Sarkozy in Brazil

By Clara Cavour, Contributing Reporter
Sarkozy attends Brazil's Independence Day parade in Brasília, photo by Wilson Dias/Abr.
Sarkozy attends Brazil's Independence Day parade in Brasília, photo by Wilson Dias/Abr.
RIO DE JANEIRO – French President Nicolas Sarkozy arrived in Brazil late Sunday for a two-day state visit with President Luiz Inácio Lula da Silva. The meeting, just weeks before the G-20 summit in Pittsburgh on September 24-25, is expected to seal a multi-billion-dollar purchase of French jets and consolidate French-Brazilian ties.   On Monday 7 September, Sarkozy was Lula’s guest at the country’s Independence Day parade in Brasília, returning an honor Sarkozy gave to Lula when he attended France’s Bastille Day celebrations in July of this year. This is a symbolic act to mark the close relations being built between the two countries.   In the next few weeks, Lula is to announce the winner of a fiercely-contested tender to supply Brazil with at least 36 modern war jets (the total number of jets ordered could reach 100), which will be the lynchpin of the country’s air force for the next three decades. France’s Rafale, built by Dassault, is believed to be leading the race over the US F/A-18 Super Hornet and Sweden’s Saab-built Gripen NG.   Officials involved in the purchase said the winner would most likely be declared in late October, after an extremely detailed Brazilian evaluation of the three bids has been fully digested. That may leave some space for France to develop civilian commercial deals with Brazil, reinforcing the alliance between two countries.    However, President Lula confirmed in an interview before Sarkozy’s visit that Rafale offers an “exceptional comparative advantage” because of France’s guarantee to share all military technology with Brazil as part of the deal.   Brazil’s senate also approved last week the purchase of five French submarines – including Latin America’s first nuclear-propelled submarine – and fifty military transport helicopters, at a total value of around US$8.7 Billion. Sarkozy and Lula are to sign the final confirmation of the purchase.   Brazil’s investment in military equipment is aimed at protecting its natural resources in the Amazon, and the newly discovered oil fields which have the potential to turn the country into one of the top ten global oil producers.  But it is also a key part of Brazil’s strategy to become, in Lula’s words, “one of the great powers of the 21st century”.   Sarkozy suggested in an interview with O Globo last Sunday that the G-8 must include Brazil. “The relationship between Brazil and France is not one of supplier and client, but of partners,” he said in the interview. “We want to act together because we share the same values and the same vision regarding international goals.”  Under Sarkozy, France has also backed efforts for Brazil to obtain a permanent seat on the U.N. Security Council.

Lula Gives TV Oil Speech

By Doug Gray, Contributing Reporter 
President Lula addressed the nation on television on Sunday night, photo by Wilson Dias/ABR.
President Lula addressed the nation on television on Sunday night, photo by Wilson Dias/ABR.
RIO DE JANEIRO – One year after President Lula’s promise to use profits from the pre-salt oil deposits in Brazil’s Tupi oilfield to eradicate poverty, he has spoken of the importance of electoral support in keeping revenue in the hands of the people. The president’s proposal for the regulatory framework of the field’s vast potential profits has been passed to Congress, along with a controversial request for an answer within three months. His move has rankled with opposition parties, and Lula appeared on television on Sunday night urging Brazilians to follow Congress’ response closely, urging, “A democracy is only strengthened by the participation of society. So mobilize, talk to your friends, write to your Congressman, your Senator, so that they support what is best for Brazil.” Maintaining control of the vast resources held under the Atlantic through the state’s behemoth Petrobras has long been a source of controversy, hampering the company’s bottom line by pushing through public policy at the expense of profits. Under the proposed regulation guidelines, the company will control the division, distribution and sale of the field’s units, given first refusal of their exploitation but also far from excluding foreign companies, Petrobras will oversee their sale to the likes of BG and Chevron. “Petrobras is today the new face of Brazil,” Lula continued. “It is the eighth largest company in the world. There is no company in Europe of the same size, (but) first, the oil and gas belong to the Brazilian people. Secondly, Brazil cannot be a mere exporter of crude oil. We add value to it, exporting products such as gasoline, diesel and petrochemicals, which are worth much more.”
Illustration showing the depths of drilling required to reach the pre-salt layer, image by Petrobras.
Illustration showing the depths of drilling required to reach the pre-salt layer, image by Petrobras.
It was a typical Lula speech, composed in plain language on a subject that could very well help to further the country’s rapid economic growth over recent years. “Today Brazil has all the political, economic and technology to meet this challenge. From 2003 to 2008, our economy grew on average 4.1% per year. In the past two years, more than 5%. The country has created over seven million jobs. Unemployment fell sharply, from 11.7% in 2003 to 8% today. Interest rates are the lowest in decades. 30 million Brazilians [have passed] the poverty line. And of these, 20 million have joined the new middle class, strengthening the internal market and giving strong impetus to our economy.” As well as providing thousands of jobs in drilling, processing and distribution, the industry will generate huge profits, set to be held in a national ‘social fund’. This will then be distributed to areas in most need of the money such as healthcare and education and to help in the fight against poverty.

