Shares in Brazilian telecoms Oi and Telefonica Brasil SA fell sharply in early trade on Tuesday, dragging the sector lower, after they were cited in the latest phase of the country’s sweeping Car Wash corruption probe. Oi’s preferred shares fell as much as 4.8% .
At the end of November 28, the federal government published Decree number 10.139/2019, requiring a review of all regulatory acts in the country within a period of 18 months. What at first appears to be merely another administrative act without any great importance, could, in fact, have serious effects on the entire federal apparatus.
President Jair Bolsonaro said trade with Argentina “will remain the same” despite his animosity with President-elect Alberto Fernandez but didn’t confirm whether Brazil will send a high-ranking representative to his inauguration in Buenos Aires.
Vehicle Sales totaled 2.53 million units from January to November, representing an 8.3 percent increase compared to the same period last year, says National Association of Motor. In November, the number of vehicle registrations reached 242,300, corresponding to a drop of 4.4 percent over October and a rise of 4.9 percent over November of last year.
Revenue from the electro-electronic industry should end 2019 at R$154 (US$37) billion. According to the Brazilian Association of the Electrical and Electronic Industry (Abinee), despite the nominal growth of five percent compared to 2018 (R$146.1 billion), there was no real increase, since inflation in the sector, according to the Producer Price Index (IPP), also closed the year at five percent. Exports shrank five percent in 2019, from US$ 5.9 billion to US$ 5.6 billion. Imports rose one percent from US$ 31.8 billion in 2018 to US$ 31.9 billion this year.
The Government of the State of Rio de Janeiro approved R$302.4 (US$76) million in tax incentives for the Rio Motorsports company winner of a bid to build a racetrack in the Deodoro region (west side of the capital) to host F-1.
Chinese food companies bought up a quarter of Brazilian beef exports in 2018, up 50% on the previous year and more than any other country. As well as beef, China buys more soy than any other country from both Brazil, where production grew 312% between 1991 and 2017, and Argentina.
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.