Events - Australia

APPEA-Conference & Exhibition
Date: 16-MAY-10 to 19-MAY-10
APPEA-Conference & Exhibition 2010 is a leading exhibition for Oil and Gas industry in Australia. The event will provides the opportunity for industry knowledge-sharing, networking and business. A conference also will be held during the exhibition at same venue. The event is being organized by Sane Event Management Pty Ltd.
Venue: Brisbane Convention & Exhibition Centre, Brisbane, Queensland, Australia
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Restaurant Expo-Melbourne
Date: 24-MAY-10 to 25-MAY-10
Restaurant Expo-Melbourne is the largest Restaurant expo in Melbourne. The exhibition will be held between 24-25 May 2010 at Melbourne. Restaurant Expo-Melbourne will encompass everything a restaurateur and their team need to make their restaurant more successful, and give them the edge.
Venue: Melbourne Convention and Exhibition Centre, Melbourne, Victoria, Australia
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CeBIT Australia
Date: 24-MAY-10 to 26-MAY-10
CeBIT Australia is Australasia's leading Information & Communications Technology (ICT) event for the business marketplace and covers the entire spectrum of technology and the key elements that make up the ICT products and services marketplace. This is the only Australian event where you can explore the full range of next generation global technologies and solutions.
Venue: Sydney Convention & Exhibition Centre, Sydney, New South Wales, Australia
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Sustainable Energy Expo
Date: 05-JUN-10 to 07-JUN-10
Sustainable Energy Expo provides a forum for suppliers of sustainable energy products and services to present, explain and demonstrate their technologies and experience. Sustainable Energy Expo will be held at Perth Convention & Exhibition Centre from 05 to 07 June 2010.
Venue: Perth Convention Exhibition Centre, Perth, Western Australia, Australia
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FoodService & Bakery Australia
Date: 21-JUN-10 to 23-JUN-10
FoodService & Bakery Australia is the only national trade show dedicated to the foodservice industry. It provides you with the perfect opportunity to connect with a diverse group of buyers. This is an ideal environment to generate new sales, maintain and service existing clients and use the show to introduce new products, services or special promotions.
Venue: Sydney Convention & Exhibition Centre, Sydney, New South Wales, Australia
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ABCC - Feed Back on Events

ABCC Australia-Brazil Golf Tournament 2010 – SKM Trophy

Pic1 - Golf Group Photo / Pic2 - Cristina Talacko (ABCC), Iain Mars (JBS Swift) and Ambassador F. de Melo Barreto.


Pic3 - Tony Owen (SKM), Fabio Buckeridge Pricewaterhouse Coopers) and Cristina Talacko (ABCC) / Pic4 - Marion Gazzard (Australian Internships) / Pic5 - Renato Paladino (Hancock Exploration)


Pic6 - Monica Scott (Goal Migration), Paulo and Teresa Maia (HSBC) and Ambassador F. de Melo Barreto / Pic7 - Tony Owen (SKM), Cris Talacko (ABCC), Martin Talacko (SalDoce Fine Foods), John Ferreira (SMBC).

Chris Gorry (Ground Probe), Fabio (PwC), Tony Owen (SKM), JBS Swift table

Luncheon at Lakeview and players ready to go (click on images to enlarge)

The ABCC hosted the first Golf Tournament between Brazilians and Australians on 28th March at Palm Meadows Golf Club at the Gold Coast, proudly sponsored by Sinclair Knight Merz.
29 players competed for the SKM Individual Trophy. Brazilian Fabio Buckeridge from PricewaterhouseCoopers Australia was the winner followed by Quinn Pfitzner from Quinn Films and Chris Gorry from Ground Probe. Other trophy winners for the longest drive and nearest to the pin were Marion Gazzard from Australian Internships, Jean Lamagnere from SKM and Renato Paladino from Hancock Exploration.

Overall, Australia won the ABCC Trophy for best team of 2010 – Australia 25.6 to Brazil 22.3.

