Germans Consider Stepping Up Purchase of Brazil’s High-Tech Goods

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    Lufthansa powered by Brazil's Embraer German minister of Economy, Michael Gloss, suggested that Brazil might increase its sales of high tech products and improve the quality of its export basket to Germany. Gloss talked during a press conference prior to the 2007 Brazil-Germany Economic Meeting being held, in the city of Blumenau, in the southern Brazilian state of Santa Catarina.

    "To me, Brazil is capable of exporting high technology as well. Embraer's aircraft, for instance, are renowned worldwide. The country is also capable of exporting cutting-edge products in other fields, such as computing, telecommunications, transport," Gloss told Brazilian and German journalists.

    On the other hand, the German minister stated that he also expects for sales of tool machines and other machinery and equipment from Germany to continue growing. "Furthermore, we expect to sell biofuel production equipment and more vehicles," he said.

    Despite the optimism expressed regarding Brazil, Gloss claimed that trade relations between Germany and Latin America are much less dynamic than relations with Asian and Eastern European countries. "It is something that we intend to change. We want to encourage bilateral trade with Brazil and its neighboring countries," he said.

    To Gloss, one of the paths that may lead to such increase is investment, in Brazil and in Latin America, by medium-sized German companies. "There has been an increase in these investments during the last decade, and that is a good sign," he stated.

    One of the states that might be invested in, according to the German minister, is Santa Catarina. "Judging from what I have seen here, I am certain that there are good investment opportunities, especially in the tourist sector," he claimed.

    Michael Gloss also said Germany has much to contribute to Brazil in clean energy production. "We are global leaders in wind energy and solar energy," he said. Conversely, Gloss stated that Germany might learn from Brazil about cleaner fuels, such as biodiesel and alcohol.

    CNI

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    • Show Comments (17)

    • jony

      to Joao da Silava
      Sorry, the comment above should have said “written by Jony to Joao da Silva”.

    • to joao da silva

      Jony
      Joao I hope you realize that the one that wrote to you is NOT ch.c. The writing style and English fluidity is completely different from the original asshole. Ch.c writes with a very heavy accent, as you well know and this guy is obviously an English speaking person. Now the reason there was no posting for the past 10 days or so is because the NEW asshole Ch.c had to go back and read and get acquainted with the mind setting and the style of the original asshole ch.c.
      Joao I am very much familiar with Yaploka Catamaran as well as the competition Sun Reef Cats, I have personal friends in both CompaniesÀ¢€¦ Trust me on this one!!!
      a) The backlog orders for both companies are about 5 to 8 years. If you want one of those Cats commissioned for you; You simply have to wait this long. Ch.c. made it sound that he just went down to France to buy Yaploka Cat just out of the shelf!!! Laugh laughÀ¢€¦
      b) IsnÀ¢€™t if ironic that he decided to go to France for his vacation and get his dream Catamaran EXACTLY at the same time when France is having the worst union crisis in its history with traffic paralyzed for 150 kilometers all over the country!!! Laugh laugh laughÀ¢€¦ Pinocchio doesnÀ¢€™t realize that this news is all over the world??? No boddy in the right mind would go to France for vacation at this time??? Very simple…the only answer is somebody that is not telling you the thruth!

    • fernando

      Sorry Joao, but no country in the world is more globalized than my country
      so get your country put it up in your ass and piss off !!!!!!!!!!!

    • João da Silva

      Ch.c
      [quote]As to your question of what did I do during the last 10 days or so, I answered just for you, today, in the forum of the Oscar Freire street article !
      Yessssss….Joao, I made to myself, my 2008 (not 2007) Christmas gift, far better than what you find at Oscar Freire Street. [/quote]

      Ch.c, I just got to read that thread. It was the other JoÀƒ£o (qualquer). He also makes sense. Of course, he has to,because he is from Southern Brasil 😉

    • ch.c.

