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Santander and Goldman Sachs were the latest to upgrade their recommendations on the oil company to "Buy". They announced the change late on Tuesday, citing an attractive valuation and limited impacts from recent changes to key company policies. That followed similar calls earlier this month by Morgan Stanley and JPMorgan, which upgraded Petrobras to "Overweight" mentioning less disruptive policy changes than initially expected and lower risk perceptions, respectively. Analysts now await an announcement on the firm's dividend policy by July, but they do not foresee a major shift. "We believe the company's financial vigor and the government's fiscal needs make the case for limited changes," said Santander analysts, who raised their rating to "Outperform".

Persons: Goldman Sachs, Morgan Stanley, Goldman, Luiz Inacio Lula da Silva's, Gabriel Araujo, Brad Haynes, Emma Rumney, Sharon Singleton Organizations: SAO PAULO, Petrobras, PETR4, Santander, JPMorgan, Thomson Locations: Brazil

☆ Mexico peso's expected fall to be broken by favourable rate spread
▼ + stars: | 2023-06-08 | by ( Gabriel Burin | ) www.reuters.com time to read: +3 min

BUENOS AIRES, June 8 (Reuters) - An expected fall in Mexico's peso will likely be cushioned by its favorable interest rate spread, although there is a wide range of views on the currency's prospects over the coming year, a Reuters poll of foreign exchange strategists showed. It was also the best projection for the 12-month period in the survey's recent history, reflecting positive sentiment towards the big margin between Mexico's benchmark rate, currently at 11.25%, and the U.S fed funds rate range of 5.00%-5.25%. "This is particularly stark for MXN, whose volatility is the most subdued despite its arguably greater sensitivity to U.S.-driven risk-off shocks." In Brazil, the real , is set to fall 4.5% in one year to 5.14 per U.S. dollar from 4.91 this week. The real is up 7.7%, confounding detractors who saw it crashing early on in President Luiz Inacio Lula da Silva's government.

Persons: Optimists, Luiz Inacio Lula da Silva's, Gabriel Burin, Anitta Sunil, Aditi Verma, Jonathan Cable, Ross Finley, Sharon Singleton Organizations: Thomson Locations: BUENOS AIRES, Mexico's, U.S, Brazil, Buenos Aires, Bengaluru

☆ Brazil lawmakers propose reforms combining consumption taxes
▼ + stars: | 2023-06-06 | by ( ) www.reuters.com time to read: +2 min

The report represents an early step in a reform considered crucial by President Luiz Inacio Lula da Silva's administration. Lawmakers will now craft a formal text in greater detail to be put to a vote. Congressman Aguinaldo Ribeiro, the lawmaker in charge of the working group report, said the lower house of Congress would vote on a bill in the first week of July, citing a timeline approved by House Speaker Arthur Lira. This adjustment is expected to benefit wealthier and more populous states, and the working group proposed a transition period of "some years" for implementation. Under no circumstances will there be an increase of the tax burden," the report said.

Persons: Luiz Inacio Lula da Silva's, Aguinaldo Ribeiro, Arthur Lira, Marcela Ayres, Jamie Freed Organizations: Lawmakers, Thomson Locations: BRASILIA

☆ Brazil's central bank chief opposes creation of common currency
▼ + stars: | 2023-06-02 | by ( ) www.reuters.com time to read: +2 min

BRASILIA, June 2 (Reuters) - Brazil's central bank chief Roberto Campos Neto expressed his opposition on Friday to the creation of a common currency, stating that in the era of digitalization it is unnecessary to have a shared currency for its purported benefits. Campos Neto emphasized the potential power of digital solutions in providing effective alternatives. Specifically addressing the proposal of a common currency between Brazil and Argentina, which has also been previously mentioned by the government, he reiterated his opposition. "We should have a 'digital' minister, someone should be thinking about digital solutions," he added. He defended that Brazil's CBDB is much easier to regulate than other forms of CBDCs since tokenized bank deposits will be subject to the same regulations that govern traditional deposits.

