Brasil
September 5th, 2025
1. Central Bank rejects deal between BRB and Master
The Central Bank of Brazil (BC) has denied the acquisition of part of Banco Master by BRB (Banco de Brasília), a decision that shakes the financial market and leaves Master’s future uncertain. The ruling halts the share purchase agreement signed in March, which initially involved R$ 50 billion in assets while excluding R$ 23 billion in low-liquidity securities, considered problematic. According to experts, the BC applied technical criteria, with governance being one of the main factors. Banco Master’s financial operations were seen as overly aggressive by the market.
Known for its exponential growth through the issuance of high-rate CDBs guaranteed by the Credit Guarantee Fund (FGC), Master invested heavily in high-risk, low-liquidity assets, placing the bank in a fragile position. The BC’s decision may pave the way for intervention in the institution, enabling the activation of protection mechanisms via the FGC. Both BRB and Master state they are awaiting the reasoning behind the decision in order to assess their next steps, including the possibility of filing an appeal with the monetary authority.
Valor Econômico: BC rejeita acordo com BRB, e futuro do Master é incerto
UOL: Entenda por que o BC rejeitou compra do Banco Master pelo BRB
2. GDP grows 0.4% in second quarter
Brazil’s Gross Domestic Product (GDP) grew 0.4% in the second quarter of 2025, reaching R$ 2.9 trillion, according to data released by the Brazilian Institute of Geography and Statistic (IBGE). The result was in line with market expectations, which projected growth between 0.14% and 0.5%. Over the past four quarters, Brazil’s GDP rose 3.2%, totaling R$ 3.2 trillion during the period.
Compared to the first quarter of 2025, when growth stood at 1.3%, the pace slowed. Nonetheless, the 12-month accumulated performance positions Brazil positively on the international stage. The Brazilian economy recorded the sixth-highest growth among G20 countries. The combination of quarterly expansion and the strong G20 ranking suggests that economic policies and market dynamics are supporting consistent growth, despite global challenges. Expectations now turn to whether this pace can be sustained.
BBC: PIB do Brasil cresce 0,4% no 2º trimestre; veja quanto outras grandes economias cresceram
Agência Brasil: Em 12 meses, economia brasileira acumula 6º maior crescimento do G20
3. BNDES and SENAI boost Industry 4.0 with R$ 56 million
The Brazilian Development Bank (BNDES) and the National Service for Industrial Training (SENAI) have signed an agreement to allocate R$ 56 million to Brazilian companies, aiming to modernize and accelerate the transition toward Industry 4.0. The goal is to enhance competitiveness and productivity in the country’s industrial sector. Funds will be directed to projects focused on digitalization, automation, and the adoption of advanced technologies such as Artificial Intelligence, the Internet of Things, and Big Data.
Small and medium-sized enterprises (SMEs) will be prioritized in accessing these resources, in an effort to democratize technology adoption and reduce the digital gap. The investment is non-reimbursable, meaning it does not represent a loan. The initiative is part of a broader strategy to prepare Brazilian industry for the challenges and opportunities of the fourth industrial revolution. BNDES will provide financial backing, while SENAI will deliver technical support and training, ensuring that companies not only receive the funds but also acquire the know-how to apply them effectively. The program is expected to generate a significant positive impact on the economy and promote job creation.
Agência Brasil: BNDES e Senai vão repassar R$ 56 milhões para a indústria 4.0
4. Government releases R$ 30 billion in extra credit for Brazil sovereign plan
The federal government has approved an extraordinary credit line of R$ 30 billion to finance the Brazil Sovereign Plan. The measure aims to boost strategic projects and investments in priority areas for national development. The plan focuses on key sectors such as infrastructure, energy, technology, and food security, with the goal of strengthening the country’s economic autonomy and reducing external dependencies. The additional funds will help accelerate projects and initiatives that were either behind schedule or in need of extra financial support.
The release of credit underscores the government’s priority to stimulate economic growth and create jobs, particularly in a post-crisis recovery scenario. The expectation is that direct investment in these strategic areas will have a multiplier effect on the economy, benefiting various production chains and regions across Brazil. The measure is seen as an important step toward revitalizing both public and private investment.
Agência Brasil: Governo abre crédito extra de R$ 30 bilhões para Plano Brasil Soberano
5. BNDES aims to mobilize R$ 18 billion in sustainable Investments
BNDES has launched a call for proposals to support investment funds focused on sustainable solutions, through which it expects to mobilize up to R$ 18 billion. The goal is to boost projects and companies in key areas such as energy transition, decarbonization, reforestation, and the circular economy. The program foresees support for two types of funds: equity participation in companies and credit for financing.
