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Newsletter
June Edition 2012

 

Brazil's Interest Rate Cut To spur Investment

An education As To Why Now Brazil Is A Good Investment

To Grow Faster, Brazil Needs to Invest, Save More, Says Moody's

Markets skeptical of European action on crisis-White House

Ireland votes for discipline despite pain as it approves EU financial plan

Gold price bounces amid economic turmoil

What does a 'Grexit' mean for commodities?

Brazil Oil and Gas Salaries Up 28%

Brazil's Rousseff vetoes part of the controversial Forest Code revision

Green News

New SMS Service

Charcoal Prices

Online Survey

Annual Reports

 

Follow Us

 

Welcome to the June edition of the Greenwood Management monthly newsletter.

Our aim is to send out a newsletter on a monthly basis to advise you of future events and report on previous industry related themes and news articles.

We have included below some investment articles that may be of interest. Enjoy reading and look out for announcements on our new project.

If you have any suggestions for future newsletters please click here to provide your suggestions and we will do our best to meet your requests.

We now have completed the final interviews in Vila Real, Portugal, to select the winning students for the Brazil summer internships, in conjunction with our strategic partner UTAD. (Universidade De Tras-os-Montes E Alto Douro).

The Greenwood Annual Report for Brazil will be compiled this year using data collated independently from the UTAD students during the 3 month extensive study of our various forestry projects at our plantations in Bahia state Brazil. Further details on this will be available to our clients via the Client Report.

 

Brazil's Interest Rate Cut To spur Investment

BillionaireBrazil is on the brink of a "historic" shift towards a lower interest rate regime that will change the foundations of the country's financial and investment industries, says the head of its stock exchange. With interest rates in Brazil expected to fall to record lows as the country's central bank met on Wednesday night, Brazilian savers and investors are likely to start moving from simple deposit accounts and bonds to other more sophisticated forms of investment, including equities.

"Brazil's [savings] culture is one of inflation and fixed-income investments. This may change it all," Edemir Pinto, chief executive of BM & F Bovespa, one of the world's largest exchange companies by market capitalisation, told the Financial Times.

To read the full story click here.

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An education As To Why Now Brazil Is A Good Investment

BillionaireBrazil's Bolsa Familia, a welfare programme that pays poor families for sending their children to school, is renowned in development circles as one of the biggest and most effective programmes for poverty reduction in the world.

It is also a key reason, according to Joaquim Levy, chief executive of Bradesco Asset Management, to consider investing in the country. With nearly 100 per cent of 15- to 16-year-olds attending school thanks to the Bolsa Familia, "this is investment in human capital", he says. "It creates a middle-class. This is where the productivity will come from, and where the consumer demand will come from."

To read the full story click here.

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To Grow Faster, Brazil Needs to Invest, Save More, Says Moody's

BillionaireFaster growth in Brazil will require higher investment and savings ratios, Moody's said in an annual report on the country, released on Wednesday.

The rating company sees Brazil's trend growth at around 4%. But economists say the country is bound to grow a modest 2.3% in 2012, after expanding 2.7% in 2011.

"At less than 20% of GDP, Brazil's investment ratio is an outlier as only a handful of investment-grade countries share this condition (i.e., Barbados, Iceland, Trinidad and Tobago)," according to Moody's. "The contrast is even more striking when comparisons are made against BRIC members given investment ratios of 45% for China, 36% for India, and 23% for Russia," the company added.

To read the full story click here.

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Markets skeptical of European action on crisis-White House

Europe needs to take further steps to convince financial markets that it has done enough to tackle a prolonged debt crisis that threatens the United States' own fragile economic recovery, the White House said on Monday.

Billionaire President Barack Obama, whose re-election hopes on Nov. 6 may hinge on whether a worsening European debt crisis stalls U.S. growth, dispatched a top Treasury official to Europe last week to liaise with leaders on the situation.

"Markets remain skeptical that the measures taken thus far are sufficient to secure the recovery in Europe and remove the risk that the crisis will deepen. So we obviously believe that more steps need to be taken," White House press secretary Jay Carney told reporters.

Markets are jittery over the outlook for the global economy if the euro zone debt crisis worsens, ahead of Greek elections this month that could spur the country's exit from the euro common currency bloc. Making matters worse, confidence in U.S. growth was dented by data on Friday showing only tepid job creation in May that nudged up the national unemployment rate to 8.2 percent.

Lael Brainard, the U.S. Treasury's undersecretary for international affairs, visited Athens, Frankfurt, Madrid, Berlin and Paris last week. The Obama administration had been tight-lipped thus far about her mission, but Carney spelled out that Washington believes Europe ought to learn from U.S. experience.

To read the full story click here.

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Ireland votes for discipline despite pain as it approves EU financial plan

Country votes yes to European Union budget plans, with 60.03% agreeing to fiscal and spending treaty

BillionaireIreland has ratified the EU fiscal pact, providing some cheer for European leaders amid the eurozone crisis.

A clear 60-40 vote by the only electorate in Europe allowed to have its say on the treaty backed the EU reform programme aimed at imposing budget discipline on all 27 states of the union.
The Irish Republic's prime minister, Enda Kenny, last night described the outcome of the referendum as a "stepping stone on the road to Ireland's recovery" and called on fellow Europeans to help his country deal with the billions of euros of debt that was still crippling the Irish economy.

