Monica Werneck and her husband bought a rat-infested “dump” on the edge of a Rio de Janeiro slum in 2012. They built a beauty salon that opened last week, complete with two manicurists whose jobs she’s registering with the government.
Painted on a whitewashed wall at its Rio de Janeiro home is Flamengo’s boast that it’s “the most loved club in the world.” The soccer team is counting on that affection to help rescue it from the taxman.
Brazil’s government will need to cut spending and the central bank will have to raise interest rates more than the market expects to slow inflation, said Carlos Langoni, a former central bank president.
Gartmore Investment Management Ltd.’s Christopher Palmer needed only a day in Rio de Janeiro to scout for investment opportunities while visiting Brazil six years ago. Now half a week in the city isn’t enough.
Brazilian President Dilma Rousseff raised taxes on corporate loans and debt sales abroad by banks in a bid to contain a 39 percent gain in the real since the end of 2008. The real erased this year’s losses and yields on interest-rate futures rose.
Brazil’s economy probably expanded at the fastest pace in President Dilma Rousseff’s tenure in the second quarter, a clip analysts forecast is unsustainable as the central bank raises interest rates and the currency plunges.