Men Boost Beauty Biz

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By Juliana Tafur, Contributing Reporter
Men are increasingly turning to facial cleansers, photo by Terragona.
Men are increasingly turning to facial cleansers, photo by Terragona.
RIO DE JANEIRO – Carioca women are a carefully calculated vision of perfectly-polished nails and expertly-straightened hair. Monthly waxing from head-to-toe is the norm, as are massages for releasing body toxins. There’s no doubt Brazilian women spend a good amount of time and money on their looks. And now, their male counterparts are increasingly embracing their own brand of vanity. “Brazilian men are becoming more open to using beauty products than in the past,” said Marcelo Franco, head of Nivea’s personal care department in Brazil. “Now, men look for specific products for their type of skin and beard, as well as face washes and moisturizers.” This shift is boosting business. As research by Euromonitor International indicates, male beauty products enjoyed a turnover of R$3.6 Billion last year. The market grew ten percent between 2007 and 2008 and industry analysts predict a steady growth in sales for next year. To research this emerging market further, Nivea commissioned a study from Millward Brown Brazil. Its findings revealed that Brazilian men pamper themselves a lot more than they would like to admit. Forty percent of the 600 men surveyed said they used facial or body moisturizers, nineteen percent wore sunscreen and ten percent used lip balms. Such a growing demand explains why Nivea Brazil’s website has a tool called the “configurator”, which determines a man’s individual needs via a series of questions. Factors such as age, skin type and facial sensitivity are all considered in deciding which products best match the selected criteria. With effects resembling those in video games, machinery sounds and blue and gray motion graphics, there’s no doubt the gadget has been designed with men in mind.
Brazil's beauty market is a lucrative business, photo by Cringuette.
Brazil's beauty market is a lucrative business, photo by Cringuette.
The creation of this online tool is no experiment. Research carried out by Nivea shows that although men are just as demanding as women when it comes to buying personal care products, they take twenty percent less time when choosing them. The “configurator” takes into account that all men need to be in and out of the store in a matter of minutes. This increasing demand in men’s cosmetics comes at a good time. The ABIHPEC (Brazilian Toiletry, Perfumery and Cosmetic Association) estimates a growth of eighteen percent in cosmetic sales from January to June 2010. If confirmed, the industry revenue would total R$24 Billion for 2009. This progression follows ongoing positive trends in the industry, displaying a growth of 270 percent between 1996 and 2008. This provides a sharp contrast with the 46 percent growth in Brazilian industry as a whole, and means the beauty industry is growing about six times more quickly than the country’s GDP. Brazil has an 8.6 percent share in the global beauty market, coming in third after the United States and Japan. The country is also gaining momentum in foreign trade, with a twenty percent increase in Brazilian beauty exports to 140 countries worldwide. “Achieving such a growth rate is especially meaningful in a year like 2008, when important markets like the United States and the United Kingdom experienced a substantial slowdown resulting from the global financial crisis,” said ABIHPEC president João Carlos Basilio.

