Brazilian President Luiz Inácio Lula da Silva has called for stronger and better-equipped armed forces ahead of the presidential election scheduled for October this year. During his visit to the Avibras aerospace facility in São Paulo, President Lula highlighted the importance of developing homegrown defense capabilities and ensuring Brazil's military remains prepared, trained, and adequately staffed. The Brazilian defense company, known for producing missiles, rockets, and aerospace technology, has resumed operations after facing financial difficulties and worker strikes.

Lula Pushes For Powerful Brazilian Military Ahead Of Election | Visits Aerospace Facility

Brazil’s most industrialised state is bracing for economic pain. Sao Paulo Governor Tarcisio de Freitas has warned that US President Donald Trump’s proposed 50 per cent tariff on Brazilian exports could cut the state’s GDP by up to 2.7 per cent and threaten around 120,000 jobs. The tariffs, set to kick in on August 1, have sparked concern across sectors, from coffee farmers to aircraft manufacturers, as Brazil’s top exporting state scrambles for damage control.&nbsp;“What worries me is the possibility of Caterpillar moving its output to another country, the impact on a small coffee producer, the orange industry, Embraer,” Freitas said, speaking at an event hosted by XP Inc. in Sao Paulo, as quoted by Bloomberg.<h2>Emergency support, diplomatic push</h2>Freitas said the state is preparing five-year credit lines to help companies weather the shock. He also confirmed outreach to US lawmakers and companies in an attempt to reduce the fallout before the tariffs take effect. “We’re also reaching out to US lawmakers, US companies, government agents to illustrate the scale of the problem,” he added.&nbsp;The pressure is mounting as the US prepares to slap a sweeping 50 per cent duty on a broad range of Brazilian goods. According to Bloomberg, the move follows the expiration of a previous trade waiver, giving Trump room to act under national security laws.<h2>States blame Lula’s diplomacy</h2>The tariff threat has also triggered a political backlash within Brazil. Governors from Parana and Goias, both major exporting regions, joined Freitas in criticising President Luiz Inácio Lula da Silva for failing to negotiate with Washington. “Governors were not consulted by the federal government on these decisions,” said Goias Governor Ronaldo Caiado, as per Bloomberg. Parana Governor Ratinho Junior went a step further, hitting out at Lula’s feud with Trump over the legal case against former President Jair Bolsonaro.&nbsp;“Bolsonaro is not more important than the trade relationship between Brazil and the US,” he told to Bloomberg. All three governors, Freitas, Caiado and Ratinho — are seen as potential contenders in the 2026 presidential race, making this more than just a trade row. The fallout could shape the political map in the months ahead.<h2>Big blow to Brazil’s exports</h2>Sao Paulo, home to firms like Embraer SA and the Brazilian operations of Caterpillar Inc., is Brazil’s economic engine. Any disruption to its exports, particularly machinery, agriculture, and aircraft risks ripple effects across the national economy. The potential 2.7 per cent GDP loss in Sao Paulo alone would be a major setback. The state contributes nearly a third of Brazil’s GDP and is a key supplier to US markets.&nbsp;With the August 1 deadline fast approaching, eyes are now on Brasília and Washington to see if diplomacy can dial down the pressure. But for now, Brazil’s industrial heartland is bracing for impact.&nbsp;&nbsp;(With inputs from the agencies)

Governor Tarcisio de Freitas highlighted concerns from various sectors, prompting emergency support initiatives. Political backlash against President Lula has emerged from governors of major exporting states, criticizing his diplomatic efforts. 

Brazil’s most industrialised state is bracing for economic pain. Sao Paulo Governor Tarcisio de Freitas has warned that US President Donald Trump’s proposed 50 per cent tariff on Brazilian exports could cut the state’s GDP by up to 2.7 per cent and threaten around 120,000 jobs. The tariffs, set to kick in on August 1, have sparked concern across sectors, from coffee farmers to aircraft manufacturers, as Brazil’s top exporting state scrambles for damage control. “What worries me is the possibility of Caterpillar moving its output to another country, the impact on a small coffee producer, the orange industry, Embraer,” Freitas said, speaking at an event hosted by XP Inc. in Sao Paulo, as quoted by Bloomberg. Emergency support, diplomatic push Freitas said the state is preparing five-year credit lines to help companies weather the shock. He also confirmed outreach to US lawmakers and companies in an attempt to reduce the fallout before the tariffs take effect. “We’re also reaching out to US lawmakers, US companies, government agents to illustrate the scale of the problem,” he added. The pressure is mounting as the US prepares to slap a sweeping 50 per cent duty on a broad range of Brazilian goods. According to Bloomberg, the move follows the expiration of a previous trade waiver, giving Trump room to act under national security laws. States blame Lula’s diplomacy The tariff threat has also triggered a political backlash within Brazil. Governors from Parana and Goias, both major exporting regions, joined Freitas in criticising President Luiz Inácio Lula da Silva for failing to negotiate with Washington. “Governors were not consulted by the federal government on these decisions,” said Goias Governor Ronaldo Caiado, as per Bloomberg. Parana Governor Ratinho Junior went a step further, hitting out at Lula’s feud with Trump over the legal case against former President Jair Bolsonaro. “Bolsonaro is not more important than the trade relationship between Brazil and the US,” he told to Bloomberg. All three governors, Freitas, Caiado and Ratinho — are seen as potential contenders in the 2026 presidential race, making this more than just a trade row. The fallout could shape the political map in the months ahead. Big blow to Brazil’s exports Sao Paulo, home to firms like Embraer SA and the Brazilian operations of Caterpillar Inc., is Brazil’s economic engine. Any disruption to its exports, particularly machinery, agriculture, and aircraft risks ripple effects across the national economy. The potential 2.7 per cent GDP loss in Sao Paulo alone would be a major setback. The state contributes nearly a third of Brazil’s GDP and is a key supplier to US markets. With the August 1 deadline fast approaching, eyes are now on Brasília and Washington to see if diplomacy can dial down the pressure. But for now, Brazil’s industrial heartland is bracing for impact. (With inputs from the agencies)

Sao Paulo faces economic distress due to US President Trump's proposed 50% tariff on Brazilian exports, potentially slashing the state's GDP by 2.7% and affecting 120,000 jobs.

