Showing posts with label brazil news. Show all posts
Showing posts with label brazil news. Show all posts

Petrobras scandal prosecutors seek tougher anti-corruption laws

(GNN) - Prosecutors who uncovered Brazil's biggest corruption case called on Friday for tougher prison sentences and more legal powers to crack down on rampant graft that costs taxpayers more than the annual budget for education and health.

Hoping to ride a wave of national disgust over the latest corruption scandal at state-run oil company Petrobras, the top federal prosecutor's office known as PGR sent Congress proposals to stiffen penalties for corruption to up to 25 years in prison.

The prosecutors are seeking legal reforms to speed up the arrest of corruption suspects and seizure of their assets before they can be hidden. They also proposed reducing Brazil's long appeals process that often lets criminals go scot-free.

A multibillion-dollar kickback scheme uncovered at Petroleo Brasileiro SA has shaken President Dilma Rousseff's government and threatens to further slow a stagnant economy.

The investigation dubbed "Operation Car Wash" has led to the indictment of scores of executives from Brazil's top builders. It has implicated 47 politicians who allegedly received graft money, all but one of them from Rousseff's governing coalition.

"The Car Wash case has angered Brazil but it has not reduced corruption or impunity in the country," said the lead prosecutor in the probe, Deltan Dallagnol. He said the proposals could transform the anger into changes needed to fight corruption.

According to an estimate by the United Nations Development Program, graft amounts to 200 billion reais ($62 billion) a year in Brazil, or twice the 2014 health budget and 2-1/2 times the education budget.

The Petrobras scandal and economic downturn led to protests by about 1 million people across Brazilian cities on Sunday.

The PGR's anti-corruption wish list came two days after Rousseff made her own steps to counter rising discontent over the Petrobras scandal that has undermined her popularity and put her Workers' Party and its allies on the spot.

Both sets of measures call for the criminalization of off-the-books slush funds - known in Portuguese as "Caixa 2" - that are widely used by political parties to finance campaigns.

But the PGR plan goes further, proposing that political parties be held responsible and penalized by exclusion from elections if their members are found guilty of corruption.

On Monday, Dallagnol and his team of prosecutors charged the treasurer of the ruling Workers' Party with corruption for soliciting donations from executives accused of funneling money from Petrobras contracts to politicians.

($1=3.22 reais)

(Reuters)(Editing by Richard Chang)

Petrobras halts giant production unit as safety problems found

(GNN) - Brazil's state-run Petrobras said on Friday it shut its P-58 offshore oil production ship after the country's petroleum regulator ANP found irregularities on board the vessel, one of the company's most important offshore production systems.

The ship was producing 106,000 barrels of oil and natural gas equivalent a day in January, 84 percent of it crude, from seven wells, according to the latest ANP figures. That was 4.1 percent of Petrobras' total Brazilian output in the month.

The floating production, storage and offloading ship (FPSO) received oil from the Parque das Baleias project, a group of fields in the Espirito Santo Basin, about 115 kilometers (71 miles) southeast of Vitoria, Brasil.

The shutdown comes a little more than a month after a deadly explosion on a Petrobras offshore oil and natural gas production ship operated by BW Offshore Ltd, a Norwegian-listed production vessel operator. That and a series of refinery accidents have led unions to attack the company's safety record.


The pressure of a much-delayed $221 billion, five-year investment plan, rising debt and a corruption scandal that has forced Petrobras to stop work with many important contractors, is stretching workers and equipment to their limit, according to FUP, the country's national oil union confederation.

Workers on the FPSO say production began with many systems incomplete, forcing workers to finish construction on the high-seas instead of a shipyard.

"We have been complaining about safety problems since production started, but with other production unit accidents, the ANP finally decided to inspect the production units," Davidson Lomba told Reuters in a telephone interview.

"We finally decided to stop doing any more construction work on the production unit," he added. "Not only is it more expensive to do the work at sea, it's more dangerous."

In statements confirming the shutdown, Petroleo Brasileiro SA, as Petrobras is formally known, said the move was preventative, aimed at improving efficiency at a vessel that has been producing for a year, but is only now receiving its final commissioning.

Thanks to its incomplete systems, the FPSO P-58 was operating at only about 60 percent of its designed capacity of 180,000 barrels a day when output was stopped, Lomba said.

The P-58 was Brazil's No. 5 production unit in January and one of only six that produce more than 100,000 barrels a day.

(Reuters)(Reporting by Jeb Blount; editing by Gunna Dickson)

Brazil antitrust regulator inks first Petrobras leniency deal

(GNN) - Brazil's antitrust regulator has secured the cooperation of some engineering firms and executives in the first leniency agreement arising from a bribery scandal at state-run Petrobras, the agency said on Friday.

The firms, Setal Engenharia e Construções and Setal Óleo e Gás (SOG), agreed on Thursday to admit to price-fixing contracts with state-run Petroleo Brasileoro SA (Petrobras) and provide information to investigators, the regulator said in a statement.

In exchange for their collaboration, the companies and executives will have potential fines reduced by between one and two thirds of the usual amount, regulator Cade said. The engineering firms and executives are accused of forming a cartel. Normally, fines for that offense would be up to 20 percent of a company's gross revenue.

The dozens of companies investigated by various agencies in the multibillion-dollar Petrobras scandal have urged Brazil's government to strike a grand bargain to minimize fallout and prevent possible lay-offs and bankruptcies that would further damage Brazil's fragile economy.

