Brazil

Brazil's net imports of crypto assets in the nine months through September 2024 increased by 60.7% over the same period last year, already exceeding the full-year total for 2023, central bank data showed on Tuesday, Reuters reported. The surge in Brazil's crypto market, the world's tenth-largest according to blockchain analytics firm Chainalysis, was fueled by a significant increase in so-called stablecoins - which are pegged to real-world assets like the U.S. dollar.

Azul SA’s shares jumped after the Brazilian airline inked an agreement with its bondholders, allowing a crucial deal to move forward with its lessors and parts suppliers that reduces the airline’s debt and boosts its cash position, Bloomberg News reported. The deal allows for existing creditors to provide as much as $500 million in new senior secured debt, with $150 million to be provided this week and $250 million by the end of the year, according to a regulatory filing Monday. Another $100 million could be unlocked at a later date, Azul said.

Brazil's federal government on Friday reached a multibillion-dollar settlement with the mining companies responsible for a 2015 dam collapse that the government said was the country's worst-ever environmental disaster, the Associated Press reported. Under the agreement, Samarco — a joint venture of Brazilian mining giant Vale and Anglo-Australian firm BHP — will pay 132 billion reais ($23 billion) over 20 years.

Inflation in Brazil accelerated in the month to mid-October, as higher electricity costs pushed consumer prices up in Latin America's largest economy, Reuters reported. Prices as measured by the IPCA-15 index rose 0.54% in the month to mid-October, up from 0.13% in the previous month, government statistics agency IBGE said on Thursday. In the 12 months to mid-October, inflation stood at 4.47%, up from the 4.12% seen the month before and above the 4.43% forecast by economists. The main impact on inflation in the month to mid-October came from residential electricity prices, which rose 5.29%.

Brazilian airline Azul is in talks with multiple parties to raise about $400 million in fresh capital via debt financing and an agreement may come as soon as this week, three sources close to the discussions told Reuters. Azul dominates Brazil's airline industry along with LATAM and Gol. It managed to avoid chapter 11 even as a number of Latin American carriers filed for bankruptcy after the COVID-19 pandemic, including its two main rivals.

Azul SA’s efforts to raise $400 million in fresh debt have hit a snag, with the troubled Brazilian airline rushing to raise the cash it needs to meet a key condition of its deal with aircraft lessors, Bloomberg News reported. Jefferies Financial Group had been reaching out to potential investors to help Azul raise cash through the sale of new debt that can be converted to equity, the people said, asking not to be named discussing private details. But the bank has so far come up short of the full amount.

Brazil's central bank chief Roberto Campos Neto on Monday highlighted a "huge" de-anchoring of inflation expectations in the country, adding that it is "very important" to bring inflation back to the 3% target, and policymakers are committed to doing so, Reuters reported. Speaking at an event hosted by the 20-20 Investment Association, Campos Neto said tight labor market data indicates the need to closely monitor services inflation. He also reiterated that policymakers chose not to provide monetary guidance to allow time to assess the evolving scenario.

Light has filed for bankruptcy protection in the U.S., a step by the Brazilian electric utility company to complete a restructuring deal that creditors approved in May in its home country, WSJ Pro Bankruptcy reported. Light on Tuesday filed for chapter 15 in the U.S. Bankruptcy Court in Houston. Light, which provides energy for most of Rio de Janeiro, began a reorganization in Brazil in 2023, as well as in England in July. The company has assets of $582.1 million and carries more than $2.1 billion in debt, including two issuances of U.S. notes totaling $600 million.

Azul SA is rushing to raise cash as part of a deal it reached last week with its aircraft lessors, a key step in the Brazilian carrier’s attempt to again rework its debt, Bloomberg News reported. The company was able to strike an agreement with lessors and parts suppliers that reduces its debt by 3 billion reais ($540 million) in exchange for 100 million new preferred shares. The announcement sent shares rallying as much as 22%. But the boost proved short-lived.

Brazil's central bank chief Roberto Campos Neto said on Tuesday that stablecoins and asset tokenization should be regulated in the country next year, as he delivered remarks in a video recorded for market intelligence firm Uqbar, Reuters reported. Stablecoins are pegged to real-world assets, such as the U.S. dollar, and therefore fluctuate much less than other crypto assets like bitcoin.