brazil Archive

  • BRAZIL: Ibovespa Loses Momentum, But Closes Higher On Friday The Ibovespa lost steam at the end of the trading session but kept rising (+0.14%), closing at 76,390.11 pointson Friday. In the week, the benchmark stock index in Brazil posted a 0.78% fall. In the external field, uncertainty over who will be the new head of the U.S. Federal Reserve impacted the Ibovespa negatively. In business matters, the positive Vale's production report for the quarter gave rise to speculation about the company's quarterly results, to be published next week, and the miner's shares fell 0.15%. The external scenario supported the appreciation of the locally traded U.S. dollar against the Brazilian real, closing at R$ 3,190 (+0.44%), the highest level since September 27 (R$ 3,194). Throughout the day, it reached a minimum of R $ 3,173 and a maximum of R $ 3,196. The approval of the 2018 budget plan Thursday night by the United States Senate signaled to the market that the country&#03..

    BRAZIL: Ibovespa Loses Momentum, But Closes Higher On Friday

    BRAZIL: Ibovespa Loses Momentum, But Closes Higher On Friday The Ibovespa lost steam at the end of the trading session but kept rising (+0.14%), closing at 76,390.11 pointson Friday. In the week, the benchmark stock index in Brazil posted a 0.78% fall. In the external field, uncertainty over who will be the new head of the U.S. Federal Reserve impacted the Ibovespa negatively. In business matters, the positive Vale's production report for the quarter gave rise to speculation about the company's quarterly results, to be published next week, and the miner's shares fell 0.15%. The external scenario supported the appreciation of the locally traded U.S. dollar against the Brazilian real, closing at R$ 3,190 (+0.44%), the highest level since September 27 (R$ 3,194). Throughout the day, it reached a minimum of R $ 3,173 and a maximum of R $ 3,196. The approval of the 2018 budget plan Thursday night by the United States Senate signaled to the market that the country&#03..
    Read More
  • BRAZIL: Government To Send Congress Changes To The 2018 Budget Bill The Brazilian government will send to Congress the changes to the 2018 budget bill by the end of next week, Planning Minister Dyogo Oliveira said Thursday after a meeting with the Senate's speaker Eun?cio Oliveira. "The speaker asked about the deadline for sending the complementary piece of the budget, and I said we are preparing everything to send it by the end of next week," said the minister. According to him, the bill would be sent promptly so that the Congress' Joint Budget Commission meets "the necessary deadlines for the approval of the reports and the whole procedure." The changes to the budget bill are needed since the government has increased the fiscal target for the next year. The previous forecast was a primary deficit of R$ 129 billion. In August, the deficit forecast was increased to R$ 159 billion.

    BRAZIL: Government To Send Congress Changes To The 2018 Budget Bill

    BRAZIL: Government To Send Congress Changes To The 2018 Budget Bill The Brazilian government will send to Congress the changes to the 2018 budget bill by the end of next week, Planning Minister Dyogo Oliveira said Thursday after a meeting with the Senate's speaker Eun?cio Oliveira. "The speaker asked about the deadline for sending the complementary piece of the budget, and I said we are preparing everything to send it by the end of next week," said the minister. According to him, the bill would be sent promptly so that the Congress' Joint Budget Commission meets "the necessary deadlines for the approval of the reports and the whole procedure." The changes to the budget bill are needed since the government has increased the fiscal target for the next year. The previous forecast was a primary deficit of R$ 129 billion. In August, the deficit forecast was increased to R$ 159 billion.
    Read More
  • BRAZIL: Eletrobras Privatization Could Raise US$ 2.43 Billion For Government The privatization of Brazilian state-owned power distributor Eletrobras could increase federal government revenue by R$ 7.7 billion (US$ 2.43 billion) in 2018, said the acting minister of Mines and Energy, Paulo Pedrosa. He denied that the government wants to transfer the control of Eletrobras to the private sector solely to reduce its primary deficit. The goal, according to Pedrosa, is to make the company more competitive. "In the case of Eletrobras, the collateral effect would be R$ 7.7 billion in the budget, focusing on improving the environment for the electric sector. We want Eletrobras selling [electricity] at market prices." Pedrosa said that the current scenario in the energy market is more complicated than before, with technology, management and even climate change impacting on the power generation costs. "We no longer have the capacity to turn the electricity sector on with BNDES funds," s..

