Minister Jobim may run for Lula´s succession if he solves Brazilian all-out air crisis
If you´re doing business (or have any other link) with Brazil, watch at least two points when upgrading your information on this country:
# 1. Do not fly to or from Brazil: stay where you are, use phone lines and internet, instead of personal contact if you need to meet your business partners, staff, relatives and so on.
We´ll let you know when we ourselves start flying again inside our country, ok?
We´ve being using jeeps - because roads also are in very bad situation for the same reason jets falls over Amazonia and Sao Paulo: no investment in the last 2 decades and a ready-to-go US$ 1 trillion GNP emerging economy in a political wetern-type mass democracy for 22 years now.
# 2. Interest rates paid by Brazilian federal bonds - one of the most really interesting investment options in the world - will probably stop its way down, since there´s now an orange light on the world economic outlook after the overfinancing bubble disclosing in the US economy, reflecting on Asia and Europe markets this Friday, 27.
In case of US problems impact on Asia and emerging markets, Brazilian exports like raw materials for China, Korea and Japan will suffer from price lowering, coming from lower imports from asian economies.
In the political front, Lula´s government started to draw its future this week, following the national crisis over the TAM Air Bus exploding in Congonhas, Sao Paulo downtown airport: the new Defense minister is not jut a tall gaucho from the South pampas, but also a former head of the Supreme Court, Fernando Henrique Cardoso´s minister of Justice and now the manager in charge of solving Brazilian air crisis.
If minister Nelson Jobim succeeds, Lula, his party PT and allied PMDB will have got the ideal solution for a candidate to run for President in October 2010.
Lula is the only leader that could unite PT and PMDB but Constitution doesn´t accept third terms.
SP Stock Exchange opened in good shape reflecting the US GNP disclosure. Dollar is a little bit lower again - it´s about 1,85 reals for each US dollar (yesterday it was 1,92).
The problem is the country risk, which went up again: from 185 points last week to 220 points yesterday and 230 points this Friday.