SOG Oleo and Gas is also one of 24 companies being investigated by Brazil's Comptroller, the CGU, and would have to negotiate a separate agreement with that agency to get a reduced sentence for corruption.

Federal prosecutors have opposed leniency deals with the CGU on the grounds they could hurt the investigation, but prosecutors said on Friday they supported the Cade deal.

A spokeswoman for prosecutors said they understand that the Cade agreement will bring to light new facts while the CGU agreements could lessen punishments without revealing anything.

Uncovering Brazil's largest-ever corruption scheme, where engineering companies are accused of funneling bribes from state-run oil company Petrobras to enrich themselves, political parties and politicians, has relied heavily on plea bargains.

Prosecutors have signed plea bargains with 12 people to date over the course of the year-long investigation.

The investigation has so far led to 20 indictments of 103 people on racketeering, bribery and money laundering charges, including three former Petrobras senior managers and executives from Brazil's leading construction and engineering firms.

(Reuters)(Reporting by Anthony Boadle and Caroline Stauffer; Editing by Grant McCool)

Dude, why is my mushroom glowing? Scientists have the answer

(GNN) - If you think you see a glowing mushroom, you might not be having a psychedelic hallucination. Some mushrooms indeed are bioluminescent, including one that sprouts among decaying leaves at the base of young palm trees in Brazilian coconut forests.

Scientists have long wondered what possible reason there could be for a fungus to glow. They now have an answer.


Researchers said on Thursday that experiments in Brazil involving the big, yellow mushroom called "flor de coco," meaning coconut flower, showed its nighttime bioluminescence attracted insects and other creatures that could later spread its spores around the forest.

"Our research provides an answer to the question, 'Why do fungi make light?' that was first asked, at least first asked in print, by Aristotle more than 2,000 years ago," said biochemist Cassius Stevani of Brazil's Instituto de Química-Universidade de São Paulo.

"The answer appears to be that fungi make light so they are noticed by insects who can help the fungus colonize new habitats."

Geneticist and molecular biologist Jay Dunlap of Dartmouth College's Geisel School of Medicine said bioluminescence had independently evolved many times in such diverse life forms as bacteria, fungi, insects and fish.

"Most of these make light in their own way, that is, with biochemistry that is unique to each organism," Dunlap said.

Of the 100,000 known fungus species, 71 are bioluminescent. The species in the study, published in the journal Current Biology, is one of the biggest and brightest of them.

The researchers found a circadian clock regulates its bioluminescence, glowing only at nighttime.

They created two sets of plastic mushroom replicas, one with LED lights replicating bioluminescence and a second set with no light. Suspecting the glow might be used to entice insects, they put glue on both sets of phony mushrooms in forest locations where real ones grow, then tracked the beasties that got stuck.
The glowing replicas lured an array of ants, cockroaches, flies, beetles, spiders, harvestmen, slugs, snails and centipedes.

Such creatures, after crawling on a real bioluminescent mushroom, disperse fungal spores around the forest.

Dunlap speculated that many of Earth's bioluminescent mushrooms likely developed their glow for that purpose.

"Because it has evolved so many times in so many different organisms, each with their own biology, studying bioluminescence gives one a window on living things in all their wonderful diversity, and it sends you off to questions that you did not know existed," Dunlap said.

(Reuters)(Reporting by Will Dunham; Editing by Peter Cooney)

Brazil finally gets some rain, but rationing still looms

(GNN) - Heavy rains during Brazil's four-and-a-half-day Carnival holiday offered the first relief in months for the country's drought-stricken and economically crucial southeast, but was unlikely to end fears of water and electricity shortages.

A cold front along Brazil's southeastern coast near the two principal cities of Sao Paulo and Rio de Janeiro brought heavy rains on Sunday, Monday and Tuesday to most of the region and the neighboring center-west, home to much of the country's farm belt.

The southeast is Brazil's most populous and economically developed industrial region. The southeast and center-west together produce the bulk of such key Brazilian export crops as soybeans, coffee, sugar and orange juice.

Uncertainty over the drought and its consequences on jobs, public health and overall quality of life have further darkened Brazilians' mood at a time when the economy is struggling and President Dilma Rousseff's popularity is at an all-time low.

Despite the recent rains, precipitation will need to continue at above-average levels for months to refill nearly empty drinking water and hydroelectricity reservoirs to sustainable levels.

Water levels in reservoirs run by Sabesp, which manages most water and sewage services in the state of Sao Paulo, rose 0.8 percent from Tuesday to Wednesday but remained at only 20.4 percent of their total, Sabesp said.

Sabesp's Cantareira reservoir system, which serves many of the nearly 20 million people in metropolitan Sao Paulo, rose 0.6 percent but remains at only 8.9 percent of capacity. The levels remained critically low despite above-average rainfall so far this month in Sao Paulo.

Many Brazilians are hoarding water in apartments, drilling homemade wells and taking other measures to prepare for forced rationing that appeared likely and could leave taps dry for four to five days a week.

Other cities in Brazil's southeast such as Rio face less dire shortages but could also see rationing, according to experts and officials.

Rainfall in eight of 10 agricultural areas monitored by meteorology consultant Somar, which do not include Sao Paulo state, were more than 50 percent below February averages even after recent rains.

Brazilian consumers were expected to be asked to cut electricity use or face rolling blackouts in coming months. Water levels in southeastern and center-west hydrodam reservoirs are at 18.7 percent of maximum, near the lowest levels in at least 16 years.