Trump’s 50% tariff threat may shrink Brazil's economy, hit 120,000 jobs

Argentina's recent economic shifts have triggered a dramatic change in consumer behavior. The country's currency, the peso, strengthened significantly in the second half of 2023, rising three times in real value compared to mid-year levels. This shift has made Argentina a more expensive place to live and shop. For everyday goods, like a Big Mac, Argentines are now paying up to 7,600 pesos, nearly double the cost in neighboring Brazil. Watch in for more details!

Argentina: Bargain Seeking Shoppers Flock To Brazil For Vacations

Investors sold brazil's currency after president lula da silva unveiled an industrial development plan for the next 10 years. The plan is aimed at boosting sluggish growth with state credits and subsidies. Lula wants to boost long-lagging growth with a similar playbook to the one he used during his earlier tenure.

Brazil's 're-industrialisation' plan

Brazil seems to have made a strong economic comeback in the first three months of 2023, thanks to its bumper harvests. Government data shows that Brazil's economy grew 1.9% between January and March 2023. But when compared to the same period in 2022, the economy grew 4%

Brazil economy upbeat: Brazil grows by 1.9% in January-March 2023

Growth in Latin America's biggest economy looks on track for completing a V-shaped pickup in the second quarter

Brazil's economy at crunch time for recovery

Signalling the countries biggest economic crash in more than a century. Brazil’s government has lower its 2020 economic outlook forecasting a gross domestic product contraction of -4.7%. The new forecast based on coronavirus damage.

COVID-19: Biggest fall in Brazil’s GDP since 1900

Brazil said on Friday it had reached a new daily record for COVID-19 fatalities with 751 deaths. 

The announcement by the health ministry puts Brazil's total death count at nearly 10,000. 

More than 145,000 cases of the novel coronavirus have been reported so far, with 10,222 added in the last 24 hours. Experts say under-testing means the real figures are likely much higher.

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The country has been hardest hit by the coronavirus crisis in&nbsp;Latin America.

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Experts say under-testing means the real figures are likely much higher.

Sao Paulo, which has a population of 45.9 million, or about the same size as Spain, has registered more than 41,000 of&nbsp;Brazil's cases, and 3,416 deaths.

The state is&nbsp;Brazil's top industrial hub. It closed schools and non-essential businesses on March 24, and has extended its stay-at-home order through the end of May.

Brazilian President Jair Bolsonaro has criticized such measures, saying business closures are unnecessarily damaging the country's economy.

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Brazil said on Friday it had reached a new daily record for COVID-19 fatalities with 751 deaths. The announcement by the health ministry puts Brazil's total death count at nearly 10,000.

Brazil said on Friday it had reached a new daily record for COVID-19 fatalities with 751 deaths. The announcement by the health ministry puts Brazil's total death count at nearly 10,000. More than 145,000 cases of the novel coronavirus have been reported so far, with 10,222 added in the last 24 hours. Experts say under-testing means the real figures are likely much higher. The country has been hardest hit by the coronavirus crisis in Latin America. Experts say under-testing means the real figures are likely much higher. Sao Paulo, which has a population of 45.9 million, or about the same size as Spain, has registered more than 41,000 of Brazil's cases, and 3,416 deaths. The state is Brazil's top industrial hub. It closed schools and non-essential businesses on March 24, and has extended its stay-at-home order through the end of May. Brazilian President Jair Bolsonaro has criticized such measures, saying business closures are unnecessarily damaging the country's economy.

Brazil reports one-day record of 751 coronavirus deaths

Brazil's President Jair Bolsonaro railed against the country's lockdown Sunday in a speech to thousands of anti-confinement demonstrators as the number of confirmed COVID-19 infections passed 100,000, with more than 7,000 deaths.

Bolsonaro blamed state governors for continuing the lockdown in a speech outside his presidential palace in Brasilia.

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"The destruction of jobs by some governors is irresponsible and unacceptable. We will pay a high price in the future," the head of state said in a speech broadcast live on Facebook.

Bolsonaro has repeatedly clashed with state governors, insisting that strict containment measures they are imposing are an overreaction, and damaging to the economy.

Also read:&nbsp;<a href="https://www.wionews.com/world/pope-says-coronavirus-vaccine-must-be-shared-worldwide-296424" hreflang="en">Pope says coronavirus vaccine must be shared worldwide</a>

The country registered 101,147 confirmed cases of the virus by Sunday, according to figures released by the Brazilian health ministry, with 275 deaths from COVID-19 within the previous 24 hours.&nbsp;

Experts believe the overall number of COVID-19 cases could be 12 to 15 times higher, due to a large number of undetected cases given the lack of testing availability across the country's 210 million population.

The demonstration in Brasilia drew a larger crowd than similar protests in recent weeks, and many people held up banners criticising Bolsonaro critics Rodrigo Maia, head of the chamber of deputies, and former justice minister Sergio Moro who resigned last week. Others in the crowd called on the army to intervene.

"The people are with us and the army is on the side of the law, order, freedom and democracy," Bolsonaro told them.

Experts are bracing for the biggest outbreak in South America to get far worse, as the peak of the pandemic is thought to be some weeks away.

Last week, Rio de Janeiro state said it would extend stay-at-home orders until May 11, ignoring Bolsonaro's demands that local and state authorities encourage Brazilians to get back to work.

Brazil's President Jair Bolsonaro railed against the country's lockdown Sunday in a speech to thousands of anti-confinement demonstrators as the number of confirmed COVID-19 infections passed 100,000, with more than 7,000 deaths.

