Bolsonaro wants to decide on repossession operations in rural areas

President Jair Bolsonaro announced on Monday that he will send a bill to Congress to allow Guarantee of Law and Order (GLO) operations to reposses rural properties occupied by squatters. The aim is to provide support for the enforcement of legal decisions. “I want a GLO for the rural regions. When criminals invade a rural property and the judge orders a repossession, governors delay this almost as a rule. Our bill would create the rural GLO to remove these guys from the property,” Mr. Bolsonaro said as he left the Alvorada Palace. GLOs are security operations that can only authorized by the President. They grant members of the Armed Forces and the Federal Police permission to serve as police in a particular area for an established period of time.

Source: Valor Econômico

http://www.valor.com.br/international

 

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Brazilian economy is “very strong” Klabin says

The Brazilian economy rebounded and the current domestic situation is positive – especially for Klabin’s business – according to the company’s general director, Cristiano Teixeira. Klabin is Brazil’s largest manufacturer of packaging paper, industrial bags, and corrugated cardboard packaging, an important barometer of economic activity. “We are controlling our anxiety a bit at this moment to transmit the correct message. But it is a fact that the national economy is very strong for us,” said the executive in a meeting with investors. In October, the company’s corrugated cardboard and industrial bags unit broke shipping records and is on its way to repeating this performance in November. Preliminary data from the Brazilian Association of Corrugated Cardboard (ABPO) indicate that shipments of boxes, accessories and sheets totaled 333,800 tonnes in October, with a 2.6% increase in the annual comparison, and up 10.1% when compared to September.

Source: Valor Econômico

http://www.valor.com.br/international

 

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Federal government to broaden rural insurance’s scope

With a 2020 budget forecast of R$1 billion for the rural insurance premium subsidy program, the Ministry of Agriculture has made changes to the coverage rules to try to reach 17% more farmers and increase the area insured by at least 3 million hectares. The expansion plan also includes a reduction in the share of grains such as soybeans and corn among protected crops. But despite being optimistic, the ministry still has no guarantee that the money will be effectively made available since it depends on Congressional approval. The estimate is to go to up to 250,000 policies from 212,000 and reach 170,000 farmers. The area covered would go to 18 million hectares from 15 million, and the insured value would go to R$50 billion from R$42 billion.

 

Source: Valor Econômico

http://www.valor.com.br/international

 

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Amyris to build new $75m factory in Brazil

US biotech firm Amyris plans to build a $75-million factory in Barra Bonita, a city in the middle of São Paulo state, to produce chemical compounds that can be used in industries ranging from food to cosmetics to fuels. Raízen, a joint venture between Cosan and Shell, will provide the cane syrup and the energy that will be used to create the compounds. CEO John Melo said Amyris will provide 30% of funding from its own cash and the rest through loans, although no additional details were provided.

Source: Valor Econômico

http://www.valor.com.br/international

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VW, Mercedes are candidates to fill Ford’s void in trucks

The shutdown of a Ford plant in São Bernardo do Campo, São Paulo, where trucks were assembled left a void in the Brazilian truck market. The company had historically been responsible for 11% of trucks sales and was among the four largest manufacturers. German companies Mercedes-Benz and Volkswagen are candidates to split Ford’s share between them, according to analysts. “These companies launched models to compete in the segment in which Ford was stronger, for trucks up to 15 tonnes,” said Thiago Costa, an analyst at consultancy IHS Markit. Part of Ford’s share has already been transferred over to other companies, according to Ari de Carvalho, director of truck sales and marketing at Mercedes-Benz of Brazil. The German company’s market share in Brazil grew to 29.5% from 27%.

Source: Valor Econômico

http://www.valor.com.br/international

 

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Brazilians pay 51% more than average price for medicines

Brazilians pay 51.49% more for the same package of 13 drugs than the average of 50 rich and developing countries. The country is the most expensive emerging market, according to the 2019 Medicine Price Index, created by the British health care provider startup Medbelle. Among the drugs included are Viagra (erectile dysfunction), Lyrica (epilepsy), Ventolin (asthma), Prozac (depression) and Xanax (anxiety). The US has the most expensive price, 306.82% more than the global average, while Thailand has the lowest price, costing -93.93%. In Brazil, the average price of the 13 branded drugs is 90.91% higher than the average for the other countries surveyed. But it is 67.55% cheaper if generics drugs are considered. In comparison, the same package costs 22.05% more than average in Argentina and 2.02% more in Chile, but 15.75% less in Portugal and 17.47% less in Mexico.

Source: Valor Econômico

http://www.valor.com.br/international

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B3 tests system for stock-rental market

B3 began testing a stock-rental system that seeks to make the segment more like the spot market. The new environment shows offers of securities and their respective rates in real-time, bridging the distance between the owner of the shares and the investor who rents them. This change is coming at a time when the lower interest rate has attracted investors to the stock exchange, and renting shares can translate into additional revenue

Source: Valor Econômico

http://www.valor.com.br/international

 

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Central Bank autonomy may be tied to ‘dual mandate’

Senator Eduardo Braga of Amazonas, the head of the Brazilian Democracy Movement (MDB), the biggest party in the upper house, will insist on granting the Central Bank autonomy only if it has a “dual mandate” to not merely control inflation, but also to pursue growth and employment targets. “It’s no use having inflation close to zero and 20 million unemployed people in the country,” he told Valor. Several bills are making their way through Congress that would grant the Central Bank (BC) its autonomy. One point in common among the proposals is having the BC President’s term staggered so as not to coincide with Brazil’s presidential elections. They each establish different criteria under which Brazil’s president could remove a BC president or director, however.

Source: Valor Econômico

http://www.valor.com.br/international

 

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XP expects to raise $2.5bn with IPO on Nasdaq

XP Inc. took another step towards its IPO by filing a request with the US Securities and Exchange Commission (SEC) to make its listing on the Nasdaq. XP said it will use proceeds from the offering to launch new services, such as digital banking, payments and insurance, and also for potential acquisitions. Executive partners of the brokerage house and private-equity funds General Atlantic and Dynamo will also sell shares. The preliminary prospectus does not yet include the indicative price range. Sources say that XP seeks to raise $2 billion to $2.5 billion and reach the market with a valuation between $12 billion and $15 billion. Pricing is expected to be defined on December 12.

Source: Valor Econômico

http://www.valor.com.br/international

 

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Brazil and China in meetings to work out ways to boost trade

Brazil and China are working to increase trade between the two countries, with government representatives meeting to work out non-tariff barriers to trade, Valor has learned. Economy Minister Paulo Guedes, who scared Brazilian manufacturers last week after saying that he wanted to pursue a free-trade deal with the Asian giant – wants to sell more manufactured products to China rather than soybeans, iron ore, and oil – raw materials accounted for about $46 billion of the $51 billion (and falling) that Brazil has exported to China so far this year – while importing $30 billion (and growing) primarily in industrialized goods. The plan is to look at products that each country sells to other markets but not to each other, and then try to figure out ways to increase trade in those products.

Source: Valor Econômico

http://www.valor.com.br/international

 

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