Brazil is transitioning to a world of normal interest rates, while consumer price inflation is below 4% and the central bank’s policy rate has been 5 per cent since October. As such corporate bond market has opened up and several large firms are retiring their overseas debt to borrow from the local market. Traditionally, bank lending to companies stood at an around 47 per cent a year, according to Anefac, an industry association.
For several months, crude oil has been appearing along 3,000km of Brazil’s coastline, and yet its origins remain uncertain. Alongside the limited clean-up efforts, months of confusion about the cause of the spill have spurred criticism of the Brazilian government’s response. This said, the Brazilian Navy has since deployed 8,500 personnel, 30 ships and 17 aircraft in the clean-up operation. Whatever the true cause of the spill, the impact on the environment continues to be felt.
It didn’t take much for the founders of Cora, Brazil’s newest startup to tackle some aspect of the broken financial services industry in the country, to raise their first $10 million.
As global concern about the fires devastating parts of the Amazon rainforest peaked in August, one of Scandinavia’s biggest investors dropped a bombshell. Nordea Asset Management which controls more than €200bn of funds, announced it was quarantining Brazilian government debt because of political and environmental risks.
The Brazilian city of São Paulo is launching the country’s first cash rebate for international productions which will see qualifying projects with an minimum local spend of $500,000 will be able to access up to $2.5m.
Mega-traders Bunge and Cargill are continuing to export soy from the most deforested municipality in Brazil’s highly threatened Cerrado, despite pledges to end deforestation in their supply chains and reports of a violent land conflict in the region, research from Greenpeace Brazil has established. Read more Source: Unearthed
Brazil’s economy ministry has revised its export figures for the second time in less than a week, casting doubt on key data releases and leaving analysts wondering whether they should still trust the reliability of Brazilian statistics. Doubts surfaced last week when the country’s currency was hit by central bank figures showing a sharp deterioration in Brazil’s current account balance in the period January to October, driven by a slide in exports.
After growing its lending business in West Africa, emerging markets credit startup Migo is expanding to Brazil on a $20 million Series B funding round led by Valor Capital Group. The San Francisco based company — previously branded Mines.io — provides AI driven products to large firms so those companies can extend credit to underbanked consumers in viable ways.
Brazil’s economy expanded 0.6 per cent in the third quarter, beating analysts’ expectations and bolstering hopes of a cyclical recovery in Latin America’s largest country.
The government’s plans to kick-start the economy risk being overshadowed by riots in Chile and political turmoil at home. As the window for passing major legislation ahead of 2020 municipal elections starts to close, Brazil-watchers are asking whether the Bolsonaro government can deliver on the rest of its reform programme or whether the country will again succumb to its perpetual habit of disappointing investors.