Dec. 30 (Bloomberg) -- Brazil’s so-called sovereign wealth fund can be used to make purchases of dollars in the spot market, Treasury official Cleber Oliveira said.
Under a decree published yesterday in the official gazette, the fund’s managers will need authorization from the ministries of finance and planning, as well as the central bank, to make the purchases, said Oliveira, an undersecretary of the Treasury in charge of fiscal planning.
Brazil is seeking to have the fund operational in 2010, Oliveira told reporters today in Brasilia. The fund had 16.3 billion reais ($9.35 billion) on Dec. 24, he said."
more: Brazil Sovereign Fund Can Buy Dollars in Spot Market
Wednesday, December 30, 2009
Tuesday, December 29, 2009
Brazil’s President Lula Signs Decree Creating Sovereign Fund
Brazil’s President Lula Signs Decree Creating Sovereign Fund
Dec. 29 (Bloomberg) -- Brazil’s President Luiz Inacio Lula da Silva signed a decree creating the country’s sovereign fund.
Brazil set the six-month London interbank offered rate, or Libor, as minimum return for the fund’s investments abroad, according to the decree published in the government’s official gazette today. The country set its long-term interest rate, or TJLP, as the minimum return for the fund’s investments in the local market.
Brazil’s sovereign fund will buy only investment grade assets rated by at least two agencies.
Last Updated: December 29, 2009 04:51 EST"
Dec. 29 (Bloomberg) -- Brazil’s President Luiz Inacio Lula da Silva signed a decree creating the country’s sovereign fund.
Brazil set the six-month London interbank offered rate, or Libor, as minimum return for the fund’s investments abroad, according to the decree published in the government’s official gazette today. The country set its long-term interest rate, or TJLP, as the minimum return for the fund’s investments in the local market.
Brazil’s sovereign fund will buy only investment grade assets rated by at least two agencies.
Last Updated: December 29, 2009 04:51 EST"
Thursday, December 24, 2009
Lemann, Telles, Sicupira to pay record Brazil fine
Lemann, Telles, Sicupira to pay record Brazil fine
RIO DE JANEIRO, Dec 24 (Reuters) - Brazilian financial tycoons Jorge Paulo Lemann, Marcel Herrmann Telles and Carlos Alberto Sicupira agreed to pay 18.6 million reais ($10.6 million) to settle a five-year old case where they were accused of abuse of power as controlling shareholders of beverage company AmBev (AMBV4.SA), the country's securities regulator said on Thursday.
The fines, among the highest ever paid by individuals in a financial lawsuit in Brazil, stemmed from a complaint filed in 2004 by Previ, Latin America's largest pension fund, against terms of the sale of AmBev to Belgium's Interbrew and the takeover of Canadian brewer Labatt, the regulator said.
Lemann, a Brazilian billionaire listed by Forbes magazine as the third wealthiest person in the country, Telles and Sicupira each agreed to pay 5 million reais to settle accusations that they wrongfully used a stock options plan to increase their stake in AmBev (ABV.N) and failed to meet their fiduciary duties, the regulator said in a statement.
Sicupira, the ninth richest Brazilian according to Forbes, also agreed to pay an additional 3.03 million reais to settle an accusation of conflict of interest. The regulator, known as CVM, said he should have abstained from voting in a board meeting that approved terms of the takeover of Labatt by AmBev because he was also a controlling shareholder of the Brazilian company.
Lemann and Telles, the seventh wealthiest Brazilian according to Forbes, also agreed pay each 285,000 reais to settle an accusation that they gave wrong information to the securities regulator regarding the Labatt purchase.
Brazil's securities regulator has stepped up its probe of insider trading and other types of fraud in the country as more individuals choose to put funds in the country's booming stock market. The regulator in October slapped a 19.2 million-real fine, the second-biggest ever in the country, on Credit Suisse (CSGN.VX) to settle an insider trading case.
Telles, Lemann and Sicupira founded Brazilian investment bank Garantia, which was sold to Credit Suisse in 1998, before making a fortune in the beer industry through a series of mergers and acquisitions that formed Anheuser-Busch InBev (ABI.BR). The three are among the largest individual owners of AB-Inbev.
Brazil's securities regulator also said six other AmBev executives agreed to pay a total 1.4 million reais to settle accusations they didn't fulfill their duties in regards to the takeover of Labatt.