Persons: Roberto Campos Neto, Luiz Inacio Lula da, Campos Neto, Marcela Ayres, Chizu Organizations: Valor Capital, Thomson Locations: BRASILIA, Brazil, Argentina

[1/2] A logo of Brazil's state-run Petrobras oil company is seen at its headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio MoraesSAO PAULO, May 18 (Reuters) - A decision by Brazil's environmental regulator to block state-owned oil company Petrobras' Amazon oil project has exposed tensions in President Luiz Inacio Lula da Silva's coalition between green advocates and those prioritizing economic development. Ibama, late on Wednesday, said it would block a request by state-run oil giant Petrobras (PETR4.SA) to drill at the Amazon mouth near Amapá, in a much-awaited decision that followed a technical recommendation by Ibama experts to reject the project. The decision by Ibama, which is overseen by Lula's environment minister, the globally recognized environmentalist Marina Silva, has riled some within the governing coalition. "We'll fight against this decision," Rodrigues wrote on Twitter, adding that "the people of Amapa want to have the right to be heard".

☆ Analysis: Jet-setting Lula risks losing focus on Brazil issues, allies say
▼ + stars: | 2023-05-17 | by ( Lisandra Paraguassu | ) www.reuters.com time to read: +5 min

BRASILIA, May 17 (Reuters) - Brazilian President Luiz Inacio Lula da Silva's focus on foreign policy and a relentless schedule of trips abroad risks distracting him from tackling thorny domestic issues, two senior allies of the leftist president told Reuters. But so far, less than six months into his third term, he has made twice as many foreign trips as he did at the start of his first presidency in 2003. By comparison, fellow leftist President Andres Manuel Lopez Obrador of Mexico, who skipped the coronation, has made five foreign trips since taking office in 2018. "You have to focus on decisive issues," the aide said, citing a need for higher economic growth and job creation. Marco Feliciano, a pro-Bolsonaro lawmaker in the lower house, said "international trips are part of the presidential agenda, but not at the beginning of the government ...

☆ Brazil's Petrobras scraps fuel import parity policy, shares rise
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +2 min

Companies Petroleo Brasileiro SA Petrobras FollowRIO DE JANEIRO, May 16 (Reuters) - Brazil's state-run oil giant, Petrobras (PETR4.SA), has approved a new commercial strategy to set diesel and gasoline prices, it said on Tuesday, ditching its previous import parity policy without revealing a specific fresh pricing formula. "The end of pricing parity is not good, but this was already expected." "The new policy scraps the 'import parity' terminology, but in our view it has not changed materially," Credit Suisse analyst Regis Cardoso said. The import parity policy was adopted in 2016 by former President Michel Temer. People close to Lula celebrated the announcement, with his Mines and Energy minister, Alexandre Silveira, telling reporters the policy would not impose as much volatility as the import parity used to.

☆ Bolsonaro steals show at Brazil's biggest farm fair
▼ + stars: | 2023-05-01 | by ( Lais Morais | ) www.reuters.com time to read: +2 min

[1/5] Brazil's former President Jair Bolsonaro attends the Agrishow fair, in Ribeirao Preto, Brazil, May 1, 2023. REUTERS/Carla CarnielRIBERAO PRETO, Brazil, May 1 (Reuters) - Former right-wing President Jair Bolsonaro stole the show on Monday at Brazil's largest agribusiness fair where he was acclaimed by supporters from the country's strong farm sector. Bolsonaro criticized the decision by Lula to recognize new Indigenous reservations, a constant complaint by farmers in Brazil's expanding agricultural frontier. The deep-pocketed and powerful farm sector were major supporters of Bolsonaro's 2018 election. Bolsonaro faces legal risks that could ban him from running in the 2026 election.

☆ Brazil government to tax income from financial investments obtained abroad
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +2 min

BRASILIA, May 1 (Reuters) - Brazilian President Luiz Inacio Lula da Silva's government published an executive order aimed at increasing revenue by taxing the capital income from financial investments obtained abroad by individuals who reside in Brazil. Income earned from Jan. 1, 2024, will be considered for that purpose, said the text of the measure published on Sunday night that takes effect immediately. According to the text, income obtained abroad from financial investments will be taxed upon the sale or maturity of assets, while profits and dividends from controlled entities will be taxed on Dec. 31 of each year. Income up to 6,000 reais ($1,203) will be tax exempt, while income above that but below 50,000 reais will be taxed at 15%. The Finance Ministry said the measure had the potential to collect around 3.2 billion reais ($641 million) in 2023, close to 3.6 billion reais in 2024 and 6.7 billion reais in 2025.

