This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
In an effort to enhance the economy, the Brazilian Government recently announced a reduction in Long-Term Interest Rate (TJLP) and Tax on Industrialized Products (IPI) until the end of 2009.
TJLP, which provides a reference for loans by the Brazilian Development Bank (BNDES) to companies, will drop from 6.5% to 6% a year. Again, IPI will be lowered for 70 items manufactured by the machinery and equipment industry, including wind energy generators, industrial freezers and industrial valves. In 2009, BNDES plans to provide R$120 billion (US$ 61 billion) to enhance economic growth and increase investment in companies.
In order to boost sales in the capital goods industry, the government has reduced the cost of financing purchase of capital goods in the country. The lines of credit to finance capital goods will now see a 5.5% lower interest rate.
Two credit guarantee funds will be established for the purchase of capital goods by medium and small companies, which will be managed by the BNDES and the Bank of Brazil. They will receive R$4 billion (US$ 2 billion) from the Federal Government and ensure up to 80% and some times up to 100% of operations.
An increase in consumer spending will benefit small-and medium-sized businesses in Brazil. Thus, many companies would stand to benefit. These include home appliances retailer Companhia Brasileira de Distribuicao (CBD - Analyst Report), aircraft manufacturer Empresa Brasileira de Aeronautica S.A. (ERJ - Analyst Report), cement maker CEMEX S.A. de C.V. (CX - Snapshot Report), iron ore producer Companhia Vale do Rio Doce (VALE - Analyst Report), steel maker Gerdau S.A. (GGB - Analyst Report), builder Gafisa (GFA - Snapshot Report) and state-owned steel producer Companhia Siderurgica Nacional (SID - Analyst Report).
Please login to Zacks.com or register to post a comment.