Author: Fabiane Ziolla Menezes
May 27, 2024 15:37 6 min read Welcome to our Tech Roundup, where we bring you the biggest stories in technology and innovation in Brazil and Latin America. This week: The impacts of climate misinformation and disinformation campaigns have never been more present. Brazil’s southernmost state hit by tragedy and disinformation wave Between late April and early May, Rio Grande do Sul, Brazil’s southernmost state, was hit by unprecedented floods. More than 70 percent of the state’s almost 500 municipalities were affected, and nearly 70,000 people are still in temporary shelters. In addition to the natural impacts of the tragedy,…
May 25, 2024 10:31 5 min read Lula’s beef with Lira continues, Asian e-commerce platforms are to blame Last Thursday, President Luiz Inácio Lula da Silva expressed his disagreement with House Speaker Arthur Lira’s decision to place a bill taxing international purchases under USD 50 to vote. Lula hinted at vetoing the legislation if it gets approved. In his statement, Lula mentioned, “There is no planned meeting [with Mr. Lira], but if he wants to talk, I’m available. The tendency is to veto it,” expressing concerns about the impact on smaller shoppers and local businesses. Two days prior, Mr. Lira…
May 23, 2024 11:37 5 min read The Brazilian government has adjusted its primary deficit projections for 2024, now expecting a deficit of BRL 14.5 billion, still within the target range of 0.1 percent of GDP. The primary goal is a zero deficit with a tolerance margin of ±0.25 percent. Markets, however, predict a higher deficit due to economic deceleration. Revenue from January to April reached a record high, driven by atypical events and the resumption of federal taxes on fuels. The economic team estimates a revenue increase of BRL 16 billion for the year, considering various sources like dividends…
May 22, 2024 11:31 6 min read (Updated: May 22, 2024 11:33) Brazil’s oil and gas giant Petrobras is on the brink of appointing its 12th CEO in 21 years. President Luiz Inácio Lula da Silva’s choice, Magda Chambriard, follows the recent ousting of Jean Paul Prates. The move comes amidst government attempts to influence leadership changes in other key sectors, raising concerns about interventionist policies. In addition to Petrobras, government interference in Vale and potential shifts at the Central Bank are causing unease among analysts. The administration is also aiming to maintain a zero deficit and navigate complex tax…
May 21, 2024 11:50 7 min read Brazilian entrepreneurship faces challenges with high business closure rates and a majority of one-person businesses. Despite recent economic growth, many new ventures struggle to survive the first year. However, the process of opening a business has become significantly easier, with the time decreasing drastically due to digital systems and reduced costs. Digitalization is a must The government is investing in increasing digitalization among businesses to boost competitiveness. The pandemic accelerated the adoption of digital strategies by small businesses, highlighting the importance of online presence and sales. Access to banking services has increased, but…
May 20, 2024 12:28 3 min read The latest Focus Report from the Central Bank reveals a significant increase in market projections for Brazil’s benchmark interest rate in 2024. Analysts’ median estimate for the Selic rate has risen to 10 percent by the end of the year, marking the fourth consecutive week of upward revisions. Projections for 2025, 2026, and 2027 have also seen adjustments, with inflation estimates surpassing the 3 percent target. Last week, the Central Bank’s decision to cut the interest rate by 0.25 points further reflected concerns about Brazil’s fiscal stance and the global economic environment. The…
May 18, 2024 12:56 5 min read Who is Magda Chambriard, the next CEO of Petrobras? This week, Jean Paul Prates stepped down as the chief executive of Petrobras, Brazil’s state-controlled oil and gas giant. His exit followed a long and often nasty political feud with Mines and Energy Minister Alexandre Silveira and Chief of Staff Rui Costa, who have been pushing for more government control over the company. Petrobras shares crashed by more than 6 percent the day after the decision was announced and xx percent over the week. State of play. Following the abrupt announcement, the Petrobras board…
May 17, 2024 11:42 7 min read Amidst the interest rate cuts initiated by the Brazilian Central Bank, default levels in major financial institutions remained stable or decreased in the first quarter of this year. A positive sign for the credit market’s potential recovery in 2024 yet not all players will rebound equally. While established companies adopt cautious strategies, challengers like Nubank and Agibank maintain focus on low-income customers, sustaining growth. Last year, outstanding loans in Brazil grew by 7.9%, a significant drop from previous years fueled by the Covid crisis. This financial growth was driven by traditional banks and…
May 15, 2024 16:26 3 min read (Updated: May 15, 2024 16:27) Petrobras shares plunged nearly 6 percent following the sudden announcement of CEO Jean Paul Prates’s dismissal. The stock market reacted negatively, with share prices dropping by 8.5 percent initially. Prates was ousted after conflicts with government officials seeking increased control over the state-controlled oil company. Prates aimed to balance government demands, shareholder interests, and company stability. His decision to end international price parity sparked disagreements, leading to his removal. The government’s intervention in dividend distribution and investment decisions further strained the relationship with Prates. The government appointed Clarice…