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Malaysian Reserve
09-07-2025
- Business
- Malaysian Reserve
Brazil's Lula hosts Modi in bid to turn India into a major trade partner
BRAZILIAN President Luiz Inacio Lula da Silva wants to deepen trade ties with India, the world's most populous nation. The question as he hosts Indian Prime Minister Narendra Modi in Brasilia on Tuesday is how to go about it. Despite both nations being members of the BRICS grouping of emerging-market economies and natural allies in the fields of poverty reduction and biofuel production, India ranks well down the list of Brazil's trading partners. Total commerce is dwarfed by that with China, the US, neighboring Argentina and faraway Germany. It's a mismatch that the president known as Lula acknowledged last week, when he joked that he'd only just learned that Modi, a devout Hindu, didn't eat meat. Brazil is the world's No. 1 beef exporter. 'Our trade relationship is just $12 billion, it's nothing,' Lula said at an event. 'So please, arrange a box of cheese. I want it on the table so he never complains about Brazilian food and, who knows, maybe he'll start buying Brazilian cheese.' With Donald Trump's tariffs upending global commerce, Lula has spent months attempting to bolster trade relations with markets beyond Brazil's traditional partners. Now he's desperate to finally crack the code on a relationship that has never fully taken off, thanks to a litany of incompatibilities and the fact that Brazil and India often find themselves competing to sell the same goods. Trade has accelerated in recent years, doubling since they formed the BRICS bloc with China, Russia and South Africa more than a decade ago. It grew by 24% over the first five months of 2025 from the same period a year ago, according to Brazil's government. But India and the 1.4 billion people who call it home still remain a largely-unrealized market for Brazil, an agricultural behemoth that has seen trade with China more than quadruple since BRICS launched in 2009, official data shows. 'When I was in India 20 years ago, our goal was to reach $15 billion,' Lula said at a press conference alongside Modi following their meeting. 'We are determined to accelerate that target by tripling this amount in the short term.' Both leaders also expressed desires to expand a preferential trade agreement India has with Mercosur — the South American customs union formed by Brazil, Argentina, Paraguay and Uruguay — in order to reduce trade barriers between them. Brazil is looking to diversify exports to India beyond sugar and crude oil that dominate current sales. Earlier this year, Brazil's Embraer SA — the world's third-largest planemaker — established a subsidiary in New Delhi in a bid to broaden its presence in India's defense and aviation sectors. Latin America's largest economy has spotted an opportunity in sesame, no matter that India ranks as one of the world's leading producers of the seed. Sesame exports have grown significantly since the Indian market opened to Brazil in 2020, in part because the South Asian nation imports it during the offseason to meet domestic demand and fulfill export commitments. It is also eyeing expanded ethanol exports, now that India is increasing the amount of the product it blends into gasoline. 'That opens up an interesting opportunity for Brazil in the biofuels agenda,' said Gustavo Ribeiro, head of market intelligence at the Brazilian Trade and Investment Promotion Agency, or ApexBrasil. 'India is a major sugar producer but depending on the year and the size of the harvest, it sometimes imports sugar or even ethanol when there's a shortage. So Brazil becomes a strong alternative supplier of either sugar or ethanol.' Brazil has competition on that front: Modi's government has spent months pushing for a trade deal with the Trump administration to avoid US tariffs, with Washington also seeking access to India's massive market for its own ethanol. Lula is passing the rotating BRICS presidency off to Modi after the Rio de Janeiro leaders summit that concluded Monday. The pair have used the bloc to bolster their ambitions of becoming permanent members of the United Nations Security Council, a goal they reaffirmed in Brazil and that is likely to be a priority for India in 2026. Trump has threatened to impose additional tariffs on BRICS members. Lula again pushed back, saying Tuesday that the group doesn't accept complaints about its meeting or interference in its affairs. Lula and Modi signed six agreements during the visit, including deals on renewable energy and counterterrorism. The meeting was the first of two state visits Lula will hold in the wake of the BRICS leaders summit, with Indonesia President Prabowo Subianto coming to Brasilia on Wednesday. Indonesia is central to Lula's efforts to expand trade with members of the Association of Southeast Asian Nations, the 10-country bloc home to more than 600 million people. Brazil's commerce with the region has boomed to $37 billion from about $3 billion over the last two decades, according to government data. Lula's government is aiming to open Indonesia — which registered about $6 billion in trade with Brazil last year — to poultry and expand beef exports, while also deepening bioenergy and defense cooperation, according to his administration. The Brazilian leader is expected to travel to Malaysia in October for an Asean summit. For Prabowo, the visit is more than a commercial stop. Since taking office last October, he has adopted a more hands-on and high-profile foreign policy, focused on securing bilateral deals that deliver both economic and strategic gains. Indonesia recently joined BRICS, and the trip to Brazil is part of a push to position Southeast Asia's largest economy as a more active middle power with deeper ties across the Global South. –BLOOMBERG
