News - Brazil to Cut Taxes, Lower BNDES Rate, Mantega Says

June 29 (Bloomberg) - Brazil will cut sales taxes on 70 capital goods and lower the long-term interest rate charged by the state development bank in a bid to speed up the economy’s recovery, Finance Minister Guido Mantega said.

Mantega, speaking to reporters today in Brasilia, said the government will also extend existing tax breaks on the purchase of cars, home appliances, construction materials and some food staples until at least October.

“The measures announced today are in the right direction,” said Zeina Latif, chief economist at ING Bank NV in Sao Paulo. “They tend to work because the economy isn’t too depressed. If we had a depressed economy with falling income the measures wouldn’t be so efficient because demand depends on prices and income.”

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Article - In Brazil, Sun and Sand Beaches Lure Buyers to Recife

RECIFE, BRAZIL — Luca Sinesi, 36, came here for the first time in 2003, with no idea that this beach-fringed port city would become his permanent home.

“I left the city in 2005, but I missed it so much I was back within six months,” said Mr. Sinesi, an Italian who is now Brazil field director for the British charity International Service. “Recife has a way of life which sets it apart from cities in the south of Brazil.

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Article - In Brazil, a Visa Affiliate Is About to Bloom

VisaNet, a credit card processor and Visa affiliate, is set to raise $3 billion in the biggest I.P.O. anywhere since last summer. The company is profitable and growing fast.

The offering, Breakingviews says, is also an effort to harness the prospects of a country whose left-leaning government’s surprisingly conservative policies have put its economy on relatively solid footing.

Brazil’s central bank helped it avoid the asset bubbles that have plagued the United States by keeping interest rates high, but not so high as to dissuade consumers from spending, or from paying with plastic, the publication says.

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News - Brazil’s jobless rate unexpectedly falls in May

SAO PAULO, June 25 (Reuters) - Unemployment in Brazil unexpectedly fell in May, dropping for a second straight month, in the latest sign of a nascent recovery in Latin America’s largest economy.

The jobless rate fell to 8.8 percent in May from 8.9 percent in April, when it declined after reaching the highest level in 17 months in March, statistics agency IBGE said on Thursday.

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Article - Developing World Seen as Engine for Recovery

PARIS — After bruising global downturns, the American economy has usually led the world back to growth, but developing countries could be the engine that powers the next recovery.

Despite fears just months ago that they would be among the biggest victims of the financial crisis, emerging giants like China, India and Brazil are set to rebound strongly next year, the Organization for Economic Cooperation and Development predicted Wednesday - as Europe, the United States and Japan lag.

“It’s good to have a locomotive out there pulling the train,” Ángel Gurría, the O.E.C.D.’s secretary general said, referring to China, India and Brazil. “But we can’t put the onus on their shoulders - they help, but they can’t get us out of the hole.”

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