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Bolsonaro’s fuel dilemma puts Petrobras chief on shaky ground

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Bolsonaro’s fuel dilemma puts Petrobras chief on shaky ground

One yr in the past Jair Bolsonaro triggered a disaster at state-controlled vitality group Petrobras by changing its technocratic chief govt with a army officer. Now the way forward for the final appointed by the Brazilian president is more and more doubtful.

With elections looming in October, the rightwing populist chief has in latest weeks lashed out at publicly listed Petrobras after it refused to cap rising petrol and diesel costs, a sore spot for voters.

A survey printed by BTG Pactual this week discovered that one in three respondents blamed the federal government — a better proportion than those that held accountable different components corresponding to Petrobras or the battle in Ukraine — for the rise in gas prices. On the pumps diesel has soared by 1 / 4 and petrol by 10 per cent for the reason that begin of this yr alone, hurting dwelling requirements, significantly in poorer communities.

Bolsonaro trails within the polls to leftwing rival Luiz Inácio Lula da Silva, an outspoken proponent of holding down gas costs. Many count on the Brazilian chief will handle the problem both by eradicating Normal Joaquim Silva e Luna as Petrobras chief and putting in a extra pliant substitute, or through the use of his presidential powers to create a gas subsidy programme.

Each choices carry potential dangers to Brazil’s largest firm and to the broader financial system. When Silva e Luna was nominated final yr, Petrobras’s São Paulo-listed inventory fell 21 per cent and Brazil’s foreign money slid towards the greenback amid fears the federal government would intervene within the firm’s pricing coverage, which tracks worldwide markets for home gas charges.

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Nevertheless, Silva e Luna has to date resisted the stress, resulting in the dialogue within the authorities of who might change him.

“In Brazil, the problem of gas costs is all the time a political subject. It has all the time been all through Petrobras’s historical past,” mentioned Roberto Castello Branco, who was in impact fired as chief govt by Bolsonaro final yr.

“There’s a danger that Petrobras will endure extreme losses from any intervention in costs,” he mentioned, which might have “damaging repercussions on the Brazilian financial system. That is along with the short-term repercussions, which occur within the inventory market, within the alternate charge, in rates of interest.”

Cláudio Porto, founding father of vitality consultancy Macroplan, envisages two situations. The primary is a “symbolic alternate” the place Silva e Luna is changed however the pricing coverage maintained. Within the different, the final is eliminated and the corporate’s messaging and pricing coverage overhauled.

“On this case, the influence on the inventory market will likely be longer with a lack of worth for Petrobras. So long as Petrobras is state managed, it is going to be attacked all through the cycle electoral marketing campaign,” he mentioned.

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For his half, Silva e Luna has to date refused to again down. “The battlefield is my consolation zone,” he advised Reuters. “I don’t run away from it. A person’s gotta do what a person’s gotta do.”

His give attention to shareholder worth, nevertheless, is prone to come below sustained stress within the coming weeks, with politicians throughout the spectrum united towards him.

Like Bolsonaro, Lula has questioned the apply of adjusting home gas costs in step with world greenback charges. The leftist, who served as president between 2003 and 2010, has vowed to “Brazilianise Petrobras’s costs” if he wins the election. Rodrigo Pacheco, the president of the Senate, mentioned Petrobras had a “social operate” to scale back the influence of gas costs.

But to some observers, the rhetoric is little greater than political posturing. A company governance overhaul of Petrobras following its involvement within the years-long Automotive Wash corruption scandal, together with different authorized reforms, means it’s now harder for administration and the federal government to behave in a manner that may injury the enterprise.

“The bylaws of the corporate had been improved considerably, not permitting staff or any administrators or executives to do something that financially harms the corporate. These folks could be personally liable,” mentioned Luiz Carvalho, an analyst with UBS.

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Silva e Luna’s destiny is prone to be determined at a particular shareholder assembly of Petrobras in mid-April. His present time period is scheduled to run to subsequent February, though he may very well be ousted earlier than then if the federal government removes his identify from an inventory to make up the corporate’s board. The chief govt needs to be a board member, in response to company statutes.

