Brazil miner Vale 4th quarter profit up, 2007 record

Brazil's CVRD, one of the world's top three miners, posted on Thursday a fourth-quarter net profit 29 per cent higher than a year ago, boosting 2007 earnings to a new record on higher output and iron ore prices.

Vale, the world's biggest iron ore producer, said in a statement it netted 4.4 billion reals ($2.6 billion in the last quarter of 2007 and 20 billion reals for the whole of last year under Brazilian accounting rules.

The full-year profit rose 49 per cent.

Vale, which is in negotiations to buy Swiss rival Xstrata, a transaction that could be worth more than 90 billion U.S. USA, called the results "healthy, low-risk debt."

It said that profit before interest, taxes, depreciation and amortization (EBITDA) fell to 6.43 billion reals from 7.96 billion reals in the same period of 2006, in accordance with Brazilian accounting rules, as a fall in nickel and copper prices weighed.

However, in accordance with GAAP USA, Wale sent forth-quarter profit of almost $2.6 billion EBITDA in the United States and $3.5 billion, which is sharply from a previous $1.6 billion and $2.6 billion dollars respectively.

Profit exceeded most forecasts. Analysts agency Reuters polled expected, on average, a U.S. GAAP net of about $2.3 billion and EBITDA of $3.9 billion for the fourth quarter.

Brazil central bank holds auction to buy dollars

Brazil's central bank said on Thursday it would hold an auction to buy dollars on the spot foreign exchange market as part of an ongoing effort to boost international reserves.

The Brazilian real BRBY was 0.36 percent weaker at 1.677 per dollar shortly after the announcement. The real, which closed on Tuesday below 1.7 to the dollar for the first time since May 1999, has already gained more than 6 percent this year after rising 20 percent in 2007.

The central bank resumed the purchase of dollars in October, after two months of interruption of the foreign exchange market. He has already bought greenbacks every day for many months, helping to lift Brazil to the highest reserves of around $ 190 billion.

tariffs on Brazilian

Federal Reserve Chairman Ben Bernanke said on Thursday he favored cutting high tariffs on Brazilian ethanol to help take pressure off food prices.

"As you know, I favor open trade and I think allowing Brazilian ethanol, for example, would reduce costs in the United States," Bernanke told the Senate Banking Committee.

Most of the ethanol made in the United States comes from corn, and domestic production is protected from sugar-based Brazilian ethanol by a steep tariff.

Bernanke said that it was difficult to say how many current high demand for ethanol is to raise food prices.

"But it is the case that a significant portion of the corn crop is diverted to ethanol, which raises the price of bread," Bernanke said panel.

"I have some side effects, for example in some of areas of soybean production has been moved to maize, which is likely to have some effect on soybean prices. therefore there is some impact on the price of food by switching to energy use," said Bernanke.

Vallourec Upgraded to `Buy' From `Neutral' at Merrill Lynch

Vallourec SA, the world's second-biggest producer of oil-and-gas pipes, was reached to ``buy'' from ``neutral'' according to analysts at Merrill Lynch & Co.
``Based on a more positive view on pipes prices, we are increasing our expectations by around 4 percent in 2008-2010,'' the team, including Alejandro Demichelis, wrote in a research note dated today.
Merrill set its share-price estimate for the company at 175 euros. Vallourec rose 2 per cent yesterday to 140.52 euros.
``The development of Brazil's recent deepwater oil & gas discoveries remains a key theme in the global oil service arena and we believe that the market fails to fully appreciate Vallourec's expansion plans in the country,'' the analysts said.

Brazil Federal Tax Revenue Soars 26% From Year Ago

Brazil's federal revenue surged 26 percent in January as faster economic growth boosted collections, allaying concern that last year's lapse of a financial transactions tax would lead to a shortfall.

The government took in 62.6 billion reals ($37.2 billion) compared with 49.9 billion reals in the same month a year ago, the federal tax agency said in a report issued today in Brasilia. The expired financial transactions levy produced 2.9 billion reals in January 2007.

