Headlines you might have missed during the holiday season

. Jan 03, 2018
embraer boeing deal holiday season

In most parts of Brazil, 2018 actually started today. It will be a busy year: on the agenda we have the last 12 months of the contested Michel Temer administration, its austerity agenda, and the 2018 Russia World Cup (and high hopes for the Brazilian squad). Most importantly, though, Brazil will hold its general elections in 2018.

The early leader in all polls, former President Lula da Silva, could be excluded from the race. An appeals court will decide whether or not to confirm his July 2017 conviction for corruption and money laundering. If all three judges decide that Lula is guilty, he’ll likely be declared ineligible for public office. Meanwhile, the popularity of extreme right-winger Jair Bolsonaro is growing with the rising tide of authoritarianism in Brazil. He is placing second in all polls and leads in scenarios that don’t include Lula. The 2018 campaign season promises to be an ugly, polarized affair.

But here, we have compiled some of the headlines you might have missed during the holiday season. Happy 2018!

</p> <h3>Petrobras agrees to settle U.S. class action over corruption</h3> <p><img class="alignleft wp-image-2018 size-medium" src="https://brazilian.report/wp-content/uploads/2018/01/petrobras-186x300.jpg" alt="petrobras" width="186" height="300" srcset="https://brazilian.report/wp-content/uploads/2018/01/petrobras-186x300.jpg 186w, https://brazilian.report/wp-content/uploads/2018/01/petrobras-768x1242.jpg 768w, https://brazilian.report/wp-content/uploads/2018/01/petrobras-633x1024.jpg 633w, https://brazilian.report/wp-content/uploads/2018/01/petrobras.jpg 1267w" sizes="(max-width: 186px) 100vw, 186px" />Investors across the world have accused Petrobras of deliberately lying to them and doctoring balances. For investors, the company is liable for the <a href="https://brazilian.report/2017/12/08/brazils-biggest-corruption/">corruption scheme</a> that drained resources, causing its stock to have a current value ten times smaller than it was in 2009. The last two CEOs – Maria das Graças Foster and Sérgio Gabrielli – are part of the lawsuit.</p> <p>On Wednesday, the company announced that it has agreed to pay $2.95 billion to settle the case. André de Almeida, the lawyer representing the plaintiffs, has declared that the investors want to file a similar suit against Petrobras in Brazil &#8211; and that reparation could be calculated based on the result of the U.S. case.</p> <h3>One year later, a new prison massacre</h3> <p><img class="size-full wp-image-2022 aligncenter" src="https://brazilian.report/wp-content/uploads/2018/01/cela-presidio-samieaberto-aparecida.jpg" alt="prison riot brazil" width="1600" height="1002" srcset="https://brazilian.report/wp-content/uploads/2018/01/cela-presidio-samieaberto-aparecida.jpg 1600w, https://brazilian.report/wp-content/uploads/2018/01/cela-presidio-samieaberto-aparecida-300x188.jpg 300w, https://brazilian.report/wp-content/uploads/2018/01/cela-presidio-samieaberto-aparecida-768x481.jpg 768w, https://brazilian.report/wp-content/uploads/2018/01/cela-presidio-samieaberto-aparecida-1024x641.jpg 1024w" sizes="(max-width: 1600px) 100vw, 1600px" /></p> <p>A prison riot broke out in the Colonia Agroindustrial prison of Aparecida de Goiania, a city located in the metropolitan region of Goiânia, the state capital of Goiás. At least nine inmates were killed (two of which were beheaded) and 14 were injured. Another 106 escaped from the penitentiary; 29 have been recaptured, and 77 remain at large.</p> <p>The riot began after members of a criminal faction invaded a different cell block. Then, they started shooting firearms and burning mattresses. According to some of the prison guards, the groups are disputing control over criminal activities outside of the prison.