Brazil's President Jair Bolsonaro railed against the country's lockdown Sunday in a speech to thousands of anti-confinement demonstrators as the number of confirmed COVID-19 infections passed 100,000, with more than 7,000 deaths. Bolsonaro blamed state governors for continuing the lockdown in a speech outside his presidential palace in Brasilia. Also read: US Secretary of State Pompeo says 'enormous evidence' virus came from Wuhan lab "The destruction of jobs by some governors is irresponsible and unacceptable. We will pay a high price in the future," the head of state said in a speech broadcast live on Facebook. Bolsonaro has repeatedly clashed with state governors, insisting that strict containment measures they are imposing are an overreaction, and damaging to the economy. Also read: Pope says coronavirus vaccine must be shared worldwide The country registered 101,147 confirmed cases of the virus by Sunday, according to figures released by the Brazilian health ministry, with 275 deaths from COVID-19 within the previous 24 hours. Experts believe the overall number of COVID-19 cases could be 12 to 15 times higher, due to a large number of undetected cases given the lack of testing availability across the country's 210 million population. The demonstration in Brasilia drew a larger crowd than similar protests in recent weeks, and many people held up banners criticising Bolsonaro critics Rodrigo Maia, head of the chamber of deputies, and former justice minister Sergio Moro who resigned last week. Others in the crowd called on the army to intervene. "The people are with us and the army is on the side of the law, order, freedom and democracy," Bolsonaro told them. Experts are bracing for the biggest outbreak in South America to get far worse, as the peak of the pandemic is thought to be some weeks away. Last week, Rio de Janeiro state said it would extend stay-at-home orders until May 11, ignoring Bolsonaro's demands that local and state authorities encourage Brazilians to get back to work.

Bolsonaro tells rally Brazil lockdown destroying jobs

Brazil's former leader Luiz Inacio Lula da Silva on Saturday attacked right-wing President Jair Bolsonaro for impoverishing working Brazilians and vowed to unite the left to win the 2022 elections in a speech one day after being freed from jail.

Brazil's former leader Luiz Inacio Lula da Silva on Saturday attacked right-wing President Jair Bolsonaro for impoverishing working Brazilians and vowed to unite the left to win the 2022 elections in a speech one day after being freed from jail. Lula's wide-ranging, 45-minute speech to cheering supporters focused broadly on defeating Bolsonaro and improving the economic conditions of the working class, although he diverged frequently to talk about everything from his fiancé to solidarity with leftist governments in Bolivia and Venezuela. Lula, who was president from 2003 to 2010, also took aim at a long list of political enemies, including Bolsonaro, Economy Minister Paulo Guedes and Justice Minister Sergio Moro, a former judge who initially ruled to convict Lula. "I want to tell them, I'm back," the 74-year-old told hundreds of supporters dressed in red, the colour of his Workers Party, outside of the metalworkers union where he got his political start. He said Guedes seeks to remake Brazil economically in the image of Chile, long seen as a model of financially conservative governance, but that those policies are the reason for the widespread street protests paralysing its Latin American neighbour. A judge ordered that Lula be freed on Friday, a day after Brazil's Supreme Court issued a broader ruling ending the mandatory imprisonment of convicted criminals after they lose their first appeal. Lula had been imprisoned on a corruption conviction carrying a nearly nine-year sentence. Bolsonaro told reporters in Brasilia, "Let's not give space to compromise with a convict." Earlier on Twitter, the president called for supporters to rally around his government's agenda, which has included a severe tightening of public spending, saying that they must not allow Brazil's next phase of recovery to be derailed. "Do not give ammunition to the scoundrel, who is momentarily free but full of guilt," Bolsonaro said. While Bolsonaro did not mention Lula by name, his left-wing rival took direct aim at the president. "If we work hard, in 2022 the so-called left that Bolsonaro is so afraid of will defeat the ultra-right," he said. Lula, who left the presidency with sky-high approval ratings, is ineligible to stand for office until 2025 under Brazil's "Clean Record" law because of a conviction for taking bribes. But his release is expected to energize the left ahead of next year's municipal elections. He was imprisoned in 2018 after being found guilty of receiving bribes from construction companies in return for public contracts. Lula has maintained his innocence. On Saturday he repeated that Justice Minister Moro, prosecutors and police were lying about his guilt for political reasons. "(I'm) not responding to criminals, jailed or freed. Some people deserve to be ignored," Moro responded on Twitter.

In Brazil, newly freed Lula sets up clash with Bolsonaro's right-wing

Millions of people have already begun taking to the streets ahead of the start of Brazil's most iconic festival, Carnival, an event that promises to provide a jolt to the South American giant's struggling economy.

Brazil hopes the pre-Lenten party - which officially runs from March 1 to March 6 - will bring in some 6.8 billion reais (around $1.8 billion) in revenue, with businesses in the hotel services, transportation and food sectors being the biggest beneficiaries.

Many Brazilians are showing faith in the country's recovery from a deep 2015-2016 recession and spending money on travel, while others see an opportunity for temporary work and the chance to build up some savings.

Some 5 million people are expected to celebrate Carnival in Sao Paulo alone, while 50 per cent of that metropolis' available hotel rooms are to be filled. 
Marcos de Andrade, an economist at Sao Paulo's Mackenzie Presbyterian University, told EFE there are high expectations for that city's festival.

He noted that this year the number of Sao Paulo "blocos," street bands that mobilize massive crowds and are the heart of Carnival, are expected to exceed those in Rio de Janeiro, a city more traditionally associated with that world-renowned festival.

In addition, more money has been invested in 2019 in the Sao Paulo blocos as opposed to their Rio counterparts.

"There also has been greater investment by professionals and business leaders in the sector," the economist said, noting that expectations are that temporary hiring will be up 10 per cent from 2018.

A week before the festivities officially kick off, millions of Carnival lovers have already begun packing the streets of Sao Paulo wearing masks, disguises and accessories and taking part in one of the 208 bloco parades already underway.

Nevertheless, Andrade sees the financial boost provided by Carnival as seasonal and says it would be a stretch to talk about a consolidated economic recovery in Brazil, which has grown at a tepid pace over the past two years.

Likewise, Jose Pena - chief economist at Porto Seguro Investimentos, the asset management arm of insurance company Porto Seguro - said it is very difficult to measure Carnival's nationwide contribution, though adding that its positive impact is undeniable.

He noted that economic activity during Carnival is mainly concentrated in the cities of Rio de Janeiro, Sao Paulo, Belo Horizonte, Salvador and Recife and in the hotel, food services and transportation industries.