The ABCC would like to thank SKM for sponsoring the event and all our special guests, including Ambassador Fernando de Mello Barreto, captain for the Brazilian Squad, Iain Mars, captain for the Australian Squad, Mr Wesley Batista, CEO JBS Swift USA, Paulo Maia, CEO – HSBC Australia and the following companies:
Vale, Ground Probe, PricewaterhouseCoopers, Wallace Group, Ecolab, JBS Swift Australia, Sumitomo Mitsui Banking Corporation, Brasilfit, Quinn Films, Australian Internships, Hancock Exploration and Goal Migration.

Queensland and Latin America by the Hon Peter Beattie - Commissioner for the Americas

Queensland is keen to accelerate our companies and universities doing business in Latin America and hence the upcoming trip this month by the Premier to Latin America is very important to Queensland’s future.

I was the first Premier or indeed Australian leader to visit Latin America which I did with a large cane grower’s delegation in 2004 to Chile and Brazil and I have enjoyed the last two years as Trade and Investment Commissioner expanding Queensland’s involvement in the region.

This month Premier Anna Bligh will be the first sitting Queensland Premier to visit Peru and Colombia. She will also visit Brazil and Chile.

If Queenslanders were asked today to predict the state’s 10 major trading partners in a decade’s time, few would include any Latin American countries. I am hoping the Premier’s trip will change that perception in Australia.

China, Japan, Korea, Europe, the US and the Middle East would head the list. Yet the global investment bank Goldman Sachs predicts that by 2050 the world’s five biggest economies will be China, the US, Brazil, India and Mexico. Having two Latin American countries in the top five will surprise many.

The same could have been said about China, Korea and India just 25 years ago. Queensland has been smart in the past by getting into the Japanese, Korean, Chinese and Indian markets early. Now we have to do it again in Latin America. That is why Queensland is targeting business opportunities in Latin America for Queensland companies.

One in five Queenslanders get their jobs from trade. It is the backbone of our economy.

That’s why Queensland Premiers - on both sides of the political divide - have focused on helping target Queensland into emerging markets, opening the doors for Queensland companies and giving them first-mover advantage.

Latin America is a huge continent and Queensland has had to pick the best opportunities. Our strategy has focused on Mexico, Brazil, Chile, Colombia and Peru. In doing so, we have put aside the out-of-date misconceptions about these countries and focused on the opportunities for our companies.

Today Queensland companies are increasingly engaged in Latin America. There are about 30 operating in Chile including Mincom, Supavac, Austin Engineering, Runge, Russell Mineral Equipment, Ludowici, Sedgman and Industrea. This critical mass enables these exporters to work together to expand in this market.

Our companies are now also successfully finding significant opportunities in Brazil, Peru, Colombia, Chile and Mexico.

As the basis for expanding trade, Queensland recently signed cooperation agreements with the Chilean mining region of Antofagasta, the Federal Government of Mexico and the state of Antioquia in Colombia. We have renewed a vital agreement with Minas Gerais in Brazil which I initially signed in 2004.

There's a lot of business already being done in Latin America and, as usual, Queenslanders are leading the way for Australia. Two way merchandise trade between Queensland and Chile was worth $569 million in 2009/09 - that's more than 64% of Australia's trade with Chile.

It's a similar story in Brazil, where trade between Queensland and Brazil was worth $1.4 billion, or 57% of Australia's trade with Brazil which is rapidly becoming a world power house economy.

These are impressive numbers but when you consider that Brazil's economy alone is worth around $2 trillion, that they are hosting the Olympics and the World Cup soccer and that they've discovered massive oil reserves which will make them one of the biggest producers in the world, there's more business to be done in Brazil, Chile, Colombia, Peru and Mexico.

It will surprise many Queenslanders but Latin America is a secure investment destination with generally stable government and sound economic policies in the five targeted countries. Not only that, but Latin America has successfully navigated the global financial crisis and is predicted to grow around one percent faster than global growth. Brazil is already implementing policies to prevent their economy from overheating.

Queensland has made a good start in Latin America. We are better placed than any other Australian state, but now we need to move to the next level. The World Cup in 2014 and the Olympics in 2016 will focus the eyes of the world on Latin America. We need to take full advantage of the opportunities before the rest of the world dominates trade with Latin America.

Any Premier worth his or her salt would be working to give our companies a bigger foothold in Latin America regardless of their politics. Latin America should be a target for Queensland regardless of which party occupies the 15th floor of the Executive Building in George Street or the Lodge in Canberra.

