SAO PAULO, Oct 10 (Reuters) - Microsoft Corp and Brazilian lender Banco Votorantim are investing together in financial technology startups, executives said in a Monday interview, as the U.S. tech company adds a new specialty to its venture capital portfolio in Brazil.
RIO DE JANEIRO/NEW YORK (Reuters) - Brazil state development bank BNDES refused to extend a loan to OSX Brasil SA (OSXB3.SA) after the ailing shipbuilder's decision to file for bankruptcy protection, according to a securities filing on Tuesday. The financing line that BNDES declined to renew was worth 428 million reais ($189 million), according to the OSX filing, smaller than the 550 million reais principle-and-interest figure provided to Reuters earlier by two sources with direct knowledge of the situation. The loan, made by BNDES at the start of 2012, bore a guarantee from Banco Votorantim SA, and no vessel from the shipbuilder was set aside as collateral, according to a source who asked not to be identified due to banking secrecy rules in Brazil. Votorantim assumed full credit risk on the OSX loan and repaid the loan on Monday, another source said.
Обвал на фондовом рынке Бразилии, который показывает самую слабую динамику среди мировых рынков акций, оказывается негативное влияние на первичные публичные размещения ценных бумаг. Компания Votorantim Cimentos SA, бразильский производитель цемента, приостановила продажу акций в объеме $3,7 млрд, запланированную на этой неделе.Это размещение могло бы стать вторым по величине в мире в этом году.Эксперты говорят, что сейчас очень сложное и неблагоприятное время для размещения акций, а рыночные условия значительно хуже, чем 1-2 месяца назад. При этом компания потеряет большой объем средств, если разместит акции в настоящий момент.Необходимо отметить, что в этом году IPO отменяют компании по всему миру. Общий объем в 2013 г. упал уже на 4,2%, а в США показатель рухнул на 31%.Пока размещение Votorantim Cimentos отложено до 11 сентября. Компания планировала направить привлеченные средства на финансирование инвестиционной программы и увеличение оборотного капитала.Бразильский рынок акций начал падать 11 июня, когда стало известно о резком росте инфляции. В мае в годовом выражении потребительские цены выросли на 6,5%, что привело к росту ставок ЦБ. Экономика при этом выросла в I квартале всего на 1,9%.
Obama prepares for chilly talks with Putin over Syria (Reuters) G8 opens amid dispute on Syria arms (FT) Economists Blame Fed for Higher Bond Yields (WSJ) - wait... what? Isn't the "stronger economy" to blame? What a novel concept - In the Czech Republic, a spying scandal has forced the PM to resign (BBG) Rigged-Benchmark Probes Proliferate From Singapore to UK (BBG) Economists Wary as Fed's Next Forecast Looms (Hilsenleak) Banks Balk at New Rules for Small Loans (WSJ) Sporadic clashes in Turkey as Erdogan asserts authority (Reuters) India Holds Rates as Rupee Drop Risks Fueling Inflation (BBG) Smithfield Pressed to Carve Itself Up (WSJ) Bank Profits Seen Buffeted by Rates Rising Without Growth (BBG) Bank of England says foreign banks made UK’s credit crunch worse (FT) Apple got up to 5,000 data requests in six months (Reuters) Airbus on Track to Double Profit Margin by 2015 (WSJ) West to Press Iran on Nukes (WSJ) Suntory Shows Caution on IPO Price (WSJ) Overnight Media Digest WSJ * The United States and Europe plan to push for nuclear talks with Iran following the surprise victory of centrist Hassan Rohani in presidential elections. * Airbus is on track to more than double its profit margin by 2015 through greater efficiency and restructured management, said Chief Executive Fabrice Bregier. * Large banks are pushing back against regulators' plans to toughen rules on short-term, high-interest consumer loans. * Starboard Value LP, a large activist investor in Smithfield Foods Inc, is pressuring the company to explore a break-up rather than go ahead with a planned $4.7 billion takeover by Chinese meat producer Shuanghui. * Home-improvement retailer Lowe's Cos Inc agreed to buy Orchard Supply Hardware Stores for $205 million, potentially throwing a lifeline to the struggling West Coast hardware-and-garden chain. * Co-op Bank is expected to unveil plans this week to fill a capital hole, estimated at 1.25 billion pounds ($1.96 billion), by imposing losses on bondholders and selling loan portfolios, a person familiar with the plans said. * General Electric Co is expanding its ability to produce ceramic-based parts for its jet-engine business, betting that the risks of using a novel material are outweighed by the expected fuel savings. * Liberty Media Corp Chief Executive Greg Maffei recently met with Time Warner Cable Inc Chief Executive Glenn Britt to discuss the benefits of mergers in the cable sector, said a person familiar with the situation, the latest