(Reuters) (Reporting by Jeb Blount; Editing by Jeffrey Benkoe)

UPDATE 2-Brazil's swelling budget gap compounds dire 2015 for Rousseff

  1. * Worst fiscal result in more than a decade
  2. * Overall budget gap doubles to 6.7 percent in 2014
  3. * Minister says numbers are "honest" (Adds comment by cabinet minister)

By Silvio Cascione and Luciana Otoni

BRASILIA, Jan 30 (AsiaTimes.ga) - Brazil fell far short of its main fiscal target in 2014, underscoring the uphill battle that President Dilma Rousseff faces to shore up public accounts to prevent a credit downgrade as recession risks loom.

Brazil posted a primary budget deficit of 32.536 billion reais ($13.76 billion) for last year, equal to 0.63 percent of gross domestic product, the central bank said on Friday. That was the first annual gap since the current data series started in 2001 and a far cry from the 91.3 billion reais surplus of 2013.

The country's overall budget gap, which takes into account debt servicing costs, doubled in 2014 to 6.7 percent of GDP, one of the highest among major economies according to the International Monetary Fund.

The results, much worse than the already grim estimates of investors and ratings agencies, mean that newly appointed Finance Minister Joaquim Levy will have to slash spending or continue jacking up taxes to meet the government's goal of saving 1.2 percent of GDP in 2015.

Budget constraints are just one headache for Rousseff, who struggled to win re-election in October. State-run oil company Petroleo Brasileiro SA is engulfed in a massive corruption probe, and some of the country's biggest cities risk rationing water.

Brazil needs to run solid budget surpluses to service its sizable debt, on which it pays double-digit interest rates. Gross debt will probably keep rising this year, to 65.2 percent of GDP, according to central bank estimates.

Brazil's currency, the real, dropped nearly 3 percent on Friday, while interest rate futures <0#2DIJ:> spiked.

On condition of anonymity, a cabinet minister acknowledged the figures were "very bad," but said they reflected the true state of Brazil's finances.

The December results are the last under former Finance Minister Guido Mantega and Treasury Secretary Arno Augustin. Both left office at the end of the year after investors accused them of using "creative accounting" to bolster budget results.

"We can have a true start from 2015 onwards," the minister told Reuters. "The plan was that there should be no skeletons in the closet for Levy."

The Rousseff administration originally aimed for a primary surplus equivalent to 1.9 percent of GDP in 2014. It later abandoned that target as tax revenues dwindled and public spending surged ahead of the October election. (GA, Reuters, ATimes)(Additional reporting by Anthony Boadle; Editing by Todd Benson, Chizu Nomiyama and Lisa Von Ahn)

Germany, Brazil push the U.N. to be tougher on digital spying

GNN Brazil - Germany and Brazil are pushing the United Nations to be tougher on spying by beefing up an earlier U.N. resolution raising concerns that mass surveillance, interception of digital communications and personal data collection could harm human rights.

In a follow up to a U.N. resolution adopted last year, the two countries have drafted a new text that now includes metadata. The draft says unlawful or arbitrary surveillance, interception of communications and collection of personal data, including metadata, are "highly intrusive acts."

Metadata is detail about communications such as which telephone numbers were involved in a call, when calls were made and how long they lasted, when and where someone logged on to an email account or the internet, who was emailed and what Web pages were visited.

The draft text circulated to the 193 U.N. members says these acts "violate the right to privacy and can interfere with the freedom of expression and may contradict the tenets of a democratic society, especially when undertaken on a mass scale."

It calls on states to provide an effective remedy when a person's right to privacy has been violated by individual or mass surveillance.

The draft also asks the Geneva-based U.N. Human Rights Council to consider appointing a special rapporteur to identify and clarify standards protecting privacy rights.

The U.N. General Assembly's Third Committee, which deals with human rights, will vote on the draft later this month, and the resolution is then expected to be put to a vote by the General Assembly in December.

Resolutions passed by the General Assembly are non-binding, but can carry political weight.

"As the universal guardian of human rights, the United Nations must play a key role in defending the right to privacy, as well as freedom of opinion and expression in our digital world," Germany's U.N. Ambassador, Harald Braun, said in a statement.

He added that the draft resolution would "help pave the way towards better protection standards."

Last year, the General Assembly adopted a resolution by consensus that called for an end to excessive electronic surveillance and expressed concern at the harm such scrutiny might have on human rights.

That resolution, also drafted by Germany and Brazil, came after former U.S. National Security Agency contractor Edward Snowden exposed a global spying program by the NSA, sparking international outrage.

The United States, Britain, Australia, Canada and New Zealand - known as the Five Eyes surveillance alliance - supported last year's resolution after language suggesting foreign spying could violate rights was weakened.

A senior U.N. diplomat, speaking on condition of anonymity, described the draft this year as "highly contentious" and said it could be put to a vote instead of being passed by consensus.

"There's issues that a number of countries are concerned about," he said. "It's trying to create a stronger environment against possible intelligence agencies activities than exists in existing treaties and we don't think that's justified."

(GNN,AIP,Reuters,ga)(Reporting by Michelle Nichols. Editing by Andre Grenon)

Small Telecom Italia investors call for Brazil unit merger, not sale

GNN - Small shareholders at Telecom Italia (TLIT.MI) on Tuesday called on the Italian phone group's board to consider a potential merger between its Brazilian unit TIM Participações SA (TIMP3.SA) and Brazil's Grupo Oi SA (OIBR4.SA).