The Honourable Peter Beattie
Commissioner for the Americas

In Brazil, the Premier will have key meetings in Rio de Janeiro and Belo Horizonte with Mayors, Brazilian mining giant Vale, CEMIG, Mr Antônio Augusto ANASTASIA, Governor of Minas Gerais, key Brazilian and Australian companies, open a business workshop and host a major reception. In Rio de Janeiro the Premier will be supported by the Mr Ronaldo Veirano, Honorary Australian Consul who has just been awarded an Order of Australia.

ABCC New Members

The ABCC welcomes the following new members

Erica Carneiro – Bravo Migration
Monica Scott – Goal Migration
Kel Lupis - RBA Group

Special article - ABCC Member Paulo Maia

A Brazilian takes top post at HSBC Bank
By Lola Matheus

The HSBC bank has appointed Paulo Maia as their CEO in Australia. With more than 25 years of experience in banking, having worked in different positions in England, United States and Brazil,Paulo took up the new position in July 2009.
Paulo welcomed RADAR in his office, with the well-known friendliness of a ‘carioca’ (native of Rio de Janeiro), and spoke, of Brazil as an emerging economic power, and about his career and professional goals in Australia.

What are your objectives as the CEO of the HSBC Bank in Australia?
HSBC is a well-established bank and it’s been in Australia since 1965. In the 1980s, they acquired the rights to open up a commercial bank and it’s been growing since then. Today, we have 24 branches, and almost five hundred thousand clients. We’re hoping to keep growing and our objective is to open three to four branches a year.

How many employees do you have under your leadership?
We have 1600 employees in Australia and another 300 who work for us in other countries. In total, we have 1800 to 2000 employees.

How did the invitation to work in Australia come about?
It happened around June last year. I had been working for twelve years for the bank in Brazil. Prior to that, I had two overseas posts one in London with HSBC and another in New York with The Chase Manhattan Bank. The opportunity to take up a position with a bank as important as HSBC and to work in a developed country with a sophisticated financial market came about. This is a unique opportunity which will enrich my professional experience.

What’s your opinion about Brazil’s financial position internationally?
The HSBC bank believes that emerging markets such as Brazil will be leaders in economic growth. Amongst the emerging markets, China is now ahead in economic growth, but Brazil has shown consistency as well, with a stable and democratic political system which helps significantly in this process. Despite some social problems, Brazil has economic stability as a result of its democratic system. Foreign investors know that contracts will be respected when there is a stable political system. The growth prospects are very good, as Brazil is an emerging market with a lot of natural resources.

Do you see any economical similarities between Brazil and Australia?
Compared to other developed countries, Australia is perhaps the best economically positioned, and Brazil is also very well positioned amongst the emerging economies. China is the biggest commercial trader with Australia, and it has also become one of Brazil’s largest trade partners. Australia has a solid financial system which is also the case of Brazil.

Are interest rates high in Brazil?
Interest rates are high there as well as in Australia. The current 3.75% cash rate in Australia is perhaps the highest central bank rate among the developed countries, if compared to the USA, for example, where the central bank rate is zero. On the other hand, there is also Brazil which has the highest interest rate among the emerging markets.

How do you find a balance between your professional and social life?
My job is demanding. It’s necessary to have a lot of discipline. I work long hours, starting at 8am and finishing around six or seven pm, depending on the day. It’s also important to spend quality time with my family - my wife and daughters. I also like playing golf, although I don’t have much time to practice.

You’re an inspiring role-model for Brazilians living in Australia. What’s your message to our community?
I think it’s important when we are living overseas to represent our country in the best possible way, to be well-regarded as Brazilians in Australia and to always strive to leave a positive impression.

Source: RADAR Magazine, ed.09 February - March 2010

Special article from ABCC Member – Bravo Migration

Latin American communities to benefit from new partnership that help start a business in Australia

In an Australia-first, migration specialist Bravo Migration and leading start up experts Business Switch have partnered to help the Brazilian and South American communities start up business in Australia.