To cope with surging gas costs the federal government might additionally create a selected subsidy. Paulo Guedes, the finance minister, mentioned this month that the federal government was finding out that chance, having already diminished a sequence of presidency taxes on gas.

However critics argue that the influence of a subsidy can be unlikely to achieve Brazil’s most needy, who have a tendency to not personal automobiles, and the programme would as an alternative quantity to higher margins for businesspeople within the gas provide chain.

Additionally they level out that the federal government is already restricted in what it could actually do, given authorized constraints on spending in an election yr.

“Many declare that the creation of a selected subsidy programme or a social programme can be categorized as an electoral crime,” mentioned Adriano Pires, founding father of the Brazilian Centre for Infrastructure.

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The way in which spherical that is for Bolsonaro to subject an govt order, declaring extraordinary circumstances or a public calamity, he mentioned. “I believe that if the value of a barrel continues on a excessive trajectory . . . the federal government is probably going to do this.”

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Syrian delegation visits Saudi Arabia for first foreign trip since ousting of Bashar al-Assad

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Syrian delegation visits Saudi Arabia for first foreign trip since ousting of Bashar al-Assad

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A senior Syrian delegation led by foreign minister Asaad al-Shaibani arrived in Riyadh on its first official foreign trip since Bashar al-Assad was ousted by rebels last month.

The group, which includes defence minister Murhaf Abu Qasra and intelligence chief Anas Khattab, was greeted at Riyadh airport late on Wednesday by the kingdom’s deputy foreign minister Waleed Elkhereiji, according to the official Saudi Press Agency.

“Through this first visit in the history of free Syria, we aspire to open a new and bright page in Syrian-Saudi relations, befitting the long shared history between the two countries,” Shaibani said on X.

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Saudi Arabia had welcomed Assad on several occasions in the past two years as it began re-engaging with the dictator for the first time since the civil war erupted in Syria in 2011. But the kingdom and other Gulf states have moved quickly to embrace the new authorities, dominated by the Islamist group Hayat Tahrir al-Sham, after they took over Damascus on December 8.

Arab countries are concerned about further conflict and political instability in the region following devastating wars in Gaza and Lebanon, while Gulf states are also keen to cut the smuggling of Captagon and other illicit drugs originating from Syria.

The visit, following an official invitation from the kingdom, comes as Saudi Arabia dispatched three planeloads of humanitarian aid to Syria, including food, shelter and medical supplies.

The Syrian delegation held talks with Saudi defence minister Prince Khalid bin Salman, a younger brother of the crown prince, to explore ways to support the transitional political process.

“Our brothers and sisters in Syria have suffered years of war, destruction and difficult living conditions,” Prince Khalid said on X after the meeting. “It is time for Syria to stabilise, rise up and benefit from its resources, the most important of which is the brotherly Syrian people. May God protect Syria and keep it safe from all evils.”

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Other senior Saudi officials attended the meeting, including foreign minister Prince Faisal bin Farhan, intelligence chief Khalid al-Humaidan and Chief of General Staff Gen. Fayyad al-Ruwaili.

On Monday, Kuwait’s foreign minister Abdullah al-Yahya and Jasem al-Budaiwi, secretary-general of the Gulf Cooperation Council, met with Syria’s de facto ruler Ahmed al-Sharaa.

Yahya called on the international community to reconsider sanctions imposed on Syria, adding that Gulf countries were urgently working to send more aid to Syria.

The visit “shows our commitment to opening a new page of constructive regional co-operation . . . and we also value the responsiveness of the new administration in Syria to these efforts”, Yahya said during a press conference in Damascus.

HTS is designated a terrorist organisation by the US, the UN and others, though Washington and other western capitals have taken tentative steps to engage with the new rulers.

