Schlagzeilen aus der internationalen Ausgabe von VALOR ECONÔMICO vom 6.7.2016

ECONOMY

Another deficit in 2017 could erode market support

Analysts forecast R$123bn deficit next year as continued budget uncertainty erodes Temer government’s honeymoon with market

ECONOMY

Fiscal deficit may reach R$150bn in 2017

That’s the estimate of budget consultants for the new fiscal target, which will be announced Thursday and may include tax increases

MARKETS

Central Bank directors adopt more hawkish tone

Two newly appointed officials showed an even more conservative speech than central banker Ilan Goldfajn in Senate hearings

BUSINESS

Cemig resumes plans to sell gas distribution arm

Minas Gerais utility puts Gasmig on the radar of asset sales, which may include other non-core assets

BUSINESS

Saraiva partners clash again

Founding family and Korean investor Mu Hak You are at odds over business strategy, with each side calling for competing shareholders’ meetings

COMMENTARY

Cristiano Romero

Two years for Brazil to take “unpopular” measures

New study estimates that government spending will only surpass limit in 2019, when country needs to have tackled the issue

Antonio Delfim Netto

The Central Bank and real interest rates

It remains to be proven whether it’s healthy to let the market dictate real exchange rates amid free capital flows and high interest-rate spreads

Angela Bittencourt

A window for Temer to improve his popularity

Interim president could gain a boost from the Senate testimony of suspended President Dilma Rousseff and lower inflation figures from June

MORE NEWS

• BUSINESS

  Petrobras revises bylaws and enforce stricter control over investments

  Executives will have less freedom over the budget and to submit projects for board approval
• BUSINESS

  Crisis doesn’t spare spirits market

  
  Beverages still showing sales growth last year were hit by the recession in the first months of 2016
• BUSINESS

  Free consumers step up sales of surplus electricity

  
  Worsening economic crisis cuts demand for power and increases volume not used by industrial clients
• ECONOMY

  Senate bill would cap tax to lower aviation fuel cost

  Government supports initiative of limiting ICMS charged in aviation fuel to 12%
• BUSINESS

  Petrobras punishes workers for bribery in HR contracts

  
  Three employees were fired and others sanctioned for participating in scheme with providers of outsourced labor force and pharmacy benefits
• BUSINESS

  CPFL gets boost to consolidate distribution industry

  
  State Grid’s proposal to buy Camargo Corrêa’s stake in controlling block of utility company was welcomed by investors
• POLITICS

  Olympics save municipal investments from falling in election year

  Rio makes total investments of 21 big cities grow because of the games; without them, outlays fall because of recession
• BUSINESS

  Brazilian trio sees big market for plant-based cat litter

  
  Owners of 7Pets sign contract with Kroger in the US and build new factory in Rio de Janeiro to meet expected demand
• MARKETS

  Digital checking account increases banking competition

  
  With lower cost provided by online model, smaller banks return to offering retail services
• AGRIBUSINESS

  Odebrecht agrees to R$6bn capitalization of agribusiness arm

  
  Debt deal for sugar-and-ethanol concern Odebrecht Agroindustrial includes immediate payment of R$2.5bn with 13 years for the remaining R$8.5bn 
• MARKETS

  Borrowing cost makes equity better funding option

  High interest rates and recession causes bigger distortion in funding costs for businesses in the country
• ECONOMY

  Per capita income to have second-worst contraction on record

  
  Recession expected to shave 9.4% of the Brazilian GDP per capita in the 2014-2016 period
• MARKETS

  Inflation target will only fall by 2019

  
  Central Bank president Ilan Goldfajn says he does not advocate a pure floating exchange rate in emerging economies
• AGRIBUSINESS

  Brazil’s “bean capital” enjoys surge in prices with caution

  
  Farmers benefit from scarcity of food staple but are not convinced it is worth greatly increasing cultivation areas
• POLITICS