“This is the first time our community has been able to access professional Australian business start up advice. It has been much needed as, up to now, there has been too much confusion and misunderstanding about starting a business in Australia,” said Erica Carneiro, Managing Director of Bravo Migration.
“Many people on temporary visas in Australia (such as students, family members of people on work Sponsorship Visas, Graduate Skilled Visa holders and others) don’t know that they can start and own a business in Australia.
“We have also seen a significant increase from people outside of Australia wanting to move here and either open a branch of their company or start a new enterprise in Australia,” said Ms Carneiro. “This is also a migration/visa pathway and we wanted to help clients who want to follow it.”

South American cultures are, at their heart, entrepreneurial and passionate
Matthew Abrahams, Managing Director of Business Switch said; “We love the fact that South American cultures are, at their heart, entrepreneurial and passionate about business. Where other cultures, such as Chinese, seek to buy existing businesses in Australia, we have found the Latin communities more focused on starting their own.
“Partnering with Bravo Migration provides the perfect bridge between the community and our expert business start up services.
“For example, through Bravo Migration, clients can learn about Business Switch services in their native language - Portuguese or Spanish. It provides the perfect start to understanding how to get a business operational in Australia,” Mr Abrahams said.
Ms Carneiro emphasized that, from a migration perspective, starting up a business in Australia will not automatically provide a visa to stay in Australia. However, it is considered a Migration Pathway.
“If someone starts a business in Australia on a temporary visa and the business is successful, to the point where it reaches some, very realistic, Department of Immigration targets, that person might be eligible for a Permanent Visa on the basis of that business.
What makes this partnership unique is, for the first time in Australia, Bravo Migration and Business Switch can help people to create a Business to Residence path, and via their combined services make sure that you grow a successful business and that the visa process is seamless,” she said
Another area of focus are Business Visas for company owners outside of Australia, who want to invest in Australia by opening branches or investing in new business in Australia.
If company owners meet all the Department of Immigration requirements and present a business plan that shows their business idea and investment is viable, they can get a visa to live in Australia and manage the business for an initial four years.
If the business meets Department of Immigration targets, there are options to apply for permanent residence afterwards.
“Investment into Australia strengthens our economy. Our partnership with Bravo Migration will make the process more easily understood by the South American market. At the end of the day, knowledge is power,” added Mr Abrahams.

Inaugural business Start up Seminar to be held 15 April 2010
The first initiative of the new partnership will be the launch of the first “Start Up Smart Seminar” hosted by Bravo Migration and Business Switch.
The first event will be held on 15 April. Seats are strictly limited and filling fast. Interested parties are encouraged to make contact as soon as possible.
Details are as follows:

Start Up Smart Seminar
When: Thursday 15th April 2010 @ 6PM
Where: Bravo Migration – Level 12, 95 Pitt Street, Sydney
How much: A$39.95
Bookings on (02) 8249-8149 with Priscila


About Business Switch

Business Switch is Australia’s leading business start up company. They are solely focused on helping people successfully start up in business. They utilize a proven method and have an expert team who understands the start up process. This ensures people start their business successfully, save time and money, and secure support during the critical start up process. http://www.business-switch.com.au/

About Bravo Migration

Bravo Migration is a migration agency with a difference: a track record of ethical and professional service delivery. Their vision is to provide innovative and relevant service to its clients. They offer Migration Assistance through their Visa Assessment, Visa Strategy and Visa Application Services. This ensures people go through a migration/visa process with the right support and achieve positive outcomes. www.bravomigration.com.au

Source: Bravo Migration, March 2010.

Economy

Brazil Recovery Gains Momentum With Robust 4Q GDP Growth
March 11, 2010

Brazil's economy continued its robust recovery in the fourth quarter as the country's services and industrial sectors reacted to heated domestic demand.

Brazil's gross domestic product expanded 4.3% in the fourth quarter compared with the fourth quarter a year ago, the Brazilian Census Bureau, or IBGE, said Thursday. That was below the median forecast of 4.64% made by 18 economists polled by Dow Jones Newswires.

A series of moves last year by the government and the Brazilian Central Bank continued to pay dividends in the fourth quarter, stoking domestic demand. The central bank cut interest rates, while the government boosted spending and cut taxes on consumer goods.

