Showing posts with label Brazil. Show all posts
Showing posts with label Brazil. Show all posts

Tuesday, May 19, 2009

20 May 2009 Edition | China Economic Scan

20-May-2009

China Economic Scan - Your daily update on the Chinese economy.

In this edition: China and Brazil said to have huge trade potential, Macao's property transactions fall 16% in Q1, Chinalco-Rio Tinto deal gets approval from US regulator, Agricultural Bank raises $7.3bln in bond sale, Chinese stocks rise to 9 month high.

Top 5 headlines

China, Brazil have huge trade potential: former ambassador

  • Former Chinese ambassador to Brazil, Chen Duqing, said that the two sides have huge potential to expand trade.
  • Bilateral trade rose 63.2% year on year to $48.98 billion in 2008, according to data released by the General Administration of Customs.
  • Brazil imported $268 million worth of farm produce from China, up 125.2% year on year. Imported goods were mainly soybeans, aquatic and livestock products. China imported vegetable oil, cotton and fruit worth $8.79 billion from Brazil last year, an increase of 82.4% from a year ago.

Macao's property transactions down 16.9% in Q1

  • Based on Stamp Duty records, a total of 1,664 building units were sold and purchased in the first quarter of 2009, decreasing by 16.9% over the fourth quarter of last year.
  • The total value of property transactions in the period dropped 20.5% quarter-to-quarter to just 2.13 billion patacas (US$270 million).
  • 801 units, were residential units, valued at a total of 1.27 billion patacas (US$161 million), decreasing by 37.7% and 41% respectively quarter-to-quarter, the DSEC figure showed.

Chinalco-Rio Tinto deal gets approval from U.S. regulator

  • The Committee of Foreign Investment in the United States granted clearance to Rio Tinto regarding the proposed issue of convertible bonds to Aluminum Corp. of China.
  • In February, Chinalco signed to invest 19.5 billion U.S. dollars in the iron ore giant Rio Tinto of Australia, the world's third-largest mining company, to secure resource supplies for China and help cut Rio's heavy debt.
  • Under terms of the planned deal, Chinalco will invest US$7.2 billion in convertible bonds and US$12.3 billion in Rio Tinto iron ore, copper and aluminum stakes.

Agricultural Bank Raises $7.3 Billion in Bond Sale

  • Agricultural Bank of China, raised 50 billion yuan ($7.3 billion) in the nation’s biggest corporate bond sale to boost capital and help pave the way for an initial public offering (IPO).
  • The IPO, planned for as early as the second half of this year, would be the biggest by a Chinese lender since 2006 and cap a decade-long reorganization of the banking industry that cost $650 billion.
  • Agricultural Bank sold 20 billion yuan of 10-year callable bonds at a coupon rate of 3.3% for the first 5 years and 25 billion yuan of 15-year bonds at 4% for the first 10 years on the nation’s interbank market.

China’s Stocks Rise to Nine-Month High on Stimulus Expectations

  • Chinese stocks closed up, arriving at 9 month highs on Tuesday. The Hang Seng rose +3.06% to 17,544, Shanghai Composite +0.90% to 2,677, Shenzhen Component up +1.07% to 10,424.
  • “The government is quite determined to get a recovery,” said Philippe Zhang, chief investment officer at AXA SPDB Investment Managers in Shanghai, which oversees about $220 million. “The market is still quite strong.”
  • Pudong Bank gained +3.2% to 25.99 yuan, the most since April 29. Shenzhen Bank rose +2.2% to 17.89 yuan. PetroChina gained +1.4% to 13.15 yuan. The company said it will buy 8 gas suppliers from its parent company and issue 26 billion yuan in medium-term notes. Goldman Sachs Group raised its stock rating to “neutral.” China Oilfield Services, an oil driller, rose +1.5% to 16.63 yuan.

