Chinese beef importers are seeking to renegotiate prices previously agreed when they closed deals to buy dozens of shipments from Brazil. Some of them are refusing to pay for shipments that already arrived in China. Brazilian beef exports to China increased more than 50% last year helping beef prices in Brazil to reach an all-time high.
Communication and Media
The GDP of 83% of 193 countries grew faster than Brazil’s in the period 2010-2019, one of the worst decades of its economic expansion, according to a study by economist Marcel Balassiano of the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre / FGV). Based on data from the IMF, the report establishes an average growth of 1.3% per year in that period, almost a third of the world average (3.8% per year).
The International Monetary Fund improved its economic growth forecast for Brazil and projects a 2.2% increase in its GDP for this year and 2.3% by 2021. In its last “World Economic Outlook” the IMF says that this variation of 0.2% in relation to its projection in October 2019 is due to the approval of the Brazilian Pension Reform and improvements in the mining sector.
The Latin American economy is recovering and will grow 1.6% in 2020 and 2.3% in 2021, driven by Brazil and despite the worsening of Mexico’s expansion forecasts and social unrest in Chile, according to the IMF report on “Global Economic Perspectives” presented today at the Davos Economic Forum.
Brazil Economy Minister Paulo Guedes attends this week the Davos Economic Forum, with the aim of attracting non-speculative foreign capital to finance projects, mainly infrastructure, showing the country’s improvements in inflation, risk, stock market rates and interests. The biggest attraction will be the privatisation and concessions package of state-owned companies, said the Privatisation Secretary, Salim Matar.
Mercosur trade deal is incompatible with the EU’s commitment to carbon neutrality and “may undermine global efforts to avert climate change”, according to analysis conducted for the Greens/European Free Alliance group. The political agreement reached in June by the EU and Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) is still in the process of technical and legal revision and subject to endorsement by national governments and the European Parliament.
Brazil meatpacking Marfrig Global Foods said on Monday that it had concluded early repayment of its most expensive debt, $446 million in bonds due in 2023. The bonds had an annual interest rate of 8% and had been issued in 2016. Early repayment was in line with a cost-cutting strategy, according to Marfrig.
Brazil’s state-run oil company Petroleo Brasileiro (PETR4.SA) has begun the “non-binding phase” of the process of selling its remaining 10% stake in its former pipeline subsidiary Transportadora Associada de Gás (TAG). Petrobras sold a 90% stake in TAG to Engie’s (ENGIE.PA) Brazilian subsidiary and Canadian investment fund Caisse de Depot and Placement du Quebec (CDPQ) in April for $8.6 billion.
President of Azul Linhas Aéreas, John Rodgerson, announced the purchase of 75 Embraer aircraft during a meeting with Brazil President, Jair Bolsonaro. With the expansion of the air fleet and the purchase of regional carrier Two Flex for R$123 million, which will add 36 new national destinations, Azul plans to reach 200 national destinations in the next three or four years.
After more than tripling last year, share offerings activity is expected to accelerate, with some bankers predicting that offerings may reach up to 200 billion reais ($48 billion). Brazilian stock sales were equivalent to 85% of all equity activity in Latin America in 2019, while Brazil’s gross domestic product is only about a third of the wider region’s.