fields operated by oil majors Chevron (CVX) and Royal Dutch Shell (RDSA.LN) will also add to Petrobras production figures, Barbassa added. Petrobras holds a 30% stake in Frade, operated by Chevron, and a 35% stake in Shell's Parque das Conchas project.
The FPSO "Frade" will be installed at the Frade field later in the second quarter, while the FPSO "Espirito Santo" will come onstream in the third quarter, Barbassa said. The two FPSOs each have installed capacity to produce 100,000 barrels of oil a day.
By: Jeff Fick
Source: The Wall Street Journal (www.wsj.com)
May 14, 2009
With a fresh daily production record in hand, Brazilian state-run oil firm Petrobras (PBR) expects to hit its domestic oil and gas production targets in 2009, the company's CFO said Wednesday.
The optimism at Petrobras, which has typically struggled to meet its yearly production targets, comes after the company set a daily production record of 2.059 million barrels of crude oil on May 4. That topped the previous record of 2.012 million barrels set March 4.
"We expect the growth in production to continue," Petrobras' Almir Barbassa said during a presentation for analysts in Sao Paulo.
Petrobras domestic oil and gas production target for 2009 is an average of 2.5 million barrels of oil equivalent, or BOE, a day. In the first quarter, the company produced a daily average of 2.261 million BOE.
After the latest daily record, Petrobras reached its target of 2.05 million barrels a day in terms of domestic oil output alone. Maintaining that level of output, however, is the greater challenge, Barbassa said.
"Let's see how the growth in production plays out over the next couple months," Barbassa said, noting that May's record was merely a daily record for production - not the daily average the company uses for its output targets. The company averaged daily domestic oil output of 1.952 million barrels in the first quarter.
But there is some flexibility in the full-year target, according to Barbassa. The company considers itself on target if output falls within a range of plus or minus 2.5% of the official target - which Barbassa said he believed Petrobras was currently within striking distance.
Petrobras has benefited from the installation of three new platforms in the key Campos Basin over the past few months. The Campos Basin produces more than 85% of Brazil's crude oil.
Petrobras' P-53 and "Cidade de Niteroi" platforms entered production in the Marlim Leste field, while the P-51 platform started output in the Marlim Sul field. When the three platforms reach capacity, they will add production of about 460,000 barrels of oil a day.
The three platforms produced an average of 99,000 barrels a day as wells were hooked up and ramp-up continued, Barbassa said.
In addition, two platforms installed in the Roncador field - the P-52 and P-54 - also ramped up output over the past few months.
Earlier this month, Petrobras also pumped the first oil from its Tupi subsalt field, with the "BW Cidade de Sao Vicente" producing about 14,000 barrels a day, Barbassa said.
Later this month, the "Cidade de Sao Mateus" FPSO, or floating production, storage and offloading vessel, is also expected to start daily production of 10 million cubic meters of natural gas at the Camarupim field in the Espirito Santo Basin.
Two fields operated by oil majors Chevron (CVX) and Royal Dutch Shell (RDSA.LN) will also add to Petrobras production figures, Barbassa added. Petrobras holds a 30% stake in Frade, operated by Chevron, and a 35% stake in Shell's Parque das Conchas project.
The FPSO "Frade" will be installed at the Frade field later in the second quarter, while the FPSO "Espirito Santo" will come onstream in the third quarter, Barbassa said. The two FPSOs each have installed capacity to produce 100,000 barrels of oil a day.
By: Jeff Fick
Source: The Wall Street Journal (www.wsj.com)
China signs $10 billion loan for Brazil
May 19, 2009
China, the world’s second-biggest energy user, and Brazil signed 13 accords, including a $10 billion loan and agreements on oil exploration and crude trade.
China PetroChemical Corp., the nation’s largest refiner, will explore for oil in two areas in Brazil, Zhang Guobao, the head of the National Energy Administration, said before a signing ceremony to be attended by Brazilian President Luiz Inacio Lula da Silva and his Chinese counterpart Hu Jintao. Petroleo Brasileiro SA and China Development Bank agreed to a $10 billion loan agreement.
Petrobras, as Brazil’s state-owned company is known, has been in talks with China about a loan since last year. The company has sought alternatives to international bank lending and bonds to finance its spending plan amid the global credit crunch. China is securing energy resources to power its economy, the world’s third-largest, by offering loans to oil-producing countries including Russia, Venezuela and Kazakhstan.