IRACEMAPOLIS, Brazil, April 28 (Reuters) - Brazil's ability to produce and sell hybrid cars that can run on 100% ethanol is a huge asset for its auto industry as global economies push for decarbonization to tackle climate change, Vice President Geraldo Alckmin told Reuters. Alckmin on Thursday attended the opening of a factory by Chinese carmaker Great Wall Motor Co Ltd (601633.SS) that will produce hybrid cars, including a flex-fuel pickup called Poer. Brazil has one of the world's largest ethanol industries, and most cars in the country can run on 100% biofuel made from sugarcane or corn. He highlighted the export opportunities hybrid cars manufactured in Brazil can bring for the country as it pushes for re-industrialization, a process in which he sees the auto industry playing a key role. "It is very important because it is an industry of cutting-edge technology, with semiconductors and the whole decarbonization area," said the vice president.

☆ Brazil woos sceptical foreign investors with new fiscal plan
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +4 min

Rebounding commodity prices and a hawkish, independent central bank made Brazil an emerging market investor darling last year. But stocks are in the red in dollar-terms (.MIBR00000PUS) in 2023 compared to small gains in wider emerging markets (.MSCIEF) and a more than 20% rise in Mexico's equities (.MIMX00000PUS). "It feels to me like there are a lot of things that can go wrong," said William Jackson, chief emerging markets economist with Capital Economics. Ronaldo Patah, chief investment officer Brazil at UBS Wealth Management, said that despite uncertainties, Lula's fiscal reform suggested he had shifted his focus to the future -- and away from unravelling previous reforms. "Foreign investors have goodwill for Brazil - they want to invest."

[1/3] People protest outside the embassy of Brazil in Portugal over Brazil's President Luiz Inacio Lula da Silva's position on Russia-Ukraine war as he arrives in the country for a state visit in Lisbon, Portugal, April 21, 2023. Two Brazilian officials told Reuters on Thursday that Lula - keen to protect Brazil's neutrality - was expected to avoid criticism of the Western role in the Ukraine war during his visit to Portugal. "Brazil and president Lula have a vocation for peace and the president will work to unite other countries to seek an alternative to end this conflict", Macedo told reporters after receiving the letter. On Tuesday, Ukraine invited Lula to visit, a day after Lula had met with Russia's foreign minister in Brasilia. Asked if the president would visit Ukraine, Macedo said Lula's foreign policy adviser, Celso Amorim, would go.

☆ Brazil lures China's Cofco to finance recovery of degraded land
▼ + stars: | 2023-04-12 | by ( Lisandra Paraguassu | ) www.reuters.com time to read: +3 min

"They have every interest," said Augustin, adding that a Cofco delegation is expected for talks in Brasilia next month. China is Brazil's biggest trade partner and Brazil accounts for 22% of Chinese imports, driven largely by farm goods. One version would have farmers guarantee sale of their production to the companies that finance land recovery, he said. "You don't need to deforest another hectare to increase (farm) production," Augustin said. Agriculture Ministry studies estimate a cost of 15,000 to 23,000 reais to recover one hectare of degraded land.

RIO DE JANEIRO, April 11 (Reuters) - Brazilian planemaker Embraer SA (EMBR3.SA) aims to sign a deal for the sale of 20 commercial jets to a Chinese airline during President Luiz Inacio Lula da Silva's visit to China this week, two people familiar with the matter told Reuters on Tuesday. The deal would mark a breakthrough for Embraer in China, where it has struggled to find new business since the 2016 closure of a joint venture at a factory in Harbin. That venture with Chinese group Avic, launched in 2003 during Lula's first presidential term, produced a previous generation of regional jets and Legacy 650 executive jets. Embraer has delivered 110 commercial aircraft to Chinese airlines, including 70 to Hainan Airlines (600221.SS) and 20 to China Southern (600029.SS), according to securities filings. The planemaker has not received a new order from a Chinese airline since leaving Harbin in 2016.

