Brazil
Basic Political Developments
· Brazil's government dismissed reports Feb. 11 suggesting an amnesty was being considered for landowners who were contributing to the deforestation of the Amazon.
National Economic Trends
· Brazilian economists cut their 12- month inflation forecast for a second week, from 4.30 percent to 4.26 percent, as consumer prices show signs of deceleration.
· Brazil is poised to successfully weather a global economic slowdown and remains on track to reach an investment-grade credit rating this year, Finance Minister Guido Mantega said Feb. 11.
Business, Energy or Environmental regulations or discussions
· Brazil's National Development Bank (BNDES) will finance jets sales by aircraft manufacturer Embraer in the U.S. according to reports issued Feb. 11.
· The Safra family is planning to sell their majority stake in the Ponto Frio consumer electronics and home appliance stores. The Safra stake could be worth about $1.58 billion. The sale could take place within the first quarter of 2008.
· Vehicle sales in Brazil fell in January in line with seasonal trends but flex-fuel vehicles increased their share of the total market, Brazil's automobile manufacturers' association Anfavea said Feb. 11.
· Brazil is considering expanding its quota for non-Mercosur wheat if Argentina maintains its export restrictions on the commodity, says a Feb. 11 report. Brazil’s current quota is 1 million tons.
· Brazil wants to negotiate with the European Union to normalize restrictions against Brazilian beef, but could turn to the WTO if it becomes necessary, said a Brazilian official Feb. 11.
Activity in the Oil and Gas sector (including regulatory)
· Australia-listed Eromanga Hydrocarbons has kicked off its Brazilian drilling campaign with the arrival in the country of its Sonda ETX drilling rig, which will sink two wells over the next eight weeks.
· Chevron's downstream business is growing in markets like Brazil, Colombia and Panama, according to Bereket Haregot, the company's vice president for Latin America Global Marketing, says a Feb. 11 report.
Petrobras
· Petrobras said Feb. 11 that it plans to spend $1.14 billion to widen and modernize its oil and gas pipeline infrastructure in Sao Paulo state. Construction is slated to start in the second half of 2008, and is likely to boost economic growth.
· Petrobras has started a long-term test output at its Marlim Leste field in Brazil's Campos Basin, the company said in release late Feb. 8.
· Petrobras invested $19.6 billion in 2007, according to a Feb. 11 report.
· Petrobras reopened a 2018 global bond in hopes of raising an additional $500 million in capital markets, a company source told media Feb. 11.
· Petrobras recently started marketing more than 100 million gallons of biodiesel to satisfy Brazil’s new B2 mandate, which went into effect Jan. 1, according to a Feb. 11 report.
------Basic Political Developments
http://afp.google.com/article/ALeqM5iS1HZaM1lke0zn7ywzZocayS32sw
No amnesty for Amazon deforestation: Brazil
BRASILIA (AFP) — Brazil's government on Monday dismissed reports suggesting an amnesty was being considered for landowners who were contributing to the deforestation of the Amazon.
Brasilia "is not working on any amnesty proposal for those behind illegal deforestation or on any weakening of legislation" protecting the woodland, Environment Minister Marina Silva told reporters.
She and Agriculture Minister Reinhold Stephanes criticized a congessional committee bill that aims at revising current environmental protection laws for the Amazon by giving landowners more leeway to clear vegetation.
That text, if passed, "would not result in lesser deforestation but rather the legalization of passive environmental protection, and would cause more deforestation," Silva said.
Brazil is currently redoubling efforts to conserve the Amazon -- sometimes called the "lungs" of the planet for its role in absorbing carbon dioxide and producing oxygen -- after seeing increased deforestation in the last half of 2007.
It is stepping up monitoring by police and rangers, and reinforcing penalties against cattle ranchers and loggers who violate the protection laws.
National Economic Trends
http://www.bloomberg.com/apps/news?pid=20601086&sid=aDHgsQ_4lAyo&refer=latin_america
Brazil's Analysts Cut 12-Month CPI Forecast to 4.26% (Update1)
Feb. 11 (Bloomberg) -- Brazilian economists cut their 12- month inflation forecast for a second week as consumer prices show signs of deceleration.
Economists lowered their 12-month inflation forecast to 4.26 percent from 4.30 percent a week ago, according to the median estimate of a Feb. 8 central bank survey of about 100 analysts published today. Two weeks ago, they expected a 12- month inflation rate of 4.35 percent.
Consumer prices in the city of Sao Paulo, Brazil's largest metropolitan area, rose 0.52 percent in January, less than expected by economists and down from the 12-month high of 0.82 percent recorded in December, the Institute of Economic Research Foundation said Feb. 7. Analysts had forecast a median 0.63 percent gain, according to a Bloomberg survey of 15 economists.
http://www.reuters.com/article/bondsNews/idUSN1164699520080211
Brazil poised for investment grade in '08 -minister
Mon Feb 11, 2008 1:19pm EST
BRASILIA, Feb 11 (Reuters) - Brazil is poised to successfully weather a global economic slowdown and remains on track to reach an investment-grade credit rating this year, Finance Minister Guido Mantega said on Monday.