    BRAZIL: Eletrobras Privatization Could Raise US$ 2.43 Billion For Government

    BRAZIL: Eletrobras Privatization Could Raise US$ 2.43 Billion For Government The privatization of Brazilian state-owned power distributor Eletrobras could increase federal government revenue by R$ 7.7 billion (US$ 2.43 billion) in 2018, said the acting minister of Mines and Energy, Paulo Pedrosa. He denied that the government wants to transfer the control of Eletrobras to the private sector solely to reduce its primary deficit. The goal, according to Pedrosa, is to make the company more competitive. "In the case of Eletrobras, the collateral effect would be R$ 7.7 billion in the budget, focusing on improving the environment for the electric sector. We want Eletrobras selling [electricity] at market prices." Pedrosa said that the current scenario in the energy market is more complicated than before, with technology, management and even climate change impacting on the power generation costs. "We no longer have the capacity to turn the electricity sector on with BNDES funds," s..
    Read More
  • BRAZIL: Ibovespa Falls 0.4% On Lower Growth In China Ibovespa, the benchmark stock index in Brazil, closed down 0.4% Thursday at 76,283.16 points, tracking the path of emerging markets after China reported that its Gross Domestic Product (GDP) grew 6.9% in the third quarter, at a slower pace than the expected by investors. The Chinese figures negatively impacted on commodities prices. But contrary to the more than 3% fall in iron ore, Vale's shares rose 2.26%, limiting Ibovespa's deceleration, after reported its production data for the third quarter, which had a record high. "Despite the price of the iron ore closing down, Vale had a record production in the quarter, creating an expectation of good financial results for the period," said Vitor Suzaki, an analyst at Lerosa Investimentos. According to ?lvaro Bandeira, the chief economist at Homebroker Modalmais, the Chinese question was the primary factor that soured the mood in the Brazilian market Thursday. "The da..

    BRAZIL: Ibovespa Falls 0.4% On Lower Growth In China

    BRAZIL: Ibovespa Falls 0.4% On Lower Growth In China Ibovespa, the benchmark stock index in Brazil, closed down 0.4% Thursday at 76,283.16 points, tracking the path of emerging markets after China reported that its Gross Domestic Product (GDP) grew 6.9% in the third quarter, at a slower pace than the expected by investors. The Chinese figures negatively impacted on commodities prices. But contrary to the more than 3% fall in iron ore, Vale's shares rose 2.26%, limiting Ibovespa's deceleration, after reported its production data for the third quarter, which had a record high. "Despite the price of the iron ore closing down, Vale had a record production in the quarter, creating an expectation of good financial results for the period," said Vitor Suzaki, an analyst at Lerosa Investimentos. According to ?lvaro Bandeira, the chief economist at Homebroker Modalmais, the Chinese question was the primary factor that soured the mood in the Brazilian market Thursday. "The da..
    Read More
  • PETROBRAS: Company Obtains Favorable Decision In Tax Dispute In Brazil Brazilian state-owned oil company Petrobras obtained a favorable decision in a tax dispute that could cost the company more than R$ 15 billion (US$ 4.7 billion). The dispute involved the deductibility of expenses with oil and gas output in the company's tax statement in 2010. "The Administrative Board of Tax Appeals (CARF) issued yesterday a decision, unanimously, in favor of the company, in a fiscal administrative proceeding in the amount of R$ 7.8 billion, related to the moment of deductibility of expenses incurred by Petrobras in the development of oil and gas production," said the company in a statement. Petrobras had not provisioned money to pay for the contingent liabilities of that dispute, yet it stated in the second quarter earnings report that the costs could reach R$ 15.604 billion if the company lost the tax battle.

