Lula avoids TV debate

For the third time during the current presidential campaign, president Luiz Inacio Lula da Silva did not show up for a TV debate with his main opponents in the general election scheduled for Sunday. This time, on Thursday, the president missed the debate organised by Globo TV, saying he would not show up due to the 'desperate and virulent attacks' he's been suffering from the other candidates in the race. Without Lula, the three candidates left (Cristovam Buarque, Heloisa Helena and Geraldo Alckmin) chose to criticize the president for his lack of courage in not wanting to discuss and present his ideas openly in a debate broadcast nationally. According to some polls, the president is the favorite for winning a second term, and could get more than 50 percent of the valid votes on Sunday to avoid a second voting round with the second-placed candidate - Geraldo Alckmin, according to the polls.

Central Bank lowers growth expectation

The Brazilian Central Bank lowered its growth expectation for the country's economy in 2006. Due to the slow moment in the economy in the third quarter of the year, the bank lowered its growth prediction from 4 to 3.5 percent in the year. The inflation should be 3.4%, below the 3.8% the Bank had predicted previously.

Central Bank lowers growth expectation

The Brazilian Central Bank lowered its growth expectation for the country's economy in 2006. Due to the slow moment in the economy in the third quarter of the year, the bank lowered its growth prediction from 4 to 3.5 percent in the year. The inflation should be 3.4%, below the 3.8% the Bank had predicted previously.

Bus accident leaves one dead and 30 injured

An accident with a bus near the city of Uberlandia, in the State of Minas Gerais, killed a baby and left 30 other people injured, according to reports from the Brazilian media. The accident took place in the early hours of Wednesday morning, after the bus driver lost control of the vehicle, which flipped over on a curve. A five-month-old baby died on the scene, and five of the 30 injured were rushed to nearby hospitals in critical condition.

Bank workers stop for 24 hours

Bank workers from all over Brazil have started a 24-hour strike in order to force banks to accept their demands for better wages. After not being able to get a settlement with the National Federation of Banks, the workers' union decided for the stoppage. Most bank branches will thus be closed this Tuesday, and people needing bank services will have to use ATMs or online banking to pay bills, transfer or withdraw money. Some workers threaten to extend the strike beyond the initial 24-hour period if an agreement is not reached.

Cardoso compares Lula to the devil

Former president Fernando Henrique Cardoso called president Luiz Inacio Lula da Silva the devil during an event in Sao Paulo, according to the Folha de S. Paulo newspaper. According to the paper, Mr. Cardoso was making a reference to the comment Lula made on Sunday, comparing himself to Jesus Christ being betrayed by Judas, in the case where members of his party are accused of trying to buy documents allegedly showing his political opponents participating in corruption schemes. "Christ didn't go kiss Judas nor referred to his betrayers as former friends. This isn't Christ, it's the devil," said Mr. Cardoso.

Electoral authorities are still trying to determine whether the scandal involving the purchase of the documents is enough to prevent Lula from running for a second term in office. The presidential election is scheduled for Sunday.

Government cuts R$ 1.6 billion from budget

The Brazilian Federal government decided to cut R$ 1.6 billion (approximately US$ 715 million) from its budget, according to a statement released by the Ministry of Planning. The government also lowered its expectations for the growth of the country's economy, from 4.5% to 4%.

Model wants to sue YouTube

Brazilian model Daniela Cicarelli, who became famous worldwide after her short marriage to soccer star Ronaldo, informed through her lawyers that she will sue websites that posted a video of herself and her boyfriend caressing each other on a Spanish beach. The video, which includes strong scenes of the couple, was originally shot by a Spanish photographer who then posted it on YouTube, where it quickly reached more than 50,000 views. The website quickly removed the video, but it was reposted several times in the following days in the same site, as well as other pages in Brazilian websites. This week, coincidentially or not, the model had two major contracts cancelled, with mobile operator Tim and auto-maker General Motors. The companies say the video incident was not related to the cancellation of the contracts.

