Brazilian bank shares soared on Monday after Banco Itau announced the purchase of Unibanco Holdings, a transaction that will create Latin America's biggest private banking firm. The stock transaction is valued in 12.5 billion USD.
Brazil's central bank left the basic SELIC rate unchanged for the first time in six months on Wednesday. The Copom monetary council led by Henrique Meirelles voted unanimously to keep the benchmark interest rate ”for the moment'' at a two-year high of 13.75%.
Brazil is scheduled to sign on Friday an agreement with Cuba for deep-water oil and gas exploration and production. The event is considered the highlight of the two day visit of President Lula da Silva to the island beginning late Thursday.
Brazilian military exercises along the border with Paraguay are escalating tensions between the South American neighbours. Operation Southern Border II mobilized 3,500 soldiers from the Brazilian armed forces along the border, as part of a larger force of some 10,000 soldiers also deployed along the borders with Uruguay and Argentina.
A day alter Sunday's municipal election Brazilian president Lula da Silva called for national union and promised to work with the winning mayors and councillors no matter what party they belong to.
Brazil's ruling party and President Lula da Silva suffered a serious blow Sunday in the country's main city Sao Paulo where incumbent conservative mayor Gilberto Kassab comfortably won a second period defeating Marta Suplicy in the run off by almost twenty points.
Sao Paulo Alpargatas, Brazil largest textile and Footwear Company announced Friday the acquisition of Alpargatas Argentina, turning the consolidated company into a bi-national corporation leader in its sector in Mercosur and Latinamerica.
Brazil has sent a strong message to those (restless) neighbours that could threaten the country, according to reports in the Sao Paulo press.
Brazil's central bank said Wednesday it would pump the equivalent of 50 billion US dollars into currency markets to stem a two-month tumble in the Real that is threatening companies and stoked inflation.
Brazil was forced to appeal to 22.9 billion US dollars in the past month, including sales of foreign reserves, derivatives and loans to prop the weakened Real punished by investors fleeing from emerging markets to more secure assets.