Brazil’s senate clears second austerity bill

Paulo Trevisani & Djania Savoldi – The Wall Street Journal, 5/27/2015

The Brazilian Senate on Wednesday approved a controversial bill meant to save taxpayer money by reducing pension payments to widows.

The measure is part of a broader effort to reduce the government’s high debt levels, which are threatening the country’s investment-grade rating.

The vote is a victory for President Dilma Rousseff and comes less than a day after Congress cleared another bill that reduces unemployment benefits. Together, the bills will save some 15 billion Brazilian reais ($4.8 billion) in taxpayer money, government officials say.

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Brazil’s senate clears second austerity bill

Soiled by oil scandal, Brazil’s model is primed for makeover

Juan Pablo Spinetto, Anna Edgerton & Sabrina Valle, Bloomberg – 5/27/2015

Oil was to be the elixir of Brazil’s dreams to build a formidable economy, promote industrial development and fund a more generous welfare state even as it attracted billions in private global investment.

Instead, crisis and disappointment in the oil sector are beckoning Brazil’s leadership to move — if grudgingly — toward more deregulated industries and to temper the government’s hand in using state-run companies to forge broader economic policy.

Which helps explain why, as her second term takes shape, some of President Dilma Rousseff’s ministers have jettisoned the statist language of her first four years in office and those of her popular predecessor, Luiz Inacio Lula da Silva. Instead, they are floating some liberal notions more in keeping with the pre-Lula years.

Read more…

Soiled by oil scandal, Brazil’s model is primed for makeover

Brazil’s senate clears second austerity bill

Paulo Trevisani, Djania Savoldi – The Wall Street Journal, 05/27/2015

The Brazilian Senate on Wednesday approved a controversial bill meant to save taxpayer money by reducing pension payments to widows.

The measure is part of a broader effort to reduce the government’s high debt levels, which are threatening the country’s investment-grade rating.

The vote is a victory for President Dilma Rousseff and comes less than a day after Congress cleared another bill that reduces unemployment benefits. Together, the bills will save some 15 billion Brazilian reais ($4.8 billion) in taxpayer money, government officials say.

Read more…

Brazil’s senate clears second austerity bill

Soiled by oil scandal, Brazil’s model is primed for makeover

Juan Pablo Spinetto, Anna Edgerton, Sabrina Valle – Bloomberg Business, 05/27/2015

Oil was to be the elixir of Brazil’s dreams to build a formidable economy, promote industrial development and fund a more generous welfare state even as it attracted billions in private global investment.

Instead, crisis and disappointment in the oil sector are beckoning Brazil’s leadership to move — if grudgingly — toward more deregulated industries and to temper the government’s hand in using state-run companies to forge broader economic policy.

Which helps explain why, as her second term takes shape, some of President Dilma Rousseff’s ministers have jettisoned the statist language of her first four years in office and those of her popular predecessor, Luiz Inacio Lula da Silva. Instead, they are floating some liberal notions more in keeping with the pre-Lula years.

Read more…

Soiled by oil scandal, Brazil’s model is primed for makeover

Brazil president says to maintain oil rules, national content

Reuters, 05/14/2015

May 14 Brazilian President Dilma Rousseff said on Thursday that her government will maintain rules that mandate production-sharing contracts for the country’s most promising areas and high national content requirements for the oil industry.

“The local content policy is not something that can be set aside, it is central to my policy of reviving our country’s investment capacity,” Rousseff said at the christening of an oil tanker at the Atlântico Sul Shipyard near Recife, Brazil.

“We are going through a period of macroeconomic difficulty, but today things are different because we have these shipyards.”

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Brazil president says to maintain oil rules, national content

Brazil’s faltering economy needs some tough love

Samantha Pearson – Financial Times, 5/12/2015

For Brazil’s economists, 2015 will certainly be a year to forget. Latin America’s biggest economy is expected to contract by more than 1 per cent this year, marking the country’s worst recession in 25 years.

Meanwhile, inflation is set to end the year above 8 per cent, breaking the target range for the first time since 2003.

To add to the country’s woes, the corruption scandal at state-controlled oil company Petrobras — believed to be the biggest of its kind in Brazilian history — has the potential to slow growth further and accelerate job losses.

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Brazil’s faltering economy needs some tough love

Brazil, Peru, China plan trans-South American railway

Anadolu Agency, 5/9/2015

Brazil, Peru and China are working on an outline agreement to create a new railway that would cross South America, the Folha de S.Paulo newspaper reported Tuesday.

The train line would cross the continent, linking Brazil’s Atlantic coastline with the Pacific Ocean in Peru, and in part boost commodity exports.

Preliminary reports estimate the Transoceanic Railway would cost at least $10 billion, and the Brazilian government hopes Chinese businesses will bid for sections of the project.

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Brazil, Peru, China plan trans-South American railway