Plural Capital appoints Ex-BTG Partners Pereira, Guimarães

Brazilian asset management company Plural Capital Ltda has appointed former BTG partners Evandro Pereira and Pedro Guimaraes as part of the plan to become a full-service investment bank, Bloomberg reported.
Plural Capital founded by two former Banco BTG Pactual SA executives, currently manages 600 million reais ($362 million).

Largest Traders Bet Real Bulls to Beat Mantega

The world’s largest currency traders are recommending their clients bet Brazilian Finance Minister Guido Mantega’s success in stemming gains in the real will be short-lived as foreign investment picks up.

Brazil Weighs Fuel Tax Cut to Slow Inflation, Augustin Says

Brazil is considering cuts to a fuel tax as inflation exceeds the government’s target range for the first time in six years, Treasury Secretary Arno Augustin said.
“The government has tools to control fuel prices and avoid a negative impact,” Augustin said in an interview today in Brasilia, citing a tax known in Brazil as Cide. “Whatever the international scenario we have ways to avoid damaging the Brazilian economy. We have Cide and we can use it.”
President Dilma Rousseff’s administration is weighing cutting taxes on electricity as well, a person familiar with the discussions said yesterday. The person declined to be identified because he isn’t authorized to speak publicly about the issue.

Buy Brazil Inflation-Linked Bonds, Swiss & Global Says

Brazilian inflation-linked bonds may appreciate as the country’s economy grows and its credit profile improves, according to Alessandro Ghidini from Swiss & Global Asset Management Ltd.

The real yield on inflation-linked bonds, whose principle is adjusted to compensate for consumer price rises, may fall by about 1 percentage point over the next year or so as the bonds rise in value,

Brazil Dollar Bonds Gain as Fitch Raises Rating to BBB From BBB-

April 4 (Bloomberg) -- Brazil’s dollar bonds rose as Fitch Ratings raised the country’s rating to BBB from BBB-, citing the economy’s growth prospects.

Brazil Imposes 6% Tax on International Bonds Maturing in Up to One Year

Brazilian President Dilma Rousseff raised taxes on corporate loans and debt sales abroad by banks in a bid to contain a 39 percent gain since the end of 2008. The real erased this year’s losses and yields on interest-rate futures rose.
Brazil imposed a tax of 6 percent on international bond sales and loans with an average minimum maturity of up to 360 days, according to a decree published today in the Official Gazette. Companies had paid a 5.38 percent tax on loans up to 90 days and zero tax when the operation exceeded three months.

Brazil Progress On Budget Cuts Central To Rating--Moody's

CALGARY (Dow Jones)--Progress by Brazil's government on proposed spending cuts will be fundamental to determining changes in the country's credit rating outlook, Moody's Investor Services said Saturday.

Brazil federal debt up in February on net issue

* Federal public debt up 2.8 pct in February
* Net debt issuance totals 27.25 billion reais in February

Brazil Feb Tax Revenue Hits BRL64.14B, Up 9.84% Vs '10

BRASILIA (Dow Jones)--Brazil's tax collection continued to rise at a strong pace in February on still-robust economic activity early in the year, the country's federal tax department reported Tuesday.

The government reported revenue rose 9.84% in real terms from February 2010, to 64.14 billion Brazilian reals ($38.63 billion).

Brazil, Colombia may be upgraded by summer-Moody's

NEW YORK, March 3 (Reuters) - Moody's will decide whether to raise Brazil and Colombia's credit ratings before summer, while Peru is on a "steady path" for more upgrades in the next few years, analyst Patrick Esteruelas said on Thursday.
Brazil and Colombia both have a positive rating outlook from Moody's, and an upgrade would put Colombia in the coveted group of countries with an investment grade status.
Brazil's upgrade from its Baa3 rating will depend on the new government's ability to reverse a "spending binge" by former President Luiz Inacio Lula da Silva in 2010, Esteruelas said.

Brazil’s Central Bank Says Increase to 11.75% Part of ‘Adjustment Process’

Brazil’s central bank signaled it will raise the benchmark interest rate for a third straight meeting next month, after pushing borrowing costs yesterday to a two-year high to cool inflation.