      continued for Joao….
      …..Thus recently we reduced again our exposure by withdrawings some of the additional profits, without even reducing our exposure in your Goverment Bonds.
      Joao, dont you recall how many times I wrote how idiots your government is. Yessss….today even after 17 or so interests rate cut, Brazil has still the world highest rate….after inflation ? Yesssss the spread is still 7 % ! Unheard of even in the second worst managed country in the world (Turkey).
      And that spread was at 12 % in August 2005, while it was only 13,5 % in 2003 when you were in far worse shape !!!!!
      And you can count on me that as long as your inflation does not go up again, I will keep these bonds, because that 7 % spread can ONLY go down over time. And your currency continue to go up, that will make you struggle more for your exports.
      My selling everything trigger point is quite simple :
      – Bonds will have already somewhat anticipated, but it will be at the first interest rate hike !
      I think you have a good chance of having a deflationary economy, that your economy will not grow as much as you anticipate, and to try to stimulate it, you will continue to reduce your rates to more normal spread similar to other developing nations. At around 2 to 3 % above your inflation rate….at best !!!!!! Some of your cousins in the Mercosur have interests below their .inflation rate…but that weakens their currency : Venezuela and Argentina !!!!!!!!

      Enjoy as much as I do ! Life is great ! Just stop trusting what you read in the Brazilian medias, especially the self compliments of Bin Lula and his 4000 thieves. Since 2005 ethanol was supposed to be competitive with oil. Correct ? Welll, oil prices nearly doubled and ethanol prices went down…sharply ! And still not competitive, wether Brazilians like it or not.!!!!
      Funny how Brazilians trust the lies of the ones they elected and—-RE-elected !!!!!!

      Going back to my financials investments, every year or two, you have what I call a situation of happenings, convergents happenings of excesses up or down, where you can leverage somewhat and make more than one profit.
      And correctly or not, today we have a new one that I waited for the last 6 months.
      A collapse in the US$ and a collapse in the US financial firms. A great investment opportunity in my view.
      I dont know what you know about the USA cycles but here is one that works consistently : the 4 YEAR cycle !
      Just look at long term charts of the S&P or the DJI :
      1966 – 1970 -1974 – 1978 – 1982 – 1986 – 1990 – 1994 – 1998 – 2002 – 2006
      The only exception was 1986 followed by the 1987 crash, and 2006 followed by the 2007 financial crash.
      It also happens that all these bottoms were due to U.S.A financial crisis, and all ended between the time window of September and November !
      Therefore in anticipation of that happening, I again raised money 3 months ago to form a new pool of money specifically for this convergent discrepancies of excesses, and invested it TODAY November 20, with a 50 % leverage (only).
      Yesssss I invested 150 % of the capital and spreaded it only in many US financials companies really hit in their market prices (mortgages, banks, brokers and also included some home builders) and borrowed the 50 % in Swiss Francs, not in the US$ because I think that the decline in the US$ is nearly over ! The large diversification, over 40 stocks, is due mainly because not all companies may survive.
      Time will tell if right or wrong I will be !!!!!
      😀 😉 😉

    • ch.c.

      To Yowser and Joao !!!!!
      1) Yowser is dead right, technology such as what ? Ethanol ? A product used by the first T-Ford cars around 100 years ago ? Or about the brazilian fairy tale that it is Brazilians engineers who invented the Flex Fuel Management ?
      Sorry for you Brazilians, but it is engineers from a German company, IN GERMANY, who developed that stuff.
      The company name is BOSCH, and YOUR dept of Science and Technology delivered the award to BOSCH, not to the UNKNOWN and undisclosed names of your not so famous Brazilians engineers !

      to Joao :
      1) “If I classify ALL Brasilians to be stupid” you will disagree ! Then what about 3 % smart and honest, 5 % smart because corrupted to the roots…while you applaude them so much that you elect and re-elect the same ones ???????
      2) YOU Joao wrote on November 11 : WE……..etc etc. (on the subject of globalization)
      My question is who do you mean by WE ?.
      WE Brazilians or WE the developed countries ?
      – As to your question of what did I do during the last 10 days or so, I answered just for you, today, in the forum of the Oscar Freire street article !
      Yessssss….Joao, I made to myself, my 2008 (not 2007) Christmas gift, far better than what you find at Oscar Freire Street.
      I just went to a small French city to see the construction development of my gift…to me, and chose some of the options, since everything is custom built !!! What did I buy ? Something Forrester the Commodore is probably dreaming of.
      You may see a “sister” at :
      http://www.yapluka.fr

