Semana decisiva para acordo de tarifas. EUA esperam dias “atarefados”

[Visitante]

SAO PAULO (AFX) - Sonae SGPS chairman Belmiro Mendes de Azevedo said
prospects for Brazil are grim, adding he does not expect any
improvement in his company's performance in the country due to the
adverse economic environment.
Azevedo told financial daily Valor Economico in Davos: "We are
in a highly unfavourable situation; besides the country risk, we can't
achieve any return on our investments."
Sonae's return on its investments in Brazil is "highly negative,
" he said.
Bank analysts and investors do not allow Sonae Imobiliaria to
put more than 20 pct of its investments in Brazil due to the country
risk, he noted.
New direct foreign investments in Brazil are limited and they
could decrease even further, he said.
"No business activity can be sustainable without the creation of
wealth. And conditions are not met in Brazil for this to happen."
On the decision by Brazil's central bank to leave rates
unchanged at its monthly meeting on Wednesday night, Azevedo said: "
This makes things even more difficult. I can understand that the
central bank is willing to control inflation, but this policy cannot
last for much longer because this way there will be no more investments
."
Azevedo plans to give to President Luiz Inacio Lula da Siva
at a meeting next week a letter in which he expresses his views.
"We understand the difficulties that Lula's government is faced
with, but this understanding has its limits... The government has one
foot on the accelerator and the other one on the brake. Now we want to
know where it will put its foot."
Azevedo declined to say
whether he was considering disposing of some assets in Brazil.
Valor said that there is speculation that Sonae could have put
up for sale its supermarket business.
Sonae has invested 1.5 bln eur in Brazil since 1995, according
to the report. Its local operations represent between 20-30 pct of the
company's total sales, depending on the sector.
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