"For us, [the GDP figure] was well in line with expectations," said Silvio Campos Neto, chief economist at Banco Schahin. "The strong fourth-quarter recovery was largely because of an intense rebound in the industrial sector and increased investments."

Brazil's industrial GDP jumped 4.0% year-on-year in the fourth quarter, while service sector GDP surged 4.6%. Brazil's massive agriculture industry, which struggled with poor weather and lower commodity prices, registered a 4.6% decline in fourth quarter GDP versus the same period of 2008.

The fourth-quarter performance of Latin America's largest economy continued the recovery that started earlier this year, when quick action by Brazil's government to fight the global financial crisis and economic slowdown set the course for the emerging-market powerhouse to pull out of its first recession since 2003.

The country registered two consecutive quarters of shrinking GDP--the technical definition of recession--in the fourth quarter of 2008 and first quarter of 2009.

The Brazilian Central Bank slashed 500 basis points off the benchmark Selic base interest rate, starting in January 2009. The monetary easing left the reference rate at its lowest-ever level of 8.75%. The bank's Copom rate-setting panel has maintained the Selic at 8.75% since last year, although a recent rise in inflation has increased expectations for a rate hike--perhaps as early as next week's meeting.

The government also granted tax breaks for car sales and big-ticket appliances such as refrigerators and washing machines in order to stoke domestic demand. The tax breaks are only now starting to expire.

The stimulus measures had the desired effect, increasing consumer access to credit and fueling domestic sales--including record auto sales of 3.1 million vehicles in 2009.

The strong rebound, however, was not enough to ward off a decline for the full year. Brazil's economy shrank 0.2% in 2009 compared with 5.1% growth in 2008. That was the first full-year decrease in GDP since a 0.5% decline in 1992, the IBGE said.

In market value, Brazil's GDP was 3.14 trillion Brazilian reals ($1.78 trillion) in 2009, up from BRL3.0 trillion in 2008. The economic slowdown also sapped investments, with the country's investment rate falling to 16.7% of GDP in 2009 compared with 18.7% of GDP in 2008.

Family consumption, meanwhile, increased 8.8% in 2009 to BRL1.97 trillion compared with BRL1.81 trillion in 2008, the IBGE said. Government spending rose 11% to BRL654 billion, up from BRL588 billion in 2008.

The IBGE also revised GDP figures from past quarters, showing that Brazil's emergence from the recession earlier this year was stronger than previously thought.

In the third quarter, GDP was revised upward to growth of 1.7% from previously reported growth of 1.3%. Second-quarter GDP was revised upward to growth of 1.4% from the previously reported 1.1% gain.

Meanwhile, the decline in first-quarter GDP was stronger than previously reported, shrinking 3.5% from the fourth quarter compared with a 2.9% decline previously reported.

By: Jeff Fick

Source: The Wall Street Journal


Brazil's Foreign Reserves Increase By $466 Million In February
March 03, 2010

Brazil's foreign-currency reserves increased by $466 million in February from the previous month, as the central bank continued purchasing dollars in the foreign exchange market, according to figures published on the bank's Web site Tuesday.

Foreign reserves totaled $241.28 billion, up from $240.82 billion at the end of January.

The reserves grew sharply from 2005 after the central bank started purchasing dollars from the spot market in October 2005. The reserves totaled $53.779 billion at the end of 2005.

The level declined beginning in October 2008 as the central bank loaned dollars to Brazilian businesses in the face of the global credit crunch. The central bank also sold dollars from the reserves to the foreign-exchange market via spot auctions.

In mid-2009, however, the government reversed course, buying dollars from the market at spot auctions.


By: Rogerio Jelmayer

Source: The Wall Street Journal



Brazil’s Real Heads for Biggest Advance in World This Month
February 26, 2010

Brazil’s real is set for the biggest gain in the world this month as economic growth accelerates and the central bank prepares to raise benchmark borrowing costs to curb inflation.

The real rose 4.3 percent this month to 1.8170 per dollar as of 10:02 a.m. New York time, from 1.8950 on Jan. 29. The advance, which reverses much of last month’s 7.9 percent plunge, is the largest among all currencies tracked by Bloomberg. The real will rise to 1.81 by June and 1.72 by year-end, according to the median forecast of analysts surveyed by Bloomberg.

