Brazil’s central bank kept its key Selic interest rate at a record low 8.75% and said its level was “consistent” with a non-inflationary recovery, signalling that no increase in borrowing costs is imminent.
Brazil’s main opposition party demanded responsibility from President Lula da Silva in combating the wave of violence rocking Rio do Janeiro and which has left at least 35 killed in shootings with the drugs’ gangs that even downed a police helicopter.
Brazil’s main political force, Brazilian Democratic Movement, PMDB closed this week a deal with President Lula da Silva to support Minister Dilma Rousseff as the ruling coalition’s presidential candidate for next year’s election.
Brazil's stock market suffered one of its worst one-day plunges in three months and the currency sank after the government imposed a tax on foreign investments in local stocks and bonds. The Bovespa index of the Sao Paulo stock exchange dropped 2.88% to 65,303.11, after closing at its strongest level since June 2008 the previous session.
The death toll of a weekend shootout in Rio do Janeiro shanty towns between police forces and drug dealers climbed to 25 with the discovery of several bodies, --one of them in a supermarket cart--, and the death of a third police officer from a downed helicopter.
President Lula da Silva said Brazil would end this year with a million new formal jobs and in 2010 the economy will expand 5%. Speaking at his program “Breakfast with the President”, Lula da Silva announced that 252.000 jobs had been created in September which means 2009 will end “with a million new formal jobs”.
Brazil will impose a 2% tax on purchases by foreign investors of Real-denominated, fixed-income securities and on purchases of stocks. The measures are being taken “to avoid an excess speculation in the stock market and in capital markets” said Finance minister Guido Mantega told reporters Monday in Sao Paulo.
Brazil's government managed oil and gas company Petrobras said on Monday domestic oil output increased 1.2% in September, compared with August, to a record high as it completed platform maintenance and boosted output at some wells. The new record is 2 million bpd from 1.98 million bpd in August.
Bosnia, Brazil, Gabon, Lebanon and Nigeria were elected Thursday to non-permanent seats on the United Nations Security Council. They will serve two-year terms starting January 1 and will participate in decisions ranging from deploying U.N. peacekeepers to imposing sanctions.
Brazil's JBS said on Wednesday the US Justice Department has approved the takeover of US-based Pilgrim's Pride paving the way for JBS to become the world's largest meat company.