  Eldorado becomes target of Operation Car Wash

  Former VP of Caixa said pulp producer paid bribes to get more funds for its expansion project
• POLITICS

  Congress discusses creation of leniency to save parties

  
  Talks, which involve changing law of plea bargains, are likely to gather momentum after October’s municipal elections
• BUSINESS

  Kroton shells out 37% premium over initial offer for Estácio

  Education giant emerges victorious from bidding war, spearheading merger that creates a R$29bn company with R$8bn in revenue
• BUSINESS

  Small businesses see opportunities in neighboring countries

  
  Crisis in Brazil leads several small companies to look for buyers in countries like Peru and Colombia
• ECONOMY

  Government devises new concession model

  Proposal is to set aside part of the project’s revenues for debt repayment, in order to stimulate private-sector banks to provide loans
• ECONOMY

  Ministry of Finance makes effort to show deficit was not overestimated

  
  Without “pedaled” expenditures, 12-month deficit would be R$90bn, while fiscal target for 2016 is R$170bn
• BUSINESS

  Kroton relents and Estácio's board endorses improved offer

  
  Situation of Estácio CEO Chaim Zaher, who intended to launch his own offer for control, remains unclear
• BUSINESS

  Cimed wants to climb to the top with acquisitions

  
  Pharmaceutical group has been rising in the industry’s ranking and is today the fourth-biggest in unit sales
• BUSINESS

  Eletrobras may forfeit distribution concessions if denied R$8bn aid

  Government has only authorized R$3.5bn for the holding company this year, but board is resolute on the need for more funds
• BUSINESS

  Azuma Kirin merges with Tozan Agrícola eyeing 40% growth by 2018

  
  Sake and rice producers will have R$72 million in total revenue and single strategy in Brazil
• BUSINESS

  Rating agencies see Petrobras debt as manageable

  State-owned oil producer only faces moderate risk of contagion and of needing a government bailout compared to peers PDVSA and even Pemex
• POLITICS

  Rousseff prepares impeachment counter-offensive

  
  Suspended president will try to use pro-market policies of the new government to galvanize unions and other supporters for her return to office
• POLITICS

  Temer gives up fully opening airlines to foreign capital

  
  Interim president commits to vetoing end of limit for foreign investors in order to appease senators
• BUSINESS

  Estácio board plans to abstain from endorsing Kroton offer

  Bidding war intensifies as regulator issues ultimatum to Estácio CEO while Kroton stands its ground and Ser Educacional offers more dividends
  
  

  Nippon expects quick court ruling to remove Usiminas CEO 

  10 hours and 37 minutes ago
  • Nippon Steel & Sumitomo Metal has adopted a tougher stance against Ternium-Techint, its partner in the controlling block of steelmaker Usiminas. The Japanese steel group does not accept the election, on May 25, of Sergio Leite as the Usiminas CEO, who was appointed by Italian-Argentine group Ternium-Techint. In a statement, Nippon says the decision was “irregular and illegal” and that it expects "swift and appropriate" court rulings. One possible outcome, if there is no agreement, is Judge Mariza Porto, in charge of the case, appointing a third party for the presidency. Yoichi Furuta, Nippon Steel director and Usiminas board member, said in an interview in São Paulo that the best solution would be to make amends to solve the corporate conflict, which has dragged on for nearly two years. But the hurdles involving this alternative lead to another, considered more viable: splitting Usiminas between both partners.
    
    

    Nearly a fifth of Olympics tickets remain unsold

    10 hours and 37 minutes ago
    • To completely fill all Olympics arenas 30 days from now, when Rio 2016 starts, 1.7 million tickets will have to be sold. According to the Rio 2016 Committee, 4.3 million out of 6 million tickets have already been sold. Revenues so far total R$959.4 million or 92% of the target set by organizers. Officials say the number of events was split into four segments instead of three, helping increase ticket sales and revenues. The committee has also accelerated the resale of canceled or forfeited tickets.