Granado Pharmácias

By Lindsay Spratt, Sub Editor
Granado products, photo by www.estadao.com.br.
Granado products, photo by www.estadao.com.br.
RIO DE JANEIRO – It may seem an unlikely success story, but antiseptic talcum powder launched 138 years ago deserves its place among such iconic Brazilian products such as rubber sandals and dental floss bikinis. The brand is Granado, and it is a household name in Brazil famed for its traditional, brightly-packaged cosmetics. Gramado Pharmácias were established in 1870 in Rio by José Antônio Coxito Granado, who was Portuguese. He was only fourteen years old when he arrived in Rio in 1860 and began working in a pharmacy in what is now Buenos Aires Street, in the Centro district. Ten years later he knew enough about the business to open his own, in what is now Primeiro de Março Street in Centro, number fourteen. The location proved to be incredibly lucrative for Granado Pharmácias, in the bustling heart of imperial Rio de Janeiro, amidst government buildings, shops, restaurants and tea-houses. José soon roped in his brother João to help grow the business, and the pharmacy expanded into the neighboring shops on both sides of the original storefront. The capital’s population were used to products imported from Europe, and were delighted by the quality and ‘toilette’ style of Granado. In 1880, the pharmacy assumed the title of ‘Imperial Drogaria e Pharmácia de Granado e Companhia’ (Imperial Drugstore and Pharmacy of Granado and Company) and began printing the imperial coat of arms on the labels. José Granado became a personal friend of Emperor Pedro the Second and the pharmacy soon evolved into a meeting point for diplomats, writers, bankers and socialites. Among the regular clients were judge Rui Barbosa and political activist José do Patrocino. In the beginning of the Twentieth Century, Granado began to open other pharmacies in Rio, including one in what is modern-day Tijuca. The company then opened franchises in Salvador da Bahía, Belo Horizonte, Porto Alegre and São Paulo and also sent representatives to Chile, Argentina, Venezuela and Africa.
Granado antiseptic talcum powder, photo by www.drogariaminas.com.br.
Granado antiseptic talcum powder, photo by www.drogariaminas.com.br.
The famous talcum powder was invented in 1903. The original packaging has been maintained until the present day, and is available in pharmacies and supermarkets all over Brazil. The design is composed of golden art nouveau embellishments and typeface and is present in many of Granado’s other products, including modern additions such as the recently-lauched fuschia ‘Pink’ line including pumice foot scrub and cuticle cream. José Granado died in 1935 and his brother João took over the business. The company remained in the family’s hands until 1993, when it was bought by Englishman Christopher Freeman.  In the 90s Granado became the pioneer in producing glycerine soaps harnessing the properties of Brazilian herbs, flowers and fruits and anticipating the recent trend for organic products.  The result was an increase in turnover from R$10 Million in 1994 to R$100 Million in 2004.  Granado’s line today stands at over three hundred products, including traditional items such as talcum powders, soaps and syrups and more modern additions such as products for women, babies and even pet grooming. The packaging is instantly recognizable for its use of bright colors, retro typeface and Brazilian ingredients such as açaí (an Amazon berry) and castanha do Brasil (Brazil nut). In 2004, Freeman took over the soap brand Phebo, and with this divided his products into those related to health under Granado and cosmetics under Phebo. With an investment of R$35 Billion, the line diversified to include toothpaste, make-up and perfume. Freeman now has plans to take over other brands and to open shops worldwide.

