1. “Every sensible Brazilian” is worried about the actions of the U.S. Federal Reserve and European Central Bank. Brazil, having suffered through hyperinflation, believes their injection of liquidity into markets is “dangerous.”

2. The exchange rates of the Chinese renminbi and the overvaluation of the real relative to the dollar are sources of concern for Brazil. “We are not protectionist at heart,” argues Simonsen, “but if everyone is playing a game where they don’t mind about liquidity and they want to devalue their currencies, we are not going to risk inflation.”

3. Brazil is opening many new embassies and consulates. It is motivated not only by commercial diplomacy (cultivating broader markets for Brazilian exports), but also by a desire to have a benign influence on relations among countries. “After all, Brazil is a country that hasn’t had a war in 150 years. Not many countries can say that.”

4. Brazil is a strong supporter of democracy, and has many common interests with democracies. “We’d like to see democracy everywhere,” says Simonsen.

5. Brazilians are divided about joining the United Nations Security Council. Opponents worry that it may be too costly, or that it’s too early–or perhaps that if the time comes for Brazil to join the body, it will be because the Security Council is no longer powerful. For now, the Group of Twenty’s elevation to the premier forum for global economic coordination has satisfied some Brazilian aspirations to flex its muscles around the world.

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Embraer, the world’s third largest commercial aircraft builder, said late Tuesday that it was preparing to file a new bid to win back the contract to supply the aircraft for use in Afghanistan, which it won last year only to see it abruptly cancelled earlier this year.

The Air Force restarted the competition last week with an amended request for proposals that included a condition Embraer said would favour the bidder that can prove their combat aircraft has more past operational experience.

“We have six operational customers that are utilising the aircraft as a light combat aircraft,” said Luis Carlos Aguiar, the head of Embraer’s defence and security division.

The new bidding process will be closely watched by Brazil’s government.

After a suit from Hawker contesting the process, the Air Force decided to re-tender the contract, citing problems with its own internal documentation.

The cancellation followed lobbying by Republican politicians against awarding the contract to Embraer and Sierra Nevada, its US partner. They complained it would amount to sending jobs offshore.

The dispute comes as Brazil is preparing billions of dollars of military contracts including an eventual order for jet fighters that Boeing of the US is contesting against Sweden’s Gripen and France’s Dassault.

Although small by US military standards, the air force light attack contract – worth an initial $355m for 20 aircraft, rising to possibly $1bn – would be a showcase deal for Embraer.

Not only would it represent Brazil’s first chance to produce attack aircraft for the world’s most powerful air force but it would also open the door to other members of the North Atlantic Treaty Organisation for Embraer’s growing range of aircraft and defence systems.

Mr Aguiar said the new process would not take into account previous “fly-offs” – live trials of the candidate aircraft done with the US Air Force.

But it would take into account each contender’s record as a military trainer and combat aircraft. Both aircraft, Embraer’s Super Tucano and Hawker Beechcraft’s AT-6, started life as trainers.

The AT-6, however, is still at the prototype stage while the Super Tucano has been used in combat operations in Colombia and is being sold to air forces around the world.

Hawker Beechcraft, which recently filed for bankruptcy, complained on Tuesday about rules allowing “antiquated” ejector seats in the bidding but said it was otherwise still studying the request for proposal.

The companies must submit their new proposals in the coming weeks after which the US Air Force will choose a new winner in 2013. The first aircraft will arrive in Afghanistan in late 2014.

Source: Financial Times

The visit included briefings from Boeing Defense Space & Security, Commercial Airplanes and the U.S. Government. The journalists were briefed on the company’s current growth and investment activities in Brazil, its F-X2 campaign for combat aircraft and the appointment of a Boeing Brazil president.

“Economic drivers around the world are changing and accelerating our international growth strategy,” said Dennis Muilenburg, BDS President and CEO, during a meeting with the journalists in St. Louis. “Our goal is to reach 30 percent in international sales and sustain it, that’s one reason we’re investing in Brazil. We are confident in our Super Hornet offering and technology release package to Brazil, and our ability to deliver. Our interests in Brazil, however, go beyond the F-X2 competition. We see Brazil as a long-term partner as we engage and collaborate with Brazilian industry and invest in R&D, students and education.”

The tour began with briefings at Boeing’s facility in Arlington, Va., followed by a visit to the U.S. State Dept., where they met with Principal Deputy Assistant Secretary Tom Kelly. The main topic during the meeting with Kelly was technology transfer of the Super Hornet to Brazil.

“Technology transfer is the key component in the F-X2 competition,” said Joe McAndrew, regional director, International Business Development for Europe, Israel and Americas. “Brazil wants to have access to technology so it can further develop its defense industry and the U.S. Government is very supportive of the F/A-18E/F Super Hornet campaign in Brazil, having provided unprecedented approval of the sale and technology transfer of the Super Hornet to Brazil.”

While in the Washington, D.C., area, the reporters also visited the new Cyber Engagement Center, where they learned about Boeing’s cyber solutions and products.