“Brazil is still a solid story, and the real is an attractive currency,” said Vitali Meschoulam, an emerging- market strategist at Morgan Stanley in New York, who forecasts the real will rise to stronger than 1.7 this year. “The economy is the fastest growing in Latin America. It is among the first to raise interest rates and the strong foreign direct investment dynamics hasn’t changed.”

The real advanced as traders raise their bets that policy makers will boost the key borrowing costs from a record low of 8.75 percent as soon as next month to curb inflation. The central bank this week required lenders to deposit an additional 71 billion reais ($39 billion) to withdraw economic stimulus as a broader measure of inflation that includes wholesale prices quickened to the fastest in 19 months.

Yields on interest rate future contracts due January 2011, the most traded on Sao Paulo’s BM&F exchange, held today at 10.41, up from 10.27 percent on Feb. 19. That rate suggests traders anticipate the central bank will push the benchmark rate to above 12 percent by year-end.

Foreign Investment

The real’s gain this month pares its losses this year to 4 percent. The currency tumbled 8 percent in January in its biggest slump since October 2008 as China, the biggest buyer of Brazilian exports, curbed bank lending to slow the economy.

Goldman Sachs Group Inc. and Bank of America Corp. recommended clients this month buy the real, saying that growth in Latin America’s biggest economy will lure foreign investment.

The $1.6 trillion economy will expand 5.5 percent this year, up from 0.5 percent growth last year, according to a central bank survey of about 100 economists published Feb. 22.

Foreign direct investment will jump 73 percent to $45 billion, matching the record in 2008, as the country builds houses, roads and stadiums for the 2014 World Cup soccer games and 2016 Olympics, according to the central bank.

Growth indicators suggest “the current account deficit will be easily financed through foreign investment,” Jose Francisco de Lima Goncalves, chief economist at Banco Fator SA, said in a telephone interview from Sao Paulo.

Brazil’s credit rating may be reviewed for an increase by Moody’s Investors Service next year if President Luiz Inacio Lula da Silva’s successor continues to improve the country’s debt indicators, the ratings company said yesterday.

Moody’s raised Brazil’s long-term debt rating to Baa3, the lowest investment grade, from Ba1 in September, following similar moves by Standard & Poor’s and Fitch Ratings a year earlier. Moody’s has a positive outlook on the rating.


By: Camila Fontana and Ye Xie

Source: BusinessWeek

Mining

Brazil's miner Vale attempts to hose down report on iron ore price spike
UPDATE: John Kolodziejski
From: Dow Jones Newswires
March 24, 2010 6:24AM