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Business Standard
08-07-2025
- Business
- Business Standard
India and Brazil set to sign key agreements to boost bilateral trade
India and Brazil, both wary of the tariffs that US President Donald Trump has threatened to impose and looking beyond America for markets for their respective produce, are set to sign almost half a dozen agreements aimed at increasing their bilateral trade during Prime Minister Narendra Modi's meeting with Brazilian President Luiz Inácio Lula da Silva. India's trade with Brazil is the largest compared to its trade with any other country in Latin America. However, it remains far below Brazil's trade with China, the US, Argentina, and Germany. India-Brazil bilateral trade reached $16.6 billion in 2022-23, but following the drop in oil and gas prices, it is now around $12.2 billion. India enjoys a trade surplus, exporting goods worth $6.7 billion to Brazil and importing goods worth $5.4 billion. Modi and Lula had set a bilateral trade target of $20 billion during their last meeting in November 2024. Brazil is looking to diversify its exports to India beyond sugar and crude oil, which currently dominate sales. Earlier this year, Brazil's Embraer SA, the world's third-largest aircraft manufacturer, set up a subsidiary in India. Brazil is also seeking to expand its market for agricultural and dairy products in India. At a recent event, Lula observed that he only recently discovered that Modi, a devout Hindu, didn't eat meat. Brazil is the world's top beef exporter. 'Our trade relationship is just $12 billion, it's nothing,' Lula said. 'So please, arrange a box of cheese. I want it on the table so he never complains about Brazilian food and, who knows, maybe he'll start buying Brazilian cheese.' Hours before he met the Indian PM in Brasilia for a bilateral meeting on Tuesday evening (India time), Lula joined his South African counterpart Cyril Ramaphosa in criticising Trump for his threat to impose extra tariffs on BRICS member countries. On the final day of the two-day BRICS Summit, which Brazil had hosted, Lula said the US president was 'irresponsible for threatening tariffs on social media.' He also called on world leaders to find ways to reduce international trade's reliance on the dollar. Earlier, South African President Ramaphosa was the first among the BRICS leaders to criticise Trump for his comments, where the US president had warned BRICS members of 10 percent additional tariffs for adopting policies he claimed were 'anti-American.' In their Rio de Janeiro declaration, BRICS members expressed 'serious concerns' over tariffs, condemned soaring defence spending, and denounced airstrikes on BRICS member Iran. However, the group did not mention the US by name. The grouping also tasked its finance ministers and central bank governors to continue discussions on the BRICS Cross-Border Payments Initiative and appreciated the progress made by the BRICS Payment Task Force (BPTF) in identifying possible pathways to support greater interoperability of BRICS payment systems. The effort is aimed at reducing the dominance of the US dollar in international trade. Brazil is also keen to increase its sesame exports to India, which have grown significantly since the Indian market opened to Brazil in 2020. It is also eyeing expanded ethanol exports. In Brasilia, the two countries are expected to sign deals on renewable energy, counterterrorism, cooperation in agricultural research, and agree on a framework to protect confidential information. India is looking to increase its cooperation with Brazil in oil and gas, mining and critical minerals, defence, and security. The two leaders are expected to discuss ways to strengthen and diversify bilateral trade, including through the expansion of the India-MERCOSUR Preferential Trade Agreement, as Brazil assumes the chairship of MERCOSUR from July 1, 2025.
New Straits Times
06-07-2025
- Business
- New Straits Times
Anwar holds discussions with Brazilian aerospace giant Embraer
RIO DE JANEIRO: Datuk Seri Anwar Ibrahim today held discussions with Brazilian aerospace company Embraer SA to discuss strategic investment opportunities in Malaysia. The prime minister, who met with Embraer president and chief executive Francisco Gomes Neto, emphasised the government's commitment to strengthening the aviation industry ecosystem through investor-friendly policies, local talent development, and high-impact technology partnerships. This is in line with the aspiration to make Malaysia a major aerospace hub, particularly in Asean, which has a highly-skilled workforce and an industry ecosystem which is robust and competitive. "Our discussions touched on the potential for Embraer to invest in Malaysia, including through collaborations with Malaysian airlines. "Malaysia also welcomes Embraer's participation in developing a maintenance, repair and overhaul centre, pilot training and supply chains, as well as low-carbon emission aircraft innovations, in line with the Madani Economy framework and the National Aerospace Master Plan 2030," said Anwar. He said he also appreciated Embraer's interest in strengthening cooperation with the defence sector through initiatives that can enhance the Malaysian armed forces' air mobility capabilities. The government, he said, was committed to ensuring that any form of cooperation would bring high-value jobs, the transfer of technology and inclusive economic growth for Malaysians. Anwar is in Brazil to attend the 17th BRICS Leaders Summit today and tomorrow. Malaysia's participation in the summit is as a BRICS partner nation and as Asean chair. Malaysia became a BRICS partner nation on Jan 1. Bilateral trade between Malaysia and Brazil grew by 14.6 per cent to RM20.35 billion in 2024, from RM17.43 the year before. This maintained Brazil's position as one of Malaysia's main trading partners in Latin America.