“I’ve always known Boeing for its commercial and military aircraft, but I had no idea the company has such diversified portfolio of products such as cyber solutions,” said Adriano Ceolin, reporter of IG, a Brazilian news portal. “This has been a great experience. The media tour was very informative and I hope to be able to come back and learn about other Boeing products.”

The agenda for the Brazilian journalists also included a visit to Naval Air Station Oceana, Va., where they met with U.S. Navy pilots and got a close look at the Super Hornet. In St Louis the reporters toured the F/A-18 production line and flew in the simulator.

The group also visited the Seattle area, where they spent the day touring Boeing’s Everett, Wash., final assembly factory and the Customer Experience Center.

They were briefed on Boeing’s partnership efforts in Brazil, including current and future biofuel opportunities and about the rapidly growing commercial aviation market in Latin America, which calls for more than 2,500 new airplanes valued at $250 billion over the next 20 years – more than 40 percent of which will be for Brazilian carriers.

Fine cup beans for May and June shipment are trading at a discount of 8 cents a pound to the price on ICE Futures U.S. in New York, data from Rio de Janeiro-based broker showed. Buyers of good cup beans for shipment in June and July are getting a discount of 15 cents a pound to the exchange price, according to the data. Both were unchanged from last week.

Arabica coffee fell as much as 4 percent in New York yesterday as fears of a frost in Brazil eased. Coffee areas will be free of frost for the next 10 days, forecaster Somar Meteorologia said on May 2. A frost alert for Parana, Sao Paulo and Minas Gerais, Brazil’s largest arabica-producing state, was issued by government’s Meteorology Institute, known as Inmet, on May 1, sending prices up as much as 2.8 percent.

With “weaker ICE performances, business went to a complete standstill as producers somewhat were able to keep their offers unchanged,” Flavour Coffee said in a weekly report e-mailed yesterday.

Temperatures in major coffee areas stayed at 8 degrees to 12 degrees Celsius (46 to 54 degrees Fahrenheit), far from freeze levels, Flavour Coffee said. Freezing in Brazilian growing regions can damage trees bearing the following year’s crop. The last major frosts happened in 1994 and in 1975, sending prices up in 1997 and to a record in 1977.

Robusta Premium

Conillons, as Brazilian robusta coffee is known, are trading at a premium of 4 cents a pound to the price on NYSE Liffe in London for May, June and July shipments, up from 3 cents a pound last week, data from the broker show.

“Arrivals of new crop keep improving with producers focused on harvesting and drying procedures,” Flavour Coffee said. “Surprisingly prices are firmer, with reasonable demand for both new and current crop,” according to the report.

Harvesting of the 2012-13 robusta crop has started in Rondonia and Espirito Santo, the main growing states, according to Cepea, a University of Sao Paulo research group.

Arabica coffee is grown mainly in Latin America and is favored for specialty drinks such as those made by Starbucks Corp. (SBUX) Robusta beans are grown mainly in Asia and parts ofAfrica and are used in instant drinks and espresso.

Robusta coffee for July delivery rose 0.5 percent to $1,984 a ton by 10:30 a.m on NYSE Liffe in London. Arabica coffee for July delivery rose 0.4 percent to $1.765 a pound on ICE.

Source: Bloomberg

Brazil will auction off rights to build 678 kilometers of transmission lines, as well as build four electric substations. The projects are located in the Brazilian states of Rio Grande do Sul, Parana, Mato Grosso do Sul, Minas Gerais and Bahia.

The winner will be determined by whomever accepts the lowest annual revenue from the projects. Winners will have up to 24 months to get the projects up and running, and Aneel expects total investment to reach 920.8 million Brazilian reais ($480 million).

Brazil’s government-controlled utility Eletrobras swept the auction last month, taking all three lots that were bid on. The fourth lot, a 90-kilometer transmission line, received no bidders. The lot details were revised by Aneel after another study and the revised project will be included in next month’s auction, the regulator said on its website.

Source: The Wall Street Journal

The U.S. is seen exporting “at least” 2.3 million metric tons of soybeans to China from June to August, compared with 600,000 tons a year earlier, the Hamburg-based researcher said today in a report. Shipments are seen gaining “momentum” in the following six months, reaching a new record for the September-to-February period, Oil World said.

Brazil, the world’s biggest soybean shipper, sent record amounts to China from January to April, leaving the South American country’s stockpiles down about 13 million tons from a year earlier at the end of last month. Soybean futures have surged 24 percent this year on the Chicago Board of Trade after drought hurt crops in Brazil and Argentina.

“Additional large Chinese purchases would require even more rationing to be done in Brazil for the rest of this year,” Oil World said. “We expect that insufficient South American supplies will result in a contra-seasonal increase in U.S. soybean exports to China.”

China’s soybean imports for the 2011-12 marketing year are seen totaling 56.5 million tons, almost 1 million tons more than expected a month earlier, Oil World said. Purchases are seen climbing to at least 60 million tons in the following season and are seen potentially even higher if the country’s production falls below the expected 12.5 million tons, a 20-year low, Oil World said.

U.S. soybean exports are seen totaling 36 million tons this season, cutting stockpiles on Aug. 31 to 5.8 million tons, Oil World said.

Source: Bloomberg