    PETROBRAS: Company Obtains Favorable Decision In Tax Dispute In Brazil

    PETROBRAS: Company Obtains Favorable Decision In Tax Dispute In Brazil Brazilian state-owned oil company Petrobras obtained a favorable decision in a tax dispute that could cost the company more than R$ 15 billion (US$ 4.7 billion). The dispute involved the deductibility of expenses with oil and gas output in the company's tax statement in 2010. "The Administrative Board of Tax Appeals (CARF) issued yesterday a decision, unanimously, in favor of the company, in a fiscal administrative proceeding in the amount of R$ 7.8 billion, related to the moment of deductibility of expenses incurred by Petrobras in the development of oil and gas production," said the company in a statement. Petrobras had not provisioned money to pay for the contingent liabilities of that dispute, yet it stated in the second quarter earnings report that the costs could reach R$ 15.604 billion if the company lost the tax battle.
    Read More
  • BRAZIL: House Committee Votes To Shield President Temer A Brazilian House of Representatives Committee voted in favor of shielding President Michel Temer from a trial for corruption. The decision must be endorsed by the House floor and was widely expected by investors. Temer was charged for the second time this year in September, when public prosecutors accused him of leading a criminal group that received at least R$ 587 million (US$ 187 million) in graft payments. The complaint says that Temer and other members of his political party (PMDB), including current cabinet members, used public companies and agencies to commit crimes in exchange for money. Prosecutors also say that Temer and other PMDB politicians engineered a plan to oust Dilma Rousseff from the Presidency last year because of a perceived lack of effort from her government to stop investigations about corruption schemes. Temer denied the charges and said that he is the victim of a conspiracy plot. The charges w..

    BRAZIL: House Committee Votes To Shield President Temer

    BRAZIL: House Committee Votes To Shield President Temer A Brazilian House of Representatives Committee voted in favor of shielding President Michel Temer from a trial for corruption. The decision must be endorsed by the House floor and was widely expected by investors. Temer was charged for the second time this year in September, when public prosecutors accused him of leading a criminal group that received at least R$ 587 million (US$ 187 million) in graft payments. The complaint says that Temer and other members of his political party (PMDB), including current cabinet members, used public companies and agencies to commit crimes in exchange for money. Prosecutors also say that Temer and other PMDB politicians engineered a plan to oust Dilma Rousseff from the Presidency last year because of a perceived lack of effort from her government to stop investigations about corruption schemes. Temer denied the charges and said that he is the victim of a conspiracy plot. The charges w..
    Read More
  • BRAZIL: Electricity Tariff Should Incorporate Demand Changes, Says Regulator Brazil should incorporate variations in power demand to the electricity price in the future, in spite of the near-term obstacles to that kind of change, said the director of the power sector regulator Aneel, Jos? Jurhosa Junior. "If this is the case, we will have to change all the power meters, but I believe that this is the future of the country," he said. "You have to take the risk out of the distributor and pass it on to the marketer, and then the customer can choose," Jurhosa said. "We have to create conditions so that in the future the consumer can generate his energy." Meanwhile, the Empresa de Pesquisa Energ?tica's chairman, Luiz Barroso, noted that before implementing the so-called binomial rate - which would mix the power consumption and charges related to power demand - it would be important to prepare the regulation for the new technologies. In his opinion, however, it would not be n..

    BRAZIL: Electricity Tariff Should Incorporate Demand Changes, Says Regulator

    BRAZIL: Electricity Tariff Should Incorporate Demand Changes, Says Regulator Brazil should incorporate variations in power demand to the electricity price in the future, in spite of the near-term obstacles to that kind of change, said the director of the power sector regulator Aneel, Jos? Jurhosa Junior. "If this is the case, we will have to change all the power meters, but I believe that this is the future of the country," he said. "You have to take the risk out of the distributor and pass it on to the marketer, and then the customer can choose," Jurhosa said. "We have to create conditions so that in the future the consumer can generate his energy." Meanwhile, the Empresa de Pesquisa Energ?tica's chairman, Luiz Barroso, noted that before implementing the so-called binomial rate - which would mix the power consumption and charges related to power demand - it would be important to prepare the regulation for the new technologies. In his opinion, however, it would not be n..
    Read More
  • BRAZIL: Electricity Tariff Should Incorporate Demand Changes, Says Regulator Brazil should incorporate variations in power demand to the electricity price in the future, in spite of the near-term obstacles to that kind of change, said the director of the power sector regulator Aneel, Jos? Jurhosa Junior. "If this is the case, we will have to change all the power meters, but I believe that this is the future of the country," he said. "You have to take the risk out of the distributor and pass it on to the marketer, and then the customer can choose," Jurhosa said. "We have to create conditions so that in the future the consumer can generate his energy." Meanwhile, the Empresa de Pesquisa Energ?tica's chairman, Luiz Barroso, noted that before implementing the so-called binomial rate - which would mix the power consumption and charges related to power demand - it would be important to prepare the regulation for the new technologies. In his opinion, however, it would not be n..

