We’re covering today how the coronavirus outbreak in China has infected Brazilian industries. The 5G auction process kicks off. A surprise firing in Jair Bolsonaro’s cabinet.
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The “China Effect”: coronavirus menaces Brazilian industry
While Brazil has yet to have a confirmed coronavirus infection, the economic effects of the outbreak are already being felt. Fears of infections have led a big chunk of China’s workforce to stay at home—either by choice or government imposition, as 50 million people have been quarantined. That has affected supply chains of many Brazilian factories: electronic manufacturers are reporting problems in receiving components, while automakers and pharmaceutical groups are reportedly on “shortage watch” 24/7.
Dependence. A study by consultancy Oxford Economics places Brazil as one of the countries facing a greater risk of supply shortages due to factory stoppages in China related to the coronavirus outbreak. Of all imported inputs used by Brazilian industries, 20 percent come from the Asian giant.
Why it matters. Earlier this week, we reported terrible numbers for the Brazilian industry in 2019. And it appears that Q1 2020 is already compromised.
Forced vacations. A survey by an association of electric and...