‘Made In Brazil’ Under Pressure, Study Shows

August 20, 2014

Kenneth Rapoza – Forbes, 8/19/2014

Brazil is more than samba and soccer. But the airplanes it makes and the soybeans it grows are coming under increasing cost pressures, making a number of manufacturers there lose ground to competitors in the U.S.

A new study by the Boston Consulting Group (BCG), made public on Tuesday, said that Brazil was one of a handful of 25 major exporters that was losing its competitive edge to other countries in the Americas.  In this case, the U.S. and Mexico are often beating Brazil to the punch.

“Improving the productivity of each worker is becoming an increasingly important factor in manufacturing competitiveness across the globe,” said Michael Zinser, a BCG partner. “This is especially true as the once-considerable wage gaps between developed and developing economies continue to shrink.”

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How Russian ban on U.S., E.U. food could turn into a windfall for Brazil

August 11, 2014

Dom Phillips – The Washington Post, 8/9/2014

As relations among Russia, the United States and the European Union deteriorate over the Ukraine crisis, there may be one unexpected winner: Brazil.

On Wednesday, Russian President Vladimir Putin signed a decree banning a list of agricultural products from the United States, the European Union, Canada, Australia and Norway in response to sanctions levied by the West. No sooner had Russia issued the ban than Brazilian producers were lining up to fill the gap.

“Brazil will substantially increase its meat and dairy exports,” Brazilian Agriculture Minister Neri Geller said in a statement.

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Brazil border law an important step for Latin America, says ASUTIL

July 31, 2014

Gavin Lipsith – The Moodie Report, 7/29/2014

ASUTIL President Enrique Urioste has welcomed Brazil’s move to introduce border duty free legislation for the first time, despite a “frightening Monday” when the country issued its quickly postponed decree halving the inbound duty free allowance to US$150.

The head of the South American trade association told The Moodie Report that the announcement reveals Brazil’s intent to make border duty free an “absolutely legal entity”, the first time the channel has held that status in the region’s biggest market.

“We are very supportive of this Brazilian law and we think it is an important step in furthering border duty free [across the region],” said Urioste, who as CEO of Uruguayan retailer Neutral would have been among those impacted by any decrease.

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No Growth, No Problem For Brazil Investors As Market Beats World

July 24, 2014

Kenneth Rapoza – Forbes, 7/22/2014

Slow growth, protests, and a humiliating defeat against the Germans in the World Cup earlier this month hasn’t soured investor sentiment on Brazilian equities. Over the last four weeks, Brazil’s stock market as measured by the MSCI Brazil index has beat out the MSCI World and the S&P 500.

The same can be told when looked at three months out, with the iShares MSCI Brazil (EWZ) exchange traded fund up 8.9%, beating the MSCI World and the MSCI Emerging Markets Index.

Who cares if GDP is expected to come in under 2% again this year, or that a hotly contested election is just three short months away. Brazil is the cheapest market in Latin America.

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Emerging-Market Equities Post Weekly Advance as Brazil Rallies

July 18, 2014

Julia Leite and Natasha Doff – Bloomberg Businessweek, 7/18/2014

Emerging-market stocks posted a weekly gain as oil producer Petroleo Brasileiro SA led a rally in Brazil on speculation a new president will revive growth in Latin America’s largest economy, offsetting declines in Russia.

The Ibovespa surged the most among the world’s biggest equity benchmarks as a poll showed President Dilma Rousseff’s lead narrowing in the October election. Chinese stocks rallied amid speculation more cities will loosen property curbs as home prices slump. The S&P BSE Sensex Index increased for a fourth day as Indian software stocks advanced. The Micex Index (INDEXCF) slid to a seven-week low in Moscow, with natural-gas producer OAO Gazprom posting its longest losing streak on record.

The iShares MSCI Emerging Markets ETF (EEM:US) increased 1.6 percent to $44.16, pushing its gain this week to 0.6 percent. The second-biggest exchange-traded fund that holds developing-country stocks sank 1.9 percent yesterday amid concern the shooting down of a Malaysian jet in Ukraine would escalate tensions in eastern Europe.

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China, Brazil close plane, finance, infrastructure deals

July 18, 2014

Anthony Boadle and Alonso Soto – Reuters, 7/17/2014

China and Brazil sealed their expanding commercial partnership on Thursday with a $5 billion credit line for Brazilian miner Vale and the purchase of 60 passenger jets from Brazilian planemaker Embraer.

In a raft of energy, finance and industry accords signed before presidents Xi Jinping and Dilma Rousseff, the two nations agreed to join forces to build railways to help Brazil cut its infrastructure deficit and feed China’s appetite for commodities.

Trade between China and Brazil soared to $83.3 billion last year from $3.2 billion in 2002, with iron ore, soy and oil making up the bulk of Brazilian exports, making China the South American nation’s biggest trade partner.

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China Focus: China, Brazil: friends beyond football

July 15, 2014

Shanghai Daily, 7/15/2014

During the World Cup, employees of the Brazil plant of Chinese car maker Chery were given time off for every match of the Brazilian team.

The games became a “happy-hour”; a time for Chinese and Brazilian employees to socialize together.

Chery has been operating in Brazil since 2009, a recent chapter in cooperation stretching back to the early 19th century, when Chinese tea growers took their skills to Brazil.

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