Information about international affairs that can impact the Brazilian economy.
The fall in global economic activity will make the world reach the goal of reducing gas emissions stipulated by the Paris Agreement. The estimate is that the volume of carbon discharged into the atmosphere will drop 6% globally. Brazil may go against this trend. An analysis made by the Climate Observatory points to an increase of up to 20% in Brazilian emissions, in 2020. The reason is the growth of deforestation in the country.
Embrapa’s announced on Monday that the social profit was R$ 46.49 billion ($ 7.6 bn) in 2019. “Each Real placed in Embrapa’s budget in 2019 returned R$ 12.29 ($ 2) to Brazilian society” The amount was obtained from the analysis of the economic impact of 160 technological solutions and 220 activities developed by the company, which obtained net operating revenue of R$ 3.78 billion ($ 630 million) last year.
American Airlines decided to suspend 75% of its international flights, including all routes to Brazil, for 51 days, counting from this Monday (16). The decision comes in response to the decreasing demand for flights and amid restrictive measures adopted by the American government due to the advancement of the coronavirus. The country closed its borders to European countries and recently declared a state of national emergency.
Itaú Unibanco reported a review of its projection for world GDP growth in 2020 from 3.1% to 2.7%. According to Itaú Unibanco economists, the bank also lowered its growth forecasts for China in the year, to 5.3% compared to 5.8%. It maintained the projection of US GDP growth at 2.0% for 2020.
Brazil and the United States signed an agreement in the military area to develop future projects. The Research, Development, Test and Evaluation Agreement (RDT & E) will cover the way for improving or providing new military capabilities. The Brazilian government hopes to facilitate its access to the North American defence market, as well as to enable the entry of Brazilian products in 28 other NATO countries.
Brazil and the United States closed an unprecedented military agreement that could help open the largest defence market in the world to the Brazilian industry. The text still needs to pass through the Congress of the two countries and expects partnerships supported by a fund of $96 billion. Itamaraty’s expectation is for a quick process that could allow the US to launch rockets from the Alcantara (Maranhao) base in about six months.
A new business model created by Brazilian startups allows people to donate money to social causes without spending a cent. This is possible thanks to partnerships between these companies and sponsors. The application converts the money generated with digital ads into donations for four NGOs, with a focus on access to clean water, food, medicines and basic health. Through the App, the user receives news with a positive content and when accumulating this fictitious money, the user can choose which of the four NGOs he wishes to donate.
The extended holiday is expected to generate R$8 billion ($2bn) billion in tourism-related activities this year, estimates the National Confederation of Goods, Services, and Tourism (CNC). If confirmed, the turnover represents a one percent real increase over the same period last year and the highest figure since 2015. According to the CNC, “the gradual rebound of economic activity”, low inflation and a stronger dollar against Brazilian real should favour a greater inflow of tourists.
Leading global wind power producer Iberdrola posted a 13% net profit increase in 2019, meeting its broad growth target. Powering more than 30 million homes and businesses in Spain, the United States, Brazil and Britain brought Iberdrola a net profit of 3.41 billion euros ($3.7 billion) in the period. Iberdrola’s shares have risen around 20% so far this year and were up 0.5% on Wednesday morning.
Raízen, one of the biggest ethanol producer in Brazil, is looking at partnerships with Indian firms for second-generation ethanol, produced from bagasse and sugarcane leaves, President and CEO Luis Henrique Gulmaraes said. In the interim Brazil could also export ethanol to India to quicken its 10% ethanol-blend programme. Raízen, a 50-50 joint-venture between Cosan and Royal Dutch Shell , is the third largest Brazilian energy company by revenue and the fifth largest in the country.
