China's needs feed Brazil's growth

While metals such as copper have been a huge export to China, agriculture is also riding high. A $7.5 billion commitment from the Chinese government has been made to develop agriculture in the state of Goias, in central Brazil. However, this is not just an act of charity - "The entirety of the planned 6-tonne increase in food production will be shipped to the Middle Kingdom." 


China's investment portfolio continues to expand - where and what next?


Read article here

Latin America profiting from China's economic growth

"América Latina está demostrando una impresionante resistencia"

A provisional forecast by the World Bank of a 5% growth in 2010 for the region has been increased to 6% based upon increased activity in Brasil, Peru, Chile and Colombia - Brazil is leading the pack with 7% growth. Venezuela is the only country showing a contracting economy, despite high oil prices.

The majority of this growth is credited to China's enormous demand/need for raw materials. However, this huge growth could lead to overheating and inflation, while attention is drawn to the lack of investment in research and development, with the exception of Brasil, all Latin American countries currently invest less than 1% of GDP. Furthermore, with the exception ofMexico, Uruguay, Argentina and Chile, the regional governments do not have innovation as a national priority.

P&G to beef up sales in developing countries

An interesting article from last month in Brandchannel, discussing P&G's new focus on developing its business and product portfolio in developing markets, such as Brazil:

In Brazil, for example, a country in which people "take more showers, use more hair conditioner and brush their teeth more often" than consumers in other countries, P&G's products are a natural fit — yet the company has badly lagged behind competitors Colgate and Unilever. P&G's strategy there is to introduce new products in several categories simultaneously, leveraging its promotional dollars by doing joint marketing campaigns. It's a different way of doing business for P&G — usually, it markets each brand separately."


http://www.brandchannel.com/home/post/2010/08/19/Procter-Gamble-Sets-Global-Strategy.aspx#continue


Although somewhat late in their recognition to focus on developing markets such as Brazil, P&G won't be the only one allocating greater resources to the BRIC's. I am curious to see the innovation which originates in these markets where consumer demands for new products will no doubt increase in correlation to their growing disposable income.

Petrobras to sell up to $64.5 billion of new stock

In order to fund the development of recently found oil reserves off the coast of Rio de Janeiro, Petrobras is to raise an estimated $64.5 billion USD through the sale of new stock, in one of the world's largest IPO's.

http://www.bbc.co.uk/news/business-11184839