Petrobras will supply 150,000 barrels of crude oil a day to China this year and 200,000 barrels in 2010 under one of the agreements signed today, Chief Executive Officer Jose Sergio Gabrielli said in Beijing, without giving details.
Rio de Janeiro-based Petrobras requires funding on oil exploration. The Brazilian oil producer plans to spend $111 billion through 2020 to produce 1.8 million barrels of oil a day at so-called pre-salt oil fields, Gabrielli said last month.
The company announced in November 2007 the discovery of the Tupi offshore field, which may hold up to 8 billion barrels of oil beneath as much as 3,000 meters of water and 7,000 meters of seabed, making it the largest find in the Americas since Mexico’s Cantarell.
Chinese Oil Demand
China, the world’s second-biggest energy consumer, agreed on April 16 to lend $10 billion to Kazakhstan. In return, PetroChina Co. was allowed to buy a 50 percent stake in an oil producer in the Central Asian country.
In the same month, China boosted crude-oil imports by 14 percent from a year earlier after the government announced plans to boost stockpiles of the fuel, according to official data.
China agreed on Feb. 17 to provide Russia with $25 billion of loans in return for 300,000 barrels a day of oil for 20 years. Venezuela’s Petroleos de Venezuela, known as PDVSA, will provide 200,000 barrels a day to the Asian country to pay down a $4 billion loan from China Development Bank Corp.
China consumed 360 million tons of oil last year, or 7.3 million barrels a day. Imports reached 178.9 million tons, or 3.6 million barrels a day.
By John Liu
Source: Bloomberg (www.bloomberg.com)
May 19, 2009
China, the world’s second-biggest energy user, and Brazil signed 13 accords, including a $10 billion loan and agreements on oil exploration and crude trade.
China PetroChemical Corp., the nation’s largest refiner, will explore for oil in two areas in Brazil, Zhang Guobao, the head of the National Energy Administration, said before a signing ceremony to be attended by Brazilian President Luiz Inacio Lula da Silva and his Chinese counterpart Hu Jintao. Petroleo Brasileiro SA and China Development Bank agreed to a $10 billion loan agreement.
Petrobras, as Brazil’s state-owned company is known, has been in talks with China about a loan since last year. The company has sought alternatives to international bank lending and bonds to finance its spending plan amid the global credit crunch. China is securing energy resources to power its economy, the world’s third-largest, by offering loans to oil-producing countries including Russia, Venezuela and Kazakhstan.
Petrobras will supply 150,000 barrels of crude oil a day to China this year and 200,000 barrels in 2010 under one of the agreements signed today, Chief Executive Officer Jose Sergio Gabrielli said in Beijing, without giving details.
Rio de Janeiro-based Petrobras requires funding on oil exploration. The Brazilian oil producer plans to spend $111 billion through 2020 to produce 1.8 million barrels of oil a day at so-called pre-salt oil fields, Gabrielli said last month.
The company announced in November 2007 the discovery of the Tupi offshore field, which may hold up to 8 billion barrels of oil beneath as much as 3,000 meters of water and 7,000 meters of seabed, making it the largest find in the Americas since Mexico’s Cantarell.
Chinese Oil Demand
China, the world’s second-biggest energy consumer, agreed on April 16 to lend $10 billion to Kazakhstan. In return, PetroChina Co. was allowed to buy a 50 percent stake in an oil producer in the Central Asian country.
In the same month, China boosted crude-oil imports by 14 percent from a year earlier after the government announced plans to boost stockpiles of the fuel, according to official data.
China agreed on Feb. 17 to provide Russia with $25 billion of loans in return for 300,000 barrels a day of oil for 20 years. Venezuela’s Petroleos de Venezuela, known as PDVSA, will provide 200,000 barrels a day to the Asian country to pay down a $4 billion loan from China Development Bank Corp.
China consumed 360 million tons of oil last year, or 7.3 million barrels a day. Imports reached 178.9 million tons, or 3.6 million barrels a day.
By John Liu
Source: Bloomberg (www.bloomberg.com)
Food and Beverage
Food Company Merger Latest Sign of Brazilian Consolidation
While transactional work may be down in the U.S., a multibillion dollar merger between food companies in Brazil could mean more opportunities for M&A lawyers abroad.
On Tuesday, Sao Paulo-based poultry and pork processor Perdigão and rival Sao Paulo-based meat producer Sadia announced a stock swap in which Perdigão would acquire Sadia to create a new company called BRF Brasil Foods. Perdigão will retain a 68 percent interest in the new entity and Sadia a 32 percent stake.