Oil & Brazilian Nationalism

By Bruno De Nicola, Contributing Reporter
Lula and his team announce pre-salt regulation to Congress, photo by Fabio Rodrigues Pozzebom/ABR.
Lula and his team announce pre-salt regulation to Congress, photo by Fabio Rodrigues Pozzebom/ABR.
RIO DE JANEIRO – Last week Lula and his government presented the new model for oil and gas extraction in Brazil, a plan to control the gigantic underwater reserves of the Santos Basin and the entire pre-salt area. Inspired by Norway, Venezuela and Russia, the Brazilian government aims to nationalize all oil revenue by radically changing the current extraction regulation. The new measures shake the market and rouse environmentalists already at odds with Brazil’s energy agenda. According to the new partnership model, which will probably replace the current concession regime, Brazil will be the sole owner of the pre-salt oil and will be entitled to eighty percent of its revenue. Furthermore, state-owned company, Petrobras, will be the responsible operator for all blocks, holding a share of at least thirty percent in each of them. The oil giant will also hold joint ventures with companies and be exclusively remunerated in oil barrels. Essentially, the state will control private-sector oil dealings. Lula and his government appear to be following Chavez’s and Putin’s steps this time. In fact, to support the heavy load of bureaucracy and operations in the pre-salt area, the government plans to create a new state-owned company called Petro-sal, which will take care of all the contracts and grant government control over every related business. Oil revenue will be invested in a social fund called: “Fundo Social do Pré-sal”, to aid the poor and finance health care, education, scientific research and ecology programs, following the Norwegian model. Thirty percent of the Brazilian population, or 57 million people, are below the poverty line. Petrobras’s latest tests show that extraction from the three blocks of the Santos Basin – Tupi, Lara and Parque das Baleias – should probably total between 9.5 million and 14 million barrels of oil, a quantity that doubles the Brazilian current oil production and gives Lula many reasons to be ecstatic about what he referred to as “Brazil’s second declaration of independence”.  Through a triumphant speech the President of Brazil announced the regulation change, reinforcing the idea that Brazil doesn’t need to share oil property. However, one of the main players of the “Brazilian dream”, Petrobras President Sergio Gabrielli, didn’t seem to share Lula’s optimism, when in an recent interview with the Globo TV Channel, he stated: “The pre-salt is not a cash cow, but a feasible project.” Oil market specialists are not entirely positive about the Brazialian situation either. Many believe that Brazil still needs to cross quite a few technological frontiers in order to properly explore and exploit the underwater oil basins. Petrobras seems to be currently facing several mechanical problems due to the corrosive effects of salt and the high pressure at 5,000 meters below sea level. The technological limits and, most of all, the government’s nationalizing measures caused a quick reaction from the stock market. The Brazilian oil giant could suffer quite a lot from the loss of foreign partners and investors. Immediately after Lula’s announcement, Petrobras’ stock dropped around four per cent in value. Greenpeace activists are worried too. The ecological movement claims that, since the first pre-salt discoveries, the Brazilian government has not focused enough on bio-energy. Alternative fuel sources were of extreme relevance to Lula’s agenda until 2006, and at the moment all government efforts are pointing instead towards underwater oil extraction in the pre-salt area.