      Yesssss thank you Brazil, I bought that with profits made from YOUR OWN money.
      Nooooo…..not by buying the Bovespa stocks, but really with YOUR MONEY.
      Something I did not tell you Joao, is that my farm in Brazil and all the corresponding investments was ALSO paid by You….the Brazilian society !
      HOW ?
      More simple there is not, if you are clever in finance.
      I was “stupid not to buy” Brazilians Government Bonds in Reals in 2003.
      To my defense, at that time most smart people said you were on the verge of defaulting. And on top of that you had a withholding tax on your LOCAL Government Bonds !
      Welllllllllllll……by the end of 2004 and during 2005 you increased again your interest rates to 19,50 or so.
      You also issued your FIRST long term Brazilians Government Bonds…in your currency, available specifically for foreigners, meaning with NO withholding taxes in the coupon.
      Wellll…welll, I created a small pool of money with friends (US$ 15 million), converted it to Your Currency, bought Brazilians Bonds, and leverage even the amount by 3 times.
      But instead of borrowing the debts at the crazy Brazilian rates, I borrowed in Swiss Francs at 4 %.
      Results?
      1) the cash return was 3 times 16 % on my invested capital
      2) Brazilian Bonds started to explode, making also a capital gain multiplied by 3
      3) My interests debt was 2 times 4 % (there is no interests to be paid on the initial capital)
      4) The Brazilian currency gained in value against the Swiss Franc !!!!!!

      Is that not what is called a near perfect trade ? Therefore in view of your farm prices collapsing in 2006 (5o % from 2004 high),
      we took some profits and bought the land and all the corresponding investments necessary.
      Since then your Interests rate continued to decline and your currency to appreciate, making even more profits from all parts opf our invetsments as said above, plus the appreciation of the farm price since then (not included in our Net Asset Value…yet…to be on the conservative side)

    • João da Silva

      Ch.C
      Ah, one more thing. If you classify ALLthe Brasilians to be stupid, I will disagree,as both of us know that it is not true.Lets say that the smart ones are not being elbowed out in all walks of the society, thanks to you know whom!

    • João da Silva

      Ch.C
      [quote]And specifically to Joao !!!![/quote]

      Ch.C, you really put me against the wall, by asking relevant questions for which I really do not have full answers.

      1) I do not remember which thread I posted about Brazil believing in “Globalized economy”. But let me tell you that a minority of the Brazilians do believe in this, because for too long the country has been isolated geographically and economically. Starting from the early 90’s, it has opened up the door for imports, which I think is very good. I would rather see technology being imported to modernize our Industries and be competitive domestically as well as in the external market.I do not know if you are aware that from 1994 to almost 2000, we could even see food items from Europe and U.S., being imported and used to cost less at the supermarket than the domestically processed ones.

      2) The Brazilian businesses did not know what was a “value added product” until the early 80’s and some were quick to learn and others not.I still remember that in that decade, nobody knew that it was more profitable to process the food,pack it and sell it to the ME (label it Made in Brazil), instead of selling the food items in bulk. The same applied to many other products, such as leather goods, garments, etc; At that time, it was easier to do business overseas, in spite of the Brazilians being novices in exports.

      3) This trend continued until the end of the first mandate of FHC and part of his second one. However, after that the Brazilian government discovered that it needed to generate foreign reserve and it was easier to do so by selling commodities, as you have stressed several times.

      4) Those manufacturers who were export oriented (link leather goods,wood products,etc;-) simply can not cope up with the increased labor cost, overvalued currency , heavy taxes, etc; I have commented about it before and you agreed with me. My question: How the hell do you expect to be in a foreign market with your “Value Added Product” and Brand name for decades or centuries,if you the market is not sure that it is going to receive your products on a continuous basis?. So the easier option is to sell commodities to processors and packers in Switzerland , Germany, India,China,U.S.A ,etc,for peanuts,let them use their brand names to market the finished goods and forget about “adding value” to the raw material produced here.