"Those sectors clearly hit their peak during Carnival and attract a large number of tourists, so the (number of people travelling to those cities) jumps during that period," Pena said.

In fact, according to a study by Brazil's Tourism Ministry, five states will account for around 80 per cent of Carnival's nationwide revenues in 2019. 
Rio de Janeiro, which continues to lead the way, is projected to attract 7 million people to its streets during this year's festival, including 1.5 million tourists.

Meanwhile, the hotel occupancy rate in Brazil's most emblematic city was already 74 per cent a week before the official start of Carnival.

Estimates are that that rate will reach 98 per cent and 95 per cent, respectively, in the case of two northeastern cities: Salvador and Recife.

Despite persistent economic uncertainty in Brazil, there are signs of greater optimism for the first time in recent years.

Attorney Gabriel Morettini e Castella, who still has not decided in which city he will celebrate Carnival, said he has quite a bit more money to spend this year.

He said the law firm that employs him has seen an uptick in business that goes hand-in-hand with a better economic climate over the past four months.

"That improvement raised my income and will allow me to spend more than in previous Carnivals. This year, I'm willing to spend double the amount I did last year," Morettini e Castella said.

Millions of people have already begun taking to the streets ahead of the start of Brazil's most iconic festival, Carnival, an event that promises to provide a jolt to the South American giant's struggling economy.

Millions of people have already begun taking to the streets ahead of the start of Brazil's most iconic festival, Carnival, an event that promises to provide a jolt to the South American giant's struggling economy. Brazil hopes the pre-Lenten party - which officially runs from March 1 to March 6 - will bring in some 6.8 billion reais (around $1.8 billion) in revenue, with businesses in the hotel services, transportation and food sectors being the biggest beneficiaries. Many Brazilians are showing faith in the country's recovery from a deep 2015-2016 recession and spending money on travel, while others see an opportunity for temporary work and the chance to build up some savings. Some 5 million people are expected to celebrate Carnival in Sao Paulo alone, while 50 per cent of that metropolis' available hotel rooms are to be filled. Marcos de Andrade, an economist at Sao Paulo's Mackenzie Presbyterian University, told EFE there are high expectations for that city's festival. He noted that this year the number of Sao Paulo "blocos," street bands that mobilize massive crowds and are the heart of Carnival, are expected to exceed those in Rio de Janeiro, a city more traditionally associated with that world-renowned festival. In addition, more money has been invested in 2019 in the Sao Paulo blocos as opposed to their Rio counterparts. "There also has been greater investment by professionals and business leaders in the sector," the economist said, noting that expectations are that temporary hiring will be up 10 per cent from 2018. A week before the festivities officially kick off, millions of Carnival lovers have already begun packing the streets of Sao Paulo wearing masks, disguises and accessories and taking part in one of the 208 bloco parades already underway. Nevertheless, Andrade sees the financial boost provided by Carnival as seasonal and says it would be a stretch to talk about a consolidated economic recovery in Brazil, which has grown at a tepid pace over the past two years. Likewise, Jose Pena - chief economist at Porto Seguro Investimentos, the asset management arm of insurance company Porto Seguro - said it is very difficult to measure Carnival's nationwide contribution, though adding that its positive impact is undeniable. He noted that economic activity during Carnival is mainly concentrated in the cities of Rio de Janeiro, Sao Paulo, Belo Horizonte, Salvador and Recife and in the hotel, food services and transportation industries. "Those sectors clearly hit their peak during Carnival and attract a large number of tourists, so the (number of people travelling to those cities) jumps during that period," Pena said. In fact, according to a study by Brazil's Tourism Ministry, five states will account for around 80 per cent of Carnival's nationwide revenues in 2019. Rio de Janeiro, which continues to lead the way, is projected to attract 7 million people to its streets during this year's festival, including 1.5 million tourists. Meanwhile, the hotel occupancy rate in Brazil's most emblematic city was already 74 per cent a week before the official start of Carnival. Estimates are that that rate will reach 98 per cent and 95 per cent, respectively, in the case of two northeastern cities: Salvador and Recife. Despite persistent economic uncertainty in Brazil, there are signs of greater optimism for the first time in recent years. Attorney Gabriel Morettini e Castella, who still has not decided in which city he will celebrate Carnival, said he has quite a bit more money to spend this year. He said the law firm that employs him has seen an uptick in business that goes hand-in-hand with a better economic climate over the past four months. "That improvement raised my income and will allow me to spend more than in previous Carnivals. This year, I'm willing to spend double the amount I did last year," Morettini e Castella said.

Brazilians hope world-famous carnival will give economy a boost

Neymar Jr admitted that five-time champions Brazil are dreaming of winning the World Cup 2018 again as they arrived in Russia.&nbsp;

All in all, Brazil have a great team - Thiago Silva, Marcelo, Marquinhos, David Luiz, Paulinho, Fernaninho, Fernando, Firmino, Coutinho, Neymar - looks like a World Cup winning squad to me if they have the right mentality.

Brazil have been outstanding during the World Cup friendly matches. Although the defence has been fragile that reminds me of Brazil's previous World Cup campaign when the team faced a tragic 7-1 defeat to Germany in the semi-finals.

However, Brazil have improved its game plan and also the mid-fielders like Firmino, Coutinho, Fernandinho have been good in the recently concluded domestic games.

With lots of positives, why Brazilians are not excited not excited about the World Cup?

The trade group surveyed 18,000 people across Brazil, which suggests that there has been a drop in the craze which Brazilians used to have earlier.&nbsp;

Some 24 per cent of consumers plan to buy products over the next few weeks to celebrate the 2018 FIFA World Cup in Russia, well below the 50.1 per cent who spent money on the 2014 World Cup in Brazil, according to the results of a survey released Monday by the Brazilian Business Confederation.

"In addition to there naturally being less enthusiasm among the people for a World Cup played abroad, the situation among consumers is less favorable in 2018 than it was four years ago," Brazilian Business Confederation economic unit chief Fabio Bentes said in a statement.

