Brazil's two largest firms have registered record profits for 2010, which is a good sign for the South American nation's growing economy. The oil giant Petrobras - which is partly state-owned - registered $20bn (£12.4bn).

Brazil's government has said it'll implement 50bn reais ($30bn; £19bn) of spending cuts in order to curb inflation and help to prevent the economy from overheating. Finance Minister Guido Mantega said all stimulus packages introduced since the onset of the worldwide financial crisis would be removed.

Brazil's central bank has raised its key interest rate to 11.25% in a bid to cool inflation in one of the world's fastest growing economies.An upswing, from 10.75%, is the first under President Dilma Rousseff and central bank head Alexandre Tombini, both of whom took office this month.

Inflation was 5.91% last year and is forecast to remain above 5% in 2011.But the rate rise risks sucking in foreign money, contributing to pressure on the already overvalued Brazilian real.The central bank warned that the rate hike may be just the start of the series of rises to curb inflation.

Brazil's central bank has raised its key interest rate to 11.25% in a bid to cool inflation in one of the world's fastest growing economies.An upswing, from 10.75%, is the first under President Dilma Rousseff and central bank head Alexandre Tombini, both of whom took office this month.

Inflation was 5.91% last year and is forecast to remain above 5% in 2011.But the rate rise risks sucking in foreign money, contributing to pressure on the already overvalued Brazilian real.The central bank warned that the rate hike may be just the start of the series of rises to curb inflation.