      5) I think it is a typical case study for an MBA program in Brasil, but remember we do not have MBA degrees recognized by MEC and we tend to confuse Business Administration with Public Administration. Please do believe me when I make this statement,because a couple of years ago, I did participate in a conference in a “Business School” and it was hard to convince both the faculty members and the students (most of them were left wingers) about “Value Added Products” in an International market. They were more excited about selling soy beans to China (and brazen yourself for this news-Rice to the ME)!

      I can go on writing,but I just don’t want to write something both of us know well. In a nutshell, if the government thinks that it can go on selling commodities and forget about other things, we are going to be in shitsville in the long haul.

      Anything else you want to know? 🙁

    • ch.c.

      And specifically to Joao !!!!
      Your recent comments on Nov 11 : “As you might have discovered already, we do believe in globalized economy.”

      Who are you thinking of with your “WE” ????? Brazilians ?
      Not so, not so.
      1) You believe in globalized economy for Your exports, but not for your imports. Strange conception of a globalized economy… the one way trade conception and ideology.
      .
      Lets face it :
      – You are restricting some Chinese textile “invasion”. Correct ? Strange that you consider an invasion when China textile exports to Brazil amounts to 1 % of your textile industry !!!!!! Laugh….laugh…laugh !
      – When in the other hand, the EU restricts some China textile export to the EU, because China Already accounts for 60 % of the EU textile industry.
      THE DIFFERENCE IN THE INTERPRETATION OF “INVASION” IS 1 % AGAINST 60 % !!!!!

      2) In my country we restrict some agricultural imports, but agriculture represents ONLY 3 % of our GDP ! But for the other 97 %
      we have NOOOOOOOO imports barriers at all, not even on Chinese watches, American movies ot just name it, as long they dont put a Swiss made or Swiss Brand name or sign !!!!.
      On the other hand Brazil has much much trade restrictions on everything but agriculture, and this despite your agriculture accounts for 30 % of your GDP !!!! Meaning 70 % for the non agriculture…if I am not wrong !

      3) Brazil being so globalized (at least in their mind), their total exports equals to around US$ 150 billion, imports around US$ 110 billion !
      For a population of 190 millions ! correct or not ?
      – Well well….on both exports AND imports we have more than the whole of Brazil, despite our population is 7,5 millions ONÀƒ¶Y.

      On a per capita, this make a ratio of more than 20 to 1…..IN OUR FAVOR !!!!!!

      Who then is the most globalized ? Brazil or my country ?

      Ohhhhhh…you may further triple your exports and there will still be a ratio of 20 to 3…..IN OUR FAVOR…on a per capita bassis !!!!

      Finally I have been nice to you Joao, because in ALL my above stats, I have not included that my country creates 2 millions DIRECT jobs IN FOREIGN COUNTRIES through our multinationals, and I have not counted these figures in my stats, simply because they belong to every country (Brazil included) our firms have set up shops.

      Sorry Joao, but no country in the world is more globalized than my country, obviously when adjusted for the population size !!!!!

      4) Putting the Swiss Made label or a Swiss Brand name on goods, command a price premium as you may know or not. If you believe only ONE second that Brazilians manufactured goods are as good or better than ours, why dont you put the label “Brazilian Made” “Made in Brazil” just to compete with our products and try to sell these products at the same price or nearly at the same price as we do ??????
      Lets face it you are not even able to compete with Chinese watches that rust because they imported Brazilian iron ore !
      And why both the Chinese and Brazilians wealthy and middle to high income people prefer a Swiss watch instead of a Chinese watch ?
      I just remind you that Swiss watches are not necessarily costing thousands of US$. We produce many in the hundreds of US$ and many at below US$ 100.- such as the Swatch !! BUT CERTAINLY NONE AT US$ 10.- to 25.-

    • João da Silva

      [quote]Hi-tech in Brazil??? Like what?????[/quote]

      Like electronic voting machines.