☆ Brazil targets Asian e-commerce giants, local companies in tax push
▼ + stars: | 2023-04-03 | by ( ) www.reuters.com time to read: +2 min

BRASILIA, April 3 (Reuters) - Brazil will soon unveil tax measures, including a crackdown targeting Asian e-commerce giants and curbs on some company tax benefits, as it looks to raise more than 100 billion reais ($20 billion), Finance Minister Fernando Haddad said on Monday. The e-commerce measures come in response to complaints from local retailers about unfair competition from Asian giants such as AliExpress, Shein, and Shopee. He later told journalists that combating the practice, which Haddad called "smuggling", should generate 7 billion reais to 8 billion reais in new revenue for the government. The most significant impact will come from the government's move to seek approval from the Federal Supreme Court to disallow companies from receiving tax breaks from states on operating expenses, which result in them paying less federal tax. The tax reform proposal should be voted in the Lower House by July and in the Senate by October, Haddad said.

Brazilian digital payments company StoneCo could yield some big gains for investors, according to Citi. Analyst Gabriel Gusan upgraded the company to buy from neutral with a price target of $13 per share. That target represents 40% upside from the stock's last closing price of $9.18 per share. A Brazilian central bank survey last month showed economists expect rate cuts to start in November. The firm's main focus is serving digital payments solutions to small businesses and has roughly 400,000 clients, Gusan said.

☆ China to decide new date for Brazil's Lula visit, agreements postponed
▼ + stars: | 2023-03-26 | by ( ) www.reuters.com time to read: +2 min

March 26 (Reuters) - Brazil's Agriculture Minister Carlos Favaro said on Sunday that the Chinese government would decide on a new date for Brazilian President Luiz Inacio Lula da Silva's visit to the country, adding that the signing of agreements between Beijing and Brasilia has been postponed. "All government actions are postponed, including those of the Agriculture Ministry," Favaro, who arrived in China last week, said during a news conference in Beijing. "When the Chinese government is ready, with an available schedule, the visit will certainly be rescheduled, and we will return to continue signing all memorandums and agreements." The minister said that agreements between Brazilian and Chinese companies are still expected to be announced on March 29. About 240 Brazilian business leaders were initially expected in China, over a third from Brazil's farm sector, which sends the majority of its beef, soybeans, and wood pulp to China.

☆ Lula to seek Chinese semiconductor technology, investment in Beijing
▼ + stars: | 2023-03-24 | by ( Lisandra Paraguassu | ) www.reuters.com time to read: +3 min

BRASILIA, March 24 (Reuters) - Brazil will seek Chinese technology and investment to develop a semiconductor industry in the South American country despite U.S. attempts to discourage association with China in this area, a senior presidential adviser told Reuters. Semiconductors will be a priority on President Luiz Inacio Lula da Silva's visit to China next week. Lula's trip will seek Chinese cooperation in fostering Brazil's sustainable development and digital economy. We are not afraid of the big bad wolf," he commented, when asked about U.S. discouragement of technology deals with China. Lula is expected to visit the factory of Huawei Technologies, the Chinese telecommunications giant that has been operating in Brazil for 20 years.

☆ Brazil looks to regulate monetized content on Internet -official
▼ + stars: | 2023-03-17 | by ( Victor Pereira | ) www.reuters.com time to read: +3 min

SAO PAULO, March 17 (Reuters) - The Brazilian government is studying whether to regulate Internet platforms with content that earns revenue such as advertising, its secretary for digital policies, Joao Brant, said on Friday. The idea would be for a regulator to hold such platforms, not consumers, accountable for monetized content, Brant told Reuters. Platforms would not be held responsible for content individually, but for how diligent they are in protecting the "digital environment," he said in an interview. Brant did not detail what the regulatory body would look like, but said the government wants to regulate monetized content and prevent the platforms from spreading misinformation. Meta questioned its responsibility for removing content without a court decision in a case involving a fake Facebook profile.

☆ Brazil's agriculture chief plans China trip to discuss lifting beef export suspension
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: 1 min

BRASILIA, March 8 (Reuters) - Brazil's Agriculture Minister Carlos Favaro said on Wednesday he will move forward a planned trip to China to later in March as Latin America's largest economy aims to resume beef exports halted by a case of mad cow's disease. Favaro said he would visit China ahead of President Luiz Inacio Lula da Silva's March 28 scheduled visit. Shipments of beef to China were suspended following the confirmation of an atypical case of mad cow disease in the Brazilian state of Para in February. The Brazilian government expects to resume beef exports to China in the next few days and is planning to request a revision of the protocol that triggered the ban, a government official said on Tuesday. Reporting by Victor Borges; Writing by Carolina Pulice; Editing by Lincoln Feast.