Shareholder group Asati, which says it represents around 6,000 small Telecom Italia investors with a combined stake of around 1 percent, said in a letter to the board that such a deal could include a "modest" capital increase.

Asati also said that should a merger between TIM and Oi not come about, no offer for the unit should be considered if it values TIM at less than 8.5 times its core earnings.


Sources with direct knowledge of the matter told Reuters on Friday that Oi, Mexico's America Movil (AMXL.MX) and Spain's Telefonica (TEF.MC) agreed to place a joint bid worth around 32 billion reais ($12.8 billion) for TIM Participações.

Oi said on Monday it had not entered into any agreement to join a group of rivals to buy Telecom Italia's stake in TIM.

In August Oi announced that it had hired Grupo BTG Pactual to act as its representative and develop plans for a possible purchase of Telecom Italia's stake in TIM Participações.

Telecom Italia's board will meet on Thursday to approve quarterly results. The Rome-based company owns about 67 percent of TIM Participações, Brazil's No. 2 wireless carrier.

(GNN,AIP,Reuters,ga)(Reporting by Agnieszka Flak and Danilo Masoni; editing by Keiron Henderson)

Rousseff widens Brazil election lead, challengers even

#GNN Brazil: Brazilian President Dilma Rousseff has extended her lead ahead of Sunday's election and would win re-election in a likely second-round runoff, while her main challengers are running neck-and-neck for second place, polls showed on Thursday.
Environmentalist Marina Silva has continued to slip and is now only 3 percentage points ahead of centrist candidate Aecio Neves, according to the Datafolha polling firm, a statistical tie because it is within the poll's margin of error.

If no candidate wins an outright majority in first-round voting, the presidential election will be decided in a runoff between the two leading candidates on Oct. 26.


Both Datafolha and a second poll by the Ibope research firm show Rousseff winning re-election in the runoff by 7 percentage points.

Rousseff increased her lead in the first round to 16 percentage points in both polls, with 40 percent of voter support to 24 percent for Silva.

Neves, the market favorite who has been stuck in third place since Silva's late entry into the race, increased his support by 1 percentage point to 21 percent, Datafolha said, and now has a fighting chance of making the runoff.

The polls confirmed that Silva, a popular anti-establishment figure, has continued to lose ground since peaking in late August. Silva surged after entering the race when her party's original candidate was killed in a plane crash, and initially gained a 10-point advantage over Rousseff.

She lost ground under a barrage of criticism from Rousseff's campaign that portrayed her pro-market policies as a threat to Brazil's poor and questioned her ability to govern Brazil without a solid party coalition.

Rousseff's increased chances of winning re-election have weighed down Brazil's markets where investors are hoping for a change of government. Some blame Rousseff's interventionist policies for the stagnation of Latin America's largest economy.

Silva, a renowned conservationist who has embraced market-friendly policies, is promising to jumpstart Brazil's stagnant economy, while Rousseff vows to extend social programs that have lifted millions of Brazilians out of poverty and reduced inequality in Latin America's largest nation.

The seven main candidates in the race were to face each other in a final television debate late on Thursday, the last day of campaigning.

In her last television ad, Silva assailed Rousseff for lying about the government's role in a bribery and kickback scandal rocking state-run oil company Petroleo Brasileiro SA.

The Datafolha poll surveyed 12,022 respondents nationwide between Oct. 1 and Oct. 2 and the Ibope surveyed 3,010 respondents nationwide between Sept. 27 and Oct. 2. Both polls have a margin of error of plus or minus 2 percentage points.

(GNN, AIP)(Reuters)(Reporting by Anthony Boadle; Editing by Tom Brown)

An environmentalist's calculated push toward Brazil's presidency

#GNN Brazil: In March 2003, three months into her tenure as Brazil's environment minister, Marina Silva gathered a half-dozen aides at the modernist ministry building in Brasilia, the capital.
She told them the new government of President Luiz Inácio Lula da Silva was about to embark on a pharaonic infrastructure project for Brazil's arid Northeast.

The project, a still-ongoing effort to reroute water from one of Brazil's biggest rivers, had previously been opposed by environmentalists, including Silva herself.


Rather than explain how she would thwart the plan, however, the former activist said she would work to make it as sustainable as possible.

"I was shocked," says Marijane Lisboa, a former Greenpeace director and Silva's secretary of environmental quality then. "Instead of fighting, she was merely trying to mitigate."

Lisboa would not be the last person surprised by Silva, a former rubber tapper and maid and now a frontrunner in Brazil's presidential election race.

Once considered a leftist radical, the pioneer of Amazon conservation and icon of the global environmental movement has over the years marched steadily to the political center.

A 56-year-old-mother of four and evangelical Christian, Silva barely trails President Dilma Rousseff in forecasts for an expected runoff three weeks after a first round of voting on Sunday.

She is buoyed by discontent over corruption, political horse-trading, a stagnant economy and poor public services that last year sparked mass protests across Brazil.

But Silva is also a pragmatic, calculating and deal-making politician who defies efforts by rivals to cast her as inexperienced, or worse, erratic.

After moving across three parties in recent years, Silva now represents the second-tier Brazilian Socialist Party and vows to expand popular social welfare programs even as she slashes government spending.

She would pursue renewable energy programs, like biomass and solar power, but promises to keep developing the "one-time harvest" of offshore oil.