Bloomberg reports that the deal will make BRF Brasil Foods the world's largest poultry company by market value and third-largest meat processor in the Americas behind Springdale, Ark.-based Tyson Foods and JBS in Brazil.
The merger was primarily handled by Brazil-based firms. Perdigão was advised by Bocater, Camargo, Costa e Silva Advogados and a team consisting of name partner Francisco Costa e Silva and associates Carlos Augusto, Lucimara Lima and Mauricio Rossi. (The firm has offices in several cities in Brazil.) Perdigão also relied on local antitrust counsel Paulo de Tarso Ribeiro, a name partner at Fontes, Tarso Ribeiro Advogados in Rio de Janeiro.
Sadia was advised by Barbosa, Müssnich & Aragão partners Paulo Cezar Aragão, Monique Mavignier de Lima, Luiz Antonio de Sampaio Campos and Barbara Rosenberg, and associates Daniela Soares, Priscila Jane dos Santos, Mariane Pereira, José Carlos da Matta Berardo and Marcos Antonio Exposto Jr. Sadia also relied on in-house counsel José Romeu Amaral. (BM&A has offices in Brasilia, Rio De Janeiro, Sao Paulo and Belo Horizonte)
The deal, and others in Brazil, are worth following, says Marcello Hallake, an M&A partner with Thompson & Knight in New York. He for one is paying attention.
"There is a wave of consolidation going on in Brazil right now where the government is encouraging the creation of large Brazilian companies," says Hallake, who was not involved in the Perdigão-Sadia transaction.
Hallake, a Brazilian with a long track record of Latin American deals, says the Brazilian Development Bank (BNDES) is providing financing for many of these deals. He says the idea is to create large companies so they can become bigger players in the global marketplace.
Although Brazil has felt the effects of the global financial crisis, Hallake says the BRIC country is doing better than most, adding that more wheeling and dealing has occurred in recent months than in the U.S.
Thompson & Knight has Brazilian offices in Rio de Janeiro, Sao Paulo, and Vitoria through a May 2003 alliance it forged with Brazil's Tauil & Chequer. The firm's local alliance has already paid off: its Brazilian (and Portuguese) connections helped land it a lead advisory role on a $7 billion Angolan gas deal last fall.
Although Brazilian bar rules prevent foreign lawyers from practicing local law, Thompson & Knight's affiliation with Tauil & Chequer allows it to sidestep that restriction. Hallake says the firm has 50 lawyers in-country that collaborate with counsel in its Texas and New York offices.
Despite the opportunities, Hallake is quick to point out that the Brazilian economy hasn't been without its challenges.
"There was a huge wave of IPOs in Brazil in 2007, which led many U.S. law firms to open up in Sao Paulo," he says. "But the capital markets have slowed down significantly and a lot of that work has dried up."
The National Law Journal reported last year that nearly a half dozen firms -- such as Shearman & Sterling, Simpson Thacher & Bartlett, Proskauer Rose, Mayer Brown, Skadden, Arps, Slate, Meagher & Flom, Allen & Overy and Squire, Sanders & Dempsey -- have opened Brazilian offices. For some firms it was their first office in Latin America.
Fortunately for Thompson & Knight, more M&A and project development work in the energy and telecom sectors has helped offset the market downturn in other areas, Hallake says. Worsening economic conditions have even pushed some deals along. The Perdigão-Sadia merger agreement was forged after Sadia posted the first annual loss in its 65-year history, Bloomberg reports.
Going forward, Hallake says he's particularly interested in the antitrust aspects of the merger between Perdigão and Sadia to create BRF Brasil Foods.
"This deal will need to be approved by Brazil's antitrust authority," Hallake says. "And given that its intention is to create a company that will be dominant in many markets, there are some questions as to whether it will be approved and under what conditions."
Source: Law.com, http://www.law.com/jsp/article.jsp?id=1202430868156
While transactional work may be down in the U.S., a multibillion dollar merger between food companies in Brazil could mean more opportunities for M&A lawyers abroad.
On Tuesday, Sao Paulo-based poultry and pork processor Perdigão and rival Sao Paulo-based meat producer Sadia announced a stock swap in which Perdigão would acquire Sadia to create a new company called BRF Brasil Foods. Perdigão will retain a 68 percent interest in the new entity and Sadia a 32 percent stake.