According to BNDES president Aloizio Mercadante, this is the largest public call for funds in the bank’s history and demonstrates alignment with strategies to combat the climate crisis. Acting as an anchor investor, the bank aims to encourage private sector participation in strategic sectors tied to Brazil’s sustainable development agenda.
Folha de S. Paulo: BNDES anuncia até R$ 5 bilhões para fundos de investimento em soluções sustentáveis
September 5th, 2025
1. Marco Rubio highlights Mexico’s cooperation during his visit
US Secretary of State Marco Rubio met with President Claudia Sheinbaum to continue strengthening cooperation between the two nations on migration, trade, and security issues. Rubio said that the binational relationship had reached an all-time high, with both countries having established an understanding that respects integrity and sovereignty, and with the exchange of information, intelligence, technology, and training having led to improvements in security, particularly in the border area.
The U.S. official recognized the Mexican government for directly combating criminal groups and thanked the Mexican authorities for their openness and efforts. Rubio also stressed that they will continue working to counter the arms smuggling that fuels violence in Mexico.
2. The New Judiciary Takes Office
A new era begins in the judiciary with the inauguration of the first judges elected by popular vote. Among the nine new Supreme Court justices, electoral court magistrates, and district and state judges, more than 800 judges elected in the June 1 elections took office on September 1.
President Claudia Sheinbaum said that this process marks the end of an era of privilege and nepotism in the justice system. The new Court will be presided over by Hugo Aguilar, the most voted candidate, who stressed that there will be a challenge to regain the trust of the public. The judicial election will have a second stage in 2027 to renew vacant positions within the Supreme Court and local judges in different states of the Republic.
El Economista: México inicia “nueva era” en el Poder Judicial: ministros, magistrados y jueces electos asumen cargos
3. New legislative period begins in the Congress of the Union
The Congress of the Union, made up of the Chamber of Deputies and Senators, began its new legislative session on September 1, the same day that the Secretary of the Interior, Rosa Icela Rodríguez, delivered President Claudia Sheinbaum’s first government report for analysis and discussion by legislators. Deputy Ricardo Monreal, coordinator of the Morena Parliamentary Group, called on parliamentary groups to work together for Mexico.
During the new session, the legislative agenda will include reforms such as the new Customs Law, electoral reform, the reduction of working hours, and the law to combat extortion, among other initiatives. Likewise, the leadership of both chambers was also renewed; the presidency of the Chamber of Deputies will be in the hands of PAN member Kenia López Rabadán, while the Senate will be presided over by Senator Laura Itzel Castillo Juárez.
Milenio: Congreso de la Unión inicia nuevo periodo legislativo entre protestas
4. Claudia Sheinbaum delivers her first government report
President Claudia Sheinbaum delivered her first government report to Congress. Previously, from the National Palace, she delivered her report, in which she stated that Mexico is experiencing a stellar moment in its history. With an approval rating of almost 80%, the Mexican president summarized the support given to students, women, farmers, producers, and pensioners, and highlighted economic and social growth despite the negative expectations of international financial organizations regarding the relationship with the United States.
President Sheinbaum emphasized the increase in the minimum wage, the reduction in the number of homicides, and the launch of the national strategy against extortion, as well as the success of the Judicial Reform. She expressed optimism about Mexico’s growth, stating that she will welcome the leaders of Canada and France to continue establishing trade ties that will benefit Mexico.
5. Mexico implements measures on water and pesticides for the agricultural sector
President Claudia Sheinbaum announced that water concessions will be regulated, stating that this will bring great benefits, particularly to small and medium-sized agricultural producers throughout the country. To this end, the President will present a decree on administrative facilities to organize water concessions and enable producers to update their water permits. Efraín Morales, director of the National Water Commission, also indicated that there are 17 strategic projects in the country to supply drinking water, drainage, sanitation, and prevent flooding.
This measure is in addition to the Mexican government’s ban on 35 pesticides that pose a high risk to human health and the environment, one of the most significant restrictions in more than three decades. The measure announced by Julio Berdegué, head of the Ministry of Agriculture and Rural Development, is part of a strategy to achieve cleaner, more sustainable, and safer agriculture for the country’s producers, farm workers, and consumers.
La Jornada: Emiten decreto para regular títulos de concesiones de agua vencidos
El País: México veta 35 plaguicidas en su cruzada contra los químicos peligrosos