What a great score for Brazil; they now have the 2014 World Cup and 2016 Summer Olympics back to back. If I have any Brazilian readers, I'd like to visit summer 2014 ;)
Stocks are rallying in kind, up 1.5% - certainly there will be some long term benefits to the country's infrastructure from these huge events. This is the first time the Olympics will be held in a South American country. All this with a socialist at the head of the country ;) Apparently Chicago (and Tokyo) were ousted in round 1. Madrid and Rio de Janeiro were the finalists.
You can almost feel the global sands shifting below our toes.
- [Sep 23, 2009: Brazil's Credit Rating Raised to Investment Grade]
- [Aug 11, 2009: BW - Brazil's Coming Rebound]
- [May 16, 2008: Brazil is Sexy]
- Brazil’s Bovespa stock index rallied, the only major equity measure in the world to rise today, and the currency gained after Rio de Janeiro was awarded the 2016 Summer Games, luring investment to the country.
- The Bovespa climbed 1.5 percent to 61,332.97 at 12:52 p.m. New York time; the real, the best-performing emerging-market currency against the dollar this year, gained 0.4 percent to 1.7795.
- “The combination of the Olympics Games and the World Soccer Cup will be a very powerful force,” said Bill Rudman, who helps manage $1.5 billion in emerging-market stocks at Blackfriars Asset Management, in a telephone interview from London.
- The games would help sustain Brazil’s economic growth by injecting $51.1 billion into Latin America’s largest economy through 2027 and add 120,000 jobs annually through 2016, according to studies by a Sao Paulo business school for the Ministry of Sports. (who knows how accurate that is, but of course it is a plus)
- Brazil plans $11 billion of investments as host, more than any other of the bidding cities.
- “The infrastructure will be gigantic,” Kang said in a phone interview from New York. “Luckily for Brazil they have all the commodities to deal with massive infrastructure projects.”
- Rio de Janeiro's successful bid to host the Olympics in 2016 culminates Brazil's remarkable rise over the past decade from a near basket case to an economic and diplomatic heavyweight.
- Just as the Beijing Olympics of 2008 marked China's revival as a world power, Rio 2016 may be seen as a stamp of approval on the South American giant's coming of age. (I agree - the timing will be perfect)
- After decades of underachievement, Latin America's largest country in recent years has finally made good on the immense promise of its abundant natural resources, vibrant democracy and vast consumer market of 190 million people.
- Rio's Olympics victory may be the most spectacular sign of Brazil's surging profile under President Luiz Inacio Lula da Silva, the country's first working-class leader who nurtured an economic boom that has lifted millions of people out of poverty and made him one of the world's most popular leaders.
- Brazil's revival has translated into a path out of poverty for about 20 million people, many of whom have benefited from Lula's generous welfare programs.
- A run of luck also has worked in Brazil's favor, from the commodities price boom that boosted its exports of raw materials such as iron ore and soybeans to one of the world's largest recent oil finds off Rio's coast in 2007. (very true - being so commodity rich is just the luck of the draw)
- Lula's appeal for South America's first Olympics followed a similar line -- that rich countries have enjoyed more than their fair share of the Games' spectacle and prestige.
- .... Brazil still has plenty of challenges to tackle before it joins the elite club of developed nations. The education system suffers from chronic underinvestment and Brazil has no world-class universities, leaving business leaders worried about a lack of qualified labor. Its creaking infrastructure also threatens to cramp its growth.
Now if someone could go into Argentina and fix that basket case you'd have a great 1-2 combo in South America.