"Why does one activity have to come at the expense of another?" she said during a recent interview with Reuters in Rio de Janeiro. "A strong economy is diversified."

Silva's shift outrages some militant former followers and former colleagues in the ruling Workers' Party.

But it attracts disparate others - fellow evangelicals, São Paulo financiers, youth sick of the status quo.

If elected, her biggest struggle could be weaving the sundry strands of support into a manageable harness for Brazil's rambunctious multi-party democracy.

FROM ACTIVISM TO PRAGMATISM
In interviews, more than a dozen of those who know Silva describe a thoughtful politician firm enough to lead but pliant enough to bend when an opposing argument prevails. They say her five years as minister, and political comeback since a high-profile resignation in 2008, show her ability to set priorities, pursue goals and compromise.

"Call her anything but dumb," says Roberto Rodrigues, a former agriculture minister who clashed with Silva in the Lula administration over genetically modified crops and forestry laws. "She knows a militant cannot be president."

Silva's remarkable rise from illness and illiteracy in the rainforest to the Senate and beyond is already political lore. But her evolution from activist to possible president still puzzles many who thought her incapable of the give-and-take needed at the highest levels of politics.

In 2002, Brazilians elected Lula, a fiery former union leader. After naming a market-friendly finance minister, who soothed fears the president would be fiscally reckless, Lula made Silva his second cabinet appointment, garnering praise from conservationists worldwide.

Upon taking office in January 2003, Silva told department heads to plot priorities for the four-year term. The previous administration, of centrist Fernando Henrique Cardoso, had been too busy taming Brazil's volatile economy to pay much attention to environmental issues.

Silva held big meetings and fielded proposals for waste policies, watershed management and parkland.

But she had one overriding concern: soaring deforestation. Loggers and ranchers were pushing so quickly into the Amazon that an area the size of Belgium was being destroyed annually.

Silva proposed setting targets for curbing the rate of deforestation. She told a committee to map out a plan to reach them and rebuffed aides who suggested such targets could doom her politically if unmet.

"I'll deserve political failure if we don't reach them," she said, recalls former forestry secretary João Paulo Capobianco, still one of her closest advisors. "Whatever we do in other areas, deforestation is the measure by which we will be judged."

Some aides complained she paid little mind to anything else.

When it came to rerouting the São Francisco river, she offered sparse resistance, settling for a commitment that long-polluted parts of the river be cleaned up during the project. "If it was outside the Amazon, it was not a priority," says Gilney Viana, secretary for sustainable development then.

Soon, political conflicts intruded on her agenda.

Big meetings gave way to individual discussions with aides able to help her negotiate with the rest of the administration. "She spent more time courting Lula and other ministers than running the ministry," recalls one aide, who asked not to be identified because of continued ties to the government.

POWERFUL OPPONENTS
The agriculture ministry, a powerful force in one of the world's largest exporters of crops, was particularly problematic.

Early on, it sought to convince Lula that genetically modified soybeans growing in southern Brazil be allowed for sale. So-called "Maradona seeds," smuggled from Argentina, were still illegal in Brazil but farmers planted them anyway.

Silva lobbied against their sale. She also sought to ensure that her ministry control a new government body to regulate genetically modified crops.

She lost on both counts.

Already, environmentalists pushed her to resign in protest.

Instead, she secured a legal change forcing manufacturers to label foods containing genetically modified ingredients. "She knew how to negotiate," says Beto Albuquerque, a former congressman from the state where the soy was planted.

Once an antagonist, Albuquerque is now Silva's running mate.

Meanwhile, Silva progressed against deforestation.

Whereas the ministry had once battled alone, she convinced 12 other federal agencies, from the army to the justice ministry, to help. The science ministry, headed by a promising young politician named Eduardo Campos, ceded government satellites to track clearings.

In 2006, deforestation plunged to half the rate in 2004.

The following year, soaring demand for Brazil's commodity exports was fueling an economic boom. With re-election in sight, a group of ministers convinced Lula to dust off a series of long-proposed infrastructure projects, including hydroelectric dams on Amazon tributaries.

Some ministers, including Rousseff, Lula's chief of staff, pushed for speedy licensing. Silva resisted, angering Rousseff and the large builders who help finance Workers' Party coffers.

When Lula was re-elected, Silva was the last existing minister re-appointed.

In late 2007, gains against deforestation stalled, in part because of speculation on rainforest near proposed infrastructure sites. Silva convinced Lula to double down, introducing measures to block credit for those caught buying or selling goods from illegally cleared woodland.

When farmers complained, Lula considered revoking the measures.

In May 2008, Silva resigned. "I may lose my head," she said, "but I haven't lost my judgment."

Where some saw defeat, supporters saw wile.

"Lula could drop the measures and take the blame when deforestation worsened," says Tasso Azevedo, a forestry engineer who still advises Silva, "or he could keep them and take the credit for improvement."

Lula left them intact. The pace of deforestation during his two terms decreased by 75 percent.

'STRATEGIC VISION'
After resigning, Silva quit the Workers' Party and found a brief home with Brazil's Green Party. More importantly, she courted resourceful allies, especially Guilherme Leal, the billionaire behind Natura, a cosmetics empire built on locally-sourced ingredients, many of them from the Amazon.

Leal says he admired Silva's "strategic vision" for a country with the world's largest rainforest and abundant sources of water and clean energy. He also admired her political chops.