Brazil's economy contracted 3.5 per cent in 2015, the worst performance in 25 years, and another 3.5 per cent in 2016, marking the first time since 1931 that the gross domestic product (GDP) fell for two consecutive years.

Even though Brazil has started recovering from the severe recession, households are still struggling with low purchasing power and high unemployment, Bentes said.

The trade group, however, said it was still a good sign for businesses that one in four Brazilian consumers planned to spend money on products linked to the World Cup.

"Despite the fact that the country already put the recession behind it, the recovery in the economy and consumer spending continues to be slow and subject to fluctuations," Bentes said.

Some 51.6 percent of respondents said they planned to spend a maximum of 200 reais (about $52.60) on World Cup merchandise, while 39.2 per cent of respondents said they would spend up to 300 reais (some $78.90).

The situation among consumers is less favorable in 2018 than it was four years ago, says Brazilian Business Confederation economic unit chief Fabio Bentes

Neymar Jr admitted that five-time champions Brazil are dreaming of winning the World Cup 2018 again as they arrived in Russia. All in all, Brazil have a great team - Thiago Silva, Marcelo, Marquinhos, David Luiz, Paulinho, Fernaninho, Fernando, Firmino, Coutinho, Neymar - looks like a World Cup winning squad to me if they have the right mentality. Brazil have been outstanding during the World Cup friendly matches. Although the defence has been fragile that reminds me of Brazil's previous World Cup campaign when the team faced a tragic 7-1 defeat to Germany in the semi-finals. However, Brazil have improved its game plan and also the mid-fielders like Firmino, Coutinho, Fernandinho have been good in the recently concluded domestic games. With lots of positives, why Brazilians are not excited not excited about the World Cup? The trade group surveyed 18,000 people across Brazil, which suggests that there has been a drop in the craze which Brazilians used to have earlier. Some 24 per cent of consumers plan to buy products over the next few weeks to celebrate the 2018 FIFA World Cup in Russia, well below the 50.1 per cent who spent money on the 2014 World Cup in Brazil, according to the results of a survey released Monday by the Brazilian Business Confederation. "In addition to there naturally being less enthusiasm among the people for a World Cup played abroad, the situation among consumers is less favorable in 2018 than it was four years ago," Brazilian Business Confederation economic unit chief Fabio Bentes said in a statement. Brazil's economy contracted 3.5 per cent in 2015, the worst performance in 25 years, and another 3.5 per cent in 2016, marking the first time since 1931 that the gross domestic product (GDP) fell for two consecutive years. Even though Brazil has started recovering from the severe recession, households are still struggling with low purchasing power and high unemployment, Bentes said. The trade group, however, said it was still a good sign for businesses that one in four Brazilian consumers planned to spend money on products linked to the World Cup. "Despite the fact that the country already put the recession behind it, the recovery in the economy and consumer spending continues to be slow and subject to fluctuations," Bentes said. Some 51.6 percent of respondents said they planned to spend a maximum of 200 reais (about $52.60) on World Cup merchandise, while 39.2 per cent of respondents said they would spend up to 300 reais (some $78.90).

Neymar hopes for positive World Cup but Brazilians not excited: Survey

Brazil&#39;s unemployment rate hit 12 per cent between October and December, another record high, official data showed even as the economy is forecast to slowly exit deep recession.

That amounted to 12.3 million people looking for work at the end of 2016, a third more than in the last quarter a year earlier, the Brazilian Institute for Geography and Statistics said.

Market analysts with Gradual Investimentos consultants had predicted the unemployment rate would hold at the previous quarter&#39;s 11.9 per cent, which was also a record high.

Joblessness has dented the popularity of the market-friendly government of President Michel Temer, who took over last year after the impeachment of president Dilma Rousseff with promises to restore the Latin American giant&#39;s economy to health.

In the final quarter of 2015 -- still under Rousseff&#39;s administration -- unemployment was nine per cent, while a year earlier it had been 6.5 per cent.

Brazil&#39;s economy shrank 3.8 per cent in 2015 and is expected to have contracted a further 3.5 per cent in 2016, the worst recession in a century.

The central bank predicts a return to economic growth of 0.8 per cent next year, although the International Monetary Fund foresees growth of just 0.2 per cent.

In another sign of the country&#39;s financial troubles, the central bank said yesterday that the budget deficit hit a record high in 2016. The primary budget deficit -- excluding interest payments -- reached 155.8 billion Brazilian Reals.

The good news was that it remained within the government&#39;s target.

As it tries to stimulate the economy while helping the stubbornly high inflation to keep dropping, the bank is expected to make further cuts to its key interest rate.

Last month the bank cut the rate by a bigger than expected 0.75 per cent to 13 per cent, down from 14.25 per cent in October but still one of the world&#39;s highest.

Market expectations are for cuts to about 10.9 per cent this year. Inflation, meanwhile, has dipped from 10.67 per cent in 2015 to 6.29 per cent in 2016 and is expected to close 2017 at 4.7 per cent.

However, the interest rate cuts have yet to help the jobs market, said Alex Agostini, chief economist at Austin Rating.

Employment is &quot;the last variable that will see improvement&quot; because for now businesses are fighting for greater productivity rather than hiring.

&quot;Those who have work will have to work more,&quot; he said.&nbsp;

(AFP)

A total of 12.3 million people are looking for work at the end of 2016, a third more than in the last quarter a year earlier

