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.