We’re covering today how Brexit could affect Brazilian companies. The imminent firing of the president’s Chief of Staff. And new rules for loans that present risks for borrowers.
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Brazilian companies split on Brexit
Today is the UK’s last day as a member of the European Union—entering an 11-month transition period at 11 pm GMT tonight. But while Brexit brings uncertainty to UK-EU relations—and the British union—many Brazilian companies see it as an opportunity to increase their footprint in the UK. A study by global consultancy TMF Group shows that over one-third of Brazilian firms believe Brexit will open up new business opportunities, against 27 percent who still see the split as more of a concern.
Why it matters. According to a recent HSBC report, about 80 percent of Britain’s food consumption is imported—but only 4 percent comes from South America. If Brexit truly reduces trading flows between the UK and the EU, as expected, it could create opportunities for Brazil’s highly competitive agribusiness companies.
Yes, but … As pointed out by Roberto Doring, minister-counselor of the Brazilian Embassy in London, Brazilian companies must prepare for new customs rules and different...