Posts under "Economy"

Hot off the presses! Today, 3G Capital, a Brazilian private equity firm, bought out Burger King for several billion dollars. 3G is backed by several Brazilian businessmen, including billionaire Jorge Paulo Lemann and his partners Marcel Telles and Carlos Alberto Sicupira.

The company already has major or partial stakes in Anheuser-Busch InBev, one of the world’s largest beer companies, Lojas Americanas, one of Brazil’s biggest store chains (akin to Target or Walmart), and America Latina Logistica, Latin America’s largest railroad company. 3G also has a small stake in Wendy’s.

Learn more about the deal from AFP in Portuguese. Then check out this video from Brasil Econômico.

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Check Your Understanding

1. When will the official offer be brokered?

2. What is the reason the reporter gives for Burger King’s poor performance?

3. How much was the deal for?

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Yesterday, the Wall Street Journal published a fascinating article about Bradesco Bank’s newest strategy for reaching Brazilians in rural areas of the Amazon: putting a bank on a riverboat. The article describes how the bank’s manager goes out every two weeks and searches for new customers along the banks of the Amazon.

An excerpt: “Modest but steady growth in Latin America’s largest economy over the past decade has catapulted millions of poor Brazilians into the middle class. Launched in November by Banco Bradesco SA, operator of the country’s largest retail-banking network, the riverine effort shows how far into Brazil’s corners the changing economy will reach. The number of bank accounts in Brazil has tripled over the past decade, from just over 42 million in 1997 to nearly 126 million at the end of 2008, according to the Brazilian Banking Federation. Still, there are at least 50 million “unbanked” Brazilians out there.” [Read the full article here]

So I looked around, and it turns out there’s a great commercial that Bradesco made featuring the bank boat. Watch the video and see if you can answer the questions.

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Questions

1. How many new accounts were opened on the boat’s first trip?

2. What does Dionne, the student, want to do as a career?

3. What type of business does Lucila want to open?

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If you are used to Brazil’s money bills, prepare to say goodbye to them. Starting in April they will begin being replaced by new ones. The currency, Real, will remain the same. Only the design and size of the bills will be different.

The main reason behind this change is for security matters. The new bills should be a lot harder to copy and population should be able to recognize a legit more easily.

Also, the new bills will benefit the visually impaired as they’ll feature different sizes according to their value and embossed marks for better identification.

The new bills will start being released with 100 and 50 Reais bills in 2010. Then in 2011, with 20 and 10 and in 2012 with 5 and 2.

The older bills began being produced in 1994, when Real became the official currency in Brazil. They will still be used and will be gradually replaced by the new ones.

Below you can see how they’ll look like:

Brazil's new bills

Read more on:

http://www1.folha.uol.com.br/folha/dinheiro/ult91u688688.shtml
http://br.noticias.yahoo.com/s/03022010/48/manchetes-bc-lanca-nova-familia-notas.html
http://www.correiobraziliense.com.br/app/noticia182/2010/02/04/economia,i=171189/POR+QUE+E+COMO+AS+CEDULAS+VAO+MUDAR.shtml
http://www.clicrbs.com.br/diariocatarinense/jsp/default2.jsp?uf=2&local=18&source=a2798550.xml&template=3898.dwt&edition=14047&section=129

For today’s reading comprehension activity, we’re going to take a look at an article from VEJA Magazine about the Brazilian state-run oil company, Petrobras.

Petrobras volta a importar gasolina após 40 anos

“Após quarenta anos de autonomia, a Petrobras voltou a importar gasolina. Prejudicada pela crise do etanol, a estatal foi obrigada a comprar o combustível da Venezuela, que já recebeu encomendas futuras.”

[Click the link above to read the full article]

1. What did Petrobras have to import? Where did it import the product from?

2. How many barrels of the product did Petrobras buy? When will the product arrive in Brazil?

3. What two factors negatively affected the production of this product in Brazil?

Answers after the jump.

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Let’s take a look at the headlines from business and economy in Brazil this week:

Make sure you give it a go with the Portuguese articles!

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