Embraer sees signs of recovery in demand

After more than a year without substantial businesses due to the pandemic, plane maker Embraer received a sizable order for 30 jets E-195-E2 from an undisclosed client and sees other signs of improvement in demand. According to CEO Francisco Gomes Neto, the company remains focused on its strategic plan to recover revenue and profitability in the short and medium term. Embraer reported net revenue of R$4.45 billion in the first quarter, with an increase of 55% in the annual comparison and improvement in all business segments. Net loss was reduced by 62%, to R$489.8 million.

Source: Valor international

https://www.valor.com.br/international/briefs

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Consortium led by Ecorodovias wins highway concession

The consortium led by Ecorodovias, in partnership with logistic firm GLP, won on Thursday the auction for highway BR-153 between Goiás and Tocantins. The new concessionaire will operate the highway for 35 years and must invest R$7.8 billion in dualling and improvements. The group won with an offer that combined a 16.25% discount on the toll fee and a fixed concession payment of R$320 million. In addition, the concessionaire will have to deposit R$960 million in an account linked to the project – resources that will serve as a “safety cushion” for the concession and may be used to anticipate works, make rebalances or mitigate currency and demand risks. The consortium overbid CCR, which also proposed a 16.25% discount on the tariff and a payment of R$117 million to the government.

Source: Valor international

https://www.valor.com.br/international/briefs

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Central Bank expected to raise interest by 75 bp

The Central Bank should act as expected and raise the benchmark interest rate Selic by 75 basis points in the Monetary Policy Committee (Copom) meeting next week, in line with the official communication after the March meeting. This is the opinion of almost all market economists, according to a survey conducted by Valor with 98 financial and consulting firms. Of this total, 96 project that the Selic will leave the current 2.75% and reach 3.50% next week, while only two firms estimate a higher increase in the basic interest rate, of 100 basis points, to 3.75%.

Source: Valor international

https://www.valor.com.br/international/briefs

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BNDES expected to sell JBS stake soon

The Brazilian Development Bank (BNDES) is mulling over the sale of shares in some companies, and its stake in JBS may be one of the candidates for divestment, the bank’s director of privatization, Leonardo Cabral, says. The BNDES had started a process to sell JBS, but as the stock price fell, the bank backed off. Now, as the share is around R$ 35, after significant highs in the year, the bank is reassessing this possibility. BNDES is JBS’s biggest shareholder, with 23.16% of the capital.

Source: Valor international

https://www.valor.com.br/international/briefs

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China promises more raw material for vaccine

Foreign Affairs Minister Carlos França said Wednesday he has received from Chinese officials the promise that Brazil will receive a larger quota of active pharmaceutical ingredient (API) for the production of Oxford-AstraZeneca vaccines in May and June. Sworn in three weeks ago, after the fall of Ernesto Araújo, the new minister informed the Foreign Relations Commission of the Chamber of Deputies that he had a telephone conversation with his Chinese counterpart, Wang Yi, who said China will help Brazil as soon as possible.

Source: Valor international

https://www.valor.com.br/international/briefs

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Butantan starts producing Brazilian vaccine

The Butantan Institute started Wednesday to produce Butanvac, the Brazilian vaccine against Covid-19. The immunizer still needs to be approved by Brazilian Health Regulatory Agency (Anvisa). According to Dimas Covas, director of the institute, 15 million to 18 million doses will be manufactured by June. The production capacity can reach 150 million jabs, if necessary, he said. The technology of the vaccine is similar to the flu vaccine and there is no need to import inputs for its production. Butantan filed a request for phase 1 and 2 tests with volunteers, but Anvisa Tuesday asked for more information from the laboratory. In another development, Brazil is going to receive this Thursday 1 million doses of the Pfizer/BioNTech vaccine, refused for months by the federal government. An agreement has been made and the arrival of the shots has been unlocked.

Source: Valor international

https://www.valor.com.br/international/briefs

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Insurer Caixa Seguridade raises R$5bn in IPO

Boosted by retail investors, insurance company Caixa Seguridade raised R$5 billion in its IPO, concluded Tuesday. The value is the second highest so far this year, behind only CSN Mineração, whose IPO raised R$5.2 billion in February. Fifty five percent of the stocks end up on the hands of individual investors and the share price of R$9.67 was not discounted. Amid a very volatile market, other companies who debuted at the stock exchange in the last weeks had to reduce their price expectations. Others postponed plans to go public.

Source: Valor international

https://www.valor.com.br/international/briefs

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Bolsonaro submits to Congress annexes to Brazil–US deal

Brazil’s President Jair Bolsonaro has submitted to the National Congress annexes to the Brazil–US Agreement on Trade and Economic Cooperation, or ATEC in the Portuguese acronym. Drafted jointly by the Foreign and Economy Ministries, the annexes concern commercial and transparency rules.

The protocol is reported to include, as annexes, understandings on the facilitation of trade and customs administration, good regulatory practices, and anti-corruption efforts. They will be incorporated into the agreement, signed in 2011, after they are approved by members of both congressional houses.

The term, a Monday (Apr. 26) note from the Planalto presidential palace reads, aims to expand trade and strengthen economic ties between Brazil and the US by promoting an open and predictable environment and reducing non-tariff barriers on commerce. According to the Economy and Foreign Ministries, removing red tape from bilateral trade procedures and the adoption of international standards on regulatory practices and anti-corruption measures should bring about legal security and boost the commercial flow between the two nations.

The annex on commerce facilitation aims to reduce bureaucratic obstacles and ensure swiftness, predictability, and transparency in the norms and procedures for export and import, reducing foreign trade costs.

There is also an annex on good regulatory practices for rendering Brazil’s business environment more transparent, predicable, and open to competition, in line with the Economic Freedom Law.

The anti-corruption annex, in turn, restates legislative duties to which Brazil and the US have been bound, mentioning the United Nations Convention against Corruption (2003), the Inter-American Convention against Corruption (1996), and the Convention of the Organization for Economic Cooperation and Development (OECD) on Combating Bribery of Foreign Public Officials in International Business Transactions (1997).

In addition to the criminal sphere, the annex also brings the domestic work and international cooperation against corruption to the civil and administrative fields. “This is a relevant stride in the efforts to combat the financial flows of organized criminal chains—their central axis—through the recovery of assets. The text reinforces, therefore, the joint commitment to the fight against corruption,” the note adds.

Source: Agência Brasil

https://agenciabrasil.ebc.com.br/en

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Vale’s profits skyrocket 2,220% in the first quarter

Vale confirmed market expectations and announced Monday a net income of $5.5 billion in the first quarter of the year. In dollars, compared to the same period in 2020, the increase was 2,220%. Sales revenue was $12.6 billion, up 81.4% year-on-year. And earnings before interest, taxes, depreciation, and amortization (Ebitda) reached $8.35 billion, up 189.7% year-on-year. The results were driven by iron ore prices, the company’s core business.

Source: Valor international

https://www.valor.com.br/international/briefs

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Owner of Casas Bahia to invest R$200m in startups

The retailer Via – the new name of Via Varejo, owner of Casas Bahia and Ponto Frio chains – will invest R$200 million of its own capital over the next five years to accelerate startups. The investments will be managed together with the open innovation platform Distrito (Via’s partner since November), focusing on the areas of finance, retail, logistics and marketing. According to the company, the resources will be applied in acceleration, partnerships and in mergers and acquisitions of startups. Via’s interest in technology-based companies reflects the desire to open new business fronts. The message was given on Sunday, when the company shortened its name to Via, without the ‘Varejo’ (retail, in Portuguese).

Source: Valor international

https://www.valor.com.br/international/briefs

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