Tarantino in Rio’s Film Fest

By Maíra Amorim, Contributing Reporter
"Do Começo ao Fim", photo by Rio Film Festival press department.
"Do Começo ao Fim", photo by Rio Film Festival press department.
RIO DE JANEIRO – For film lovers, September is the most anticipated month of the year. The rationale is simple: it is when the star-studded Festival do Rio (Rio [Film] Festival) graces the city with lights, camera and plenty of action. This year’s edition will take place from September 24 to October 8 and one of the Hollywood heavyweights confirmed is none other than Quentin Tarantino. The A-list director will be promoting the release of his latest film “Inglorious Bastards”, which will be shown at the festival’s closure. Tarantino will be in town from October 6 to 8 and on the 7th he will participate in a press conference. He will also curate a special selection of films for screening. The official calendar is yet to be announced. So far, the producers have released the names of the national feature films in the Mostra Première Brasil, one of the most efficient tools for publicizing national cinema. The list includes twelve long-awaited and unreleased movies such as “Bellini e o Demônio” (Bellini and the Devil), which marks the return of Fabio Assunção after his drug troubles. “Do Começo ao Fim” (From Start to Finish) by Aloísio de Abranches, tells the controversial story of gay love between two brothers, and “Os Famosos e os Duendes da Morte” (The famous and the Dead), is the first feature film by Esmir Filho, famous for his internet short “Tapa na Pantera”.
"Cabeça a Prêmio", photo by Rio Film Festival's press department.
"Cabeça a Prêmio", photo by Rio Film Festival's press department.
The exhibition “Brazil com Z” (Brazil with a ‘Z’) will take place for the second time showing foreign films shot in Brazil. The official selection will soon be available on the festival’s website. In last year’s edition, “Se Nada Mais Der Certo” (If Nothing Else Works) and “Apenas o Fim” (Just the End) were the winners of the Première Brasil. “500 Days of Summer”, this year’s hit romantic comedy in the US, will also be coming to Rio Film Festival. Videoclip director Mark Webb’s debut was praised at Sundance Festival and critics around the world. It tells the story of a romantic young man (Tom, played by Joseph Gordon-Levitt) who falls in love with a trendy girl (Summer, Zooey Deschanel) who does not believe in love. Last year, more than 350 films from all over the world came to the festival and this year will be no exception. The organization is yet to release the whole calendar and information about prices and venues. One thing is certain, it is better to hurry once they start selling tickets as they are usually sold out quickly, especially for big screenings and special sessions. The atmosphere that surrounds the city during the film festival creates a unique buzz, with the names of important films and famous directors and actors on everyone’s lips. The festival is also a great opportunity for film producers and investors. The parallel event Rio Market is set up with a business focus and will host debates and lectures. The calendar is already available at the website and inscriptions can be made online. Festival do Rio official’s website

Salgueiro Samba

By Joshua Rapp Learn, Contributing Reporter
The Salguiero Samba School with its elaborate Carnival floats, photo by Jorge Schweitzer.
The Salguiero Samba School with its elaborate Carnival floats, photo by Jorge Schweitzer.
RIO DE JANEIRO – Every Saturday, Acadêmicos do Salgueiro throws a samba party, staging a run-off as associates compete for a glorified spot in the official Carnaval parade. Obligatorily, the competition unrolls with all the flourish of a miniature Carnaval, complete with extensive costumes, samba dancers and an explosion of music and noise to deafen your eardrums until at least the next party. Samba schools have existed in Rio de Janeiro since the 20s when the famed Mangueira and Portela were derived from the structures of groups organizing parades in Nineteenth Century Carnavals. Most of the schools, including the twelve groups in the Special Class, are based in favelas where the samba halls represent a sort of neighborhood social club. All host samba nights open to the public, where cover charges and drink profits help fund the enormous costs involved in creating the floats for Carnaval. The level of competition is high at Acadêmicos do Salgueiro this year as the school was the Grand Champion of the 2009 Carnaval. Formed in 1953, the school’s traditional symbol is fire – red and white flags passed out among the crowds flutter through the samba halls on Saturday nights. The thirty-person drum battery tore into an interlude of expectant silence as the softer group packed away their instruments and exited the main stage. The drum section occupied a special place above a floor milling with moving hips and shaking bodies.
Sambas competing for a sopt in Salguiero for Carnival 2010, photo by Audra Morales.
Sambas competing for a sopt in Salguiero for Carnival 2010, photo by Audra Morales.
There was a conductor leading the different sections, indicating rhythm changes with hand signals while the Carnaval Queen flashed her energetic smile for the world’s attention. The beat rumbled on for more than half an hour before crashing to a stop with a pounding crescendo. It was August, more than five months until Carnaval, or 178 days as the countdown on Acadêmicos do Salgueiro’s website indicated. Although most people only see the extravagant glamour involved in the four days leading up to Ash Wednesday, samba schools spend nearly an entire year in preparation. As the drums fell silent, school associates wasted no time in clearing a space through the hall to make room for the procession. A band came on stage and the drum section was joined by ukuleles to usher in a flock of body-painted dancers and a male singer with a feathered backdrop that made him appear like a giant peacock. The peacock man was wheeled among the dancers while sheets with song lyrics were handed out to the various judging parties. The school’s location in the middle class neighborhood of Andaraí not far from Maracanã stadium makes the weekly parties a little more accessible than other samba schools. Direct participation in the Carnaval parade can be expensive, but is possible through the schools or with agencies such as The Rio Carnaval Guide at http://www.rio-carnival.net/. Costs range anywhere between R$300 and R$3,000 depending on your role in the festivities and costume, referred to in Brazil as a fantasia. Acadêmicos do Salgueiro can be contacted through their website at http://www.salgueiro.com.br.