Bloomberg reports that the deal will make BRF Brasil Foods the world's largest poultry company by market value and third-largest meat processor in the Americas behind Springdale, Ark.-based Tyson Foods and JBS in Brazil.
The merger was primarily handled by Brazil-based firms. Perdigão was advised by Bocater, Camargo, Costa e Silva Advogados and a team consisting of name partner Francisco Costa e Silva and associates Carlos Augusto, Lucimara Lima and Mauricio Rossi. (The firm has offices in several cities in Brazil.) Perdigão also relied on local antitrust counsel Paulo de Tarso Ribeiro, a name partner at Fontes, Tarso Ribeiro Advogados in Rio de Janeiro.
Sadia was advised by Barbosa, Müssnich & Aragão partners Paulo Cezar Aragão, Monique Mavignier de Lima, Luiz Antonio de Sampaio Campos and Barbara Rosenberg, and associates Daniela Soares, Priscila Jane dos Santos, Mariane Pereira, José Carlos da Matta Berardo and Marcos Antonio Exposto Jr. Sadia also relied on in-house counsel José Romeu Amaral. (BM&A has offices in Brasilia, Rio De Janeiro, Sao Paulo and Belo Horizonte)
The deal, and others in Brazil, are worth following, says Marcello Hallake, an M&A partner with Thompson & Knight in New York. He for one is paying attention.
"There is a wave of consolidation going on in Brazil right now where the government is encouraging the creation of large Brazilian companies," says Hallake, who was not involved in the Perdigão-Sadia transaction.
Hallake, a Brazilian with a long track record of Latin American deals, says the Brazilian Development Bank (BNDES) is providing financing for many of these deals. He says the idea is to create large companies so they can become bigger players in the global marketplace.
Although Brazil has felt the effects of the global financial crisis, Hallake says the BRIC country is doing better than most, adding that more wheeling and dealing has occurred in recent months than in the U.S.
Thompson & Knight has Brazilian offices in Rio de Janeiro, Sao Paulo, and Vitoria through a May 2003 alliance it forged with Brazil's Tauil & Chequer. The firm's local alliance has already paid off: its Brazilian (and Portuguese) connections helped land it a lead advisory role on a $7 billion Angolan gas deal last fall.
Although Brazilian bar rules prevent foreign lawyers from practicing local law, Thompson & Knight's affiliation with Tauil & Chequer allows it to sidestep that restriction. Hallake says the firm has 50 lawyers in-country that collaborate with counsel in its Texas and New York offices.
Despite the opportunities, Hallake is quick to point out that the Brazilian economy hasn't been without its challenges.
"There was a huge wave of IPOs in Brazil in 2007, which led many U.S. law firms to open up in Sao Paulo," he says. "But the capital markets have slowed down significantly and a lot of that work has dried up."
The National Law Journal reported last year that nearly a half dozen firms -- such as Shearman & Sterling, Simpson Thacher & Bartlett, Proskauer Rose, Mayer Brown, Skadden, Arps, Slate, Meagher & Flom, Allen & Overy and Squire, Sanders & Dempsey -- have opened Brazilian offices. For some firms it was their first office in Latin America.
Fortunately for Thompson & Knight, more M&A and project development work in the energy and telecom sectors has helped offset the market downturn in other areas, Hallake says. Worsening economic conditions have even pushed some deals along. The Perdigão-Sadia merger agreement was forged after Sadia posted the first annual loss in its 65-year history, Bloomberg reports.
Going forward, Hallake says he's particularly interested in the antitrust aspects of the merger between Perdigão and Sadia to create BRF Brasil Foods.
"This deal will need to be approved by Brazil's antitrust authority," Hallake says. "And given that its intention is to create a company that will be dominant in many markets, there are some questions as to whether it will be approved and under what conditions."
Source: Law.com, http://www.law.com/jsp/article.jsp?id=1202430868156
Exclusive for Members
ABCC cuts deal with Qantas on flights to South America: Enjoy the all-year-discount and personalized service with Qantas from April 2009
Qantas Travel and The Australia-Brazil Chamber of Commerce have an all-year-round reason to travel from anywhere in Australia with Qantas to:
Buenos Aires; Santiago; Montevideo; Sao Paulo and other Brazilian cities;
With an exclusive Qantas discount only available to ABCC members!!