"We still haven't felt any major impact in Brazil, we haven't felt a slowdown. That doesn't mean there won't be one, but until now there hasn't been anything concrete," Mantega told reporters when asked about the possibility of a global economic slowdown.
Brazil's financial markets have been volatile since concerns emerged that the economic woes in the United States could deepen and spread globally. That scenario could diminish investment flows to emerging markets like Brazil.
Mantega said a robust domestic market will continue to drive the economy even in the event of a global slowdown. He added that the country's economic fundamentals are strong enough for an investment-grade credit rating, which would allow the government to borrow at lower interest rates and attract a wider pool of investors.
"International reserves keep rising, the country is more solvent than ever," Mantega said. "In my view, (investment grade) will come this year."
Brazil, Latin America's largest economy, is rated one notch below investment grade by the major credit rating agencies. Goldman Sachs said in a research report on Monday that Brazil's investment grade "appears on the horizon."
Business, Energy or Environmental regulations or discussions
http://online.wsj.com/article/BT-CO-20080211-705696.html
Brazil's BNDES To Finance Embraer Jet Sales To US - Report
February 11, 2008 8:46 a.m.
SAO PAULO (Dow Jones)--Brazil's National Development Bank, or BNDES, will once again finance jets sales by aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ), or Embraer, in the U.S. after a break of four years, a senior bank executive said, local business daily Valor Economico reported Monday.
The bank's target is to finance the sale of up to 25 regional commercial jets from the Embraer 170-190 range in 2008, said Luiz Antonio Araujo Dantes, superintendent of BNDES' export division.
"We are restarting the direct financing of Embraer clients," he said.
BNDES stopped its support for Embraer sales in 2004 because it was becoming overly exposed to the aeronautical sector. In 2003, airplane financing accounts for almost $5 billion of the bank's credit portfolio.
Traditionally, Embraer took 30% or 40% of export financing offered by the BNDES.
However, Dantas noted that the amortization of some of these debts allowed the BNDES to finance once again.
The other element that allowed the BNDES to restart financing Embraer sales was the accord on civil aviation export financing signed under the auspices of the Organization for Economic Cooperation and Development (OECD).
The accord allows the Brazilian government to maintain export financing in line with the levels offered to Boeing (BA), Airbus (ABI.YY) and Bombardier (BBD.B.T).
The BNDES already started offering funds in January and will continue throughout 2008.
Dantes added that BNDES could also finance the development of new Embraer jets in the future.
http://www.bloomberg.com/apps/news?pid=20601086&sid=a1XZ0MkHeVkY&refer=latin_america
Safra Plans to Sell Control of Brazil's Ponto Frio, Estado Says
Feb. 11 (Bloomberg) -- Lily Safra and her son, who control the Ponto Frio consumer electronics and home appliance stores, plan to sell their majority stake, Estado de S. Paulo reported.
Safra and her son, Carlos Monteverde, are seeking to sell the entire stake in Globex Utilidades SA, which owns Ponto Frio, in a share sale in Brazil, Estado said, citing Francisco Gros, vice president to Ponto Frio's board. The sale may take place at the end of the first quarter, the newspaper said.
Credit Suisse is advising the controlling shareholders, Estado reported. The stake in Ponto Frio may be worth about 2.8 billion reais ($1.58 billion), Estado said.
Lily Safra is the widow of the late banker Edmond Safra.
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1162113320080211
Brazil auto sales dip 11.3 pct in January vs Dec
Mon Feb 11, 2008 8:50am EST
SAO PAULO, Feb 11 (Reuters) - Vehicle sales in Brazil fell in January in line with seasonal trends but flex-fuel vehicles increased their share of the total market, Brazil's automobile manufacturers' association Anfavea said on Monday.
Sales of new cars fell 11.3 percent in January from December to 215,000 but jumped 40.6 percent in comparison to January of 2007.
Production increased 15.5 percent over the previous month and 24.2 percent from a year ago to 254,900 units.
December is traditionally a big month for buying cars in Brazil while sales drop in January as many people travel and take vacation.
Sales of flex-fuel cars -- which run on a blend of gasoline and ethanol made from sugar cane -- fell to 179,731 units in January against 200,686 units in December. But they were still up from January of 2007, when sales reached 120,199 units.
The share of flex-fuel vehicles among total auto sales reached 87.5 percent against 86.8 percent in December and 82.7 percent in January 2007.
On an annual basis, Brazilians are buying more cars because of falling interest rates, longer repayment periods and increased disposable income among consumers, especially those in the lower income brackets. The sector ended 2007 with sales soaring nearly 28 percent.