Brazil's unemployment rate hit 12 per cent between October and December, another record high, official data showed even as the economy is forecast to slowly exit deep recession. That amounted to 12.3 million people looking for work at the end of 2016, a third more than in the last quarter a year earlier, the Brazilian Institute for Geography and Statistics said. Market analysts with Gradual Investimentos consultants had predicted the unemployment rate would hold at the previous quarter's 11.9 per cent, which was also a record high. Joblessness has dented the popularity of the market-friendly government of President Michel Temer, who took over last year after the impeachment of president Dilma Rousseff with promises to restore the Latin American giant's economy to health. In the final quarter of 2015 -- still under Rousseff's administration -- unemployment was nine per cent, while a year earlier it had been 6.5 per cent. Brazil's economy shrank 3.8 per cent in 2015 and is expected to have contracted a further 3.5 per cent in 2016, the worst recession in a century. The central bank predicts a return to economic growth of 0.8 per cent next year, although the International Monetary Fund foresees growth of just 0.2 per cent. In another sign of the country's financial troubles, the central bank said yesterday that the budget deficit hit a record high in 2016. The primary budget deficit -- excluding interest payments -- reached 155.8 billion Brazilian Reals. The good news was that it remained within the government's target. As it tries to stimulate the economy while helping the stubbornly high inflation to keep dropping, the bank is expected to make further cuts to its key interest rate. Last month the bank cut the rate by a bigger than expected 0.75 per cent to 13 per cent, down from 14.25 per cent in October but still one of the world's highest. Market expectations are for cuts to about 10.9 per cent this year. Inflation, meanwhile, has dipped from 10.67 per cent in 2015 to 6.29 per cent in 2016 and is expected to close 2017 at 4.7 per cent. However, the interest rate cuts have yet to help the jobs market, said Alex Agostini, chief economist at Austin Rating. Employment is "the last variable that will see improvement" because for now businesses are fighting for greater productivity rather than hiring. "Those who have work will have to work more," he said. (AFP)

Brazil: Unemployment at new high, touches 12% in last quarter of 2016

Under fire from a corruption scandal and a persistently deep recession, Brazil&#39;s government announced a modest package of economic stimulus Thursday.

President Michel Temer and his economic team, led by Finance Minister Henrique Meirelles, announced measures aimed at easing businesses and injecting life into the moribund economy, at a news conference in the capital Brasilia.

&quot;These are measures... to boost productivity in the country and as a result to lower unemployment,&quot; Temer said.

The measures include enabling businesses and individuals to renegotiate debt and obtain new credit, he said.

He also promised &quot;extraordinary simplification&quot; of the process for tax payments in a highly bureaucratic country that requires &quot;excessive time for companies to fill out paperwork.&quot;

The attempt to boost business optimism came shortly after the Senate passed a 20-year government spending freeze as part of the government`s unpopular austerity measures.

Temer hopes to push through more controversial changes next, including raising the minimum age for pensions. But he could face a tougher time in Congress as well as public unrest.

The president -- who came to power after the impeachment of Dilma Rousseff earlier this year -- is beset by a sprawling corruption scandal centered on the state oil company Petrobras.

Several of Temer`s ministers have had to resign and he himself has been implicated in plea bargain testimony by executives being prosecuted in the scandal, according to Brazilian media reports.

Brazil`s economy is struggling in its deepest recession and mired in debt. The three major credit agencies have classified the country`s rating as junk status. 
 
(AFP)

The attempt to boost business optimism comes after the Senate passed a 20-year government spending freeze as part of austerity measures

Under fire from a corruption scandal and a persistently deep recession, Brazil's government announced a modest package of economic stimulus Thursday. President Michel Temer and his economic team, led by Finance Minister Henrique Meirelles, announced measures aimed at easing businesses and injecting life into the moribund economy, at a news conference in the capital Brasilia. "These are measures... to boost productivity in the country and as a result to lower unemployment," Temer said. The measures include enabling businesses and individuals to renegotiate debt and obtain new credit, he said. He also promised "extraordinary simplification" of the process for tax payments in a highly bureaucratic country that requires "excessive time for companies to fill out paperwork." The attempt to boost business optimism came shortly after the Senate passed a 20-year government spending freeze as part of the government`s unpopular austerity measures. Temer hopes to push through more controversial changes next, including raising the minimum age for pensions. But he could face a tougher time in Congress as well as public unrest. The president -- who came to power after the impeachment of Dilma Rousseff earlier this year -- is beset by a sprawling corruption scandal centered on the state oil company Petrobras. Several of Temer`s ministers have had to resign and he himself has been implicated in plea bargain testimony by executives being prosecuted in the scandal, according to Brazilian media reports. Brazil`s economy is struggling in its deepest recession and mired in debt. The three major credit agencies have classified the country`s rating as junk status. (AFP)

Brazil announces limited stimulus package to counter recession

Brazil&#39;s Senate approved on Tuesday a 20-year freeze on government spending billed as the centerpiece of austerity reforms aimed at restoring economic health to the troubled Latin American giant.

The upper house voted 53 to 16 to lock in the spending ceiling.

Center-right President Michel Temer says tough measures are needed to get Brazil&#39;s finances back under control, but his austerity policies have prompted violent protests and were criticised last week by a UN expert as &quot;a historic mistake.&quot;

Police were out in force in the capital Brasilia to protect government buildings from demonstrators during the upper house vote, which was wrapped up unexpectedly quickly.

Luis Jorge, a union leader who had come for the protests, expressed anger at the Senate for voting &quot;before we could demonstrate. That makes us very angry.&quot;

However, hundreds of people, many with their faces covered, clashed with police later Tuesday. Security forces fired tear gas to try to disperse the crowd.&nbsp;

A bus was burned during the demonstration, which drew about 2,000 people, police said. The police operation in the capital ended with 100 arrests, officials said.

In Sao Paulo, left-wing protesters attacked the headquarters of FIESP, the country&#39;s main industrial association, before being driven back.

The vote means that the spending cap is now mandated by the constitution, serving as the central plank in Temer&#39;s bid to &quot;transform&quot; the broken economy, which is in deep recession.

However, Temer is rapidly losing political clout as he and many of his senior allies fight to survive a slew of corruption allegations.

Brazilians battered by nearly 12 per cent unemployment and stubbornly high inflation are increasingly angry over the scandals and hostile to the austerity measures.

A poll published Tuesday showed that 60 per cent of Brazilians oppose the spending ceiling. Only 24 per cent are in favor, according to the Datafolha poll published in the newspaper Folha.

When the Senate held a first vote on the measure two weeks ago, protesters fought riot police outside Congress, burning cars and smashing windows.

&nbsp;&#39;We need courage&#39;&nbsp; 
Temer, in an attempt to claw back public support, has unveiled stimulus measures that would attempt to give a short-term boost to the ailing economy, the largest in Latin America.