Tax revenue is soaring as Latin America's biggest economy expands at the fastest pace in more than three years, supporting a jump consumer expenses and record company profits, said Alex Agostini, chief economist at Sao Paulo-based Austin Rating Servicos Financeiros.

To make up for part of an expected 40 billion-reals budget gap, President Luiz Inacio Lula da Silva raised other levies expected to generate 10 billion reals in 2008.

Simpler Taxes

Brazil's business leaders view taxes as the major obstacle for companies seeking to expand, according to a survey by the national industrial association, published in October. The tax burden reached a record high 34.2 percent of gross domestic product in 2006, according to figures by the tax collection agency.

The government will send Congress a tax reform proposal on Feb. 28 that suggest to cut taxes for investments and exports, Finance Minister Guido Mantega said last week. The offer also plans to prune the country's tax system by consolidating various federal levies into one.

Guido Mantega said that changes in the country's tax code will spur economic growth to 5.5 percent from 5 percent.

Changes in the tax system are the most important among reforms that the country needs to pursue, Mantega told business leaders at a meeting today in Brasilia.

Naomi Campbell In Hospital After Surgery

The 37-year-old British supermodel, a frequent visitor to Brazil who earlier this month celebrated Carnival in the northeastern city of Salvador, was treated at Sirio Libanes Hospital..
"Naomi Campbell was admitted to the hospital last night to have a small cyst removed," Jeff Raymond, Campbell's publicist, said in a statement. "Following the successful procedure, she is now resting and is looking forward to getting back to work. She would like to thank the doctors who have kindly looked after her."
"Following the successful procedure, she is now resting and is looking forward to getting back to work.
"She would like to thank the doctors who have kindly looked after her."
A hospital statement said: "The patient and her advisers have determined that the hospital's medical staff will not issue any formal or informal information on her medical condition.."
She is being treated by David Uip, a specialist in infectious diseases and gynaecologist Jose Aristodemo Pinotti, the statement said.
Campbell, a frequent visitor to Brazil who earlier this month celebrated Carnival in the northeastern city of Salvador, is being treated at Sao Paulo's Sirio Libanes Hospital.

Brazil launches anti-poverty drive

The Brazilian government has unveiled a multi-billion dollar anti-poverty plan to provide jobs and infrastructure in the poorest parts of the country.
President Luiz Inacio Lula da Silva said the biggest cost to the country was not taxes but a century in which poor people had been forgotten.
The move comes months before important municipal polls are held across Brazil.
The program, which will see some $6 billion spent in 2008 alone, still has to be approved by Congress.
The initiative, known as "Territories of Citizenship", is meant to help around 24 million people, including rural workers and indigenous communities.
The money, which is part of the existing budget, will be used to supply 135 policies, including 15 government departments, that are operating on 958 towns in states across the country.
The government is also promising to finally reach its target in the "Light for Everyone" program to bring electricity to poor communities.
The areas selected for funding are said to be in the 60 regions of Brazil with the lowest rankings on the UN Human Development Index.
Speaking in the capital, Brasilia, on Monday, President Lula called the proposals the "second step to ending poverty".
Brazil already has a major anti-poverty programme, known as Bolsa Familia, that pays a monthly allowance to more than 11 million families.