☆ Brazil to criticize Nicaragua, but wants door open to dialogue, sources say
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +2 min

The concern will be presented to the United Nations Human Rights Council in Geneva, the sources who helped prepare the document told Reuters on Monday. Brazilian diplomats took part in the negotiation of the declaration criticizing Nicaragua, but chose not to endorse it because it did not leave a door open for negotiations. At the same time, however, the Lula government wants to keep an open door to be a possible channel for dialogue, emphasizing that Brazil is committed to democracy and wants to play a "constructive" role in solving the crisis in Nicaragua. The report by the council's experts points to Ortega and Vice President Rosario Murillo, the president's wife, as those responsible for the abuses. Reporting by Lisandra Paraguassu in Brasilia Writing by Anthony Boadle Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil's Petrobras faces legal risks after halting asset sales -lawyers
▼ + stars: | 2023-03-03 | by ( Marta Nogueira | ) www.reuters.com time to read: +2 min

Lula appointee Petrobras Chief Executive Jean Paul Prates told reporters on Thursday "everything is halted for analysis." There is no stipulation for that," Alexandre Calmon, lead partner of law firm Campos Mello Advogados' energy area, told Reuters. "That would be a breach of contract," he said, adding if "Petrobras fails to do something that it is obligated to do, it can be held responsible." The lawyer also explained that sale processes already signed but not concluded are not under the control of the oil company. The sale halt marks a major shift from the stance taken by former President Jair Bolsonaro's administration, which oversaw a number of Petrobras assets sales, including oilfields and refineries.

☆ Israel urges Brazil to undock Iranian warships
▼ + stars: | 2023-03-02 | by ( ) www.reuters.com time to read: +2 min

JERUSALEM, March 2 (Reuters) - Israel on Thursday criticised Brazil's decision to grant berth to two Iranian warships in the face of U.S. pressure, and urged President Luiz Inacio Lula da Silva's government to send them away. Reuters reported that Brazil had declined to admit them in January, in a goodwill gesture from Lula as he flew to Washington to meet U.S. President Joe Biden. Lior Haiat, spokesperson for Israel's Foreign Ministry, called the Brazilian berth for the warships "a dangerous and regretful development," accusing the Iranian navy of cooperating with sanctioned entities in Tehran. In a Feb. 15 press conference, the U.S. ambassador to Brazil had urged it not to allow the ships to dock. A Feb. 23 notice in a Brazilian gazette said the warships had been given permission to dock between Feb. 26 and March 4.

[1/2] Iranian military ship Iris Makran navigates on the coast of Rio de Janeiro as a Brazilian flag flutters in Copacabana Beach, Brazil, February 27, 2023. REUTERS/Ricardo MoraesRIO DE JANEIRO, Feb 27 (Reuters) - Two Iranian warships docked in Rio de Janeiro on Sunday after Brazilian President Luiz Inacio Lula da Silva's government granted permission despite pressure from the United States to bar them. "In the past, those ships facilitated illegal trade and terrorist activities, and have also been sanctioned by the United States. Brazil is a sovereign nation, but we firmly believe those ships should not dock anywhere," she said. He traveled to Tehran to meet then-President Mahmoud Ahmadinejad in 2010 as he sought to broker a nuclear deal between Iran and the United States.

☆ Brazil's government eyes compensation deal for 2015 Vale-BHP dam burst
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +1 min

BRASILIA, Jan 27 (Reuters) - Brazil's government will try to reach a deal "as soon as possible" on compensation for the 2015 burst of a tailings dam owned by Samarco, a joint venture between Vale (VALE3.SA) and BHP <BHP.AX>, Institutional Relations Minister Alexandre Padilha said on Friday. In a news conference in Brasilia, Padilha said the matter had been discussed at a meeting with state governors earlier in the day. "We will try and reach this compensation agreement as soon as possible in light of the environmental crime that was committed in Mariana," Padilha said. In late 2021, a study done by a company contracted by prosecutors showed the "socio-environmental" damage caused by the dam rupture was between 37.6 billion reais ($7.35 billion) and 60.6 billion reais ($11.85 billion). ($1 = 5.1126 reais)Reporting by Lisandra Paraguassu; Editing by Isabel Woodford and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

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