"It's in her DNA," Leal says. "She puts the knife between her teeth and goes. Not after power for power's sake, but for the sake of political action."

Leal financed a presidential campaign for Silva in 2010 and joined her ticket as running mate. He also introduced her to an influential group of economists, business people and financiers.

Now an important part of her power base, those people repel some of Silva's former fans.

Leonardo Boff, a prominent theologian and anti-poverty activist who has known Silva since her youth, says she has surrounded herself with "neoliberals" – capitalist types unpopular with some leftists.

Still, Silva surprised. She reaped 20 percent of the vote in 2010, far more than expected.

Green Party leaders were annoyed that a newcomer had eclipsed them so Silva defected and tried to form a new party.

When a court ruled last year that the party did not meet electoral requirements for this election, she turned to another ally: Campos, the former science minister, by now a popular governor and a presidential aspirant himself.

Campos made Silva his vice-presidential candidate. He then died in a plane crash in August and Silva moved to the top of the ticket.

At a recent rally in Rio, Silva denounced "savage marketing" by opponents suggesting she would halt oil exploration in the region. She chastised the Workers' Party, itself the target of scaremongering before it came to power, for painting her as a radical.

"I fought against lies back then," she said. "Now they want to use the same rusty knife against me."

(GNN, AIP)(Reuters)(Editing by Todd Benson and Kieran Murray)

Brazil farmers say GMO corn no longer resistant to pests

#GNN - Genetically modified corn seeds are no longer protecting Brazilian farmers from voracious tropical bugs, increasing costs as producers turn to pesticides, a farm group said on Monday.

Producers want four major manufacturers of so-called BT corn seeds to reimburse them for the cost of spraying up to three coats of pesticides this year, said Ricardo Tomczyk, president of Aprosoja farm lobby in Mato Grosso state.

"The caterpillars should die if they eat the corn, but since they didn't die this year producers had to spend on average 120 reais ($54) per hectare ... at a time that corn prices are terrible," he said.

Large-scale farming in the bug-ridden tropics has always been a challenge, and now Brazil's government is concerned that planting the same crops repeatedly with the same seed technologies has left the agricultural superpower vulnerable to pest outbreaks and dependent on toxic chemicals.

Experts in the United States have also warned about corn production prospects because of a growing bug resistance to genetically modified corn. Researchers in Iowa found significant damage from rootworms in corn fields last year.

In Brazil, the main corn culprit is Spodoptera frugiperda, also known as the corn leafworm or southern grassworm.

Seed companies say they warned Brazilian farmers to plant part of their corn fields with conventional seeds to prevent bugs from mutating and developing resistance to GMO seeds.

Dow Agrosciences, a division of Dow Chemical Co, has programs in Brazil to help corn farmers develop "an integrated pest management system that includes, among other things, the cultivation of refuge areas," it said in an email.

Another company, DuPont, said it had not received any formal notification from Aprosoja. The company's Pioneer brand has been working with producers to extend the durability of its seed technology and improve efficiency since Spodoptera worms were found to have developed resistance to the Cry1F protein, it said in a statement.

Monsanto Co also said in a statement that it has not been formally notified by the group. The other company, Syngenta AG, did not immediately respond to a request for comment.

Tomczyk, who also spoke for Brazilian farmers during a dispute over seed royalty payments to Monsanto that ended last year, said Aprosoja encouraged the planting of refuge areas. But he said the seed companies have not given clear instructions.

"There are barely any non-GMO seeds available ... it is very uncomfortable that the companies are blaming the farmers," he said. Aprosoja hopes to reach a negotiated agreement with the seed companies, but if all else fails farmers may sue to get reparations for pesticide costs, he added.

Brazil is harvesting its second of two annual corn crops and expects to produce 78 million tonnes this crop year, slightly less than last season's record. Domestic prices recently fell to their lowest in four years because of abundant supplies.

($1 = 2.223 reais)

(GNN,Reuters,AIP)(Reporting by Caroline Stauffer; Editing by Lisa Shumaker and Steve Orlofsky)

Sluggish Latin #American #results show risks for U.S. #companies

#GNN - U.S. companies are reporting sluggish financial results in Latin America, showing the risks they face in relying on Brazil and other emerging markets in the region for growth.
Companies ranging from Ford Motor Co to 3M Co and Caterpillar Inc reported second quarter earnings that highlighted weakness in their Latin or South American operations.

While Venezuela's weak currency valuation previously weighed on U.S. corporate finances, the latest results indicate broader struggles. Several companies reported tepid performance in Brazil, the biggest economy in Latin America, where some economists fear the country is on the verge of a recession.


"The place where we see a little bit more of a challenge is Latin America," 3M Chief Executive Officer Inge Thulin told analysts on the company's quarterly conference call on Thursday. The diversified manufacturer, whose products include office supplies and industrial adhesives, cut its full-year revenue forecast for the region, the worst-performing in the quarter, hurt by a sales decline in Brazil.

U.S. companies that have looked to emerging Latin American economies for growth have seen those expectations dented in recent months by Brazil's political and economic turmoil, Venezuela's currency woes and Argentina's renewed battle with major creditors.

"This is kind of the up-and-down of emerging markets," said J. Bryant Evans, who manages an international equity income portfolio at Cozad Asset Management in Champaign, Illinois.

