Ambipar Files for Bankruptcy; Vale and Samarco Fined for Tax Deductions
Key Takeaways
- Ambipar filed for bankruptcy in Brazil and the US with R$ 10.48 billion debt.
- Vale, Samarco fined R$ 1.92 billion for tax deductions related to Mariana tragedy payments.
- Vale's iron ore production hits 94.4 Mt, highest since 2018, a 3.4 Mt increase.
- Petros announces agreement to resolve R$ 42 billion deficit in Petrobras pension plans.
- Neoenergia Brasília to increase electricity bills by 11.65% for 1.19 million consumers.
Top Stories
Ambipar files for bankruptcy with R$ 10.48 billion debt.
On October 21, 2025, Ambipar filed for bankruptcy in Brazil and the US due to a debt of R$ 10.48 billion. The crisis was worsened by Deutsche Bank's guarantee collection and signs of financial irregularities.
Vale, Samarco fined R$ 1.92 billion for tax deductions.
On October 22, 2025, Vale and Samarco were fined R$ 1.92 billion by the Federal Revenue for using compensation payments from the Mariana tragedy as income tax deductions. The Carf ruled in favor of the tax authorities.
Vale's iron ore production hits highest since 2018: 94.4 Mt.
On October 21, 2025, Vale (VALE3) announced its Q3 2025 production report, revealing the highest iron ore production since 2018, reaching 94.4 Mt, a 3.4 Mt increase year-over-year.
Petros announces agreement to resolve R$ 42 billion deficit.
On October 21, 2025, Petros, the second largest pension fund in Brazil, announced an agreement with participants and regulators to resolve the R$ 42 billion deficit in the Petros Plans of the Petrobras System (PPSP).
Neoenergia Brasília to increase electricity bills by 11.65%.
From October 22, 2025, Neoenergia Brasília will apply the 2025 Annual Tariff Readjustment, resulting in an average increase of 11.65% in electricity bills for approximately 1.19 million consumer units in the Federal District.
Currency Trends
Dollar opens stable at R$ 5.4048 amid global concerns.
On October 20, 2025, the dollar opened stable against the real, quoted at R$ 5.4048. Investors are monitoring the slowdown in the Chinese economy and trade negotiations between the US and China.
Dollar rises 0.31% against real amid global dollar strength.
On October 21, 2025, the dollar rose 0.31% against the real in the opening in São Paulo, reaching R$ 5.3873. The dollar's rise was driven by the election of Sanae Takaichi as Prime Minister of Japan.
Economic Growth Pulse
Rio de Janeiro's IT sector grows 9.28% post-pandemic.
On October 21, 2025, a study revealed that the IT sector in Rio de Janeiro grew 9.28% after the pandemic, creating 4,461 new jobs in 2024. The state has 32,664 technology companies.
Investment Flows
World Bank approves Tropical Forests Fund initiated by Brazil.
On October 21, 2025, the World Bank approved the creation of the Tropical Forests Fund for Forever (TFFF), a Brazilian initiative for COP30. Brazil has committed US$ 1 billion to the fund, which aims to protect tropical forests and reduce deforestation.
Shopee invests R$ 20 million in coupons for 11/11 sales.
On October 21, 2025, Shopee announced an investment of R$ 20 million in coupons for the 11/11 sales event. The company has significantly expanded its operations in Brazil since 2022.
Aneel approves four low-carbon hydrogen projects totaling R$ 196.2M.
On October 21, 2025, the National Electric Energy Agency (Aneel) approved four low-carbon hydrogen projects, using resources from the Research, Development and Innovation (PDI) Program. The total investment amounts to R$ 196.2 million.
Job Market Update
124 job openings announced for Petrolina, Araripina in Pernambuco.
On October 22, 2025, the Pernambuco Labor Agency announced 124 job openings for Petrolina and Araripina, in the Sertão of Pernambuco. The vacancies cover various functions in both cities.
Market Movers
Netflix Q3 profits miss estimates, Brazil tax expenses cited.
On October 21, 2025, Netflix reported lower-than-expected Q3 earnings, with unexpected tax-related expenses in Brazil impacting profits. Net income was $2.5 billion, or $5.87 per diluted share, below analyst estimates.
Binance integrates with Brazil's Pix for crypto payments.
On October 21, 2025, Binance announced the integration of its crypto payment service, Binance Pay, with Pix, the Brazilian instant payment system. This aims to connect the cryptocurrency ecosystem to the traditional financial system.
B3 launches Gold Future Index amid rising gold prices.
On October 21, 2025, B3 launched the B3 Gold Future Index (IFGOLD B3), a new indicator to track the performance of the precious metal's future contract. The index was created to meet the growing demand for exposure to gold.
Policy Briefing
Amazonas approves 50% IPVA reduction starting January 1, 2026.
On October 21, 2025, the Legislative Assembly of Amazonas approved a bill reducing the IPVA by 50% starting January 1, 2026. The new law reduces IPVA rates for vehicles of different engine sizes, including electric and hybrid vehicles.
Brazil Senate analyzes bill to mitigate US tariffs' effects.
On October 21, 2025, the Brazilian Senate resumed analysis of bill PLP 168/2025 to mitigate the effects of US tariffs on Brazilian products. The bill seeks to implement Provisional Measure 1.309/2025, which released R$ 30 billion to support affected sectors.
Analysis of 2026 Budget Guidelines Law postponed again.
On October 20, 2025, the analysis of the final report of the 2026 Budget Guidelines Law (LDO) was postponed again at the government's request. The postponement is due to a lack of definition on tax increases and spending cuts.
Brazil to resubmit MP 1303 proposals as separate bills.
On October 21, 2025, the Brazilian government decided to resubmit the proposals of the extinct Provisional Measure 1303 as separate bills. The strategy involves processing spending cuts (R$ 15 billion) in one project and revenue increases (R$ 20 billion) in another.
STF demands transparency on nearly R$ 8 billion in PIX amendments.
On October 23, 2025, the STF is holding a public hearing to demand explanations from Congress about the transparency of PIX amendments, which transferred almost R$ 8 billion in 2025. These direct transfers have grown 13 times since 2020.
INSS warns budget cuts threaten essential services.
On October 22, 2025, the INSS reported that budget cuts made by the Lula government threaten to halt essential services and impact the processing of payroll for social security benefits. The INSS requested an additional R$ 425 million in the budget.
Tax exemption proposal faces criticism over revenue reduction.
On October 22, 2025, sectors of the economy and tax experts criticized Senator Renan Calheiros' initiative to alter the project that expands the Income Tax (IR) exemption for those earning up to R$ 5,000 per month. The measure could reduce federal revenue by R$ 26 billion annually.
Analysis: Tax regimes for bars, restaurants, tourism in tax reform.
On October 21, 2025, Folha de S.Paulo published an analysis on the specific tax regimes for bars, restaurants, and tourism agencies in the Brazilian tax reform (EC 132/2023 and LC 214/2025). The article highlights potential cumulative effects and competitive distortions.
Tech Trends
AI used by 40% of Brazilians for real estate searches.
On October 21, 2025, a survey by Grupo OLX revealed that 40% of Brazilians have used artificial intelligence (AI) in their search for real estate. Of these, 60% consider AI important or very important.
Trade Winds
Brazil opens new export markets in Asia, Middle East.
On October 21, 2025, Brazil's Ministry of Agriculture announced the opening of new export markets including Japan, Singapore, South Korea, Egypt and India. Asian markets represent 37% of the openings accumulated in 2025.