But as the Senate began debating he defended his far-reaching austerity proposals, saying they were needed to change Brazil for the long term.

In addition to the spending ceiling, a separate measure is being submitted to Congress proposing pension reforms. At the center of the measure would be a minimum retirement age of 65, substantially higher than the current requirement, which varies widely between professions, but can be as early as 55 years old.

&quot;We need a lot of courage at this moment in Brazil to do things that are apparently unpopular but which will bring popularity later,&quot; he said in a statement.

&quot;We need to transform the country,&quot; he said.

Philip Alston, the UN poverty and human rights rapporteur, attacked the 20-year spending cap as &quot;putting an entire generation at risk of social protection standards well below those currently in place.&quot;

&quot;This is a radical measure, lacking in all nuance and compassion,&quot; he said last week. &quot;It will hit the poorest and most vulnerable Brazilians the hardest.&quot;

However, there was a boost from the incoming US president, Donald Trump, who &quot;congratulated&quot; Temer for the reforms in a phone conversation Tuesday, according to the Brazilian presidency.

Temer&#39;s entire government is struggling in the face of allegations tying senior figures and the president himself to the giant embezzlement and bribery probe centered on state oil company Petrobras.

Temer came to power last August after the impeachment of leftist president Dilma Rousseff. As her former vice president, Temer was appointed to the post automatically for the rest of her term through 2018.

Temer said he would focus on ending the political and economic chaos that had doomed the Rousseff government.

However, the latest poll from Datafolha shows 63 per cent of Brazilians want him to resign to allow early elections. Only 10 per cent said they thought his government is doing a good job.

(AFP)

President Temer's austerity policies have prompted violent protests and were criticised last week by a UN expert as 'a historic mistake'

Brazil's Senate approved on Tuesday a 20-year freeze on government spending billed as the centerpiece of austerity reforms aimed at restoring economic health to the troubled Latin American giant. The upper house voted 53 to 16 to lock in the spending ceiling. Center-right President Michel Temer says tough measures are needed to get Brazil's finances back under control, but his austerity policies have prompted violent protests and were criticised last week by a UN expert as "a historic mistake." Police were out in force in the capital Brasilia to protect government buildings from demonstrators during the upper house vote, which was wrapped up unexpectedly quickly. Luis Jorge, a union leader who had come for the protests, expressed anger at the Senate for voting "before we could demonstrate. That makes us very angry." However, hundreds of people, many with their faces covered, clashed with police later Tuesday. Security forces fired tear gas to try to disperse the crowd. A bus was burned during the demonstration, which drew about 2,000 people, police said. The police operation in the capital ended with 100 arrests, officials said. In Sao Paulo, left-wing protesters attacked the headquarters of FIESP, the country's main industrial association, before being driven back. The vote means that the spending cap is now mandated by the constitution, serving as the central plank in Temer's bid to "transform" the broken economy, which is in deep recession. However, Temer is rapidly losing political clout as he and many of his senior allies fight to survive a slew of corruption allegations. Brazilians battered by nearly 12 per cent unemployment and stubbornly high inflation are increasingly angry over the scandals and hostile to the austerity measures. A poll published Tuesday showed that 60 per cent of Brazilians oppose the spending ceiling. Only 24 per cent are in favor, according to the Datafolha poll published in the newspaper Folha. When the Senate held a first vote on the measure two weeks ago, protesters fought riot police outside Congress, burning cars and smashing windows. 'We need courage' Temer, in an attempt to claw back public support, has unveiled stimulus measures that would attempt to give a short-term boost to the ailing economy, the largest in Latin America. But as the Senate began debating he defended his far-reaching austerity proposals, saying they were needed to change Brazil for the long term. In addition to the spending ceiling, a separate measure is being submitted to Congress proposing pension reforms. At the center of the measure would be a minimum retirement age of 65, substantially higher than the current requirement, which varies widely between professions, but can be as early as 55 years old. "We need a lot of courage at this moment in Brazil to do things that are apparently unpopular but which will bring popularity later," he said in a statement. "We need to transform the country," he said. Philip Alston, the UN poverty and human rights rapporteur, attacked the 20-year spending cap as "putting an entire generation at risk of social protection standards well below those currently in place." "This is a radical measure, lacking in all nuance and compassion," he said last week. "It will hit the poorest and most vulnerable Brazilians the hardest." However, there was a boost from the incoming US president, Donald Trump, who "congratulated" Temer for the reforms in a phone conversation Tuesday, according to the Brazilian presidency. Temer's entire government is struggling in the face of allegations tying senior figures and the president himself to the giant embezzlement and bribery probe centered on state oil company Petrobras. Temer came to power last August after the impeachment of leftist president Dilma Rousseff. As her former vice president, Temer was appointed to the post automatically for the rest of her term through 2018. Temer said he would focus on ending the political and economic chaos that had doomed the Rousseff government. However, the latest poll from Datafolha shows 63 per cent of Brazilians want him to resign to allow early elections. Only 10 per cent said they thought his government is doing a good job. (AFP)

Brazil Senate approves 20-year austerity plan

Brazil&#39;s Senate approved on Tuesday a 20-year freeze on government spending billed as the centerpiece of austerity reforms aimed at restoring economic health to the troubled Latin American giant.

The upper house voted 53 to 16 to lock in the spending ceiling.

Center-right President Michel Temer says tough measures are needed to get Brazil&#39;s finances back under control, but his austerity policies have prompted violent protests and were criticized last week by a UN expert as &quot;a historic mistake.&quot;

Police were out in force in the capital Brasilia to protect government buildings from demonstrators during the upper house vote, which was wrapped up unexpectedly quickly.

Luis Jorge, a union leader who had come for the protests, expressed anger at the Senate for voting &quot;before we could demonstrate. That makes us very angry.&quot;

However, hundreds of people, many with their faces covered, clashed with police later Tuesday. Security forces fired tear gas to try to disperse the crowd.&nbsp;

A bus was burned during the demonstration, which drew about 2,000 people, police said. The police operation in the capital ended with 100 arrests, officials said.