Lula's campaign coordinator resigns

The campaign coordinator for the re-election of Brazilian president Luiz Inacio Lula da Silva, Ricardo Berzoini, has resigned to his post following allegation he might have been involved in a scheme trying to damage the president's opponents. The Brazilian Election Court has informed it will investigate allegations that the president's Workers Party was involved in an operation to collect documents that could harm the image of opposition candidates in the upcoming October 1 election. Berzoini said he was not involved in the alleged scheme, and asked the court officials to pursue the investigation to its fullest. The new campaign coordinator for Lula will be Marco Aurelio Garcia, who was the chief campaign adviser.

Two men were arrested last week with R$ 800,000 in cash, money that would be used to buy documents linking opposition candidates to corruption scandals, according to the police. The men arrested were linked to the Workers' Party, and officials will try to determine if the president was in any way directly involved with the operation.

Police arrests man with US$ 460,000 in LSD

The Brazilian Federal Police arrested a man in Rio de Janeiro with 20,850 micropoints of LSD, worth an estimated R$ 1 million (or about US$ 460,000). The 23-year-old man was arrested after the drugs were found in his lugagge by the police, at the Tom Jobim International Airport, in Rio. He was arriving from Europe, and police suspect the drug was bought in the Netherlands. It's one of the largest drug aprehensions in the country in the last 10 years, according to reports from the Brazilian media.

GM employees start 24h strike

More than 5,000 employees from GM's production unit in Sao Jose dos Campos, in Sao Paulo State, have started a 24-hour strike this morning to complain about the company's wage adjustment policy. The employee's union informed that workers are seeking a 7 percent raise - instead of the initial 13.8 percent asked -, but the company is willing to grant only a 5.47 percent increase - instead of an initial offer of 4.19 percent - plus an additional R$ 400 per employee (roughly US$ 185). The company informed it's still open to negotiations, and doesn't agree the strike was needed at this point.

Justice confirms redistribution of Varig routes

The Brazilian airline Varig was not able to avoid the decision taken by the Brazilian Air Controller to redistribute the company's international routes, amidst the financial troubles currently being faced by the traditional company. The Brazilian Supreme Court rejected an appeal to overturn a previous decision by the Justice system to start distributing international routes to competitors. The Brazilian Air Regulator (Anac) had decided last week to grant the redistribution of routes to Europe and the Americas to other companies, a decision that will likely be ratified later this week.

Lula campaign aidee escapes helicopter accident

A helicopter carrying a campaign aidee for president Luiz Inacio Lula da Silva crashed today in Fortaleza, in the Brazilian State of Ceara. The aidee and three other people escaped the accident alive. The pilot is in more serious condition, but his injuries are not life threatening, according to the Brazilian media. Witnesses explained the accident wasn't more serious because the pilot managed to hit a tree as the helicopter was falling, slowing it down before it hit the ground. Authorities are still investigating to determine what caused the accident.

Varig fights to keep routes

The Brazilian airline Varig continues trying to avoid losing its most profitable international routes to other airlines in the country. According to the Folha de Sao Paulo newspaper, the company has already filed an appeal at the Brazilian Supreme Court to overturn a previous decision by the Justice system to start distributing international routes to competitors, due to the ongoing financial problems at the traditional company. The Brazilian Air Regulator (Anac) had decided last week to grant the redistribution of routes to Europe and the Americas to other companies, but now it must still wait for the Supreme Court's decision, which can come later this week.

Brazil cancels meeting with Bolivia amidst energy crisis

The Brazilian government called off a meeting it would have had with Bolivia to discuss energy issues after the Bolivian government announced it would take control of the revenues generated by Bolivian refineries owned by Brazilian oil giant Petrobras. Despite not taking any other formal action, the Brazilian government suggested it would demand a change in policy buy Bolivia, which announced earlier in the year the nationalization of foreign assets in the energy sector in the country.

After the initial Brazilian reaction, the Bolivian government announced it would suspend temporarily the decision to take control of Petrobras' revenues, in order to improve the negotiations between the two countries.