The Brazilian car market is dominated by world automakers including Italy's Fiat FIAT.MI, Germany's Volkswagen AG (VOWG.DE: Quote, Profile, Research), U.S.-based General Motors Corp (GM.N: Quote, Profile, Research) and Ford Motor Co (F.N: Quote, Profile, Research), followed by Japanese and French producers.
http://lta.reuters.com/article/businessNews/idLTAN1131183920080211
Brasil podría aumentar compra trigo fuera de Mercosur
lunes 11 de febrero de 2008 10:41 GYT Imprimir[-] Texto [+] BRASILIA (Reuters) - Brasil podría aumentar la importación de trigo libre de impuestos de fuera del bloque Mercosur si Argentina mantiene las restricciones a las exportaciones del cereal, dijo el lunes la Cámara de Comercio Exterior del gigante sudamericano.
Actualmente la cuota de importación de trigo de fuera del Mercosur es de 1 millón de toneladas, pero Brasil va a analizar el saldo exportable de Argentina, su principal proveedor, para ver si es necesario modificar el volumen y el plazo del 30 de junio para realizar compras a otros países.
"Eventualmente todo el trigo excedente de Argentina podrá ser insuficiente para abastecer a Brasil," dijo Lytha Spindola, secretaria ejecutiva de Camex.
"Nadie sabe de cuánto será ese excedente," añadió.
http://lta.reuters.com/article/businessNews/idLTAN1128414620080211
Brasil negociará con UE por veda carne, no descarta recurrir OMC
lunes 11 de febrero de 2008 13:12 GYT Imprimir[-] Texto [+] SAO PAULO (Reuters) - Brasil prefiere negociar para buscar normalizar sus vedadas exportaciones de carne vacuna a la Unión Europea, aunque podría recurrir a la Organización Mundial de Comercio (OMC) si fuera necesario, dijo el lunes el ministro de Agricultura del país sudamericano, Reinhold Stephanes.
"Por el momento, creemos que mientras tengamos una ventana abierta, mientras haya posibilidades de que lleguemos a un acuerdo, aunque demore (...) es más importante que entrar con una demanda" (en la OMC), dijo Stephanes a periodistas.
La Unión Europea vedó todos los embarques del producto provenientes del país luego de anunciar en diciembre que fijaría requerimientos más estrictos a la carne brasileña a partir de enero, autorizando sólo exportaciones provenientes de establecimientos incluidos en una lista oficial.
Pero la UE esperaba una lista de unas 300 haciendas, mucho menor que la de 2.600 establecimientos entregada por Brasil, lo que causó preocupación de que el Gobierno del presidente Luiz Inácio Lula da Silva no pudiera inspeccionar a todas.
Stephanes precisó que Brasil probablemente concluiría este lunes una lista con los nombres de propiedades autorizadas a exportar carne a la UE, que contendría entre 500 y 600 haciendas.
La UE había informado que concordaría con una lista de aproximadamente 300 haciendas.
Brasil, el mayor exportador mundial de carne vacuna, ha calificado la veda europea como injusta, arbitraria y proteccionista.
Hacendados europeos, especialmente de Irlanda, se quejan de que la carne brasileña no cumple los estrictos estándares establecidos para los productores de Europa.
Activity in the Oil and Gas sector (including regulatory)
http://www.upstreamonline.com/live/article148581.ece
Eromanga steps on Brazil gas
Australia-listed Eromanga Hydrocarbons has kicked off its Brazilian drilling campaign with the arrival in the country of its Sonda ETX drilling rig, which will sink two wells over the next eight weeks.
The Gavea joint venture, in which Eromanga holds a 40% stake, will start drilling on Blocks 330 and 430 in the Sergipe-Alagoas Basin this week, Eromanga chief executive Phil Galloway told Upstream Online.
Private Brazilian outfit UBX holds the remaining interest in the joint venture and will operate the projects.
The first well will re-enter Petrobas’s PTA-3 discovery on Block 330 where the Brazil state player struck oil in the 1960s.
Following the drilling on Block 330, UBX will spud an exploration well on an interpreted turbidite sand structure in Block 430 that is believed to be similar to the neighbouring Angelim oilfield, which is owned by Petrobas.
“Petroleum Geo-Services (PGS), a geophysical company, estimates the reserves on Block 430 to be around 5 million barrels of recoverable oil after analysing the 3-D seismic data,” said Galloway.
He said Eromanga aimed to pick up parcels passed over by Petrobas to build a portfolio of oil and gas interests onshore in Brazil with the help of UBX – whose team includes a number of former Petrobas technical staff.
The Australian junior won six blocks released in Brazil’s seventh round in 2005 and two blocks in the ninth release last year. The blocks were all mature basin plays that Petrobas had decided not to develop.
“We have four drillable prospects and still looking at two more additional targets. It helps to have knowledgeable ex-Petrobras staff onboard when hunting for blocks,” Galloway said.