Despite four years of recession, anger over austerity budgets and fears over low turnout, Kenny's Fine Gael and his Irish Labour party coalition partners won a yes vote with 60.3% of the electorate supporting the treaty and 39.7% voting against.

To read the full story click here.

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Gold price bounces amid economic turmoil

BillionaireFinally it has happened. Gold is behaving less like a risk asset and more like the "safe haven" its fans believe it to be.

After its price dropped in past weeks to the point that it was said to be in a bear market, the yellow metal has more recently been resisting the downswing in the wider commodity sector. In the face of deepening worries about the eurozone debt crisis, it has been made a small recovery, bouncing around the $1,560 per ounce mark after dipping below $1,540 per ounce in the middle of last month. "Thus gold is proving to be good 'risk insurance', fuelling hopes of a trend reversal in the near future," judged analysts at Commerzbank.

To read the full story click here.

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What does a 'Grexit' mean for commodities?

BillionaireIt is the billion-dollar question. Reams of analysts are busy trying to deduce what a Greek exit from the euro, or "Grexit", might mean for the financial markets.

Commodities are not avoiding their scrutiny. The big unknown is not what will happen to demand for raw materials from Greece, which accounts for just 0.3pc of the world's GDP. It is about what will happen to demand everywhere else, too.

Despite the potential exit of Greece from the euro being well-flagged – in a way that the collapse of US investment bank Lehman Brothers in 2008, a paralysing shock which precipitated the last financial crisis was not – the danger of widespread disruption remains.

The problem is contagion. As Julian Jessop, chief global economist at consultancy Capital Economics explains, if Greece leaves the monetary union that would pave the way for others to follow suit. "Even if the core members were initially able to hold the rest together, perhaps by further steps towards fiscal union and enhanced "firewalls", a strong rebound in the Greek economy a year or so later might make exit irresistible for the likes of Portugal and Ireland," he says. "If contagion spread to the larger economies, such as Spain and Italy, the game would be up." He sees three ways in which the prices of industrial commodities would be hit as the eurozone unravelled.


To read the full story click here.

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Brazil Oil and Gas Salaries Up 28%

BillionaireRIO DE JANEIRO, BRAZIL - The average salary of workers in Brazil's oil and gas industry rose 27.6 percent to R$215,000 (US$106,000) per year, between October 2010 and October 2011, a recent report by the recruitment agency Hays affirmed.

The report placed Brazil and Australia ahead of 51 other countries which formed part of the study, saying the wages were on a par with those in the United States.

"Brazil is at the crest of a wave. I believe that this level will rise or remain stable, at the least, in the coming years," Matt Underhill who was responsible for the research.

He explained that companies were making every effort to attract top talent because of the technical challenges drilling in the off-shore pre-salt oil reservoirs, which frequently lie over 3,000 meters below the sea bed, present. The shortage of skilled labor remains a problem for companies attempting to expand their operations in Brazil and top salaries have to be offered to tempt people to the country.


To read the full story click here.

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Brazil's Rousseff vetoes part of the controversial Forest Code revision

BillionaireBrazilian President Dilma Rousseff today rejected 12 of 84 articles in a controversial bill that aims to relax restrictions on deforestation in the Amazon rainforest. The Brazilian government will announce the full details of the cuts on Monday.

Environmentalists had pressured Rousseff to outright veto the measure, which they said could reverse Brazil's progress in reducing its deforestation rate. But a presidential veto could have been overruled by Congress.

The revised version of the Forest Code raised concerns among greens and scientists for provisions that would have granted amnesty for illegal deforestation and reduced the amount of forest landowners are required to protect. The looser Forest Code seemed to be opposed by the general public, according to surveys conducted by environmentalists. The Forest Code revision was pushed by agroindustrial interests in the Congress.


To read the full story click here.

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Green News

At Greenwood Management we often come across articles that may be of interest to you. We thought that instead of keeping you waiting for an entire month that we would start to send out individual stories, updates or articles of interest from time to time – this is our new mini newsletter service, 'Green News'.

If you would be interested in receiving these NEW mini newsletters click here.

Once you have subscribed you are free to unsubscribe at any time.

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New SMS Service

At Greenwood Management we understand that our clients are quite often on the move whether through business or pleasure. Therefore, we have just introduced a FREE brand new SMS alert system for our clients.

Take advantage of our new service and be the first to receive…

  • Special offers and discounts on our products
  • Monthly charcoal prices
  • Information on new product releases

Sign up here today for FREE text alerts and to be entered into our monthly prize draw to win a brand new apple ipad.

Please note that you will not be charged for any text messages received through this service.
You can unsubscribe from this service at any time.

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Charcoal Prices

Click here to receive information on the latest charcoal prices from Brazil.

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Online Survey

In order to help us find the best investment solution for you please take a few moments to fill out our online survey.

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Annual Reports

If you would like to receive our report containing an executive summary of Acacia and Eucalyptus projects in Brazil, along with detailed analysis of the progress at Greenwood Fazendas (plantations) click here.

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