    • João da Silva

      hb
      [quote]Actually, Randon is one of the ten biggest truck trailer/semi-trailer manufacturers in the world.[/quote]

      No doubt about it and I respect the company. But, hb, we are talking about Hight-Tech goods. As a matter of fact, Randon can easily bring in lots of foreign currency, building their truck trailers overseas.That would create job opportunities for the Brazilian engineers and technicians overseas. When Votarantim has bought plants in N.America, Randon can do it elsewhere,using a different strategy.

    • Yowser

      Hi-tech in Brazil???
      Hi-tech in Brazil??? Like what?????

    • João da Silva

      Ch.c
      [quote]To Joao !!!![/quote]

      Where were you during the past couple of weeks? Taking your annual “Ethanol Break”? 😉

      BTW, my first comment on this thread is my reply to your comments!!

      But on a sunnier side, Micheal Gloss and his entourage did contribute to the State, by bringing in “Business Tourism” 😉

    • hb

      Actually, Randon is one of the ten biggest truck trailer/semi-trailer manufacturers in the world.

    • ch.c.

      Oooops…. correcting….
      ……Continue to export YOUR iron ore, grains, coffee….etc etc

    • ch.c.

      To Joao !!!!
      What have I been telling you for months and months ?
      “Gloss claimed that trade relations between Germany and Latin America are much less dynamic than relations with Asian and Eastern European countries.”

      And sorry but in my view the statement “To me, Brazil is capable of exporting high technology as well. Embraer’s aircraft, for instance, are renowned worldwide. The country is also capable of exporting cutting-edge products in other fields, such as computing, telecommunications, transport,” is ONLY DIPLOMATICS TALKS !!!!!
      Because in reality what computing, telecommunications and transports Brazil can export, knowing that nearly 100 % are imported by Brazil from more developed countries ?
      Is there a Brazilian car/truck/locomotives company ?
      You can basically build cargos wagons not even wagons for the public !!!!!!
      Same for computing ! Please name a brazilian company that could export advanced hardwares !
      Same for telecommunications ! Except for mobile phones ASSEMBLY plants made with FOREIGN parts and FOREIGN technology, what telecommunications could you export ????

      Lets face it, you are not even able or willing to develop your own paved roadways structures !!!!!
      90 % are unpaved, 10 % paved. And of the 10 % paved, half of them have millions of potholes, some as large as swimming pools.
      But you expect your companies to participate in the reconstruction of Lebanon and the development of the Gulf States. Correct ?

      Ohhh but you failed to disclose how good you have been at your SP metro : you created a hole as big as a crater from a large meteorite….AS BIG AS 100 SWIMMING POOLS ! Why ? Simply re-read the resignation letter from the former executive in charge of the project who wrote something like…….” In view of the materials provided and the budget allocated to the construction site the metro……..NO ONE SHOULD BE SURPRISED, IT WAS AN “ACCIDENT” WAITING TO HAPPEN”

      Finally, a stupid question, why should the developed countries buy telecommunication, transports, computing goods from Brazil or whatever Latin America country, using our own technology, when the same goods are produced in a better quality and cheaper price from Asian countries ????
      Contrary to what you believe, Your competition is not the developed nations, but the other developing nations.
      And our technology will always be tranferreed first to the most competitive developing country…..not the worst !!!!

      Continue to export our iron ore, grains, coffee, orange juice or whatever you can compete with, but certainly not in technology !

    • João da Silva

      [quote]Despite the optimism expressed regarding Brazil, Gloss claimed that trade relations between Germany and Latin America are much less dynamic than relations with Asian and Eastern European countries. “It is something that we intend to change. We want to encourage bilateral trade with Brazil and its neighboring countries,” he said.[/quote]

      Mike Gloss did not “claim”, but was telling the fact.The Germans don’t have much time to listen to the crap from our politicos.The truth hurts indeed.

      BTW, I have been accompanying this conference in Blumenau , where our beloved Prez also participated.

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