Brazil no longer depends on US, Europe, Silva says

Brazil is well-prepared to weather a US recession due to diversified export markets, a thriving domestic economy and the elimination of foreign debt, President Luiz Inacio Lula da Silva said Monday.
"We're going to transform this country into a great economy and a great nation," he said on his weekly radio program.
Latin America's largest economy is in the midst of a prolonged boom due to high global demand for from Brazilian ethanol, iron ore and agricultural products and it will grow at least 5 percent annually through 2010, Silva predicted.
Frenzied domestic consumption of big ticket items like homes and cars will continue, Silva said. Brazil has a huge internal market of nearly 190 million consumers
"People are buying more and exports are growing because we don't depend on the United States and Europe alone," Silva said. "Now we're exporting to many more countries around the world, and this leaves us calm in the face of an American crisis."
He praised his own administration for ending the nation's debt crisis. Brazil emerged last week as a net foreign creditor for the first time in history.
Nation traditionally mammoth debt, a long drag on growth "has been built over many years from the mistakes of other administrations, the mistakes that we fixed," Silva said.
Silva said last week that Brazil success in the elimination of its debt means that the country can now use a new debt for improving decaying infrastructure and increase employment.
He is expected to declare 11.3 billion reals (6.6 billion U.S. dollars, euro4.5 billion) in new funding for social programs for withdrawing 2 million Brazilians out of poverty.
Underlying the boom is the high global demand for Brazil vast natural resources. The country is in the world top exporter of beef, chicken, ethanol, iron ore, sugar, coffee and orange juice. Brazil raises second place in the United States for exports of soy.
Two major offshore finds in the state, so Petroleo Brasileiro SA in the past three months could turn Brazil into oil and natural gas exporter and a potential member of the Organization of Petroleum Exporting Countries.

Brazil spends US$10 million on ethanol campaign

Brazil's trade promotion agency Apex and sugar cane industry association Unica would reportedly undertake a US$10 million campaign aimed at boosting the use of sugar cane-based biofuel, according to media reports. Apex and Unica on Feb. 25 signed a pact that will run until the end of 2009. The campaign will target the United States, Canada, Europe and Asia.
"The aim is to build an international market for biofuel, which is now virtually non-existent," Apex president Alessando Teixeira said in an Agence France-Presse report. Teixeira said the demand for ethanol from crops grows up, but the Brazilian ethanol made from sugar cane, has become the most viable alternative, with a competitive advantage over the corn, beets and other raw materials. "
The United States is the world's largest ethanol producer, with 28 million litres output mostly derived from corn in 2007. Brazil is second with 22 billion litres of ethanol produced from sugar cane.

Argentina, Bolivia, Brazil fail to find gas solution

The presidents of Argentina, Bolivia and Brazil failed to reach a deal on Saturday to redistribute Bolivia's diminished natural gas exports and give Argentina the larger share it seeks.
Energy ministers will form a crisis group and meet again in ten days to try to reach a solution after Argentina was not able to make Brazil to give up some of its share of Bolivia's natural gas, Argentine Foreign Minister Jorge Taiana told reporters.
"In 10 days the energy ministers will meet in La Paz to seek a solution," Jose Sergio Gabrielli, president of Brazilian state oil firm Petrobras, told reporters after the meeting.
"Argentina asked for 1 million cubic meters of natural gas per day (of those Brazil consumes," but he said Brazil is only willing to sell electric power to Argentina during the winter months.
Bolivia, which also has growing energy demands, has been unable to keep up with promised levels of natural gas exports to its two neighbors, the largest economies in South America.
Argentina and Brazil both produce oil and gas, but not enough to supply their demand in them during peak periods. Bolivian natural gas is a key energy source for Sao Paulo, the hub of Brazil's industrial production.
Fast economic growth on the back of high prices for raw materials such as Argentine and Brazilian soy, Chilean copper and Bolivian natural gas, have made not clear energy shortages a concern in much of South America.

Brazil grows up, Mayor should have asked, those crazy Palm Beachers

In the years since Lake Worth middle-schooler Nate Brazill shot and killed his teacher at the classroom door, he’s become the 21-year-old go-to jailhouse lawyer in Arcadia. Most a while ago he has composed his own my-lawyer-messed-up claim. He’s hoping for a new trial, conviction on manslaughter and a get-out-of-jail date as soon as 2013, instead of 2028.

The mayor of Jupiter Inlet Colony hired an ex-con and put him up in his apartment but didn’t ask him what it was that he was convicted of big mistake The guy was a former sex offender who then failed to report his new digs. “I did the best I could with the information I had,” Mayor Zuccarelli said. Better information: guy exposed himself to 10 girls ages 4 to 14.