In Sao Paulo, left-wing protesters attacked the headquarters of FIESP, the country&#39;s main industrial association, before being driven back.

The vote means that the spending cap is now mandated by the constitution, serving as the central plank in Temer&#39;s bid to &quot;transform&quot; the broken economy, which is in deep recession.

However, Temer is rapidly losing political clout as he and many of his senior allies fight to survive a slew of corruption allegations.

Brazilians battered by nearly 12 per cent unemployment and stubbornly high inflation are increasingly angry over the scandals and hostile to the austerity measures.

A poll published Tuesday showed that 60 per cent of Brazilians oppose the spending ceiling. Only 24 per cent are in favor, according to the Datafolha poll published in the newspaper Folha.

When the Senate held a first vote on the measure two weeks ago, protesters fought riot police outside Congress, burning cars and smashing windows.

&nbsp;&#39;We need courage&#39;&nbsp; 
Temer, in an attempt to claw back public support, has unveiled stimulus measures that would attempt to give a short-term boost to the ailing economy, the largest in Latin America.

But as the Senate began debating he defended his far-reaching austerity proposals, saying they were needed to change Brazil for the long term.

In addition to the spending ceiling, a separate measure is being submitted to Congress proposing pension reforms. At the center of the measure would be a minimum retirement age of 65, substantially higher than the current requirement, which varies widely between professions, but can be as early as 55 years old.

&quot;We need a lot of courage at this moment in Brazil to do things that are apparently unpopular but which will bring popularity later,&quot; he said in a statement.

&quot;We need to transform the country,&quot; he said.

Philip Alston, the UN poverty and human rights rapporteur, attacked the 20-year spending cap as &quot;putting an entire generation at risk of social protection standards well below those currently in place.&quot;

&quot;This is a radical measure, lacking in all nuance and compassion,&quot; he said last week. &quot;It will hit the poorest and most vulnerable Brazilians the hardest.&quot;

However, there was a boost from the incoming US president, Donald Trump, who &quot;congratulated&quot; Temer for the reforms in a phone conversation Tuesday, according to the Brazilian presidency.

Temer&#39;s entire government is struggling in the face of allegations tying senior figures and the president himself to the giant embezzlement and bribery probe centered on state oil company Petrobras.

Temer came to power last August after the impeachment of leftist president Dilma Rousseff. As her former vice president, Temer was appointed to the post automatically for the rest of her term through 2018.

Temer said he would focus on ending the political and economic chaos that had doomed the Rousseff government.

However, the latest poll from Datafolha shows 63 per cent of Brazilians want him to resign to allow early elections. Only 10 per cent said they thought his government is doing a good job.

(AFP)

The upper house voted 53 to 16 to lock in the spending ceiling

Brazil's Senate approved on Tuesday a 20-year freeze on government spending billed as the centerpiece of austerity reforms aimed at restoring economic health to the troubled Latin American giant. The upper house voted 53 to 16 to lock in the spending ceiling. Center-right President Michel Temer says tough measures are needed to get Brazil's finances back under control, but his austerity policies have prompted violent protests and were criticized last week by a UN expert as "a historic mistake." Police were out in force in the capital Brasilia to protect government buildings from demonstrators during the upper house vote, which was wrapped up unexpectedly quickly. Luis Jorge, a union leader who had come for the protests, expressed anger at the Senate for voting "before we could demonstrate. That makes us very angry." However, hundreds of people, many with their faces covered, clashed with police later Tuesday. Security forces fired tear gas to try to disperse the crowd. A bus was burned during the demonstration, which drew about 2,000 people, police said. The police operation in the capital ended with 100 arrests, officials said. In Sao Paulo, left-wing protesters attacked the headquarters of FIESP, the country's main industrial association, before being driven back. The vote means that the spending cap is now mandated by the constitution, serving as the central plank in Temer's bid to "transform" the broken economy, which is in deep recession. However, Temer is rapidly losing political clout as he and many of his senior allies fight to survive a slew of corruption allegations. Brazilians battered by nearly 12 per cent unemployment and stubbornly high inflation are increasingly angry over the scandals and hostile to the austerity measures. A poll published Tuesday showed that 60 per cent of Brazilians oppose the spending ceiling. Only 24 per cent are in favor, according to the Datafolha poll published in the newspaper Folha. When the Senate held a first vote on the measure two weeks ago, protesters fought riot police outside Congress, burning cars and smashing windows. 'We need courage' Temer, in an attempt to claw back public support, has unveiled stimulus measures that would attempt to give a short-term boost to the ailing economy, the largest in Latin America. But as the Senate began debating he defended his far-reaching austerity proposals, saying they were needed to change Brazil for the long term. In addition to the spending ceiling, a separate measure is being submitted to Congress proposing pension reforms. At the center of the measure would be a minimum retirement age of 65, substantially higher than the current requirement, which varies widely between professions, but can be as early as 55 years old. "We need a lot of courage at this moment in Brazil to do things that are apparently unpopular but which will bring popularity later," he said in a statement. "We need to transform the country," he said. Philip Alston, the UN poverty and human rights rapporteur, attacked the 20-year spending cap as "putting an entire generation at risk of social protection standards well below those currently in place." "This is a radical measure, lacking in all nuance and compassion," he said last week. "It will hit the poorest and most vulnerable Brazilians the hardest." However, there was a boost from the incoming US president, Donald Trump, who "congratulated" Temer for the reforms in a phone conversation Tuesday, according to the Brazilian presidency. Temer's entire government is struggling in the face of allegations tying senior figures and the president himself to the giant embezzlement and bribery probe centered on state oil company Petrobras. Temer came to power last August after the impeachment of leftist president Dilma Rousseff. As her former vice president, Temer was appointed to the post automatically for the rest of her term through 2018. Temer said he would focus on ending the political and economic chaos that had doomed the Rousseff government. However, the latest poll from Datafolha shows 63 per cent of Brazilians want him to resign to allow early elections. Only 10 per cent said they thought his government is doing a good job. (AFP)

Brazil Senate approves 20-year spending freeze

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Brazil Senate approves 20-year spending freeze