'NOT HAPPENING'
A poll of more than 60 economists from earlier this month found that Latin American economies will probably grow at a slower pace than previously thought this year. Economies in Brazil, Argentina and Chile are expected to be weaker this year than in 2013, while Mexico is far from achieving the fast growth promised by sweeping economic reforms, the poll found.

U.S. corporate prospects in Latin America have also been dampened by competition, lack of expected growth among the middle class and fluctuations in commodity prices, said Rafael Amiel, director for Latin America economics at research firm IHS.

"For multinational companies, the growth they were expecting in many Latin American markets is not happening," Amiel said.

South America was the only region in the world where Ford posted a quarterly loss -- $295 million, compared with a $151 million profit a year earlier.

South American countries "remain largely closed markets that have trade barriers up across many sectors of their economies, so they are actually pretty uncompetitive on a global basis, and that includes the automotive industry," Ford Chief Financial Officer Bob Shanks told Reuters. "Now that that capital is flowing out, those economies are suffering."

The importance of the Brazilian market to U.S. companies has been rising over the past few years. Though South America has held steady at about 1.6 percent of sales at S&P 500 companies over the past three years, Brazil's portion of sales within the region more than doubled between the start of 2010 and 2014, according to Thomson Reuters data.

Earlier this week, the Brazilian government lowered its economic growth forecast for 2014 to 1.8 percent from 2.5 percent. Economists think the growth could be even more tepid -- 0.97 percent, according to a weekly survey.

MEXICAN CRACKS
Caterpillar, which reported a 16 percent decline in second quarter Latin American sales, lowered its overall sales outlook in part because of worries over Brazil, Chief Financial Officer Brad Halverson told Reuters in an interview.

"We are concerned about Brazil," Halverson said. "They raised interest rates last year. The economy is slowing. Consumer confidence is plunging along with business confidence."

Whirlpool Corp reported a lower operating profit in Latin America and downgraded its forecast for appliance market sales in the region for 2014. Still, company executives said weakness in Brazil was more of a short-term concern and expressed optimism about the economy.

"We continue to believe that the macroeconomic indicators in Brazil point to long-term healthy demand growth," Mike Rodman, president of Whirlpool International, told analysts.

Some cracks also emerged in Mexico, the region's second-largest economy. For example, a new tax in Mexico has put pressure on U.S. food companies such as PepsiCo Inc , which blamed the tax for sales declines in its food business.

While companies such as 3M reported solid results from the country, the Mexican economy grew by only 0.3 percent in the first quarter. John Gerspach, the chief financial officer of Citigroup , which has about $11.7 billion of credit card loans in Latin America, told analysts last week that "as the Mexico economy continues to struggle to really regain the momentum that everyone thought that it would have, consumer spending has not been robust."

(Additional reporting by James B. Kelleher in Chicago, Bernie Woodall in Detroit, Dan Wilchins in New York and Silvio Cascione in Brasilia. Editing by John Pickering)

Gerrard calls time on England career

#GNN - #LIVERPOOL: #England #captain Steven Gerrard retired from #international #football on Monday after becoming a pillar of the team in 114 appearances, but making way after the country´s disastrous World Cup campaign.
Gerrard, 34, led England at the World Cup where they bowed out in the group stage. The Liverpool midfielder said he had "agonised" over the decision since returning from Brazil. "This has been a very difficult decision, one of the toughest I´ve had to make in my career," Gerrard told the Football Association´s FATV. "I have agonised over this since coming back from Brazil and have spoken to family, friends and people close to me in the game before coming to this point. I have enjoyed every minute of representing my country and it is a sad day for me knowing that I won´t pull on the England shirt again."

Gerrard has been hailed as one of the best midfielders to come out of England. The first of his 21
international goals came in a famous 5-1 victory over Germany in a World Cup qualifier in September, 2001.

Gerrard said his desire to maintain his form and fitness for Liverpool, particularly given the Reds return to this season´s Champions League, also played a factor in his England retirement. "Most importantly, Brendan (Rodgers) has been fantastic and obviously I have to look after my body as much as possible to ensure I can give everything when I take to the field. To ensure I can keep playing to a high level and giving everything to Liverpool Football Club I believe this is the right decision, and having Champions League football back at Anfield is another big factor in my decision," explained Gerrard.

Gerrard, who made his international debut against Ukraine in 2000, trails just Peter Shilton (125) and David Beckham (115) on England´s all-time caps list.

He appeared at three World Cup finals as well as three European Championships. He captained England on 38 occasions, notably at both 2010 and 2014 World Cups as well as Euro 2012. "I´d like to firstly thank my family and friends for all their support throughout my England journey," said Gerrard. "I´d also like to thank everyone who has been part of my international career, from the England managers I´ve played under to the staff at the FA and, of course, all the players I´ve been fortunate to play alongside. In particular the supporters have been amazing, not least in Brazil when they got behind the team despite the disappointing results.”

England coach Roy Hodgson, who made Gerrard his full-time captain in 2012, paid tribute to his outgoing skipper, saying: "While I´m disappointed in the decision, I can entirely understand Steven´s situation and can have no complaints given the incredible service he has given to his country. I must respect his wishes due to the discussions we have had and the amount of thought and consideration he himself has given it. We shall miss his leadership qualities as we look ahead to the (Euro 2016) qualification campaign with a youthful group of players.”

Former England defender Rio Ferdinand, whose injury saw Gerrard replace him as captain for the 2010 World Cup in South Africa, was also full of praise, tweeting: "Gerrard has been an incredible player. Surpassing 100 caps is some achievement."