She trusts in long-distance in her psychic. He tapes the conversations for the police. Her ex-husband who once said he locked himself in the nanny’s room to be safe from her is the attorney for her defense. And her rich, drinking - and she-says-drugging - husband is dead at the ripe old age of 44. Her in-laws say she did it. They were egged on by the psychic.

Brazil's Vale, Asian clients agree to 65 per cent price hike for iron ore

Brazilian mining company Vale announced a deal Monday that will raise iron ore prices 65 per cent for six major Asian clients amid booming global demand for the raw ingredient used to make steel.

Companhia Vale do Rio Doce SA, the world's biggest iron ore producer and owner of Canadian nickel giant Vale Inco, reached an agreement on the new price with South Korean steelmaker Posco and with Japan's Kobe Steel, JFE Steel Corp, Nippon Steel, Nisshin Steel and Sumitomo Metals.

It was the first price arrangement between a central ore producer and big steelmakers, a move that typically sets the bench-mark price for the industry.

Vale, formerly known as CVRD, said in a declaration that prices for iron ore produced at its Southern System mines would rise 65 percent. The price for high-quality ore from the company's Carajas mine in Brazil's Amazon will rise about 71 percent.

"The magnitude of the price growth for 2008 reflects the continuity of very tight conditions still prevailing in the global iron ore market," Vale said.

The deals have been hailed as positive for the world's three major iron ore miners - Vale, Rio Tinto PLC (LSE:RIO) and BHP Billiton Ltd. (NYSE:BHP) - and even for the steel producers. Many had been afraid the steelmakers could have been forced to agree on an even higher price increase given the strong demand for ore.

Brazil says missing laptops have state oilfield secrets

Information stolen from Brazil's state-run oil company was linked to two huge new offshore petroleum finds, President Luiz Inacio Lula da Silva said.
In comments to reporters during a trip to Brazil's Antarctic research station, Silva characterized last month's theft of four laptops and two hard drives as "serious" because it involved state secrets. He said that the Brazilian Intelligence Agency was assisting federal police in their investigation.

Petroleo Brasileiro SA has declined to give details about the missed data except to say it was "confidential information" stolen from "equipment and materials that contain important information for the company."

But Petrobras told officials the information affects Brazil's national interests, police said.

News of the theft was made public last week, but Silva's comments were the first official affirmation that the data stolen was related to the big petroleum finds.

Police says the four notebooks and two hard drives were in the ownership of Houston-based oil services company Halliburton Co. and were stolen last month while being transported from the coastal city of Santos to Macae in Rio de Janeiro state, where much of Petrobras' offshore investigation effort is centered.

Halliburton referred questions to Petrobras, which refused to comment.

Pranab Mukherjee to visit Brazil

External Affairs Minister Pranab Mukherjee will begin a week-long tour to Brazil and South Africa from Saturday to strengthen political and economic ties between India and the two countries.

During his visit, issues relating to the India-Brazil-South Africa (IBSA) dialogue will be discussed ahead of the next summit, which is scheduled for later this year.

Several bilateral agreements are expected to be signed during Mukherjee's visit.

Foremost of his six-day tour, Mukherjee will visit Brazil capital Brazilia for three days to review the progress made in the bilateral relationship.

Leaders of countries will also negotiate on some issues, including partnership in the agriculture, human resources development, science and technology, and renewable and non-renewable energy.

Then, collaboration in sports is also expected to be taken up, particularly on the involving of football coaches from Brazil.

In the past, Brazil and India have been coordinating on several international issues, including UN reforms and the WTO, and bilateral and under multilateral frameworks like IBSA and G-20.

Bilateral trade with Brazil crossed the three billion dollar benchmark last year.

Mukherjee will also launch a two-day visit to South Africa from February 21.

The two sides will sign four agreements: an agreement on visa-free travel by the holders of diplomatic and official passports, and agreements in areas of customs, agriculture and science and technology.

