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Top newspaper calls on Brazil leader to quit

21 Мая 2017

During her impeachment trial, Rousseff said that her removal was the price she paid for refusing to quash the Car Wash probe, saying that corrupt politicians conspired to oust her to derail the investigations.

"This certainly makes approval of the reforms more hard", Senator Valdir Raupp, a close ally to Temer, told Reuters. His political enemies frequently compare him to a butler in a horror movie. "He's an unpopular president".

He came to power a year ago automatically because he was vice president when the president, Dilma Rousseff, was impeached for masking the government budget hole.

Brazilian markets plummeted yesterday as allegations that President Michel Temer condoned bribes to silence a key witness deflated investor optimism about the prospects for his ambitious pension and labour reform agenda.

In a plea bargain by the same man who recorded Temer, released as part of the document dump by the Supreme Tribunal Federal, the president is accused of taking $1.5 million in bribes.

If Temer resigns or is forced from office, the constitution at present says Congress must choose a caretaker president and vice president to govern until the next election, scheduled for late next year.

In a terse five-minute speech broadcast nationwide, Temer said he had done nothing wrong, that his presidency was helping turn around Brazil's stalled economy and he welcomed an investigation so that he could prove his innocence.

"The development thus substantially increases the risk of an unscheduled government change in Brazil before the 2018 general elections", Favaro told clients in a note.

The immediate impact is economic: In the 24 hours after the tapes were first reported, the Brazilian stock market and the currency each dropped by about 10 per cent.

Temer's team has issued statements questioning the veracity of the recordings. Temer's defenders will probably assert that his words merely indicated a desire to provide moral support for Cunha. "From a political perspective it's a different ball game". And over the past year, his push for austerity measures has contributed to a steady decline in his approval ratings, which hit just 9 percent this month.

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The brothers whose deft dealmaking helped build JBS SA into the world's No. 1 meat processor are testing that talent like never before as they seek a leniency deal with prosecutors after admitting to paying millions of dollars in bribes to Brazilian politicians. The conversation was secretly taped by Batista, who unbeknown to the president had been swept up in the corruption probe and agreed to cooperate with investigators.

Although Temer is protected by laws that prevent a sitting president from being investigated for acts that occurred before he assumed office, his name has been mentioned in evidence and transcriptions related to investigations into some of his top allies.

"It all starts with entrepreneurs bribing politicians in order to win partiality when bidding for government projects".

Rousseff was impeached for breaking budgetary rules by shifting around funds to cover short-term deficits. She denies all the charges.

"What we saw in Brazil in recent years was (corruption) not only moving from endemic to epidemic, but from epidemic to systemic", said Troyjo, the Columbia adjunct professor. No economic policy will work if there is no trust in political leaders or the country's institutions.

"The political turmoil is leading to daily uncertainties", Randall said. That pessimism spread to Argentina, which saw declines in stocks markets and a jump in the value of the USA dollar against the peso. "Amaral warned that Brazil lives today 'a coup within the coup" and emphasized that the streets will decide where the game is going to be. The country's public expenses are spiraling out of control.

Until now Temer has managed to stay above the fray.

Strategists at JPMorgan Securities and UBS Securities downgraded their recommendations on Brazilian equities to "neutral", citing increased risks to the implementation of structural reforms. The faith lies in the country's cadre of younger judges and prosecutors "who have been responding to the desire to end impunity", Sotero said.

Authorities released photos of Loures receiving 500,000 reais from a JBS employee, though Loures denied any wrongdoing. "We have come a long way".

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