News from Brazil

Government & Politics

In Uncategorized on April 25, 2010 at 2:24 pm

ELECTIONS

Brazilian Presidential candidate Jose Serra may renegotiate all contracts between private companies and the federal government if he is elected. Serra will also seek to cut wage spending in a bid to impose fiscal discipline and he supports a constitutional change to earmark all mining royalties for investments in infrastructure. Serra said he’ll also review Brazil’s commercial strategy and that the Mercosur trade block with Argentina, Paraguay and Uruguay is a barrier to commercial agreements with other parts of the world. Serra said he would invite Sao Paulo state’s finance secretary, Maurto Ricardo Costa, to join his government if elected (Bloomberg).

Brazil’s ruling party candidate for the presidency, Dilma Rousseff, garnered 29 percent of voter intention against 36 percent for leading opposition candidate Jose Serra, an opinion poll by polling firm Ibope showed (Reuters).

Marina Silva’s main campaign theme is that Brazil has a moral responsibility to become a high-tech, low-carbon economy as an example to other developing countries. In a tacit critique of Lula’s fondness for a big state and for Fidel Castro, she also says that Brazil must lower its tax burden and not cuddle up to tyrants. Guilherme Leal, who owns Natura, a big cosmetics firm, and is one of Brazil’s richest men, is considering a request to be her running mate (The Economist).

ECONOMY

Brazilian credit is growing at an unsustainable rate and will slow when the central bank begins to raise rates at next week’s meeting (Bloomberg).

Brazil’s current account gap widened in March to the highest this year, a move that may limit the strengthening of the nation’s currency, said the chief economist at Sao Paulo-based Banco Espirito Santo SA (Bloomberg).

Brazil’s real will plunge 8 percent by yearend as President Lula da Silva’s government boosts government spending and the inflation outlook worsens, Scotia Capital said (Bloomberg).Economists in a weekly central bank survey raised for a 13th straight week their forecasts for Brazil’s benchmark inflation index in 2010, underscoring expectations of an increase in borrowing costs as soon as next week (Reuters).

INTERNET

Brazil tops the list of countries asking Google Inc to remove content from its services, the Internet search company disclosed in a new Web tool — but it said statistics on China are secret (Reuters).

BUILDING OF THE WEEK

The brand new State Administrative City of Minas Gerais in Belo Horizonte.

FOREIGN AFFAIRS

China and Brazil signed a memorandum of understanding which gives both countries direct access to data from the satellites the two countries jointly developed, launched and operated (Xinhua).

Brazil’s government wants domestic financial groups to strengthen business ties with China to lower access costs and tap new sources of revenue in the world’s third largest economy (Reuters).

Brazil delayed for another 60 days trade retaliation against the United States in an attempt to solve a long-standing dispute over U.S. cotton aid (Reuters).

The second meeting of the BRIC member nations, concluded last week after a three-day summit in Brasilia, produced ‘little new to agree upon’. Although progress was muted in Brasilia, many international analysts and diplomats have commented on the newly cohesive and assured tone of the group’s parting statement, demanding a greater say in world governance, particularly within trade administration (The Rio Times).

Is Lula behaving like a world leader? Read the analysis at the Times of India.

Brazilian President Luiz Inacio Lula da Silva reaffirmed his personal and his administration’s position on Iran’s nuclear program. He said the Islamic state has the right to develop its nuclear program so long as it is for peaceful purposes (Xinhua).

TAX

Brazilian Finance Minister Guido Mantega likes the idea of a tax on banks to pay for future bailouts, but he’s not sure Brazilian banks should have to pay anything. “Maybe it’s necessary mainly in countries that had problems with their financial systems,” Mr. Mantega said (Wall Street Journal).

TOURISM

The annual Travel-business study by the WTTC (World Travel and Tourism Council), an organization formed by the most important tourism entrepreneurs in the world, ranked Brazil thirteenth in the list of the biggest economies of the sector, holding the same position as last year (The Rio Times).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s