Among those executives, Luis Felipe Dutra, AB-Inbev's current chief financial officer who was AmBev's director of investor relations at the time, agreed to pay 400,000 reais. ($1=1.753 reais) (Reporting by Elzio Barreto; Editing by Tim Dobbyn)"
RIO DE JANEIRO, Dec 24 (Reuters) - Brazilian financial tycoons Jorge Paulo Lemann, Marcel Herrmann Telles and Carlos Alberto Sicupira agreed to pay 18.6 million reais ($10.6 million) to settle a five-year old case where they were accused of abuse of power as controlling shareholders of beverage company AmBev (AMBV4.SA), the country's securities regulator said on Thursday.
The fines, among the highest ever paid by individuals in a financial lawsuit in Brazil, stemmed from a complaint filed in 2004 by Previ, Latin America's largest pension fund, against terms of the sale of AmBev to Belgium's Interbrew and the takeover of Canadian brewer Labatt, the regulator said.
Lemann, a Brazilian billionaire listed by Forbes magazine as the third wealthiest person in the country, Telles and Sicupira each agreed to pay 5 million reais to settle accusations that they wrongfully used a stock options plan to increase their stake in AmBev (ABV.N) and failed to meet their fiduciary duties, the regulator said in a statement.
Sicupira, the ninth richest Brazilian according to Forbes, also agreed to pay an additional 3.03 million reais to settle an accusation of conflict of interest. The regulator, known as CVM, said he should have abstained from voting in a board meeting that approved terms of the takeover of Labatt by AmBev because he was also a controlling shareholder of the Brazilian company.
Lemann and Telles, the seventh wealthiest Brazilian according to Forbes, also agreed pay each 285,000 reais to settle an accusation that they gave wrong information to the securities regulator regarding the Labatt purchase.
Brazil's securities regulator has stepped up its probe of insider trading and other types of fraud in the country as more individuals choose to put funds in the country's booming stock market. The regulator in October slapped a 19.2 million-real fine, the second-biggest ever in the country, on Credit Suisse (CSGN.VX) to settle an insider trading case.
Telles, Lemann and Sicupira founded Brazilian investment bank Garantia, which was sold to Credit Suisse in 1998, before making a fortune in the beer industry through a series of mergers and acquisitions that formed Anheuser-Busch InBev (ABI.BR). The three are among the largest individual owners of AB-Inbev.
Brazil's securities regulator also said six other AmBev executives agreed to pay a total 1.4 million reais to settle accusations they didn't fulfill their duties in regards to the takeover of Labatt.
Among those executives, Luis Felipe Dutra, AB-Inbev's current chief financial officer who was AmBev's director of investor relations at the time, agreed to pay 400,000 reais. ($1=1.753 reais) (Reporting by Elzio Barreto; Editing by Tim Dobbyn)"
Tuesday, December 22, 2009
Brazil Total Federal Debt Up 1.3% To BRL1.49 Tln In November
Brazil Total Federal Debt Up 1.3% To BRL1.49 Tln In November
BRASILIA (Dow Jones)--Under the impact of net debt issuance and interest accrual Brazil's total federal debt load rose by 1.3% to 1.49 trillion Brazilian reals ($837 billion) in November, the government reported Tuesday.
In a joint statement, Brazil's central bank and treasury said the country's domestic federal debt load denominated in reals rose 1.4% from October to BRL1.39 trillion.
The government reported the overall increase in domestic federal debt came alongside BRL7.92 billion in net debt issuance and BRL11.13 billion in interest accrual. -
Meanwhile, Brazil's outstanding federal debt overseas rose 0.4% from October to BRL102 billion.
Regarding the profile of federal domestic debt in November, treasury officials reported floating-rate debt fell to 37.39% of total domestic debt during the month from 37.66% in October.
At the same time, the share of fixed-rate debt rose to 32.47% from 31.23%.
The share of inflation-indexed bonds fell during the month of November to 28.21% of debt from 29.16%, while exchange-linked debt fell to 0.71% of the total from 0.72% the previous month.
Brazil's government has been attempting to lengthen its debt profile and reduce its exposure to interest-rate risk through increased sales of fixed-rate and inflation-indexed debt.
The government reported Tuesday that average maturity of domestic debt fell to 3.37 years in November from 3.42 years in October.
At the same time, however, the government said the volume of domestic debt maturing in the coming 12 months fell in November to 25.87% from 26.55%.
