Brazil’s government sold only 4 of 6 700 MHz fourth-generation broadband concessions on auction Tuesday to raise R$5.8 billion, telecom regulatory agency Anatel said. The first three lots on offer, permitting nationwide operations, were purchased at just above the minimum price of R$1.9 billion each by mobile operators Claro, Tim and Vivo. Another lot covering…
Bank Workers Reject Pay Adjustment, Vote To Strike
by BCR Staff •
Brazilian bank workers around the country voted to reject a proposed pay increase and begin a strike Tuesday for better wages and benefits, according to bank union leaders. Bank unions said they rejected a proposed 7.35% pay increase from the National Bank Federation (Fenaban) and would continue to seek a 12.5% pay adjustment. In addition,…
Central Bank Sees 2014 Growth at 0.7%, Inflation At 6.3%
by BCR Staff •
Brazil’s central bank has cut its projection for inflation slightly in 2014, but simultaneously reduced its forecast for growth. According to the bank’s latest quarterly inflation report, the country’s IPCA consumer price index is seen ending 2014 near the top end of the country’s inflation target band, at 6.3%. That was down, however, from 6.4% seen in the previous…
Central Bank Steps Up Swaps Intervention To Bolster Real
by BCR Staff •
Brazil’s central bank will increase its intervention in the currency market with foreign exchange swaps to slow the weakening of the real, the bank said. The institution said it would more than double its daily offering of swap contracts to 15,000 from 6,000. The bank made the move after the real this week weakened to beyond…
Government To Use R$3.5B From Sovereign Fund to Cover Deficit
by BCR Staff •
Brazil’s government will use R$3.5 billion ($1.5 bln) from its sovereign wealth fund to cover for a projected shortfall of revenue this year, the Planning Ministry said. Planning Ministry officials said the government made the latest move to cover a R$10.5 billion shortfall of revenue expected for 2014 and avoid further freeze of discretionary spending,…
Ibama Authorizes Porto Sul Port Construction At Ilheus, Bahia
by BCR Staff •
Brazil’s environmental regulatory agency Ibama after four years of study gave authorization for the construction of the Porto Sul Port facility at Ilheus in Southern Bahia state, the agency said. The facility, aimed at the shipment of iron ore, will be built at an 1800 hectare area 15 kilometers from the city. The port is estimated…
Inflation Accelerates Above Target In Mid-September
by BCR Staff •
Brazilian inflation accelerated in mid-September to push the country’s IPCA consumer price index above the country’s 12-month target ceiling. The IBGE statistics institute said inflation accelerated 0.39% during the month, pushing 12-month inflation to 6.62%. Brazil has set an annual inflation target of 4.5%, with a 2 percentage point margin of tolerance and a target…
Telefonica To Buy GVT From Vivendi For $9 Billion
by BCR Staff •
Spanish telecom Telefonica will purchase controlling stake in Brazilian broadband telecom operator GVT from GVT’s French parent Vivendi for $9 billion, the companies said. Telefonica will pay $6 billion in cash and will pay for the rest with a transfer of its own shares and shares of its stake in Telecom Italia. Analysts said the…
Datafolha: Rousseff, Silva Tied For Runoff, Neves Gains
by BCR Staff •
Incumbent president Dilma Rousseff and former Senator Marina Silva remain tied for support in a possible runoff vote, while third-place challenger Aécio Neves gained support for the first round vote, the latest poll from the Datafolha institute showed. The poll indicated Ms. Rousseff would win a first round with 37% of support, versus 30% for Ms. Silva…
Government Extends Tax Breaks On Profits Abroad
by BCR Staff •
Brazilian industries operating abroad will gain a 9% income tax credit to reduce the amount of tax paid locally, the Finance Ministry said Monday. The credit, which was previously granted to food, construction and service industries will be extended to most other sectors, the ministry said. Finance Minister Guido Mantega announced the measure following meetings with…
