Brazilian Business Roundup - July 07

If you have a keen interest in Brazil’s business landscape, you’ve come to the right place! We’re here to curate the most relevant business developments in Brazil and Latin America just for you. In 5 minutes, we’ll give you an overview of Brazil and Latin America's most compelling business issues. Our goal is to provide you with insights that will help you make better business decisions. So let’s dive right in!

??Big fat offering. The privatization of Sabesp, a water company owned by the state of S?o Paulo, drew only one bidder — Equatorial, an energy player making its way into the water business. Equatorial has offered BRL 6.9 billion (USD 1.22 billion) for a 15-percent stake in Sabesp and was qualified as a potential reference shareholder. Read the details

??The cautionary tale of Brazil’s recent IPOs. More than three-quarters of the companies that held IPOs in Brazil since 2020 have since lost share value. Initial offerings have dried up in the country. Read more

??Rate hikes in sight? What a difference six months can make. At the start of the year, markets expected the Brazilian currency, the real, to strengthen and end 2024 below the psychological threshold of BRL 5. Since the turn of the year, however, the real has lost 17 percent against the greenback. Read more

??Creative industry employs 7.7 million Brazilian workers. The recent report from Observatório Itaú Cultural revealed that the creative economy sector in Brazil employed over 7.7 million workers by the end of 2023, the highest number since the series began in 2012. Read more

????Unveiling Brazil’s New Harvest Plan. Brazil’s federal government announced the 2024-2025 edition of the Harvest Plan, which offers subsidized credit to large and middle-sized agribusiness companies. This year, the program will offer a record BRL 400 billion (USD 71 billion) — a nominal 10-percent increase from the last cycle. Read more

??The Brazilian real, which stabilized prices in the country, turns 30. Launched during the first democratic government elected in the country, the Real Plan worked because it came with a series of reforms and institutional changes. Read more

????Huge thermal power plant raises concerns. Natural Energia, an energy developer, will hold two public hearings this week with the population of the city of Ca?apava, in the state of S?o Paulo, to present its project for what will be the largest thermal power plant in Latin America. Read more

????Brazil’s proposal to tax the super-rich. Brazil last week disclosed a study by French economist Gabriel Zucman proposing an international standard for taxing billionaires. This study, commissioned by the Brazilian government as part of its G20 presidency, aligns with Brazil’s earlier indications of seeking to tax the super-rich. Read more

If you’ve got this far and you like what you see, you can either consider giving one of our month-for-a-dollar offers a try (all subscriptions are $1 for the first month). Check out our plans here

????Brazil’s fintech ecosystem embraces new growth opportunities. As Brazil’s banking and financial systems undergo modernization, the fintech ecosystem is pursuing new opportunities. Initiatives such as instant payments and digital currency are opening alternative avenues for growth, particularly for companies supporting other businesses in these areas. Read the details

?????The digital bank of the favelas. In the last decade, low-income customers have been the main target of fintech companies disrupting Brazil’s banking sector. However, not all new players have catered to this audience. Read the details

????Inflation expectations deteriorate further in Brazil. Brazil’s short-term inflation expectations continue to increase as long-term ones have “cemented” above the inflation target of 3 percent, says Goldman Sachs’s leading economist in Latin America, when looking at the latest Focus Report — a weekly survey the Central Bank carried out with top-rated investment firms. Read the details

????Majority of industries experienced power cuts in last 12 months. Seventy percent of manufacturing executives reported at least one unannounced power outage at their factories over the last 12 months, according to a study commissioned by the National Confederation of Industry (CNI). Read the details

????Brazil’s manufacturing sector drops for second consecutive month. May manufacturing data brings the first signs that Brazil’s economic activity has slowed down in Q2. The sector was down 0.9 percent month-on-month (the second consecutive drop) and 1 percent against May 2023, erasing gains obtained earlier this year. Read more

????Meta told to stop mining Brazilians’ data to train AI software. Brazil’s Data Protection Authority (ANPD) ordered Meta to suspend its policy of using Instagram and Facebook posts to train artificial intelligence software. The company will be fined BRL 50,000 (USD 8,800) for each day it fails to comply with the order. Read more

??? On this week’s podcast …

Every Wednesday we bring you a new episode of the Explaining Brazil podcast — which was a finalist for the Digiday Media Awards for Best Podcast! You can find our podcast on all major podcast platforms! Subscribe today and never miss an episode.

Debates about gun rights and regulations are becoming more and more common in 21st century Brazil. Deputy editor Euan Marshall speaks to Fogo Cruzado's Maria Isabel Couto to explore the forces behind the most prominent arguments. You can listen to the full episode here.

If you like our podcast, we would be happy to share with you how advertising on Explaining Brazil could leverage your business to the next level. Drop us an email at [email protected]

That wraps up this week’s edition. See you next Sunday evening! Subscribe to Brazilian Business News Roundup, your essential weekly recap to never miss a beat when it comes to understanding Brazil’s business environment.?

If you want to make sure you get all the updates, there’s an even better way. Discover the benefits of our subscriptions and stay ahead of the news. Remember, today you are only getting a snippet of our content, but we offer top-notch analyses on our website. Our plans start at just $1 for the first month.?

If you have any suggestions, feedback, or topics you’d like us to cover, feel free to reach out.?

Stay informed on a daily basis – Follow us on our LinkedIn page! Bringing you closer to the heartbeat of Brazil and Latin America! Follow The Brazilian Report's WhatsApp channel for a direct line to the latest news and stories.?

-

Founded in 2017, The Brazilian Report is an English-language media outlet uniquely positioned to provide an insider’s view of current affairs in Brazil and Latin America, with a mission to make Latin Americans’ voices heard and become the reference for Latin American news worldwide. An award-winning newsroom, The Brazilian Report has just received recognition for its portfolio of newsletters at this year’s Wan Ifra Awards.

Within 6 years of existence, The Brazilian Report has gained international recognition. It has become the go-to source for several embassies, think tanks, and international news outlets, including Time Magazine, CNBC, BBC Worldwide, Vox, Axios, Radio France, CGTN, among others.