For the Best Fare of The Day or for more information on the exclusive All-Year-Round ABCC fare offer contact:
Qantas Travel, Bridge Street on (02) 9951 4294
Qantas Travel and The Australia-Brazil Chamber of Commerce have an all-year-round reason to travel from anywhere in Australia with Qantas to:
Buenos Aires; Santiago; Montevideo; Sao Paulo and other Brazilian cities;
With an exclusive Qantas discount only available to ABCC members!!
For the Best Fare of The Day or for more information on the exclusive All-Year-Round ABCC fare offer contact:
Qantas Travel, Bridge Street on (02) 9951 4294
Exhibitions & Fairs
NETCOM
Dates: 04 August – 06 August 2009
Country, city - Brazil Sao Paulo
Frequency: biennale
Venue: Expo Center Norte
Trade show organizer Aranda Eventos
Description:
NETWORKING AND TELECOMMUNICATIONS - Exhibition
NetCom is the most important meeting point for telecommunications, cabling systems and networking in Latin America for companies and professionals. It will be held in Sao Paulo at Expo Center Norte. Open from 12:00 to 20:00, with free admission. Open from 9 am to 6 pm, the conference program will feature over 100 presentations in 3 days, in simultaneous sessions, exploring business and technical aspects of cabling systems, broadband, access networks, networking, wireless, VoIP, security and automation (building and home automation).
http://www.expopromoter.com/Redirect/lang/en/event_id/63332/
ANALITICA LATIN AMERICA
Dates: 08 September – 10 September 2009
Country, city - Brazil Sao Paulo
Frequency: annual
Venue: TRANSAMERICA Expo Center
Trade show organizer - Nielsen Business Media Brazil
Description:
This is an event, where one can find the best opportunities in solutions, products and services of major industries: pharmaceutical, cosmetics, food, and chemical.
http://www.expopromoter.com/Redirect/lang/en/event_id/63323/
Dates: 08 September – 10 September 2009
Country, city - Brazil Sao Paulo
Frequency: annual
Venue: TRANSAMERICA Expo Center
Trade show organizer - Nielsen Business Media Brazil
Description:
This is an event, where one can find the best opportunities in solutions, products and services of major industries: pharmaceutical, cosmetics, food, and chemical.
http://www.expopromoter.com/Redirect/lang/en/event_id/63323/
Monday, 1 June 2009
Brazilian Singer
AN EXPERIENCE IN SIX STRINGS - João Rabello in Brisbane
The guitar is central to the Brazilian musical experience. From great composers like Villa-Lobos, to folk forms like samba and bossa-nova, the guitar has played a pivotal role in unifying "high" and "low" music. In a country as large as Brazil, with such a rich musical heritage this means a lot. The guitar became popular there even before emerging as a concert instrument in Europe in the 20th century.
João Rabello has been described as a member of Brazil’s elite register of musicians; little surprise when he can claim legendary guitar players on both sides of his family going back four generations. An Experience In Six Strings is João Rabello’s tour through the universe of the Brazilian guitar. From the traditional to the vanguard, from the north to the south, this repertoire is for those who wish to hear a small piece of a long history carried in six strings.
An Experience In Six Strings is João Rabello's tour through the universe of the Brazilian guitar. From the traditional to the vanguard, from the north to the south, this repertoire is for those who wish to hear a small piece of a long history carried in six strings.
BRISBANE - Fri 17 July, 8pm
The Tivoli
Full $39 / Conc $29
132 849 / qmf.org.auz
The guitar is central to the Brazilian musical experience. From great composers like Villa-Lobos, to folk forms like samba and bossa-nova, the guitar has played a pivotal role in unifying "high" and "low" music. In a country as large as Brazil, with such a rich musical heritage this means a lot. The guitar became popular there even before emerging as a concert instrument in Europe in the 20th century.
João Rabello has been described as a member of Brazil’s elite register of musicians; little surprise when he can claim legendary guitar players on both sides of his family going back four generations. An Experience In Six Strings is João Rabello’s tour through the universe of the Brazilian guitar. From the traditional to the vanguard, from the north to the south, this repertoire is for those who wish to hear a small piece of a long history carried in six strings.
An Experience In Six Strings is João Rabello's tour through the universe of the Brazilian guitar. From the traditional to the vanguard, from the north to the south, this repertoire is for those who wish to hear a small piece of a long history carried in six strings.
BRISBANE - Fri 17 July, 8pm
The Tivoli
Full $39 / Conc $29
132 849 / qmf.org.auz
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