JetBlue's founder wants to start Brazilian airline, buy 36 Embraer jets

The founder of JetBlue Airways wants to start a new Brazilian airline and is in negotiations with Brazil's Embraer plane maker to buy 36 mid-range jets.

David Neeleman, JetBlue's chairman, has lined up investment totaling about $200 million for the venture, the O Estado de S. Paulo newspaper reported.

The newspaper, citing sources close to the deal, said Neeleman has already bought a small Brazilian airline named Cheta with government authorization to operate in Latin America's largest nation.

A message left for Neeleman was not immediately returned. Empresa Brasileira de Aeronautica SA had no immediate comment.

Neeleman was fired as chief executive of JetBlue Airways Corp. last year after the low-fare airline was gridlocked following a U.S. ice storm that created problems for the carrier's policy of not canceling flights ahead of bad weather.

Because Neeleman holds both American and Brazilian citizenship, he would be able to overcome a major hurdle: A requirement that only 20% of Brazilian airlines can be owned by foreigners.

The entry of a new carrier in Brazil would notice the first major competition for Brazilian market leaders TAM Linhas Aereas SA and Gol Linhas Aereas Intelligentes SA in some years, following the come down former Brazilian leader carrier Varig under a huge of debt.

Varig's passenger flight operations were sold to Gol, which is running far fewer Varig flights than when the carrier was Brazil's leading airline.

Brazil to expand Antarctic base

Brazil intends to increase its influence in Antarctica, President Luiz Inacio Lula da Silva said today after visiting the region with his wife, son and several government officials.

"We are going to have to expand our presence here with more investments and laboratory ships,'' Silva told reporters covering his trip, which was held over 24 hours by bad weather.

"We will also have to improve the base and bring in more researchers."

Silva visited his country's Commandante Ferraz Antarctic base, which is celebrating its 25th anniversary. Brazilian scientists there go with meteorological, oceanographic and biological studies, in addition to research involving nuclear geophysics and geomagnetism.

He also stopped at the Brazil Antarctic Program's main support vessel, the Ary Rongel, and at Chile's Eduardo Frei base.

Some 28 nations operate seasonal and permanent research stations on Antarctica and nearby islands. No single nation has control over any segment of the continent, which is ruled by the Antarctic Treaty System and designated as a natural reserve dedicated to peace and science.

President Hugo Chavez of Venezuela, Brazil's South American neighbor, recently expressed interest in establishing that country's first base on Antarctica.

Intelligentias Extends Its Business in Brazil

Intelligentias, Inc. (OTC Bulletin Board: ITLI), today announced the sale of new licenses of its massively-scalable Retentia Data Retention Suite (DRS) to a large telecommunications company in Brazil.
The sales contract, which Intelligentias' Italian Branch signed with one of its strategic partners, Siemens IT Solutions and Services, extends Intelligentias' global reach and strengthens its reputation as a major player in the data retention space.
"We're proud of our long association with Intelligentias," said Osmar Passos, sales director SIS Brazil. "Few companies are as well positioned technologically and strategically to help telecommunications companies that are scrambling to meet the growing demands of governments, law enforcement and national security agencies for quick access to actionable data."
"This is a big win for us," said Nicola Di Tomaso, President of Intelligentias' Italian Branch. "The telcos are under pressure as never before to comply with requests for data from law enforcement officials, and the Retentia DRS helps them do just that."
The financial terms of the new licenses were not disclosed.
Intelligentias is a leading data retention and management company that provides data capture, archiving and tracing solutions for telecommunication companies, Internet service providers, enterprises and law enforcement agencies all over the world. Intelligentias' Retentia Data
Retention Suite (DRS) enables telcos and ISPs to assist law enforcement agencies in locating and prosecuting terrorists and criminals and to stay in compliance with federal legislation and directives, faster and for less money than competing solutions.