Midfielder Frank Lampard, who has 106 England caps to his name, could well be the next member of the country´s so-called ´Golden Generation´ to call time on his international career. The ex-Chelsea midfielder, now 36, is expected to announce his decision in coming weeks. (GNN)(AIP)(AFP)

Brazilian son of ex-slave may be world's oldest person: rest home

(GNN) - A Brazilian rest home for the elderly believes it may be home to the world's oldest person, a former agricultural laborer born in a runaway slave community, who is identified in documents stating he was born 126 years ago at a time when Brazil still had an emperor.

A birth certificate and identity documents issued by a judge in 2001 show that Jose Aguinelo dos Santos, a resident of the Vila Vicentina shelter for the elderly in Bauru, Brazil, was born on July 7, 1888, less than two months after the end of slavery in the country, said Cesar Siqueira, the rest home's vice president.

While Dos Santos has none of the original documents proving his age, interest in his life has increased since the death on June 8 of Alexander Imich in New York, Siqueira said.

Imich lived to age 111, according to CNN, which reported that he was certified as the world's oldest man in April by the Gerontology Research Group of Torrance, California.

Siqueira said Dos Santos' documents were granted by a judge based on interviews with the presumed centenarian.

"We are only saying this is his presumed age," said Siqueira, who has worked at the rest home for 31 years. "But he is lucid, can speak well and does just about everything by himself every day except bathe himself."

Dos Santos has lived at Vila Vicentina, a rest home that takes care of the poor and indigent, since 1973. He was born to a former slave in a quilombo, or Afro-Brazilian community founded by runaway slaves, and moved to Sao Paulo state where he worked as a laborer on farms and coffee plantations, Siqueira said.

Dos Santos was not immediately available for comment.

As of June 25, the oldest living man was Sakari Momoi of Japan at 111 years and 140 days, while the oldest living woman was Misao Okawa, also of Japan, at 116 years and 112 days, according to the Gerontology Research Group.

No one but the judge who interviewed Dos Santos in 2001 has certified his age, Siqueira said. Vila Vicentina is trying to get more records from archives in the northeastern state of Ceará and the rest home's managers have spoken with doctors and others about the possibility of using methods such as carbon dating to narrow down the date of birth, he added.

Until recently, many Brazilians born in remote rural areas had no formal documents.

"The only thing I won't allow is something that will hurt Jose Aguinelo," Siqueira said. "We are, though, sure he is very old, and so is he."

Photos of Dos Santos and his documents were published on Sunday on Brazil's G1 news website after journalists visited the rest home in Bauru, about 275 kilometers (170 miles) northwest of Sao Paulo city.

If his birth date can be confirmed, it will show that Dos Santos was born a little more than a year before Brazilian Emperor Dom Pedro II was deposed and the modern Brazilian Republic proclaimed. At that time, Queen Victoria ruled the British Empire and Grover Cleveland was president of the United States.

(GNN - Reuters - AIP)(Reporting by Jeb Blount; Editing by Jan Paschal)

China pushes for developing world's rights as BRICS summit opens

(GNN) - China will dedicate itself to "perfecting" the role developing countries play in international affairs to give them better representation and a greater say, President Xi Jinping said ahead of a summit of BRICS nations in Brazil.
China has already started doing this by promoting international development banks which will either be led by China or will have a very strong Chinese role, as opposed to Western-dominated institutions like the World Bank.

Brazil, China, India, Russia and South Africa are due on Tuesday to sign off on a new development bank being launched by the BRICS emerging market nations.

Officials from BRICS nations have said Shanghai will likely be the headquarters, but an official involved in talks on the bank told Reuters late on Monday in Brazil there still was no agreement among the five on where the lender will be located.

China is also planning an Asian Infrastructure Investment Bank.

Xi, in an interview with South American media released by China's Foreign Ministry, said China would try to better play the role of a responsible major power and promote the rights of the developing world.

"We will ... dedicate ourselves to perfecting the international system of governance and proactively push for expanding the representation and right to speak for developing countries in international affairs," he said.

"We will come up with more Chinese proposals and contribute China's wisdom," Xi added, without elaborating.

But China faces deep suspicion about its motives, not least from another BRICS member, India, and there have also been concerns in the group that China could hijack the new bank to serve its own interests.

DOMINATION CONCERNS DISMISSED

Xi appeared to dismiss these concerns, saying China did not believe it was destined to dominate others just because of its growing strength.

China's moves to assert its claims of sovereignty in the disputed South and East China Seas, as well as its growing military might, have unsettled the region and caused concern in Washington.

"The Chinese people love peace. In the blood of the Chinese people there are no genes for invading others or dominating the world. China does not acknowledge the old logic of 'when a country is strong it must dominate'," Xi said.

"China will resolutely pursue the path of peaceful development, to proactively seek a peaceful international environment for its own development, and will use its own development to promote world peace," the president added.

In a meeting with Indian Prime Narendra Modi in Brazil, Xi invited India to become a founding member of the Asian Infrastructure Investment Bank, the official Xinhua news agency reported.

"The two countries should join hands in setting global rules, so as to raise the voice of developing countries," Xinhua cited Xi as saying.

Xi's trip to the region also takes in Argentina, Venezuela and Cuba, where he is expected to sign a series of trade deals.

(GNN)(Reuters)(AIP)(Reporting by Ben Blanchard; Editing by Richard Borsuk)