Policy makers raised the overnight rate to 11.75 percent from 11.25 percent in a unanimous vote, saying the decision was the “continuation of the adjustment process.”

Brazil inflation forecast rises for 12th week-poll

* forecast rose to 5.80 percent
Feb 28 (Reuters) - Economists raised their forecasts for the rise this year in Brazil's benchmark IPCA consumer price index for the 12th consecutive week, according to a weekly central bank survey.

Brazil's tax revenue hits record high for January

* Brazil posts record tax revenue in January
* Strong result due to industrial output, higher sales

Brazil focused on real-denominated yield curve

* Brazil to add liquidity to dollar-denominated benchmarks
* Aims to consolidate long-end of interest-rate curve

Brazil's Foreign Reserves Surpass $300 Bln For First Time Ever - WSJ.com

"BRASILIA (Dow Jones)--Brazil's foreign reserves surpassed the $300 billion mark for the first time ever Wednesday according the country's central bank, seeing influence from recent heavy foreign exchange inflows and accelerated dollar buying by the institution.

Pragmatism draws Brazil closer to US | beyondbrics | FT.com

A flood of manufactured imports from China has pushed Brazil into the same camp as the US in the global currency war, pitting it against its biggest trading partner. The move signals a broader swing towards pragmatism under Dilma Rousseff, Brazil’s new president. But as Jonathan Wheatley of beyondbrics argues, Brazil also needs to address long-standing problems that undermine business competitiveness.
see video below:

Pragmatism draws Brazil closer to US | beyondbrics | News and views on emerging markets from the Financial Times – FT.com

February 8, 2011 4:28 pm by beyondbrics

Options Bets Against Brazil ETF Jump to Highest in Three Years

Options traders are placing more bearish bets against a U.S. exchange-traded fund tracking Brazil than any time in three years, as policy makers raise borrowing costs to tame inflation in Latin America’s biggest economy.

The ratio of put options to sell the iShares MSCI Brazil Index Fund versus calls to buy has jumped 60 percent in the past two months to 1.76 and on Feb. 3 reached 1.81, the highest level since January 2008. The last time it reached this level, the fund tracking 83 securities plunged 62 percent over the next 10 months. The fastest-growing bets are February $69 puts. The fund hasn’t closed below $69 since Aug. 31 and fell 1 percent to $71.32 yesterday.

Brazil Allows Sovereign Fund to Trade Currency Derivatives; Real Weakens

The real fell 0.5 percent to 1.6925 per U.S. dollar at 10.59 a.m. in Sao Paulo. Photographer: Adriano Machado/Bloomberg

Brazil allowed its sovereign wealth fund to trade currency derivatives, signaling President Dilma Rousseff’s administration is ready to take additional measures to curb the rally in the real.

Brazil Sets Reserve Requirements for Currency Positions to Stem Real Rally

Monetary Policy Director Aldo Mendes. Photographer: Sebastian Bravo/Bloomberg

Brazil’s central bank set reserve requirements on short dollar positions held by local banks in its third attempt since October to stem a rally in the currency. The real fell for a third consecutive day.
The new rules have the potential to reduce short positions in the dollar to $10 billion from $16.8 billion in December as banks seek to avoid paying reserve requirements on currency operations, Aldo Mendes, the central bank’s director of monetary policy told reporters in Brasilia.

Brazil Trade Surplus Fell 20% Last Year on Currency Gains, Economic Growth

Brazil’s trade surplus shrank 20 percent last year, as domestic consumption boost imports and manufacturers cope with a real rally.

The trade surplus fell to $20.3 billion in 2010 from $25.3 billion in the previous year, the Trade Ministry said today. The December trade surplus was $5.4 billion. Economists expected a trade surplus of $4.5 billion last month, according to the median forecast from 12 economists surveyed by Bloomberg.

Foreign sales reached a record $201.9 billion last year, the ministry said. That’s an increase of 32 percent over the $153 billion sold abroad in 2009. Brazil’s imports were $181.6 billion in 2010 and $15.6 billion in December, the ministry said.