BANKING & FINANCING
The antitrust unit of Brazil’s Justice Ministry said it has opened an investigation into credit card operator Redecard, sending the company’s shares down 2.56 percent. The Economic Law Secretariat at the Justice Ministry said Redecard would be investigated for imposing terms on online payments that might hamper free competition (Reuters).
Eletrobras, Brazil’s state-run power utility, plans to sell at least $500 million in 10-year dollar-denominated debt in international markets in July to fund investments, sources with direct knowledge of the deal told Reuters. Two investors who may participate in the deal said Eletrobras may pay a yield around 7 percent, underscoring strong appetite for Brazilian assets as the government nears winning investment-grade ratings from Moody’s Investors Service (Reuters).
Banco Bradesco SA, Brazil’s second- largest non-government bank, named Candido Leonelli and Mauricio Machado de Minas as executive directors after the departure of three long-serving directors, a spokesman said. This may be an indication the bank will become more agressive (Bloomberg).
Brazil’s state development bank BNDES has become a major player in government efforts to pull Latin America’s largest economy out of recession. Read the facts about the Rio de Janeiro-based bank, which has traditionally been considered Brazil’s main provider of long-term financing for large corporations, at Reuters.
ECONOMY
Brazil’s international reserves rose to a record as thecentral bank steps up its purchases of dollars to curb the appreciation of the Brazilian currency. International reserves climbed to $209.576 billion on July 16, compared with the previous high of $209.386 billion set Oct 6. Reserves have climbed 5 percent from this year’s low of $199.337 billion on Feb. 26 (Bloomberg).
Foreign direct investment inflows are signaling the Brazilian economy is gradually emerging from recession with little inflation risks, Central Bank President Henrique Meirelles said (Reuters).
OIL
BNDES will lend 25 billion reais ($12.8 billion) to Petrobras denominated in local Treasury notes, the first loan of its kind in Latin America’s largest economy, daily newspaper Valor Economico said (Reuters).
Brazil’s state-run oil company Petrobras said domestic oil production dropped 3.2 percent in June to 1.93 million barrels per day from 1.99 million bpd in May (Reuters).
Petrobras has completed seismic work in its leased Cuban offshore bloc and is studying whether to drill a well, the head of its Cuban operations said (Reuters).
Petrobras expects new local private investment funds to provide at least $5.2 billion to capitalize service companies, crucial for a push to develop massive offshore reserves (Reuters).
Galp Energia SGPS SA, Portugal’s biggest oil company, and Petrobras found more evidence of oil in an onshore block in Brazil’s Potiguar Basin, the Brazilian petroleum regulator said (Bloomberg).
Petrobras also discovered traces of oil in an onshore block in the Espirito Santo Basin (Bloomberg).
AIR TRAVEL
Brazilian prosecutors have asked the courts to halt expansion work at Sao Paulo’s Guarulhos airport, the country’s largest, on environmental concerns, a newspaper report said. In their request, state and federal prosecutors cited failures in the environmental studies used to approve the expansion, according to O Estado de S. Paulo paper (Reuters).
AUTOMOTIVE
Renault-Nissan must double its market share in Brazil to at least 10 percent to stay competitive and fend off rivals in Latin America’s largest economy, Chief Executive Carlos Ghosn said. The automaker needs to add new models to foster growth in a market that sells about 3 million units a year, Ghosn told journalists. He added, current models are “incompatible with a 10 percent to 20 percent market share,” which the company wants to attain (Reuters).
General Motors unveiled plans to spend about $1 billion in Brazil through 2012 to develop a new family of vehicles for South America, a priority market for the U.S. automaker as it looks to rebound from bankruptcy protection (Reuters).
MEAT
Brazil’s JBS SA, the world’s largest beef processor, said it had laid off 742 workers from three plants located in Sao Paulo state (Reuters).
Brazilian beef processor Independencia INDALI.UL will remove controlling shareholders from day-to-day management and seek 330 million reais (US$166 million) in loans as part of efforts to exit bankruptcy proceedings, newspaper Valor Economico reported (Reuters).
Brasil Foods, the Brazilian food giant to be formed by Perdigao’s planned takeover of smaller rival Sadia, is a “tantalizing” investment opportunity according to the latest issue of weekly business publication Barron’s (Reuters).
Brazil plans to reduce taxes on beef producers, Valor Economico newspaper reported, citing Roberto Gianetti da Fonseca, director of foreign trade at the Sao Paulo State Federation of Industries. The government will cut the social security contribution tax, known as Cofins, and the social participation tax, known as PIS, for the entire beef-producing industry. Meatpackers will be exempt from both levies (Bloomberg).
MINING & TIMBER
Brazilian mining company Vale agreed to sell land and timber assets to paper and pulp maker Suzano Papel e Celulose for at least 235 million reais ($145 million), both companies said (Reuters).
RETAIL
CBD Grupo Pao de Acucar, Brazil’s biggest retailer, is eyeing further acquisitions in Brazil since the credit crisis has brought down valuations in Latin America’s largest economy, the company’s chief financial officer said (Reuters).
ETHANOL
Brazilian sugar and ethanol producer Cosan signed a long-term contract with Japanese group Mitsubishi to export fuel ethanol to Japan (Reuters).
TELECOMS
Portugal Telecom SGPS SA, a Portuguese telephone company, plans to help Brazil expand broadband services, Diario Economico reported, citing Portugal Telecom Chief Executive Officer Zeinal Bava (Bloomberg).