The average cost of debt coming due in the next 12 months fell to 10.86% annually from 11.15% annually.
The November federal debt figures released Tuesday represent a key element of consolidated public-sector debt figures scheduled for release next week.
Brazil posted net consolidated public sector debt in October of BRL1.33 trillion, equivalent to 44.8% of gross domestic product.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
BRASILIA (Dow Jones)--Under the impact of net debt issuance and interest accrual Brazil's total federal debt load rose by 1.3% to 1.49 trillion Brazilian reals ($837 billion) in November, the government reported Tuesday.
In a joint statement, Brazil's central bank and treasury said the country's domestic federal debt load denominated in reals rose 1.4% from October to BRL1.39 trillion.
The government reported the overall increase in domestic federal debt came alongside BRL7.92 billion in net debt issuance and BRL11.13 billion in interest accrual. -
Meanwhile, Brazil's outstanding federal debt overseas rose 0.4% from October to BRL102 billion.
Regarding the profile of federal domestic debt in November, treasury officials reported floating-rate debt fell to 37.39% of total domestic debt during the month from 37.66% in October.
At the same time, the share of fixed-rate debt rose to 32.47% from 31.23%.
The share of inflation-indexed bonds fell during the month of November to 28.21% of debt from 29.16%, while exchange-linked debt fell to 0.71% of the total from 0.72% the previous month.
Brazil's government has been attempting to lengthen its debt profile and reduce its exposure to interest-rate risk through increased sales of fixed-rate and inflation-indexed debt.
The government reported Tuesday that average maturity of domestic debt fell to 3.37 years in November from 3.42 years in October.
At the same time, however, the government said the volume of domestic debt maturing in the coming 12 months fell in November to 25.87% from 26.55%.
The average cost of debt coming due in the next 12 months fell to 10.86% annually from 11.15% annually.
The November federal debt figures released Tuesday represent a key element of consolidated public-sector debt figures scheduled for release next week.
Brazil posted net consolidated public sector debt in October of BRL1.33 trillion, equivalent to 44.8% of gross domestic product.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
Brazil Central Bank Sees 2010 Growth At 5.8%, IPCA At 4.6% - WSJ.com
Brazil Central Bank Sees 2010 Growth At 5.8%, IPCA At 4.6%
BRASILIA (Dow Jones)--Responding to the influence of strong local economic stimulus and an incipient global recovery, Brazil's economy should grow by 5.8% in 2010 from near zero this year, while inflation will accelerate to above the country's 4.5% annual inflation target, Brazil's central bank said Tuesday in its fourth-quarter inflation report.
The central bank revised its forecast for 2009 IPCA consumer price inflation upward to 4.3% from 4.2% seen earlier and lifted its projection for 2010 IPCA inflation to 4.6% from 4.4%. Meanwhile, it revised its economic growth projection for 2009 lower, to 0.2% from 0.8% seen in the previous report.
The monetary authority said the latest forecasts were based on an improving outlook abroad as well as a continued firm economic rebound locally.
'The scenario is based on a medium-term recovery in global economic activity on the external front, as well as continued expansion within a benign inflation environment on the domestic side,' the bank said. 'From the point of view of risks related to the inflation outlook, the main risk comes from the intensity of a domestic economic recovery, which will undergo still more important influence from economic policy stimulus.'
The bank, meanwhile, confirmed market expectations that inflation pressure could remain strong as the local economy stages a recovery, projecting 2011 inflation to remain above target at 4.6%.
The latest projections released by the central bank were based on an exchange rate of 1.75 Brazilian reals per dollar and a reference Selic interest rate of 8.75% annually.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
BRASILIA (Dow Jones)--Responding to the influence of strong local economic stimulus and an incipient global recovery, Brazil's economy should grow by 5.8% in 2010 from near zero this year, while inflation will accelerate to above the country's 4.5% annual inflation target, Brazil's central bank said Tuesday in its fourth-quarter inflation report.
The central bank revised its forecast for 2009 IPCA consumer price inflation upward to 4.3% from 4.2% seen earlier and lifted its projection for 2010 IPCA inflation to 4.6% from 4.4%. Meanwhile, it revised its economic growth projection for 2009 lower, to 0.2% from 0.8% seen in the previous report.
The monetary authority said the latest forecasts were based on an improving outlook abroad as well as a continued firm economic rebound locally.