President acknowledges Brazil still not able to host World Cup

Brazilian president Luiz Inacio Lula da Silva said today that Brazil doesn't yet have what it takes to host the World Cup of soccer in 2014. According to Lula, the Brazilian organizing committee would need to receive full support from the Federal and State Governments to receive the necessary investments to build new stadia and improve the country's infrastructure.

"We currently don't have any stadium which meets FIFA's criteria to hold a World Cup game, and we'll need at least 12 for a competition of this magnitude," said the president, during an official ceremony in which he launched a sports lottery created to try to help solve team debts with the Federal Government. By hosting the event, the country could improve its international image and ultimately attract investments from abroad, argued Lula.

A final decision about the host country will be made in 2008. According to a rotating model developed by the world's soccer governing body, FIFA, the 2014 competition will be in the Americas. FIFA's president Joseph Blatter was recently quoted as saying he'd support a World Cup in Brazil, but only if the country invested billions in infra-structure.

Problem in airplane forces president to return to airport

President Luiz Inacio Lula da Silva suffered a minor scare this Wednesday, when the official presidential plane he was traveling in suffered a problem in its navigation equipment. According to the Brazilian media, the tool that calculates the plane's altitude in relation to the ground stopped functioning properly 20 minutes into a flight from Brasilia to Rio de Janeiro, which normally lasts 1 hour and a half. Without the system, officials determined it would be difficult to land the plane in case of poor weather conditions, and instead opted to return to Brasilia. The president was offered the option of boarding another plane, but instead decided to remain in Brasilia and not show up at an event he had been expected to attend in Rio.

Congress cuts 'special positions' to curb irregularities

The Chamber of Deputies - Lower House of the Brazilian Congress - decided to extinguish 1,163 Special Nature Positions (CNEs, its acronym in Portuguese) to try to curb irregularities which were revealed earlier this year by the Brazilian media. According to the Correio Braziliense newspaper, many of the positions were occupied by relatives of the politicians and sometimes certain employees earned up to R$ 8,000 a month (close to US$ 3,700) without even showing up for work. The decision will save the House approximately R$ 47 million a year (US$ 21.6 million). People employed in these positions generally are named to the posts by their political allies, and don't have to undergo a public examination, which is normally the case of other public employees in the country.

Police tries to close hacker gang

The Brazilian Federal Police launched a huge operation in four states and the Federal District trying to capture criminals accused of participating in crimes using the Internet. According to the police, the hackers used the Web to lure bank customers into providing their financial information and passwords, through phishing schemes.

The Replicant Operation, as it was called, involved 300 agents in the states of Rio Grande do Norte, Tocantins, Rio de Janeiro and Goias, as well as the Federal District, in places where the gang is believed to be based. A total of 120 search and arrest warrants were issued for the operation. The gang used emails and false sites resembling those of official Brazilian financial institutions to cheat the victims. Three police agents are believed to be part of the gang.

Brazilian industry shows increased production

The Brazilian industry sector showed an increase in production in 9 of the 14 regions surveyed, informed the Brazilian Institute of Geography and Statistics (IBGE). The largest increase in industrial production from June to July was seen in Amazonas, with 3.3 percent, followed by Ceara (2.2 percent). From the researched areas, only the states of Santa Catarina, Pernambuco, Espirito Santo, Parana and Bahia showed less output in July than in the previous month. The State with the largest industrial base in the country, Sao Paulo, showed a 1.5 percent increase.

Carandiru massacre commander is killed

Former Military Police commander Ubiratan Guimaraes, accused of being the main commander behind the Carandiru massacre in 1992, was killed over the weekend in Sao Paulo. He was shot just outside his apartment in Sao Paulo, and police are still investigating to find out the reasons for the crime.

