BRASILIA (Reuters) – Brazil’s President Dilma Rousseff struggled on Wednesday to overcome the loss of her most powerful minister, as new questions emerged over who will lead the fight against rising inflation and rebuild her government’s strained relationship with Congress.
Investors mostly took the departure of Chief of Staff Antonio Palocci in stride a day after he quit in a drawn-out scandal over his sudden enrichment and acquisition of a multimillion-dollar home while he was a lawmaker.
BRASILIA/RIO DE JANEIRO (Reuters) – As Dilma Rousseff coasted to Brazil’s presidency last year, one doubt kept cropping up — would the career bureaucrat be savvy enough to handle Brazil’s dog-eat-dog political world?
After a turbulent few weeks that have shaken her young administration, the evidence is mounting that she isn’t — a failing that could have serious policy consequences as the government manages a slowing economy and high inflation.
RIO DE JANEIRO, May 27 (Reuters) – Policy-makers in
emerging markets need to keep reaching for a broad mix of tools
to cope with the heavy capital flows that have caused
strong-currency headaches and led to fears of asset bubbles –
because such flows are here to stay.
That is largely good news, said economists and officials at
a conference on capital flows held by the IMF and Brazil’s
finance ministry. Hot economies such as Brazil and Indonesia
may see less fallout than some fear when the U.S. Federal
Reserve eventually raises interest rates, tightening the tap on
cheap funds that flooded into Latin America and Asia in search
of higher returns.
RIO DE JANEIRO (Reuters) – The end of the latest phase of the U.S. Federal Reserve’s loose monetary policy is unlikely to cause a major pullback of funds from emerging markets and should be a “minor event,” the International Monetary Fund’s chief economist told Reuters on Thursday.
The Fed’s quantitative easing program has been blamed by some officials in emerging markets for encouraging a flood of funds that have pushed up currencies and created overheating pressures in countries such as Brazil.
RIO DE JANEIRO (Reuters) – The prospect of a mammoth $12 billion investment by iPhone maker Foxconn Technology Group has sent Brazilian government officials scrambling to rethink the country’s industrial policy.
The aim is to nurture a high-tech industry that will slash Brazil’s costly dependence on tech imports and create a complete production chain in Brazil to feed rampant demand for products like smartphones and tablet computers.