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Embraer Wins $4B Scandinavian Airlines Order to Supply 55 E195-E2 Jets
Embraer S.A. ERJ recently secured a delivery order from Scandinavian Airlines ('SAS') to supply 45 of its E195-E2 aircraft, with the option to deliver 10 more such aircraft. The first jet deliveries are anticipated to begin in late 2027, with subsequent deliveries lasting around four years. The order's worth, excluding purchase rights, is around $4 billion. The aforementioned orders should boost Embraer's future revenue stream and bolster its profitability. Why E195-E2 Jets? Embraer's E195-E2, the largest aircraft in the E-Jet E2 family, achieves double-digit lower fuel consumption compared to the current-generation E-Jets. This must have encouraged SAS to add it to its existing fleet, as the carrier company seeks to improve its connectivity throughout Scandinavia and Europe. This jet offers seating for 120-146 passengers and features a flying range of 3,000 nautical miles (5,556 km). Such remarkable features must have been boosting the demand for the E195-E2 jets, as evidenced by the latest order and the company's delivery of an E195-E2 jet to Mexicana last month. This delivery was part of a larger 2024 deal to supply 10 E195-E2 aircraft to Mexico's state-owned carrier. Opportunities Ahead for ERJ Stock Rising air passenger traffic, backed by enhanced air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is driving growth for commercial passenger jets. To this end, jet giant Airbus EADSY expects the world's passenger fleet to nearly double during the 2025-2044 period, with the demand for new commercial jets totaling 43,420 new aircraft. This demand trend should bode well for fuel-efficient jet makers like Embraer. Embraer's Commercial Aviation segment backlog at the end of the first quarter of 2025 was $10 billion, while that for executive jets amounted to $7.6 billion. Such a strong backlog not only reflects the consistent demand for ERJ's aircraft from commercial airlines, like the latest one, but also strengthens the company's revenue generation prospects. Prospects for Other Aerospace Stocks Other aerospace stocks that stand to benefit from the growing commercial aviation market are as follows: Airbus SE: It is one of the forerunners in the global commercial aircraft space. Its order backlog amounted to 8,726 commercial aircraft at the end of March 2025. Airbus has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for EADSY's 2025 sales suggests a year-over-year improvement of 12.9%. The Boeing Company BA: It has been a premier manufacturer of commercial jetliners for decades. Its Commercial Airplanes segment had a backlog of $460.4 billion as of March 31, 2025. Boeing has a long-term earnings growth rate of 18.1%. The Zacks Consensus Estimate for BA's 2025 sales suggests a year-over-year improvement of 25.6%. Textron Inc. TXT: Its Textron Aviation unit is a well-known designer of business jet brands like Cessna and Beechcraft. The segment's order backlog as of March 29, 2025 was $7.9 billion. Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT's 2025 sales calls for a year-over-year improvement of 6.6%. ERJ Stock Price Movement In the past six months, Embraer shares have risen 59.4% compared with the industry 's growth of 22.6%. ERJ's Zacks Rank Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis Report
Yahoo
29-03-2025
- Business
- Yahoo
Why Embraer SA (ERJ) Is Surging In 2025?
We recently published a list of . In this article, we are going to take a look at where Embraer SA (NYSE:ERJ) stands against other aerospace stocks that are surging in 2025. The aerospace industry is riding a wave of growth as global conflicts across the world have sparked a surge in demand. This has led to swelling backlogs and a flood of orders from every corner of the globe. Meanwhile, recent administration changes in the United States have shaken things up. European countries are ramping up their aerospace orders and are eager to secure advanced technology. Some nations have hesitated over U.S. orders amid shifting policies, but cancellations seem unlikely since trade wars have simmered down a bit. Beyond geopolitics, the industry is buzzing with other trends. The commercial aviation sector is roaring back with record passenger traffic. This has pushed airlines to modernize fleets with fuel-efficient aircraft. Moreover, AI software is making defense aircraft more potent, and the entire industry has seen a bump in growth. For this article, I screened the best-performing aerospace stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An engineer examining a detailed blueprint of an aircraft. Number of Hedge Fund Holders In Q4 2024: 27 Embraer SA (NYSE:ERJ) makes aircraft and systems across commercial aviation, defense and security services. The stock is up significantly so far in 2025 as Embraer secured its largest-ever executive jet order from Flexjet for up to 182 aircraft, including Praetor and Phenom models. This deal significantly boosted investor confidence. The order increased Embraer's backlog by 26% to $29 billion and positioned the company as a leader in the business jet market. ANA Holdings also ordered 20 E190-E2 aircraft. On top of that, Embraer announced a share buyback program for up to 1,066,667 shares. The company released optimistic projections for 2025 and expects revenues between $7 billion and $7.5 billion and free cash flow of $200 million or higher. The consensus price target of $44.5 implies 9.11% downside. ERJ stock is up 33.29% year-to-date. Overall, ERJ ranks 6th on our list of aerospace stocks that are surging in 2025. While we acknowledge the potential of ERJ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ERJ but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