ANNUAL iron-ore price negotiations have taken an interesting turn after a report that Brazilian miner Vale was looking for a 114.4 per cent increase.
Not only was the percentage increase well above market expectations of between 60 per cent and 90 per cent, but, according to the report in Brazil's Valor newspaper, Vale had launched a new model of quarterly contracts.
Vale later released a statement denying it had issued any new information about prices to the market, but reiterated the tri-monthly contract model wasn't new but part of its flexible negotiating strategy.
Vale's reported price increase would bring top-quality sinter feed ore to $US122.20 a tonne for the period April through June, Valor said, well up on Vale's $US57 iron-ore reference price last year.
Gilberto Cardoso, a mining analyst at Banif Investment Banking, said the report seemed to confirm sentiment that this year's price increases would be at the top end of forecasts.
There are risks, however, if the price is pitched too high, he said.
"I think China's supply chain might be able to absorb a high rise, but there are worries about markets which are showing no growth like Europe, the US and even Latin America," said Mr Cardoso.
"Some mills and manufacturers just can't pass on prices like that to their customers," he added.
However, Vale's high prices may be just an initial bargaining ploy.
"These prices aren't likely to be the final ones, as discounts should be given. Differentiated contracts may be signed at an average price a bit below this rise of over 100 per cent," Sao Paulo's Link Investimentos brokerage said in an analyst report.
Vale's tri-monthly model, known as IODEX, is a new wrinkle in iron-ore contracts.
Until now, iron ore has been mainly contracted either at an annual benchmark price or through spot market sales.
"If confirmed, tri-monthly contracts would represent a big change from the benchmark system, which has been around for 40 years, and would likely make the market more volatile," said Banif's Mr Cardoso.
In recent years, Vale has customarily set the benchmark price after long talks with leading Chinese steel mills, and then other miners and mills have followed suit.
But the world's largest ore buyer, China, may not want quarterly deals.
"While the Japanese seem disposed to accept these three-monthly contracts, the Chinese will likely try and avoid this change," said Link Investimentos.
Mr Cardoso said the upside of IODEX is that it's good for miners when prices are rising. "It captures the real value of the market," he noted. "It also detects market trends quickly."
However, the downside would be greater volatility.
Mr Cardoso criticised the tone of iron ore-bargaining undertaken via the media, which he said was "too aggressive, with prices discussed by fax instead of the usual long talks. They don't seem able to speak to each other directly."
Spokesmen for Vale declined to comment specifically on price talks, pointing to its latest media release.
Tight supply is at the heart of current negotiations.
Valor said Vale has told clients that demand for iron ore this year is 1.032 billion tonnes but there is only one billion in supply.
Although miners have bright prospects for the 2010 contract year, and maybe all the way into 2012, what are the medium-term consequences?
Mr Cardoso said he believes there will be more mergers and acquisitions among both producers and steel mills.
"Higher ore prices will accelerate new business opportunities; there'll be more company takeovers, joint ventures and expansion of mining projects because of strong cash-flow from the high prices," he predicted.
"We're already seeing China buying mining assets in Africa and Brazil, just like Japan did with its trading companies years ago," he added.

Source: theaustralian.com.au

Oil & Gas

Brazil's oil giant becomes 2nd most profitable firm in Americas:
RIO DE JANEIRO, Mar. 22, 2010 (Xinhua News Agency)

Brazil's state-owned oil and gas giant Petrobras became the second most profitable public firm in the Americas in 2009, said a consulting agency on Monday.

In a report, the consulting agency, Economatica, said that Petrobras garnered a net profit of 28.9 billion reals (16.6 billion U.S. dollars) last year.

Despite the high figures, Petrobras' profit in 2009 was actually 12 percent lower than that in 2008.

According to the Economatica, Petrobras' profit in 2009 was only lower than that of U.S. oil giant Exxon Mobil's (NYSE:XOM) , which reported profits of 19.28 billion dollars. The difference between the two companies' figures was of only 13.7 percent, the lowest since the Economatica started the comparisons in 1994.

U.S. software company Microsoft (NASDAQ:MSFT) ranked third in the list, with 16.25 billion dollars, followed by retail giant Wal-Mart (NYSE:WMT) , with 13.49 billion dollars, and computer giant IBM (NYSE:IBM) , with a net profit of 13.42 billion dollars.

In 2008, due to the dollar's higher value compared to the Brazilian currency real, Petrobras had ranked fifth on Economatica's list after Exxon Mobil, Chevron Texaco, General Electric (NYSE:GE) and Microsoft.

According to the Economatica report, Petrobras is the only Brazilian company among the 20 most profitable public companies in the Americas. All 19 others are from the United States.


(Source: iStockAnalyst )

Financial market

Brazil's Gafisa raises 1.06 bln reais to expand
Tue Mar 23, 2010 7:44pm EDT

SAO PAULO, March 23 (Reuters) - Gafisa (GFSA3.SA)(GFA.N), Brazil's second largest real estate developer, raised 1.06 billion reais ($598 million) in a stock offering on Tuesday that will help it fund takeovers and new residential projects.

The company, whose main shareholders include a fund headed by real estate tycoon Sam Zell and investment adviser Marsico Capital Management, sold 85 million new shares for 12.5 reais each, according to a securities filing.

That price was just below the stock's closing price on Tuesday of 12.55 reais on the Bovespa stock exchange.

Sao Paulo-based Gafisa had filed to sell 74 million new shares, but underwriters had the option to increase the offering by 25.9 million additional shares to meet demand.

Gafisa's so-called follow-on stock sale came after the initial public offering by start-up OSX Brasil (OSXB3.SA), which had to slash the price and the number of stock in a sale last week because of tepid investor demand.

