Dilma Rousseff in Cuba to talk business
Brazil’s president is to make her first official visit to Cuba to develop closer trade ties between the two countries.
Dilma Rousseff is to meet Cuba’s leader Raul Castro to discuss how they can move forward for mutual benefit in a new age defined by Brazil’s growing power.
Chevron could face charges over oil spill
The US multinational energy company Chevron might face criminal charges over the offshore oil spill last year.
A Brazilian prosecutor is considering bringing legal action against the company – with the explicit threat of prison sentences – in what could be an $11 billion (approximately £7 billion) civil lawsuit, Reuters reported.
‘Benchmark cut’ creates confidence
The Brazilian house building industry will benefit tremendously if the benchmark lending rate is slashed to below ten per cent.
MRV Engenharia & Participacoes, which is one of the biggest construction and real estate companies in the South American country, saw its stocks rise to a five-month high after news of this possible cut began to spread through the financial sector.
Demand for air travel in Brazil higher than ever
The changing dynamics of Brazil has been reflected in the tripling of demand for flights in the country.
Over the last decade, more people have been able to afford flying in Brazil, boosted by higher incomes and better prices, reported the Associated Press.
Brazil’s record current account deficit not a major problem
Brazil has posted a record-high current account deficit in 2011, but this has been covered by a record-high amount of foreign direct investment.
The South American country's central bank revealed that last year's deficit was $52.6 billion (approximately £33.5 billion), up from $47.3 billion (approximately £30.15 billion) in 2010.
London’s commercial property feeling the effects of the eurozone malaise
London's commercial property market is experiencing a small crisis of confidence because of the impact of the eurozone, which might see investors go abroad to countries like Brazil where the real estate market is booming.
According to Andrew Burrell, head of forecasting at Jones Lang LaSalle, confidence has been "hit on the occupier side and also the investor side".
"Maybe it has been a little bit more obvious in London offices, because they are very much more outward-looking and very much more connected with what is going on in the globe," he explained.
"I think the big change has been on the prospects of the eurozone and the others are just things that are on in the background. [They are] on the margin – they make a difference, but they are not new news."
A year for coffee
There is something stylish about coffee, black of course. The activity that goes into its making – if done in a manner that is befitting traditionalists and purists – is equally magnificent, a careful, composed and cool affair if ever there was one. And then there's the final act, the finished piece: poured into a porcelain cup and saucer. It is art.
Like tea, coffee has become, in some ways, a staple drink, ubiquitous and accessible to people all over the world, rich and poor. We live our lives by it – the early morning wake-up, the pre-lunch appetiser, the rewarding brew after a long day's slog. It's a feature of many people's lives without them quite realising it.
Petrobras to hire female executive
The Brazilian multinational energy corporation Petrobras is to hire its first ever female chief executive.
Seen as a positive move, news of the potential appointment caused shares in the company to soar to an eight-month high.
Brazil authorities storm illegal settlement
Brazilian authorities have stormed an illegal settlement of landless workers near Sao Paulo to reclaim the land for its private owners.
In a tense stand-off between the police and residents, a number of cars were set ablaze, the BBC reported.
The bustling beat of Brazilian’s economy
The Sun newspaper, known for its irreverent style of phrase, captured the growing power of Brazil rather well when it said that "not only does [the country] run rings around us at footie, they've also overtaken us in the world economics league".
Its business editor, Steve Hawkes, was writing after news that the South American country had overtaken the UK as the world's sixth-largest economy, highlighting the seismic changes that are apace in global politics. Brazil is slowly but surely making its presence known and other nations are finally awakening to its importance.
Moreover, a decade or so of sensible economic policy, strategic thinking and sharp management, which has engineered the creation of a growing, sufficient and strong economy – capable of withstanding tremors in global finance – is indicative of how good governance is possible.
The US' Central Intelligence Agency (CIA) explains how since 2003, substantial changes in Brazil have transformed the country beyond recognition. At a macroeconomic level, there's reassuring stability – foreign reserves have built up and debt has been massively reduced.
"In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt," the CIA states on its website.
"After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery."
Which meant that by 2010, with confidence restored, the South American country's GDP returned to positive. It is now, even in the face of ambiguity in the eurozone, in good spirits. Investment opportunities, especially for foreigners, is generous, with real estate one of the leading sectors. Sun, sea and success might well be a fitting tagline for 2012.
In an interview with the BBC, Francisco Itzaina, Rolls-Royce's chief executive for Latin America, waxes lyrically about the potential in Brazil, not just for his company, but for anyone looking to make something of themselves in the foreseeable future.
"God blessed Brazil with huge amounts of natural resources," he says."It is blessed with minerals and fresh water, and now we have just found huge reserves of oil and gas. Brazil is very well placed for the future."
Why is this so? Well, the obvious reason is that as an emerging economy, growth is almost implied. To modernise – as a generalisation, this equates to deeper urbanisation and mass industrialisation – nations begin investing in major infrastructure developments, financed by domestic and foreign investment, which in turn creates jobs, takes large number out of poverty, establishes an emergent middle class, who then in turn invest back into the economy.