'The scenario is based on a medium-term recovery in global economic activity on the external front, as well as continued expansion within a benign inflation environment on the domestic side,' the bank said. 'From the point of view of risks related to the inflation outlook, the main risk comes from the intensity of a domestic economic recovery, which will undergo still more important influence from economic policy stimulus.'
The bank, meanwhile, confirmed market expectations that inflation pressure could remain strong as the local economy stages a recovery, projecting 2011 inflation to remain above target at 4.6%.
The latest projections released by the central bank were based on an exchange rate of 1.75 Brazilian reals per dollar and a reference Selic interest rate of 8.75% annually.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832, gerald.jeffris@dowjones.com"
Brazil's BTG may bid for asset manager BRZ-report | Reuters
Brazil's BTG may bid for asset manager BRZ
SAO PAULO, Dec 22 (Reuters) - BTG Pactual, the securities firm controlled by Brazilian banking wunderkind Andre Esteves, is in talks to buy Sao Paulo-based asset management firm BRZ Investimentos, magazine Veja said on its Tuesday online edition.
Stocks | Mergers & Acquisitions | Bonds | Global Markets | Private Capital | Financials
Veja's Radar column, where the information was published, didn't give any terms for the transaction. GP Investments controls about 60 percent of BRZ, with the remaining 40 percent still belonging to a group of managing partners led by Nelson Rozental and Marcos Falcao.
BRZ has about 3 billion reais ($1.7 billion) in assets under management.
Spokeswomen for BRZ and GP Investments declined to immediately comment on the Veja report. A BTG Pactual spokeswoman did not answer calls requesting comments on the Veja report.
BRZ Investimentos, which was spun off about two years ago from Latin America's largest private equity firm GP Investments (GPIV11.SA), has been struggling in recent weeks after suspending redemptions on a private credit fund it oversees following massive withdrawals, according to local media reports. ($1=1.78 reais) (Reporting by Guillermo Parra-Bernal; Editing by Hans Peters)"
SAO PAULO, Dec 22 (Reuters) - BTG Pactual, the securities firm controlled by Brazilian banking wunderkind Andre Esteves, is in talks to buy Sao Paulo-based asset management firm BRZ Investimentos, magazine Veja said on its Tuesday online edition.
Stocks | Mergers & Acquisitions | Bonds | Global Markets | Private Capital | Financials
Veja's Radar column, where the information was published, didn't give any terms for the transaction. GP Investments controls about 60 percent of BRZ, with the remaining 40 percent still belonging to a group of managing partners led by Nelson Rozental and Marcos Falcao.
BRZ has about 3 billion reais ($1.7 billion) in assets under management.
Spokeswomen for BRZ and GP Investments declined to immediately comment on the Veja report. A BTG Pactual spokeswoman did not answer calls requesting comments on the Veja report.
BRZ Investimentos, which was spun off about two years ago from Latin America's largest private equity firm GP Investments (GPIV11.SA), has been struggling in recent weeks after suspending redemptions on a private credit fund it oversees following massive withdrawals, according to local media reports. ($1=1.78 reais) (Reporting by Guillermo Parra-Bernal; Editing by Hans Peters)"
Monday, December 21, 2009
Emerging-Market Bond Yield Spreads Decline on Global Recovery - Bloomberg.com
Dec. 21 (Bloomberg) -- The yield gap on emerging-market debt fell the most in almost two months on speculation the global economic recovery is gathering strength.
The extra yield investors demand to own developing-nation debt over U.S. Treasuries declined 14 basis points to 2.90 percentage points by 5 p.m. in New York, according to JPMorgan Chase & Co., the biggest drop since Oct. 29. The MSCI Emerging Markets Index dropped 0.4 percent to 946.42 after a gain in the dollar reduced the appeal of commodities including oil and sugar as alternatives.
more: Emerging-Market Bond Yield Spreads Decline on Global Recovery
The extra yield investors demand to own developing-nation debt over U.S. Treasuries declined 14 basis points to 2.90 percentage points by 5 p.m. in New York, according to JPMorgan Chase & Co., the biggest drop since Oct. 29. The MSCI Emerging Markets Index dropped 0.4 percent to 946.42 after a gain in the dollar reduced the appeal of commodities including oil and sugar as alternatives.
more: Emerging-Market Bond Yield Spreads Decline on Global Recovery
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