Bolivia, Brazil, Argentina leaders try to avert looming energy crisis

Bolivian President Evo Morales said Thursday he will meet with the leaders of Brazil and Argentina to try to resolve a possible energy crisis because the Andean nation may be unable to supply enough natural gas to meet the needs of its power-hungry neighbors.
While Bolivian officials have said they can meet the needs of Argentina and Brazil this year, increased demand by the two nations could mean shortages in 2009. Natural gas is a key energy source for Brazil and Argentina, which have South America's largest economies.
Morales suggested that the three leaders can probably fashion some sort of plan that would allow Bolivia to divert shipments planned for one country to the other nation when the need arises.
"We will study this between presidents to seek a certain balance in the distribution of natural gas," Morales told a news conference. "Sometimes you have to send more to Brazil or more to Argentina, taking into account the seasons, especially winter, when it's most needed."
Brazil gets about half its natural gas from Bolivia - between 27 million and 29 million cubic meters daily - while Argentine generally buys between 3 and 5 million cubic meters each day.
Bolivian Vice President Alvaro Garcia Linera said this week he expects demand from both countries to jump by as much as 7 million cubic meters daily in 2009. Bolivia's natural gas industry, suffering from tepid foreign investment following Morales' 2006 nationalization, will be hard-pressed to match the increase.
Facing energy shortages at home, both Brazil and Argentina have looked to Bolivia to meet their growing need for the fuel. Last year Argentina signed an ambitious contract drastically increasing the amount of gas it will buy from Bolivia in coming decades.
Meanwhile, Brazil's state energy company Petroleo Brasileiro SA - once frightened off its future Bolivian projects by Morales' nationalization - has publically considered once again investing in the country's valuable gas fields, South America's second largest after Venezuela.

TEXT-Dutch SBM signs $1.25 bln Brazilian deal

Further to a previous statement dated 8th of January 2008, SBM Offshore now advises that the formal agreement has been signed with Petrobras for the turnkey supply of the P-57 FPSO to be installed on Jubarte field offshore Brazil.
This contract represents a portfolio value of $1.25 billion inclusive of three years of operating services. It represents a major share in SBM's business growth as this unit is one size up from previously supplied or leased FPSOs. The facility will have the capacity to produce 180 000 barrels per day of oil with total gas compression of 71 MMscfd.
The FPSO is likely to be listed in Singapore using one of the SBM VLCC tankers from its inventory - the 'Accord'. Integration of the topsides is planned to be performed in Brazil in adequacy with new local content requirements.
The delivery of the unit in Brazil, ready for installation, is planned for end of 2010.

Brasil Investments

Banco do Brasil Investments and Portugal's Banif SGPS SA founded a private equity fund to invest 600 million real’s ($344 million) in Brazil, Valor reported today, citing executives from both companies.
The fund plans to invest in companies with earnings between 300 million reals and 800 million real’s, according Brazilian newspaper.
It's interested in companies that plan on selling shares on the stock market, Valor said, citing Marcos Rechtman of Banif's private-equity division.
The fund will buy shares of about 20 percent in each company, Valor added, citing Francisco Duda, head of the capital markets unit at Banc do Brasil Investments.

Brazil Currency Preview

Monthly inflation slowed in January for the first time in four months as food prices depreciated.
Consumer prices, as measured by the benchmark IPCA index, rose 0.54 per cent in January, lower then a 0.74 percent jump in December. The growth was less than the average forecast of 0.60 percent in a Blomberg survey of 29 economists.
The real rose 0.39 per cent to 1.7426 per dollar.
The yield on the zero-coupon, real-expressed bond due in January 2009 fell 13 basis points or 0.13 percentage point, to 11.755 percent, according to Banco Votorantim SA

Brazil's oil company is bright spot in region

For most of Latin America's state oil companies, these are hardly serene days: Although high global prices have lifted revenue, crude oil production is either in decline or moving sideways.
Brazil's oil prospecting company Petrobras has doubled its oil output over the past decade to 2.2 million barrels a day and joined the ranks of the world's major producers. Petrobras' deep-water discoveries off Brazil's coast, such as the Tupi oil field declared in November, plus invasive energy exploration around the world - from the U.S. Gulf Coast to West Africa, Turkey and Colombia - have captured investors' attention.
Analysts say the Brazilian government's decision to open the company up to extern investors, to break its monopoly on the nation's oil fields and to push the company to develop deep-water drilling technology were critical to its growth. But the company's adventuresome spirit is also paying dividends.