The OSX stock slumped 12.5 percent in its trading debut on Monday as investors shunned Brazilian IPOs. [ID:nN22199897]

Itau BBA, the investment banking unit of Brazil's largest private sector bank Itau Unibanco ITUB4.SAi, managed the stock offering. JPMorgan (JPM.N) and Banco Votorantim also helped underwrite the sale, according to the prospectus of the offering.

Underwriters of the Gafisa offering stood to earn 3.17 percent from the total value of the sale in fees, according to the prospectus, or 33.8 million reais.

($1=1.776 reais) (Reporting by Bruno Marfinati; writing by Elzio Barreto; editing by Andre Grenon)

Source: reuters.com


Brazil Braskem may expand green plastics on demand
Mon Mar 22, 2010 3:16pm EDT

SAO PAULO, March 22 (Reuters) - Braskem (BRKM5.SA), Latin America's largest petrochemicals company, may open a second factory to produce polyethylene from sugar cane-based ethanol, once a first plant starts up around October, a project manager at the firm said on Monday.

Braskem expects to become the first commercial-scale producer of polyethylene made from a renewable source when a plant in Brazil begins producing the building block resin used in plastics at the Triunfo plant, said Leonora Novaes, Braskem's commercial head for green polyethylene.

A second plant is likely to follow, if manufacturers show sufficient interest in the plastic, which will have the same characteristics as petroleum-based polyethylene but help reduce greenhouse gasses and meet consumer demand for more environmentally friendly products.

A new plant would take about three years to build.

The firm is studying possible locations for a second plant, including real estate in the center-south's sugar cane heartland to have ready access to ethanol, the plastic's raw material.

Ethanol will have to be transported over a long distance to reach the Triunfo plant in Rio Grande do Sul, Brazil's southernmost state.

"Cane (ethanol) brings many advantages. Cane is very efficient at capturing CO2 in the growth process," Novaes said in a presentation on the product at the opening of the three-day FO Licht Sugar and Ethanol Conference in Sao Paulo.

The firm has committed to selling 50,000 tonnes of the green plastic to Toyota (8015.T), a quarter of the 200,000 tonnes the Triunfo plant will produce initially.

Novaes said European firms had shown keen interest in the product and Braskem expected to export to the United States.

Demand appeared limited on the domestic market so far.

"It's still a niche," said Novaes, who said the 200,000 tonnes was less than 1 percent of total global polyethylene consumption. (Reporting by Peter Murphy; Writing by Reese Ewing; Editing by Walter Bagley)

Source: reuters.com

Events – Australia

JORGE BEN JOR - ONE NIGHT ONLY!

Brazil’s best known alchemist of funk, rock, samba and bossa-nova is finally heading to Sydney for one exclusive and intimate performance at The Enmore Theatre. Ben Jor has invented samba-rock, an acclaimed genre that fuses bossa-nova’s samba beat with electric guitar’s swing. Simply vivacious.
Renowned for his singular and incomparable style, his impressive career spans 45 years of performances in Europe, USA, Africa, Asia, and of course South America, also including 34 albums and more than 700 original songs. Jorge Ben Jor composed the classic ‘Mas Que Nada’,a hit that has been recorded by hundreds of international artists including Ella Fitzgerald and Black Eyed Peas.
His album ‘Africa Brazil’ recorded in 1976, includes the hit ‘Taj Mahal’, and was elected by Rolling Stone magazine in 2002 as the 22nd coolest album of all time.
Song-writer and guitarist extraordinaire, this musician has an exceptional gift of creating explosive compositions that are part of Brazil’s vivid music heritage. Since the beginning of his career, Jorge has been original. He’s innovative, avant-garde and keeps experimenting with music.
Jorge Ben Jor and his sophisticated and furiously high energy band hail from Rio de Janeiro and deliver an impressive musical set featuring some of the smoothest and deepest funk that would shake anyone’s body.
This concert promises a night of dancing and serious grooving!
Don’t miss the opportunity to experience a non stop sunny energy from Rio de Janeiro’s tropical beaches without leaving Sydney.
Book now and guarantee your ticket to this rare opportunity to see and hear something different that will revitalize your soul.

Source: enmoretheatre.com.au