The Emergency Meeting

The Economist reports Luiz Inácio Lula da Silva's hand picked successor, Brazilian President Dilma Roussef, has seen her popularity drop in half "after the eruption of nationwide protests involving more than 1m people."  The people are upset over corruption.

In response she "has put forward a five-point plan focused on political reform and investment in long-neglected public services. On July 2nd she sent a list of proposals to the Senate. She wants a consultative referendum on the public financing of campaigns, the abolition of secret ballots in parliament, an overhaul of rules that govern political alliances and a new electoral system (the current one uses an open-list, proportional-representation model for the lower house)"

Our correspondent on the scene, Friends University student Lucas Bariani Machado, tells us from Brazil that some may be skeptical.  He provided us with the YouTube spoof (in Portuguese with English subtitles) below: enjoy!

REUNIÃO DE EMERGÊNCIA

Update:

Lucas offers this video as a 5 minute explanation of "why we are into these protests that you've been aware of lately." 

Santander Takes a Big Writedown on Its Spanish Real estate Loans

10/25/2012
Banco Santander said profit fell after it amassed provisions against real-estate losses in Spain and as economic activity stuttered in some Latin American markets. Dow Jones's Margot Patrick reports:

Michäla Rehl took this picture of Bavaria's  Finance Minister Markus Söder for Reuters February 10, 2012.  Herr Söder was in Veitshöchheim (near Würzburg) for the TV show "Fastnacht in Franken."  Fastnacht is one of the common names for Shrove Tuesday ("Fat Tuesday.")  Fat Tuesday is fat because we fill up before Lent begins on Ash Wednesday.  It is called Fasching in Bavaria, carnival in much of the world, and marti gras (French for "Fat Tuesday") in places like New Orleans.  Carnaval accounts for 70% of Brazil's tourism and 80% of its beer consumption: not bad for a week's "work." This celebration of the fun before the fast can create enough sin to require at least forty days of repentance.

The "Hast Du mal nen Euro?" translates roughly into "Would you have a Euro already?" or "Spare a Euro?"  I wonder whether this is Bayerisch or Kiezdeutsch.   The Economist describes Kiezdeutsch as "the argot of inner-city teenagers" and a Doktor Heike Wiese, linguist at the University of Potsdam, has argued it to be a distinct German dialect.  Purists are outraged.

Might Herr Söder be making fun of the Greeks asking for a handout? Why such Teutonic skepticism?  Those suspicious Germans figure the Greeks want Fasching without fasting, i.e., carnival without Lent.  Well who wouldn't?  The Germans read their Homer and know what happened to the Trojans when they believed the Greeks.

Risks and opportunities for Brazil

Brazil's central Bank has cut interest rates from high levels.   Two weeks before Brazil's next interest rate decision it remains unclear whether the central bank will cut rates again.  In this FT video from October 7 2011, Zeina Latif, Latin America chief economist with RBS in São Paulo, explains to Jonathan Wheatley, deputy emerging markets editor, why although the crisis in Europe looks like an opportunity to cut rates there are multiple risks involved. (5m 24sec)

The Giant To The South: Prometheus Bound?

In this Financial Times video, Jonathan Wheatley reports on the colossal challenge facing Brazilian farmers and manufacturers because the country lacks the infrastructure, the roads and port facilities, to export its wealth.  (3m 24sec)

May 26 2010

Risk Aversion

Aline van Duyn reports that investors are running away from risk.  Could it be that we are mostly talking about speculators who being subsidized by too cheap money compliments of Chairman Bernanke?