Brazil’s state-controlled development bank BNDES expects to finalize aid packages for companies in the auto, airlines, restaurant and energy sectors in May. BNDES president, Gustavo Montezano said that his organisation has an “appetite” to buy equity stakes in Brazilian companies to help them weather the coronavirus crisis, but that those stakes must be temporary.
Wealth management firm Zedra has reported a significant rise in the number of requests from clients based in Latin America, asking for a review of both their succession planning and structuring strategies. While not linked directly to the Covid-19 outbreak, Zedra believes the publicity surrounding the pandemic has acted as a catalyst, prompting clients to review how their estates will be managed.
Brazilian product keeps shipping to Kuwait amid the lockdown, said Brazil’s ambassador to Kuwait Norton Rapesta. Q1 2020 saw $56.96 million in goods exported from Brazil to Kuwait, with poultry comprising over 80% of that. The amount was up 20.8% from Q1 2019. In March alone, exports from Brazil came out to $17.32 million, up 2.6% year-on-year, with poultry products accounting for 90%.
Brazil’s domestic corn prices remain high amid heated local consumption, INTL FCStone said in a presentation, adding Brazil’s second-corn crop forward sales is at 58%, signalling strong exports of the cereal in the second half of the year.
Brazilian asset managers have had relative success in managing market risk and preserving fund liquidity within their strategies, despite the impact of Coronavirus pandemic. In terms of investment flows, the Brazilian asset management industry experienced aggregate outflows of BRL31 billion ($5.9 billion) during March 2020, representing 0.6% of total asset under management, according to Anbima figures.
Brazilian sugar and ethanol companies are going into survival mode, cutting back harvest operations and tapping into credit lines to weather the slump in fuel demand caused by the coronavirus pandemic. Ethanol sales in Brazil’s top fuel consuming central-south region dropped 20% in the second half of March, according to sugar industry group Unica.
U.S. grain merchant Bunge’s Brazilian subsidiary is shipping the country’s soybean harvest without disruption despite the novel coronavirus outbreak. Bunge’s Brazil unit has exported 2.6 million tonnes of grains in the first quarter, mainly soybeans, said Makoto Yokoo, the company’s director of logistics for South America.
The ongoing COVID-19 pandemic is expected to put pressure on the sugar consumption patterns as there are curbs on social gatherings and outings. The industry is also facing reduced off-take from beverage and other FMCG companies amid the lockdown. This has even led to fall in domestic & international sugar prices recently.
Brazil has suspended its 17th licensing round which would have seen the state oil regulator ANP offering 128 offshore exploration blocks throughout the country, fearing that the plummeting oil prices and unprecedented declines in global crude demand entailing double-digit-percent CAPEX cuts will set the stage for another fiasco.
Brazil’s total mineral production fell 17% — 147 million tonnes — in the first three months of 2020 compared to the same period last year, the Brazilian Mining Association (Ibram) reported. In Q1, mining companies in Brazil produced 220 million tonnes, reaching a production value of R$ 36 billion ($6.8 billion), with an emphasis on iron ore (63%) and gold (11%). Iron ore exports fell 16.5%, to 70 million tonnes.