sign that Liberty is interested in sparking consolidation in the industry. * Congress is gearing up to tackle an issue that Washington has mostly ignored for nearly five years: What to do with Fannie Mae and Freddie Mac, the bailed-out but now-profitable mortgage companies. FT The United Kingdom's biggest shareholders such as Schroders , pension funds and charities are looking at setting up a joint investor forum to check boardroom excesses and in turn improve performance and returns of companies. The car market in western Europe will not begin to grow until at least 2019, according to a report to be released by AlixPartners on Monday, raising fears of further plant closures. The total capital raised on Brazil's stock exchange during the first half of 2013 is set to cross $10.6 billion this week when the country's largest cement producer, Votorantim Cimentos lists on Wednesday. Private equity owners of Germany's Grohe, Europe's biggest bathroom fittings maker, have appointed bankers to evaluate strategic options including an initial public offering or sale, that could value the company at 4 billion euros, including debt. Co-operative Bank is close to agreeing a rescue package with the Bank of England that will plug a capital shortfall of up to 1.5 billion pounds ($2.35 billion) without state help. EADS, Finmeccanica and Dassault - three of Europe's biggest defence companies - have called up governments to set up a European drone programme to compete with U.S. and Israeli companies that dominate the sector. NYT * A record seven million students will graduate from universities and colleges across China in the coming weeks, but their job prospects appear bleak - the latest sign of a troubled Chinese economy. * Only months before Americans start buying coverage through new state insurance exchanges, it is becoming clear that choices will vary sharply depending on where people live. * A long-running economic policy debate over austerity versus stimulus was expected to be muted at the Group of Eight summit as participants concentrated on addressing the escalating civil war in Syria. * After posting a loss in the first quarter, Martha Stewart Living Omnimedia redesigned its print and digital offerings in hopes of returning to profitability. * Boeing Co's full-court press to address the risk of battery fire on its flagship 787 Dreamliner jet this year has not slowed progress on the company's other planes in development, including a revamped version of its popular 777 wide-body, Raymond Conner, chief executive of Boeing's civil aircraft division, said on Sunday. Canada THE GLOBE AND MAIL * New Mexican President Enrique Pena Nieto wants ties with Canada to be a priority in the country's foreign policy, rather than the on-again, off-again interest of two countries distracted by relations with the United States, Mexico's ambassador says. * Canadian Prime Minister Stephen Harper is lashing out at Russian President Vladimir Putin over his support for "thugs" in Syria, a public sign of the divisions that have broken out between Russia and the other G8 members over the future of the Middle East country torn by civil war. Reports in the business section: * The proposed Northern Gateway pipeline project has spurred a fierce national debate about whether heavy oil spilled in sea water floats or sinks, how much disaster insurance pipeline projects should carry and the economic rewards of shipping oil sands bitumen across the ocean to foreign markets. * The growing debt burdens of Ontario and Quebec look alarmingly large compared to most other regional and local governments around the world. But a report to be released Monday by Moody's Investors Service argues that the two provinces' unique fiscal and economic characteristics mean they can carry heavy debt loads while still enjoying relatively high credit ratings. * Montreal's pharmaceutical industry has been hit hard by lab closings and layoffs, but the Canadian CEO of French drug giant Sanofi sees a possible cure. NATIONAL POST * Justin Trudeau, the leader of the Liberal Party of Canada, is promising to compensate all groups that paid him hefty speaking fees to participate in fundraising events since he became an MP. FINANCIAL POST * The International Monetary Fund sees the Federal Reserve maintaining large monthly bond purchases until at least the end of this year and urged the central bank to carefully manage its exit plan to avoid disrupting financial markets. * Yoga wear giant Lululemon Athletica Inc is on the hunt for a new chief executive whose credentials include holding a "headstand for at least 10 minutes", fluency in Sanskrit and the ability to do "wheatgrass and tequila shots" on Fridays. China CHINA SECURITIES JOURNAL - A report published by the Institute of Economic Research of Renmin University forecast that