Bullet Train Delayed

High-Speed Train Route Proposal (From Wolters Kluwer)

A very typically Brazilian story - the bullet train Brazil wanted to partially build in time for the Olympics in 2016, and be completely finished by 2017 (see the entry from Wolters Kluwer above), has been delayed.

The 20bn USD project was supposed to have all bids in by Nov 20 and the decision by Dec 16 has now been postponed to April 29 to allow "all interested companies to participate". Also, according to the auctioning body, this delay will not delay construction... really? So they will just work 6 months faster?

I do not want to sound negative, but

a) The project will never be finished on time, Brazil has a great history of announcing and then not delivering - especially this bullet train has been a company fantasy for decades (just like the maglev in Germany)

b) The project will cost a fortune - 20bn will never be enough

c) The route will run a completely different route

If Brazil is lucky, the project will be completed by the 2020 Expo... for which a site also still has to be found.

Minimum Required Wage

Another blog on Brazil has this interesting post on the necessary minimum wage in Brazil. According to the blog, the minimum wage, today at 510BRL is thus only a quarter of what it would have to be...

You can also load the table directly: Here.

Currency War: The Next Battle

In Brazil, the hot topic continues to be the strong BRL vs the USD - even after a formula one weekend, a new president and creaking infrastructure.

Prior to the G20 Summit, The Exchange War has become a commonplace buzzword in the economic and business press, and is creeping into the common news.

In Exame, a business magazine, "weapons" in the currency war are being prepared by the Brazilian government including even higher duty rates for capital inflows (today at 6%) and charging capital gains taxes from foreign investors (a ghost of the past). But all these weapons are currently on hold until after the G20 meeting in Seoul. Keep your eyes open...