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Non-Tech : The Brazil Board -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (2)	9/2/2010 4:47:25 AM
From: elmatador	Respond to of 2504

I watched it on TV. Scary. But it is energy intensive thus doesn´t go very far.

To: Snowshoe who wrote (2)	9/2/2010 7:36:00 AM
From: elmatador	Respond to of 2504

Brazil Prepares to Host the 2014 World Cup ergo.net Investors can prosper from Brazil infrastructure boom reuters.com Tue, Aug 31 2010 * Housing, energy equipment can offer high returns * Highly taxed telecom and electricity less attractive RIO DE JANEIRO Aug 31 (Reuters) - Brazil's infrastructure boom is creating investment opportunities in transportation and housing, industry executives and analysts said on Tuesday, although high demand for industry stocks is leaving some listed companies overvalued. Medium-size companies involved in energy equipment that can benefit from state oil company Petrobras' $224 billion, five year investment plan or the government's low-income housing crusade can provide attractive returns, said Silvio Camargo, head of equity research for Fiducia Asset Management, at an industry seminar. Rodrigo Fonseca, who helps manage $835 million in assets for Rio de Janeiro-based Pollux Capital, recommended scaffolding and equipment rental firm Mills Engenharia (MILS3.SA), which he said it slated to benefit from growth of sectors ranging from construction to the oil and gas industry. "We have one of the lowest infrastructure investment to GDP ratios of (emerging market) nations, but this has been changing," Camargo said. Brazil's government is slated to invest $830 billion in infrastructure over the coming five years to make up for decades of underinvestment that has left the country's ports and roads overstretched by the country's rapidly growing industries. Major investments in oil and gas and huge outlays for the the 2014 World Cup and 2016 Rio de Janeiro Olympics have spurred the interest of investors and fund managers in opportunities in infrastructure. Telecommunications and electricity generation are less attractive because of their high tax rates and lower returns, Camargo said. He recommended companies such as homebuilder Direcional (DIRR3.SA) and logistics provider Julio Simoes (JSLG3.SA). Fonseca said investors have to be cautious when getting involved in Brazilian public companies because asset values have been stretched due to capital markets optimism about the country's growth prospects. "We have clients that are bullish about infrastructure in Brazil, and they want to get into equities," he said. "But people have expectations and they price (them) into the stock ... once stocks start trading at 10 times EBITDA they may provide lower returns." EBITDA, which stands for earnings before interest, taxes, depreciation and amortization, is a gauge of operational profitability. Pollux's Fonseca added that infrastructure projects such as roads, telecommunications and sanitation by nature have relatively low returns -- while companies that operate as suppliers to those projects offer better prospects. "If you are satisfied with 8 percent real return, then you have a lot of opportunities," he said. "For a 15 percent return, you have to look at ... an unregulated part of the economy where you don't have price controls, you don't have the government keeping profits down," he said. (Editing by Guillermo Parra-Bernal and Steve Orlofsky)

To: Snowshoe who wrote (2)	9/10/2010 10:05:50 AM
From: elmatador	Read Replies (1) \| Respond to of 2504

Elections update: Lula Lieutenant Calming Business in Brazil The President's chosen successor, leftist Dilma Rousseff, has crucial support from Antonio Palocci, the man who reengineered Brazil's economy ... Rousseff, under Palocci's influence, has toned down her rhetoric when speaking to investors. In May she surprised those attending a conference in New York by discussing a possible reduction of Brazil's inflation target—something Lula has refused to consider. Rousseff said it was "very important" to reduce lending by the state development bank, which has more than doubled since 2007. "It was a watershed event, and Palocci orchestrated it," says Carlos Thadeu de Freitas Gomes, a former central bank director who is chief economist at the National Federation of Commerce in Rio de Janeiro. "It was the signal the market wanted that she would follow an orthodox path." businessweek.com

To: Snowshoe who wrote (2)	9/11/2010 4:54:18 AM
From: elmatador	Respond to of 2504

Brazil Class C will make the president: class C, a.k.a new middle class, reached 94,9 million people in 2009, or 50,5% of the population, according to a poll of “A Nova Classe Média: O lado brilhante dos pobres”. That research was based on the Pesquisa Nacional de Amostragem por Domicílio (PNAD). NOTE: The PNAD is a cross-section of households throughout Brazil. To reduce costs, the households which are surveyed in the PNAD are not chosen randomly from all those in Brazil. Instead, they are chosen based on a three stage procedure. ... Hence, the PNAD consists of a panel of about 800 municipalities, which is fixed between censuses, and a cross-section of households within these municipalities, which changes yearly. This allows one to estimate the impact of a social program on the variables measured by the PNAD when the program is implemented gradually at the level of municipalities. This group alone can make a president. In 2008, this group comprised 49,2%. According to professor Marcelo Neri, of Centro de Políticas Sociais (CPS) of FGV, around 29 million people entered class C between 2003 and 2009. On an economic point of view this class is the dominant one”, says Néri in the document. Also according to the researcher, the class C concentrated over 46,24% of the Brazilian purchase power, versus 45,66% in 2008. "Credit is important but not the main driver of this growth. It is a side show. Brazil had two big stabilization shocks, first introduction of the Real in 1994 and second "Lula's real", the confidence shock in the economy, showed that it would not break the contracts, and, to use the Brazilian expression 'took the goat out of the room'. "The work and the education of the Brazilian are still very bad but improved", Neri said. The social's “pyramid base”, formed by class D and E, also shrunk from 2003 to 2009: from 96,2 million to 73,2 million, “2 million ascended from this bottom group during the international crisis". That means, that in the last PNADs, more than half of the population of the UK was incorporated to classes ABC”, states Neri. "Prosperity is more on the worker himself than in the consumer". Which points that companies are much better because people will be consuming more". In the 90's the Brazilian went to school, got into the formal working sector is contributing to the social security and buying computers. In the study, it was compared with other BRICs like China. Although Brazilian expansion is much smaller, "the quality of Brazilian growth is indisputably better than China's in several aspects" better treatment of environment and work as well with increasing equality. SOURCE (in Portuguese)http://www.gazetadopovo.com.br/economia/conteudo.phtml?tl=1&id=1045176&tit=Classe-C-e-50-da-populacao-e-eleitora-decisiva-diz-estudo-da-FGV