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Qatar, which had previously resisted efforts to rehabilitate the Assad regime and return it to the Arab fold, also sent a high-level delegation to Syria last week.

New Syrian leader Sharaa, who formerly used the nom de guerre Abu Mohammad al-Jolani, told Saudi-owned Al Arabiya news channel in an interview last week that Saudi Arabia would “certainly have a large role in Syria’s future”.

He added that there was “a big investment opportunity” as the country sought to rebuild its economy after more than a decade of devastating civil war.

In the same interview, he provided the first indication of a possible timeline for phases of the country’s political transition, saying it would take up to three years to draft a new constitution and up to four years to hold its first elections.

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Trump falsely links New Orleans terror attack to migrants after erroneous Fox News report | CNN Business

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Trump falsely links New Orleans terror attack to migrants after erroneous Fox News report | CNN Business


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CNN
 — 

An erroneous early Fox News report about the New Orleans terror attack is warping the political dialogue in the aftermath of the deadly rampage.

The false report from Fox, which was attributed to anonymous sources, confused the public – and evidently President-elect Donald Trump too. The misinformation is still circulating more than 24 hours later – serving as a cautionary tale about the news ecosystem as the new year begins.

During the 10 a.m. hour on Wednesday, Fox reported that the New Orleans suspect’s truck crossed the US border in Eagle Pass, Texas “two days ago.” Some of the right-wing network’s coverage explicitly said “the suspect” drove across the border, leaving viewers with the impression that a foreigner might be responsible for the deadly carnage.

In fact, the New Orleans attack suspect was a US citizen and Army veteran. But those facts weren’t publicly established at the time Fox aired the faulty information.

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Eight minutes after the first Fox segment that mentioned the border, Trump issued a statement about “criminals coming in” from other countries. While Trump didn’t mention Fox directly, he is known to be an avid consumer of the cable network and has tapped several of its personalities for his incoming cabinet.

Some of Trump’s family members and political allies also immediately connected the attack to illegal immigration and cited Fox.

“Biden’s parting gift to America — migrant terrorists,” Donald Trump Jr. wrote, sharing the Fox claim on X. “Shut the border down!!!” Rep. Marjorie Taylor Greene exclaimed.

Fox tried to walk back its incorrect report about an hour and a half later. The network said the truck used in the attack was actually in Eagle Pass nearly two months ago, not two days ago. More importantly, the truck was being driven by someone else at that time – it was available on the car rental app Turo – so the detail about the border was completely irrelevant.

But the damage was done. References to Eagle Pass continued to spread across social media. Fox continued to stream a clip on its website of the incorrect information. “Some Republicans continued to beat the border drum well after Fox News retracted its initial report,” The Daily Beast’s Josh Fiallo reported.

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Ironically, Trump’s original statement used the New Orleans attack to say that he was right and the “Fake News Media” was wrong about the threat posed by illegal immigration. If he had waited a couple hours to react, he would have learned that the suspect was a US citizen.

A Fox spokesperson did not respond to a request for comment about the misreporting.

In a strange moment on the air Wednesday afternoon, a Fox reporter read Trump’s quote about “criminals coming in” from other countries, then clarified the New Orleans attacker didn’t enter from another country – without noting that it was Fox that seemingly misled Trump into issuing the statement in the first place.

Overnight, Trump continued to post messages on Truth Social assailing “open borders.” After a related segment on “Fox & Friends” Thursday morning, Trump wrote, “I said, many times during Rallies, and elsewhere, that Radical Islamic Terrorism, and other forms of violent crime, will become so bad in America that it will become hard to even imagine or believe. That time has come, only worse than ever imagined.”

Republican lawmakers on Fox have also continued to bring up the southern border during the network’s segments about the New Orleans attack, even though there is no known link.

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New Orleans Attacker Evaded a Security System Under Repair

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Bollards that normally protect pedestrians from vehicles were to be replaced as part of the city’s preparations for the Super Bowl next month. The attacker drove his pickup around a police vehicle parked to block traffic from the street he struck.

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