the GDP growth rate this year will reach 8.1 percent, while the consumer price index would rise 2.3 percent. - China will put forward new electricity price subsidies on the solar industry as soon as end-June, sources said. SHANGHAI SECURITIES NEWS - The People's Bank of China will promote cross-border yuan settlement to facilitate trade and investment for personal businesses, said an official with the PBOC's Monetary Policy Committee. PEOPLE'S DAILY - Fujian should seize the opportunity of national support in the economic zone and promote economic and trade exchanges and cooperation across the Taiwan Straits, said Yu Zhengsheng, the head of Chinese People's Political Consultative Conference, during a visit to the province. SHANGHAI DAILY - The Chinese embassy in France strongly condemned an attack on six Chinese students in the Bordeaux region which France's Interior Ministry described as an "act of xenophobia". Fly On The Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades CIT Group (CIT) upgraded to Buy from Hold at Drexel HamiltonCYS Investments (CYS) upgraded to Buy from Hold at WunderlichCentury Aluminum (CENX) upgraded to Equal Weight from Underweight at Morgan StanleyCubeSmart (CUBE) upgraded to Strong Buy from Outperform at Raymond JamesExtra Space Storage (EXR) upgraded to Strong Buy from Outperform at Raymond JamesFidelity Southern (LION) upgraded to Outperform from Market Perform at Keefe BruyetteHeartland Payment (HPY) upgraded to Overweight from Neutral at Piper JaffrayPhilips (PHG) upgraded to Buy from Hold at Deutsche BankProLogis (PLD) upgraded to Outperform from Market Perform at Wells FargoPublic Storage (PSA) upgraded to Outperform from Market Perform at Raymond JamesRyman Hospitality (RHP) upgraded to Overweight from Neutral at JPMorganSpectra Energy Partners (SEP) upgraded to Outperform at Raymond JamesTIBCO (TIBX) upgraded to Outperform from Market Perform at Wells FargoTransmontaigne Partners (TLP) upgraded to Buy from Neutral at BofA/Merrill Downgrades American Capital Agency (AGNC) downgraded to Equal Weight from Overweight at BarclaysCYS Investments (CYS) downgraded to Equal Weight from Overweight at BarclaysEncore Capital (ECPG) downgraded to Neutral from Overweight at Piper JaffrayHealth Management (HMA) downgraded to Neutral from Buy at MizuhoInfinera (INFN) downgraded to Hold from Buy at JefferiesJAVELIN Mortgage (JMI) downgraded to Underweight from Equal Weight at BarclaysMICROS (MCRS) downgraded to Neutral from Buy at Compass PointNovo Nordisk (NVO) downgraded to Neutral from Buy at BofA/MerrillTime Warner Cable (TWC) downgraded to Market Perform at Raymond James Initiations Blackstone Mortgage Trust (BXMT) initiated with an Overweight at JPMorganChannelAdvisor (ECOM) initiated with a Buy at GoldmanIHS Inc. (IHS) initiated with a Hold at Deutsche BankSynergy Pharmaceuticals (SGYP) initiated with a Buy at CitigroupT-Mobile (TMUS) initiated with a Neutral at RW BairdTeradata (TDC) initiated with an Underperform at CowenTesla (TSLA) initiated with an Overweight at Global EquitiesU.S. Silica (SLCA) initiated with an Outperform at Wells FargoUbiquiti Networks (UBNT) initiated with an Outperform at BMO Capital HOT STOCKS Weyerhaeuser (WY) to acquire Longview Timber (BAM) for $2.65B, intends to increase dividendWeyerhaeuser (WY) to explore strategic alternatives for WRECO businessBrookfield (BAM) to sell Longview Fibre Paper and Packaging to KapStone (KS) for $1.03BBoeing (BA), Qatar Airways announced agreement worth up to $2.8B for nine 777-300ERsLowe's (LOW) entered $205M purchase agreement with Orchard Supply Hardware (OSH)ING (ING) to sell Mexican mortgage business to Banco Santander (SAN)Elan (ELN) announced Royalty Pharma bid lapses in accordance with termsRoyalty Pharma expressed disappointment in letter to Elan (ELN) boardTransition Therapeutics (TTHI) announced exercise of TT-401 rights by Eli Lilly (LLY)Netflix (NFLX) to premiere DreamWorks Animation (DWA) brand slate of new original TV series NEWSPAPERS/WEBSITES Activist investment fund Starboard Value LP, a major Smithfield Foods (SFD) investor, is pressuring the company to explore a breakup rather than follow through with its planned takeover by a Chinese meat producer, according to a letter reviewed by the Wall Street Journal Large banks are pushing back against regulators' plans to toughen rules on short-term, high-interest consumer loans. Wells Fargo (WFC), the largest bank to offer "deposit-advance loans," told regulators that it will discontinue the loans if plans for tougher rules are completed, the Wall Street Journal reports Apple (AAPL) received over the last six months between 4,000 and 5,000 requests for customer data from U.S. law enforcement authorities relating to criminal investigations and national security matters, Reuters reports Telefonica (TEF) said it had not received any indication of interest from AT&T (T), following an El Mundo newspaper report that the government had stopped a $93B offer from the U.S. company, Reuters reports Brazil’s Vale (VALE) said further local currency depreciation could counter cost rises and a slowdown in Chinese iron-ore demand as it seeks to regain market share from Rio Tinto (RIO) and BHP Billiton (BHP), Bloomberg reports Rising bond yields are typically indicators of stronger economic growth and higher profits for banks (JPM, BAC). That might not be the case this time, as a 30-year bull market in U.S. government debt shows signs of coming to an end. Higher long-term interest rates can discourage mortgage lending and cause losses in the securities portfolios of banks, Bloomberg reports BARRON’S Eastman Chemical (EMN) could rise over 35%BB&T (BBT) looks ready to regain favor with investorsAMD (AMD) could double from entry into 'microserver' marketAmgen (AMGN) still looks attractiveBig Lots (BIG) shares look cheapLinn (LINE) deal with Berry (BRY) in jeopardy (LNCO) Iron Mountain (IRM) could drop towards the teens SYNDICATE DCP Midstream (DPM) files to sell $300M of common unitsIntercept (ICPT) files to sell 1.73M shares of common stockOPKO Health (OPK) files to sell 24.76M shares of common stock for holdersPVR Partners (PVR) files to sell $150M of common unitsSL Green Realty (SLG) files to sell 68,973 shares of common stockWeyerhaeuser (WY) files to sell 28M shares of common stockWhiteWave Foods (WWAV) files to sell 29.91M shares of Class A common for holders
Conglomerate to list its ‘crown jewels’ ahead of the World Cup, the initial public offering, which is due to be priced on Wednesday, is set to raise as much as R$10.3bn
Antonio Ermírio de Moraes Neto shares the same name as his billionaire grandfather, Antonio Ermirio de Moraes. But instead of joining the family-owned industrial conglomerate, Votorantim, Moraes –who’s just 26 --is forging a new path. He created Vox Capital, one of Brazil’s first impact investment funds, with the aim of stimulating change in his country. “Social inequality is the largest problem in Brazil,” Moraes told me during a visit to the San Francisco area for the Global Philanthropy Forum a few weeks ago. “I wanted to invest in social businesses that get financial returns.” Several years ago he decided to visit businesses making a social impact so he could learn from them. One of them, in India, was Aravind Eye Care, a for-profit hospital that treats the poor for little or no charge, subsidizing the care with fees it charges well-off patients. (See a Forbes article on Aravind here.) Moraes Neto co-authored a documentary film, Setor Dois e Meio (The Second-and-a-half Sector) about the journey that will be released later this year. Watch the trailer here. Back in Brazil, armed with a degree from prestigious business school Fundação Getulio Vargas, Moraes helped launch Vox Capital in 2009. An initial $3 million funding came from Potencia Ventures, a U.S.-based impact investment firm. In 2011 Vox opened up to outside investors and has raised an undisclosed amount of capital from from 32 investors, including the Inter-American Development Bank’s International Multilateral Fund, a former Brazilian Central Bank chief and Instituto Alana, a Brazilian foundation run by billionaire banking heiress Ana Lucia Villela. Vox is targeting companies that serve the base of the pyramid: households with monthly income of less than $1,500 a month. Turns out that’s nearly 160 million people in Brazil – 85% of the country’s population. Vox is focusing on companies in the education, healthcare and housing sectors. So far it’s made 4 equity investments and 5 convertible debt investments. One investment, Balcão de empregos, is a job-placement company that has physical locations in addition to a website, helpful for the millions of people who do not have computers in their homes. Another company Vox has backed, Saútil, is an Internet platform with information about government health services. “Information about the public services is not well organized,” says Moraes. Saútil sells a customer-orientation program to companies, so they can provide it to their employees, who can better navigate healthcare options. Each investment has a goal of impacting 1 million people over 5 years. Moraes says much of his inspiration comes from his grandfather, now 84, who chairs Votorantim. For many years Antonio Ermirio de Moraes wrote columns for Brazilian newspapers and was seen as the voice of Brazilian business. “I look at him as a modern social entrepreneur,” says Moraes of his grandfather. “His motivation was not about money. He was doing something to transform the country.” Which is exactly what the younger Moraes aims to do as well. Follow me on Twitter at @KerryDolan