Brazil Makes World Cup Cut

By Jayme Monsanto, Contributing Reporter
The Brazilian team celebrate, photo by BBC Sport.
The Brazilian team celebrate, photo by BBC Sport.
RIO DE JANEIRO – Three rounds before the end of the World Cup 2010 qualifiers, Brazil defeated arch-rivals Argentina by three goals to one and guaranteed the first of four South American berths in South Africa next year. The match took place last Saturday, September 5, at the Gigante de Arroyito Stadium, in Rosário, hometown of Argentina’s current golden boy, Lionel Messi, and also of revolutionary Ernesto ‘Che’ Guevara. A hostile mood preceded this match of two historical rivals, with several polemic declarations from Maradona, who provoked and teased the Brazilian team. This was reflected in the audience of the Gigante de Arroyito Stadium, who threw bombs and bottles at the Brazilian players as they arrived on the pitch. Perhaps due to the tension, Argentina started the match on the offensive. Messi started well, creating a lot of chances in the midfield. The Argentinian attackers, however, failed to find a rhythm, and the Brazilian defense held strong. Some of these efforts resulted in fouls, and were punished with yellow cards. Defender Lúcio, midfielder Kaká and striker Luís Fabiano added to their tally of yellow cards in the World Cup qualifiers, each receiving one more in the match. The three will not be eligible to play in Brazil’s next qualifying match, against Chile on Wednesday September 9. In the 24th minute, Luís Fabiano suffered a foul near the Argentina goal. Midfielder Elano took the resulting free kick, crossing the ball near the goal. Defender Luisão jumped higher than the Argentinian defense and scored with a header. Five minutes later, Brazil scored again. Maicon received a great pass from Kaká, and shot. Goalkeeper Mariano Andujar defended well, but the rebound came to striker Luís Fabiano, who had plenty of room to score. Brazil were up two goals to zero with only thirty minutes on the clock. Despite the negative score, Argentina kept pressing Brazil. In the 37th minute, Maxi Rodriguez received a cross from Tevez, and shot on target at the Brazilian goal, but goalkeeper Julio César did an amazing job to keep the ball out.
Maradona at the press conference before the match, photo by www.guardian.co.uk.
Maradona at the press conference before the match, photo by www.guardian.co.uk.
In the second half, Argentina stayed on the attack, but failed to find the net until the nineteenth minute, when Dátolo tried a long shot from outside the goalbox, and provided the breakthrough. The audience went wild, expecting an Argentinian comeback. Their hopes were dashed, however, three minutes later, when Luís Fabiano scored once again, completing a hat-trick. He received a perfect pass from Kaká and shot the ball above the Argentinian goalkeeper. During the Brazilian squad’s celebrations, a rock was thrown at defender Juan’s head. After the Brazilian goal the home team was demoralized, and were quiet for the rest of the night. The match ended three to one, and Brazil secured a spot in the South Africa World Cup next year. With the result, Argentina lies in fourth place and at risk of not qualifying for the tournament. Brazil’s next match will be against second-placed Chile, who has 27 points. The match will take place next Wednesday, September 9, at the Pituaçu Stadium, in Salvador, Bahía. Also on Wednesday, Argentina will face third-placed Paraguay in Assunción, Paraguay. If Argentina loses, its situation in the qualifiers will be delicate at best.