Brazil's real little changed.

Brazil's real was little changed after a report showed inflation slowed for the first time in four months, easing speculation the central bank will increase interest rates in the next several months.
The benchmark IPCA index of consumer prices decreased to 0.54 per cent last month from 0.74 per cent in December. The median prognosis of 29 economists asked by Bloomberg News was for a reading of 0.60 percent.
``The pace of inflation has been a concern for the past months, so the result in January is positive,'' said currency trading manager at Treviso Corretora de Cambio. ``Nobody feels very comfortable investing in a country where inflation is out of control.''
The real was little changed at 1.7487 reals per dollar at 7:49 a.m. New York time, compared with 1.7495 yesterday.
Futures contracts show traders are predictinging the Brazilian central bank will cut borrowing costs this year. The yield on the interbank deposits future rate contract due in January 2009, the most actively traded contract of its kind on Brazil's Commodities and Futures Exchange, was 11.72 percent today, compared with 11.83 percent yesterday.
The central bank kept the lending rate at 11.25 per cent on Jan. 23 for a third straight meeting.
The yield on Brazil's zero-coupon bond due in January 2009 fell 7 basis points, or 0.07 percentage point, to 11.82 percent, according to Banco Votorantim SA.

Brazil to talk defense and gold with France

Forming a military alliance between France and Brazil and reducing illegal activity over the Brazil-French Guiana border was the focus of talks between their two leaders.
Presidents Lula da Silva of Brazil and Nicolas Sarkozy of France also inaugurated the construction of a bridge linking Brazil with French Guiana.
The bridge between Brazil's Oiapoque town and Saint-Georges will be the first land border crossing for French Guiana, an overseas department of France separated from Brazil by the Oiapoque River. Upon its planned completion in 2010, it will also be the only bridge linking European territory to the Americas.
Lula to discuss a strategic military alliance with France. Brazil wants France to sell it jet fighters and helicopters and, possibly, a $600 million Scorpene-class submarine.
Brazilian defense minister Nelson Jobim was in Paris last month for negotiations with Sarkozy and French defense industry executives.
The two leaders also discussed how to prevent illegal gold mining and trafficking in the border region. Brazilian illegal miners, often heavily armed, smuggle gold back over the border to Brazil and their mining operations occasion environmental damage in French Guiana.
Biofuels, civilian nuclear cooperation as well as global trade talks were also on the agenda, Lula spokesman Marcelo Baumbach said.

Brazil to support penalties to pare Amazon devastation

Brazil's government plans to reduce financing for illegal loggers and farmers and support penalties to pare deforestation of the Amazon, Environment Minister Marina Silva told reporters in Brasilia.
Brazilian President Lula da Silva and other officials of state-controlled banks discussed ways to restrain financing to individuals and companies damaging the Amazon, the minister said in Brasilia. Destruction in the Brazilian portion of the Amazon basin accelerated in the last five months of 2007, the ministry said last month.
``There's no intent, at this point, to give amnesty to deforestation offenders or to make the reserve limits more flexible,'' Silva said at the ministry's headquarters in Brasilia. ``What is needed is better realization, not a removal in the current policies to protect the Amazon.''
Preliminary facts show destruction between August and December may have reached as many as 7,000 square kilometers, or the equivalent of 60 percent of the deforestation in the 12 months through July 2007, partly because of increased logging and cattle-raising.
Landowners in the Amazon will have to show that at least half their property remains virgin and that there has been no destruction to the forest on their territory in the past 12 years, Deputy Environment Minister Joao Paulo Capobianco said today. Those who fail to prove that will be forced to replant, he said.