Financial Indicators:

Metric Value Point change % change
Hang Seng Index 17,544 521.12 3.06%
Shanghai Composite 2,677 23.9 0.90%
Shenzhen Component 10,424 110.32 1.07%
TAIEX 6,656 77.78 1.18%
CNY/USD 6.8292 -0.0023 -0.03%

Source: China Economic Scan

Wednesday, May 6, 2009

Brazil Economic Scan | 7 May 2009

7-May-2009

Brazil Economic Scan

In this edition: Brazil wont tap sovereign fund in 2009, Brazil to buy coffee @ 23% above market price, Petrobras bets on China bankroll, Ex-Sadia executives charged with insider trading, Brazilian stocks rally for 6th day.

Top headlines

Brazil won't tap sovereign fund in 2009

  • Brazil will not tap a new sovereign wealth fund for key investment projects this year even though the economy may miss an official 2% growth forecast, Planning Minister Paulo Bernardo said.
  • Bernardo acknowledged that Latin America's largest economy could fall short of the government's forecast for 2% growth in 2009. Still, he expected the economy keep growing and avoid some market predictions it could contract 0.3%.
  • Until the 3rd quarter of last year Brazil had enjoyed sustained growth of more than 5% a year.

Brazil to Buy Coffee Up to 23% Above Market Prices

  • Brazil, the world’s biggest coffee producer, will pay growers as much as 23 percent more than the current benchmark to help push up prices, Agriculture Minister Reinhold Stephanes said.
  • Brazil will buy as many as 3 million bags of arabica coffee from November to March for 303 reais ($143) to 320 reais a bag. The average paid yesterday in the country’s South of Minas region was 261.17 reais, according to the University of Sao Paulo’s Cepea research agency. A bag weighs 60 kilograms, or 132 pounds. Brazil exported about 26.1 million bags last year.
  • Arabica-coffee futures for July delivery rose $0.25, or +0.2%, to $1.249 a pound today on ICE Futures U.S. in New York.

Petrobras bets on China for bankroll

  • Petrobras hopes to raise a loan from the China Development Bank, its chief executive said on Tuesday, to guarantee financing in 2010-2011 for an aggressive investment plan.
  • Brazil signed an agreement on February 19 to supply China with 100,000 to 160,000 barrels of oil a day in what Petrobras expects to lead to $10 billion in financing to develop its huge subsalt oil fields.
  • Petrobras announced earlier in 2009 that it would boost its five-year investment plan by 55% to a whopping $174 billion, when most oil majors were trimming capital spending to brace for falling demand amid the financial crisis.

Ex-Sadia Executives Charged With Insider Trading in Brazil

  • Two former Sadia SA executives were charged with insider trading by Brazilian prosecutors for purchases of Perdigao SA shares before Sadia offered to buy the rival in 2006.
  • The insider-trading charge is the first in Brazil since a law that designated the practice as a crime took effect in 2001.
  • Sao Paulo-based Perdigao, Brazil’s biggest food processor, rejected a takeover bid by Sadia in July 2006 and surpassed the rival after taking over Eleva Alimentos SA in October 2007. Perdigao is currently in talks to merge with Concordia, Brazil- based Sadia, the country’s 2nd-biggest food company.

Brazil Stocks Rise for Sixth Day, Longest Rally Since January

  • The Bovespa advanced +1.6%, to 51,499.48, the highest since Sept. 25. The index has gained 37% percent this year, bolstered by i-rate cuts and speculation of rising commodities demand from China.
  • Brazil’s Gerdau, which gets more than 25% of its profit from North America, rose +4.7% to 18.85 reais. Companies in the U.S. cut an estimated 491,000 workers from payrolls in April, less than the 645,000 expected, indicating the worst of the recession’s job losses may have passed, a private report showed today.
  • Vale, which ships about 29% of its ore to China, added +0.8% to 33.15 reais. Aracruz jumped +14% to 3.61 reais, Eletropaulo Metropolitana SA, the Brazilian unit of AES Corp., rose +7.7% to 30.20 reais, Banco do Brasil SA jumped +7.7% to 21.06 reais.
Source: Brazil Economic Scan