Unemployment rate falls to 11% at end-2019

Brazil unemployment rate fell to 11% in the quarter ended in December last year, totalling 11.6 million people out of work, according to the National Continuous Survey of Household Samples (PNAD Contínua), published today by the Brazilian Institute of Geography and Statistics (IBGE). Compared to the same period last year, there was a reduction of 520 thousand unemployed people, when the rate was 11.6%. The increase in informality was the main driver of the recovery.

Source: Veja

JBS signs $717mn/year export deal to China and expects export boost from Coronavirus

JBS and BRF, the largest producers of frozen meat in Brazil, estimate that the spread of coronavirus in China can boost Chinese demand for its products “for food safety reasons.” JBS and WH Group of Hong Kong signed an agreement this week for the supply to the Chinese market of up to $ 717 million in beef, chicken and pork per year. However, aggressive demands for discounts from Chinese importers could affect transactions.

Source: G1 Globo

Banco Daycoval plans to raise ca $1 billion in IPO

Brazilian lender Banco Daycoval SA is planning to launch an initial public offering in April, in a move that would re-list its shares on the Sao Paulo stock exchange after three years. The offering may raise between 3 billion and 4 billion reais ($956 million). The bank’s Lebanese-born founders, Ibrahim and Sasson Dayan have hired investment banking units of Itau Unibanco Holding SA, Banco BTG Pactual SA, Bank of America and Banco Santander Brasil SA to manage the IPO.

Source: Reuters

Brazilian primary deficit reached $22.5 bn, the lowest fiscal loss in five years

Brazil federal government ended 2019 with a primary deficit of R$95.1 billion ($22.5 billion), the lowest fiscal loss in five years, the National Treasury reported. It was the sixth consecutive year that the government spending exceeded taxes and tax revenues. Only in 2014 the deficit in the Brazilian accounts managed to be lower than in 2019, when the accounts registered negative results of the order of R$23.5 billion.

Source: Jornal de Noticias

Santander Brasil reports 9.4% rise in Q4 profit

Banco Santander Brasil SA reported a 9.4% rise in fourth-quarter net income from a year earlier, mainly due to consumer lending and fees. Recurring net income, which excludes one-off items, came in at 3.726 billion reais ($890.83 million), roughly in line with the 3.859 billion reais analysts were expecting, according to Refinitiv data. ($1 = 4.1975 reais).

Source: Reuters

U.S. opens anti-dumping probe into millwork from Brazil

The U.S. Commerce Department launched anti-dumping investigations into wood moulding and millwork product imports from Brazil and China worth about $500 million annually. Seven U.S. manufacturers has reported possible anti-dumping duties of 86.7% for products from Brazil and 181.2% to 359.2% from China. Preliminary results are expected on Feb. 24.

Source: Reuters

Brazil seeks business opportunities with post-Brexit U.K.

Brazil will have great business opportunities with Great Britain after its separation from the European Union on January 31, said the advisory minister of the Brazilian embassy in London, Robert Doring. The United Kingdom imports 50% of the food and beverages it consumes, 60% of them from the European Union and 4% from South America (2018). The embassy launched the website Observatório Brasileiro do Brexit (Brazil Brexit Watch) offering information on how Brexit will affect trade relations between the two countries.

Source: Istoé

Brazil’s public debt grows 9.5% in 2019 to a $1 billion record

Brazil’s federal public debt increased 9.5% in 2019 compared to the previous year, reaching a record R$ 4.248 million ($1.012 billion), the National Treasury Secretariat of the Ministry of Economy of Brazil reported. However, despite the increase, the 2019 Annual Financing Plan (PAF) was fulfilled, which established that the public debt could end last year between R$ 4.1 billion and R$ 4.3 billion.

Source: RTP

Brazil may issue 20-year benchmark bond

Brazil may take advantage of low interest rates to issue a 20-year benchmark bond later this year if demand is sufficient, the country’s Treasury said, as it set out its 2020 debt forecasts and financing plans. Securities linked to the central bank’s benchmark Selic rate are expectred to account for between 40% and 44% of outstanding debt this year versus 38.9% last year, while fixed-rate securities will account for between 27% and 31%, compared with 31% last year.

Source: Reuters