Brazil dazzles global finance

The expression “riche comme un Argentin” was popular in Paris a century ago, when Argentina was one of the world’s 10 wealthiest countries. Today the phrase could be reworked to “rich as a Brazilian”, given last week’s share offering by Petrobras – the world’s biggest ever. At $67bn, the state-controlled oil company raised a sum roughly equivalent to the annual economic output of a reasonably sized country such as Iraq. And, as President Luiz Inácio Lula da Silva crowed (if not entirely accurately), it all took place in São Paulo.

This projection of financial might comes just a week before the presidential election. That is handy but not decisive for Dilma Rousseff, given that the former Petrobras chairwoman and Mr Lula da Silva’s anointed successor is expected to romp home anyway. Globally, though, Petrobras’ offering is more than just a big deal. It is a marker of Brazil’s growing international financial presence.

                                                                                                                    
Giant companies such as Odebrecht have long been active abroad, but mostly in Latin America. Globally, lusophone corporate imperialism is better known via the likes of Vale and JBS, the world’s largest meat producing group. Brazilian banks, such as Itaú-Unibanco, the world’s eighth biggest by market capitalisation, have followed such clients abroad. All are known dealmakers, and globally active issuers of equity and debt.

Petrobras’ offering, however, has introduced a whole new investor audience. Hitherto, most knew Brazil for its bonds – especially in Japan, where retail investors bought some $8bn of sovereign debt this year. China prefers direct investment. Either way, Brazil needs this international reach to fund a current account deficit running at about $50bn a year. Investors seem happy to stump up. During the credit crunch, Brazil was one of few emerging countries to enjoy continued net inflows.

The globalisation of Brazilian finance will be felt increasingly in international centres. New York is a traditional regional hub, but London (the same flying time from São Paulo) is gaining ground, in part thanks to its timezone which allows South-to-South trades to be executed the same working day. It is no accident that BNDES, Brazil’s development bank, with a balance sheet larger than the World Bank’s and aspirations to become Brazil’s sovereign wealth fund manager, chose London as its main foreign office.

As hedge funds threaten to decamp from London to less taxed climes, the City need not panic. The Brazilians are coming instead.

source: www.ft.com/cms

Travel advice: best credit cards abroad

Reader's question

Infuriated by the way banks charge for using credit or debit cards abroad, I got a Nationwide Zero card, which doesn’t impose a fee. But I gather that this is about to change. Are there other cards that offer the no-fee deal? Or any other methods of payment that would be more cost-effective?
David Evans

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Sophie Butler replies
You’re right that every time you use a card abroad to pay restaurant and hotel bills, or for shopping, your card provider – whether a bank or building society – will take a tidy cut by way of a charge.

These charges vary according to the bank or building society you belong to, but the typical amount is 2.75 per cent of the transaction. This means, for example, that you’d pay €11 on a hotel bill of €400. But it’s not quite that simple. Because the exchange rate changes daily, you’re unlikely to know the exact amount taken by your bank until it appears on your statement. Infuriating.

As you point out, until now Nationwide has taken a refreshingly different approach to that of its competitors, charging no fees on either credit or debit card transactions. However, you’re also correct when you say the building society’s policy is set to change. The alteration comes on November 1, when the society introduces a two per cent commission on debit-card transactions. The reasoning is that relatively few customers benefited from the no-fee policy so instead, says Nationwide’s Steve Blore, the company will be offering free multi-trip travel insurance in Europe, which it thinks will benefit more people.

But it’s not all bad news for Nationwide cardholders as its credit card continues to be charge-free – though only when it’s used within Visa’s European region.

Visit www.nationwide.co.uk for precisely which countries fall within these limits.

The Post Office, meanwhile, offers a credit card with no handling fees wherever you travel, available either in branch or online at www.postoffice.co.uk/creditcard or by calling 0800 169 2000.

So are these credit cards worth having? Well, they could be if you travel a lot and are heavily reliant on a credit card. It’s worth noting that paying for goods and services by credit card can be marginally cheaper than using a debit card, which sometimes incurs an additional “point of sale” fee of around £1 per use. But of course, to make it cost-effective you need to pay off your balance monthly, otherwise you will incur interest charges.

If you’d rather pay for items with cash, the best way of doing so is to use a debit card in a local ATM. Once again, there is a transaction fee (the exact amount depends on your bank) but you won’t be hit with the withdrawal fee of typically 2.5 per cent – or £2.50 minimum – that you’d pay for using a credit card. Note, too, that if you use a credit card to withdraw cash rather than a debit card, you probably won’t benefit from an interest-free period. The clock starts ticking as soon as you withdraw the money.

However, to avoid the withdrawal fee by using a debit card, you do have to use a certain kind of ATM. Look out for one belonging to a bank which is a member of the Global Alliance (Bank of America in the United States, BNP Paribas in France, Deutsche Bank in Germany and Spain, Absa in South Africa, Scotiabank in Canada and Mexico, and Westpac in Australia and New Zealand). However, if you withdraw cash from a non-global alliance ATM, you will be hit with a charge of up to £4.50 per transaction.

Clearly, it’s important to check the terms and conditions on your cards before you use them abroad. And be careful not to trip up on the jargon. The “foreign exchange fee”, for example, may also be called an “optional issuer fee” or “non-sterling transaction charge”. Whatever it’s called, the end result is the same – more money for banks and less.

source: www.telegraph.co.uk

SEO Copywriting Expert Monika Mundell Excited To Include Corporate Packages

Brisbane, QLD, Australia, September 25, 2010 – SEO copywriting expert Monika Mundell is no stranger to working with corporations to help them gain better search engine rankings. Her website www.monikamundell.com has long been the place to go for savvy webmasters looking for sizzling web copy.

Mrs Mundell has introduced SEO copywriting packages to help corporations in need of regular web content save money. Her sought after packages help companies (and individuals) benefit from her expertise as an experienced SEO copywriter. Great SEO copy will attract more search traffic and higher rankings in the search engines.

Mrs Mundell said. “I’m really excited about my revamped SEO copywriting packages. Many of my existing clients have already taken advantage of this offer. The feedback has been great so far.”

About Monika Mundell: Highly valued for her skills as an expert SEO copywriter, Mrs Mundell has helped hundreds of clients achieve better search engine rankings with her SEO copywriting. Visit www.monikamundell.com today to see how she can help your business rank better.

source: www.webwire.com