    BRAZIL: Electricity Tariff Should Incorporate Demand Changes, Says Regulator

    BRAZIL: Electricity Tariff Should Incorporate Demand Changes, Says Regulator Brazil should incorporate variations in power demand to the electricity price in the future, in spite of the near-term obstacles to that kind of change, said the director of the power sector regulator Aneel, Jos? Jurhosa Junior. "If this is the case, we will have to change all the power meters, but I believe that this is the future of the country," he said. "You have to take the risk out of the distributor and pass it on to the marketer, and then the customer can choose," Jurhosa said. "We have to create conditions so that in the future the consumer can generate his energy." Meanwhile, the Empresa de Pesquisa Energ?tica's chairman, Luiz Barroso, noted that before implementing the so-called binomial rate - which would mix the power consumption and charges related to power demand - it would be important to prepare the regulation for the new technologies. In his opinion, however, it would not be n..
    Read More
  • BRAZIL: Economic Activity Index Falls More Than Expected In August The Brazilian economic activity index (IBC-Br), which acts as a proxy for the country's GDP, fell 0.38% in August compared to July, to 135.05 points, receding from the highest level of the year. Analysts expected a 0.25% decrease. Year-to-date, the indicator rose 0.42%, but fell 0.89% in the 12 months through August. On an annual basis, however, the Brazilian economic activity index increased by 1.64, also below the estimates (+2%). "The recovery of the Brazilian economy seems not to be at risk, as pointed out by carry-over estimate not only for 2017 but for 2018 as well", said Jankiel Santos and Fl?vio Serrano, economists at Haitong, in a report. "However, contrasting with the recent upbeat wave of reviews, latest figures still hint at a gradual pace for the revival, which should ensure the maintenance of an accommodative stance of the monetary policy for a relatively long period of time," they added. M..

    BRAZIL: Economic Activity Index Falls More Than Expected In August

    BRAZIL: Economic Activity Index Falls More Than Expected In August The Brazilian economic activity index (IBC-Br), which acts as a proxy for the country's GDP, fell 0.38% in August compared to July, to 135.05 points, receding from the highest level of the year. Analysts expected a 0.25% decrease. Year-to-date, the indicator rose 0.42%, but fell 0.89% in the 12 months through August. On an annual basis, however, the Brazilian economic activity index increased by 1.64, also below the estimates (+2%). "The recovery of the Brazilian economy seems not to be at risk, as pointed out by carry-over estimate not only for 2017 but for 2018 as well", said Jankiel Santos and Fl?vio Serrano, economists at Haitong, in a report. "However, contrasting with the recent upbeat wave of reviews, latest figures still hint at a gradual pace for the revival, which should ensure the maintenance of an accommodative stance of the monetary policy for a relatively long period of time," they added. M..
    Read More
  • BRAZIL: Delay In Pension Reform May Halt Rate Cuts By The Central Bank The delays faced by the pension reform bill in Brazil's Congress should restrain the central bank's monetary policy committee ability to cut the benchmark interest rate or even halt that effort if legislators wait until 2019 to vote on the legislation. Market players in Brazil are worried about how the delay in congressional approval of the pension reform would reverberate in monetary policy decisions in the face of uncertainties related to next year's presidential election. They claim that if Congress found obstacles to move forward with the legislation this year, it may find even harder to pass the bill in 2018. For this year, the monetary policy horizon is much foreseeable. The primary interest rate, known as Selic, should end 2017 at 7%, even with the market already starting to price that the pension reform will not come true in the near term. However, the public budget health remains an ..

    BRAZIL: Delay In Pension Reform May Halt Rate Cuts By The Central Bank

    BRAZIL: Delay In Pension Reform May Halt Rate Cuts By The Central Bank The delays faced by the pension reform bill in Brazil's Congress should restrain the central bank's monetary policy committee ability to cut the benchmark interest rate or even halt that effort if legislators wait until 2019 to vote on the legislation. Market players in Brazil are worried about how the delay in congressional approval of the pension reform would reverberate in monetary policy decisions in the face of uncertainties related to next year's presidential election. They claim that if Congress found obstacles to move forward with the legislation this year, it may find even harder to pass the bill in 2018. For this year, the monetary policy horizon is much foreseeable. The primary interest rate, known as Selic, should end 2017 at 7%, even with the market already starting to price that the pension reform will not come true in the near term. However, the public budget health remains an ..
    Read More