In 1992, 111 prisoners died during the Carandiru massacre, after police entered the penitentiary to control a rebellion. After leaving the police, Guimaraes was elected to the Sao Paulo State congress. He had been receiving death threats ever since the massacre, and was considered one of the main targets of the PCC, the criminal faction that controls most of the State prisons and was behind a series of attacks against the police in Sao Paulo earlier this year. in 2001, Guimaraes was sentenced to 632 years in prison for his role in the police killings, but was able to wait for a second hearing without having to serve any time. In February of this year, the first trial was nullified, and Guimaraes was considered innocent.

Close to 300,000 could lose pensions

Close to 300,000 people could lose their State pensions in October if they do not update their information with the Brazilian government. The Federal government is undergoing an update process in order to try to eliminate irregular pensioners from its list. People with falsified documents and/or the family of people who received the benefit but who may have already died are the main targets. A total of 2.9 million people with their registration number ending in 1 or 2 had to update their data until today. 280,000 have failed to do so, according to government officials. The current census began in April, with 14.7 million people being called to update their information.

Dog Day Afternoon in Sao Paulo

Nearly 40 people were held hostage for 10 hours inside a bank in the city of Taubate, in Sao Paulo State, this Wednesday. The action, reminiscent of the 1970s movie 'Dog Day Afternoon', was not even a bank robbery. Rather, security guard Jose Ramos, who had started working at the bank branch on Monday, wanted to talk to his former girlfriend, who he had not seen in 7 years. After forcing employees and clients to remain inside the branch, he ordered police to find his former girlfriend and get her to call him there. He only released the hostages after she called him, nearly ten hours after he started his action. Nobody was hurt, despite Ramos firing 10 shots during the time he remained at the bank. The shots hit walls and the ceiling. Ramos was later arrested by police. His mother told police he is under psychiatric treatment and has to take prescription medicine for his illness regularly.

Private health receives failing grade

It's no secret that public health in Brazil is in critical condition. But private health does not seem to be to far away. The Brazilian health agency responsible for private health plans revealed that three quarters of the plans in the country have received a poor rating in its latest yearly review. According to the agency, only 26% of the private health plans received a rate of over 50 percent, with 55% simply refusing to give out information when requested by the regulatory body. According to the agency, the review is done to help consumers choose a plan taking into account other components than just price and marketing efforts.

More than 30 arrested for environmental crime

The Brazilian police is trying to break up a group of 58 people accused of promoting deforestation in two States - Rondonia and Mato Grosso. 34 people were arrested this morning, while police continues to look for the other 24. Seven of the accused work for the Federal government's Environment Institute (Ibama), according to the Environmental Miniter, Marina Silva, and will be fired as well as sent to prison. Another federal worker from the same institute was responsible for tipping the police about his involved colleagues, who were accused of allowing deforestation practices after receiving bribes from the other members of the criminal group.

Strike ends after Volkswagen suspends layoffs

Volkswagen has decided to temporarily suspend the 1,800 firings it had announced last week, leading the workers' union to call back the strike it had launched last week in response to the initial announcement of the layoffs. According to the German car manufacturer, a new round of negotiations will likely take place with the union to determine how the company can go ahead with its restructuring plans for the plant at Sao Bernardo, in the State of Sao Paulo. Trying to remain competitive, the company had contemplated firing up to 3,000 of the 12,000 workers at the plant, or risk closing the entire unit. The plan is part of the company's global strategy, which has included layoffs and restructuring in different parts of the world.

Police arrests 28 people and avoids bank robbery

The Brazilian Federal Police avoided a major bank robbery in the city of Porto Alegre this Friday, arresting 28 people suspect of being involved in the heist. According to the federal agents, the group is linked to the PCC faction that have been causing chaos in Sao Paulo prison's and towns this year. They are also believed to be linked with the group that stole 167 million reais (close to US$ 80 million) from a bank in Fortaleza last year.

The group was making a tunnel from a neighbouring building into the bank's safe, as was the case in the Fortaleza robbery. The criminals would attack two banks in the same street simultaneously, from the same tunnel. The arrests came after a two-month investigation. The tunnel was already 80 metres long.