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from Photographers' Blog:

Rose’s Divine Love

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By Nacho Doce

Deep inside the massive favela called Brasilandia, one of the biggest of Sao Paulo’s wretched slums, lives Rose with her husband Ivo and their three disabled children. I first learned of Rose's predicament while doing a feature story about the AACD clinic for disabled children. I immediately arranged for us to meet for the first time in their slum at 5 am, the time they leave for a weekly session of physical therapy.

Their alley didn’t appear on my taxi’s GPS, and we got lost in the dark maze. I had to wait for a more decent hour closer to 5 am before phoning them for help. With their directions, I finally reached the top of a steep alley, and found myself practically inside a “boca de fumo,” best described as an open air crack den.  It wasn’t until Ivo quickly rushed to meet me and spoke to one of the addicts, that I heard the words, “Taxi free to pass.” I was relieved.

We hiked downhill through two steep alleys to reach their house. In the living room, their three mute children, Samille, 9, Dhones, 7, and Izabely, 6, were sitting in a row on a red felt-covered sofa, in front of a wall covered with green and brown mold. The scene struck me as both sad and beautiful.

All three kids suffer from a disease called Pelizaeus-Merzbacher, or PMD, a rare genetic nervous disorder which affects coordination and intellect. I asked myself the logical question of how a mother could continue to have children with such a serious health condition. Samille, Dhones and Izabely all were diagnosed with the disease at an early age.

from Full Focus:

Rose’s Divine Love

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Deep inside the massive favela called Brasilandia, one of the biggest of Sao Paulo’s wretched slums, lives Rose with her husband Ivo and their three disabled children. Their surname: “Amor Divino,” translates as Divine Love. Read photographer Nacho Doce's personal account of documenting the families life.

from Global Investing:

Indian risks eclipsing other BRICs

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India's first-quarter GDP growth report was a shocker this morning at +5.3 percent. Much as Western countries would dream of a print that good, it's akin to a hard landing for a country only recently aspiring to double-digit expansions and, with little hope of any strong reform impetus from the current government, things might get worse if investment flows dry up. The rupee is at a new record low having fallen 7 percent in May alone against the dollar -- bad news for companies with hard currency debt maturing this year (See here). So investors are likely to find themselves paying more and more to hedge exposure to India.

Credit default swaps for the State Bank of India (used as a proxy for the Indian sovereign) are trading at almost 400 basis points. More precisely, investors must pay $388,000  to insure $10 million of exposure for a five-year period, data from Markit shows. That is well above levels for the other countries in the BRIC quartet -- Brazil, China and Russia. Check out the following graphic from Markit showing the contrast between Brazil and Indian risk perceptions.

from Global Investing:

Lower rates give no respite to Brazil stocks

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In normal times, an aggressive central bank campaign to cut interest rates would provide fodder for stock market bulls. That's not happening in Brazil. Its interest rate, the Selic, has fallen 350 basis points since last August and is likely to fall further at this week's meeting to a record low of 8.5 percent. Yet the Sao Paulo stock market is among the world's worst performers this year, with losses of around 4 percent. That's better than fellow BRIC Russia but far worse than India and China.

Brazil's central bank and government are understandably worried about a Chinese growth slowdown that would eat into Brazilian commodity exports. They are therefore hoping that rate cuts will prepare the domestic economy to take up the slack.

from Photographers' Blog:

Village of joy

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By Ueslei Marcelino

Deep in the Brazilian heartland, where the upper reaches of the Amazon Basin dissolve into the central plateau,  I had the opportunity last week to spend a few days in the village of joy.

What I dubbed the village of joy is the home of the Yawalapiti tribe. One day last week, a group of us were escorted into the Xingu National Park by members of the Darcy Ribeiro Foundation and the Cavaleiro de Jorge cultural center, and arrived at the circular Yawalapiti village under an enormous full moon.

from Global Investing:

Poland, the lonely inflation targeter

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Is the National Bank of Poland (NBP) the last inflation-targeting central bank still standing?

