In earlier posts I wrote about my belief that Brazil is definitely a good investment play when looking to expand outside U.S. stocks. Currently I own shares in one of Brazil's largest utility companies, CPFL Energia (NYSE:CPL). I've been very pleased with this investment and am looking to expand my investments in this country.
In recent research I learned, Brazil posted a foreign-trade surplus of $556 million in the third week of September, the Trade and Development Ministry said Monday. In the Sept. 14-20 period, exports totaled $3.496 billion, while imports were $2.940 billion. Year-earlier figures weren't provided. With the new September figures, Brazil's year-to-date trade surplus totaled $21.33 billion, up from $19.3 billion in the same period of 2008. Analysts are expecting a slight increase in Brazil's trade surplus in 2009. Brazil posted a trade surplus of $24.74 billion in 2008. A weekly survey of experts conducted by the Brazilian Central Bank and released earlier Monday produced an average forecast for the 2009 surplus of $25 billion.
Brazilian economists and financial market analysts have revised upward their forecasts for 2009 and 2010 gross domestic product, according to the central bank's weekly market survey published Monday. Analysts expect Brazil's 2009 GDP growth of 0%, compared with a forecast contraction of 0.15% in the previous week's survey. In addition, their forecast for 2010 GDP growth was increased to 4.20% from 4%. Brazil's GDP expanded 1.9% in the second quarter compared with the first quarter of this year and it decreased 1.2% in the second quarter versus the second quarter of 2008, according to the Brazilian Census Bureau, or IBGE. The central bank's weekly survey tracks the opinions of 100 analysts and economists from banks and brokerages, reporting the average of their expectations.
Brazilian shares rose Friday, continuing their best week since July, as energy and telecommunication companies boosted the index. The Bovespa gained 467 points, or 0.8%, to end at 60,703. The index added about 4% since last Friday. From July 10 through July 17, the index surged about 6%. On Wednesday, the index closed above the 60,000 level for the first time since July 21, 2008. Earlier in the week, Brazil's Central Bank President Henrique Meirelles had encouraged businesses to invest, saying that the economy must expand to protect against inflationary pressures.
Shares of oil producer Petrobras SA (PBR .A 38.02, -0.07, -0.18%) added 0.2%, steel maker Gerdau SA (GGB 13.48, +0.13, +0.97%) advanced 0.2% and mining giant Vale (VALE 22.10, +0.04, +0.17%) added 1.1%. Also, shares of the world's largest beef producer, JBS SA (BR:JBS 8.75, -0.08, -0.90%) , gained 1.5% after Moody's Investors Service said Friday it has changed its outlook on JBS to positive from stable, following the company's agreement to purchase 64% of bankrupt poultry producer Pilgrim's Pride Corp. (PGPDQ 6.71, -0.15, -2.19%) for $800 million in cash. Rob Lutts, chief investment officer at Cabot Money Management, said he thinks the Bovespa is going to continue to grow, especially the housing and real estate markets. He pointed to Gafisa SA (GFA 31.21, -0.77, -2.41%) , a home builder that he thinks will gain in the long term but may pull back in the next few months. Gafisa's shares rose 0.09%.
In recent research I learned, Brazil posted a foreign-trade surplus of $556 million in the third week of September, the Trade and Development Ministry said Monday. In the Sept. 14-20 period, exports totaled $3.496 billion, while imports were $2.940 billion. Year-earlier figures weren't provided. With the new September figures, Brazil's year-to-date trade surplus totaled $21.33 billion, up from $19.3 billion in the same period of 2008. Analysts are expecting a slight increase in Brazil's trade surplus in 2009. Brazil posted a trade surplus of $24.74 billion in 2008. A weekly survey of experts conducted by the Brazilian Central Bank and released earlier Monday produced an average forecast for the 2009 surplus of $25 billion.
Brazilian economists and financial market analysts have revised upward their forecasts for 2009 and 2010 gross domestic product, according to the central bank's weekly market survey published Monday. Analysts expect Brazil's 2009 GDP growth of 0%, compared with a forecast contraction of 0.15% in the previous week's survey. In addition, their forecast for 2010 GDP growth was increased to 4.20% from 4%. Brazil's GDP expanded 1.9% in the second quarter compared with the first quarter of this year and it decreased 1.2% in the second quarter versus the second quarter of 2008, according to the Brazilian Census Bureau, or IBGE. The central bank's weekly survey tracks the opinions of 100 analysts and economists from banks and brokerages, reporting the average of their expectations.
Brazilian shares rose Friday, continuing their best week since July, as energy and telecommunication companies boosted the index. The Bovespa gained 467 points, or 0.8%, to end at 60,703. The index added about 4% since last Friday. From July 10 through July 17, the index surged about 6%. On Wednesday, the index closed above the 60,000 level for the first time since July 21, 2008. Earlier in the week, Brazil's Central Bank President Henrique Meirelles had encouraged businesses to invest, saying that the economy must expand to protect against inflationary pressures.
Shares of oil producer Petrobras SA (PBR .A 38.02, -0.07, -0.18%) added 0.2%, steel maker Gerdau SA (GGB 13.48, +0.13, +0.97%) advanced 0.2% and mining giant Vale (VALE 22.10, +0.04, +0.17%) added 1.1%. Also, shares of the world's largest beef producer, JBS SA (BR:JBS 8.75, -0.08, -0.90%) , gained 1.5% after Moody's Investors Service said Friday it has changed its outlook on JBS to positive from stable, following the company's agreement to purchase 64% of bankrupt poultry producer Pilgrim's Pride Corp. (PGPDQ 6.71, -0.15, -2.19%) for $800 million in cash. Rob Lutts, chief investment officer at Cabot Money Management, said he thinks the Bovespa is going to continue to grow, especially the housing and real estate markets. He pointed to Gafisa SA (GFA 31.21, -0.77, -2.41%) , a home builder that he thinks will gain in the long term but may pull back in the next few months. Gafisa's shares rose 0.09%.
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