Day: February 5, 2020

Airline Gol signs agreement with American Airlines, shares jump 5.5%

Shares in Brazil’s budget airline Gol rose as much as 5.5% on Tuesday after signing a codeshare agreement with American Airlines, that will create “the most frequent service between the United States and South America”. Gol will connect customers to more than 30 destinations in the USA, and American will offer flights to Uruguay and Paraguay, in addition to the Brazilian cities of Curitiba and Foz do Iguaçu.

14,750 Petrobras workers are on strike, but production is still not affected

A strike by workers at Brazil’s Petrobras started on Saturday, has not yet affected “production or supply to the market” and “all of its oil, fuel and derivatives production units are operating within safety standards,” the state-owned oil company said. Around 14,750 workers are on strike, or 80% of the total in the 12 states where the industrial action is taking place, according to Federação Única dos Petroleiros (FUP).

Government speeds up approvals for mining exploration to up to 120 days

Brazilian mining lobby group Ibram praised a government decision to speed up approvals for mining exploration. Under new rules, the National Mining Agency (ANM) will have to rule on exploration requests within 120 days, and if the deadline passes, the request will be automatically approved. This will “create a more favourable environment” for raising funds for mining in Brazil, Ibram’s Chief Executive Flavio Penido said.

Big Brazilian share sale for $9.3 billion is coming soon

Markets will see R$39.5 billion ($9.3 billion) in share sales in the coming weeks, including the biggest offer since 2010, thanks to the government’s efforts to shed assets and a rush to stocks amid a hunt for returns. Development bank BNDES is leading the charge, unloading a stake worth almost R$24 billion in Petrobras, as well as shares of meatpacker JBS SA. Brazilian equity offerings rose 213% last year to R$115.1 billion.