The bank shocked many today with a quarter point rate rise, naming stubbornly high inflation as the reason, and signalling that more tightening is on its way. The NBP has sounded hawkish in recent weeks but few had actually expected it to carry through its threat to raise rates. Economic indicators of late have been far from cheerful -- just hours after the rate rise, data showed Polish car production slumped 30 percent in April from year-ago levels. PMI numbers last week pointed to further deterioration ahead for manufacturing. And sitting as it does on the euro zone's doorstep, Poland will be far more vulnerable than Brazil or Russia to any new setback in Greece. Its action therefore deserves praise, says Benoit Anne, head of emerging markets strategy at Societe Generale.

from Photographers' Blog:

The truest of smiles

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By Nacho Doce

What brought me to the AACD (Association for the Aid of Disabled Children) clinic for the first time was Dani, a 16-year-old girl who had been diagnosed with severe scoliosis, or curvature of the spine. When Dani’s mother, a close friend, showed me her x-ray it was a shock. All the doctors they consulted repeated the same diagnosis and solution - surgery. We didn’t doubt that surgery was one solution, but her mother wanted to find a less radical one that wouldn’t leave her daughter with a metal rod in her spine limiting her movement. Dani exercises every day at home with a therapist to change her posture, and began visiting AACD. Admittedly ignorant of the range of problems that cause so many children to become disabled, I was astonished by what I saw – children with severe conditions fighting physically and mentally to improve their lives.

It was the children’s smiles and willpower that drew me to them from the start, as much to those who couldn’t move as to those who couldn’t speak or sense. The parents and even the therapists also showed incredible strength. Once I asked Yara Santos, 9, “How are you able to smile all the time?” Yara tried to answer me, but due to her condition I couldn’t understand. Her mother and therapist could, and they answered for her. “There’s no recipe for smiling,” were Yara’s words.

from Global Investing:

Where will the FDI flow?

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For years the four mighty BRIC nations have grabbed increasing shares of world investment flows. But the coming years may not be so kind.  These countries bring up the bottom of the Economic Freedom Index (EFI) for 2012. Compiled by Washington D.C.-based think-tank The Heritage Foundation the EFI measures 10 freedoms --  from property rights to entrepreneurship -- and according to a note out today from RBS economists, there is a strong positive link between a country's EFI score and the amount of FDI (foreign direct investment) it can secure. So the more "free" a country, the more FDI inflows it can expect to receive -- that's what an RBS analysis of 2002-2008 investment flows shows.

So back to the BRICs. Or BRICS if you add in South Africa (part of the political grouping though not yet included in the BRIC investment concept used by fund managers). The following graphic shows Russia languishing at the bottom of the EFI, China just above Russia and India third from bottom.  Brazil is sixth from bottom while South Africa ranks two places higher.

from Global Investing:

Three snapshots for Thursday

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Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 386,000, the Labor Department said. The prior week's figure was revised up to 388,000 from the previously reported 380,000.

The four-week moving average for new claims, considered a better measure of labor market trends, rose 5,500 to 374,750.

from Photographers' Blog:

Everywhere a Crackland

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By Paulo Whitaker

Crack consumption is an epidemic in Brazil. In virtually every corner of the country there are users of the drug, so we decided to produce a photo essay to cover a wide geographic area. Seven photographers in seven cities during 24 hours. The story titled "24-7, Crack in Brazil" is about crack use in public view in 2014 World Cup host cities Sao Paulo, Rio de Janeiro, Porto Alegre, Belo Horizonte, Manaus, Salvador da Bahia and Curitiba.

In most of the cities our research showed that users logically confine their consumption to areas with little police presence, such as alleys and deserted streets. In contrast, crack use is so widespread in Sao Paulo that users and dealers gather in the city center with no fear of the police.

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