</p> <p>Goiás&#8217; secretary of public safety, who is responsible for the state&#8217;s prison system, declined to comment on the riot. According to the Goiás Prison Guards Association, only three agents have been tasked with supervising over 900 inmates. For the New Year&#8217;s holiday, two extra agents were put on call.</p> <p>The riot occurs exactly <a href="https://brasil.elpais.com/brasil/2018/01/02/politica/1514848126_015384.html">one year after</a> a conflict between criminal groups erupted in riots across Amazonas, Roraima, and Rio Grande do Norte. The 2017 riots killed over 120 inmates across Brazil and sparked intense debate about the country’s inhumane prison facilities. The country has the world&#8217;s third-largest prison population &#8211; and many are in jail without having been tried or convicted.</p> <h3>Embraer and Boeing possible deal</h3> <p><img class="size-full wp-image-2023 aligncenter" src="https://brazilian.report/wp-content/uploads/2018/01/embraer-boeing-deal.jpg" alt="embraer boeing deal" width="2048" height="1191" srcset="https://brazilian.report/wp-content/uploads/2018/01/embraer-boeing-deal.jpg 2048w, https://brazilian.report/wp-content/uploads/2018/01/embraer-boeing-deal-300x175.jpg 300w, https://brazilian.report/wp-content/uploads/2018/01/embraer-boeing-deal-768x447.jpg 768w, https://brazilian.report/wp-content/uploads/2018/01/embraer-boeing-deal-1024x596.jpg 1024w, https://brazilian.report/wp-content/uploads/2018/01/embraer-boeing-deal-610x355.jpg 610w" sizes="(max-width: 2048px) 100vw, 2048px" /></p> <p>In the waning moments of 2017, news broke that the American plane manufacturer Boeing is negotiating a <a href="https://brazilian.report/2017/12/22/embraer-boeing-deal/">takeover</a> with Embraer, the Brazilian jet maker. According to sources from both companies, though, the deal won&#8217;t be the creation of a joint venture per se. The companies prefer the term &#8220;business combination.&#8221; However, any deal must be approved by the Brazilian government.</p> <p>As it owns 5 percent of the company&#8217;s stock, the government has the power to veto any deal of the kind. President Michel Temer has declared that he wouldn&#8217;t sell control of the jet maker. That&#8217;s why Boeing is investigating methods to improve integration between the companies, without hampering Embraer&#8217;s autonomy (at least formally, that is).</p> <p>The Brazilian government, however, is reportedly open to partnership deals with Boeing, especially in the logistics and distribution sectors. A partnership in the defense sector is also not out of the question. But even if the government resists handing the reigns of Embraer to Boeing, the truth is that Embraer&#8217;s main shareholders are not Brazilian, but two American investment funds.</p> <h3>TV presenter Luciano Huck really wants to run for president</h3> <div id="attachment_1324" style="width: 1090px" class="wp-caption alignnone"><img aria-describedby="caption-attachment-1324" class="size-full wp-image-1324" src="https://brazilian.report/wp-content/uploads/2017/11/luciano-huck-president.jpg" alt="luciano huck president" width="1080" height="541" srcset="https://brazilian.report/wp-content/uploads/2017/11/luciano-huck-president.jpg 1080w, https://brazilian.report/wp-content/uploads/2017/11/luciano-huck-president-300x150.jpg 300w, https://brazilian.report/wp-content/uploads/2017/11/luciano-huck-president-768x385.jpg 768w, https://brazilian.report/wp-content/uploads/2017/11/luciano-huck-president-1024x513.jpg 1024w, https://brazilian.report/wp-content/uploads/2017/11/luciano-huck-president-610x306.jpg 610w" sizes="(max-width: 1080px) 100vw, 1080px" /><p id="caption-attachment-1324" class="wp-caption-text">Luciano Huck could be competitive in Brazil&#8217;s 2018 election. Photo: Globo</p></div> <p>On November 27, TV presenter Luciano Huck published an article <a href="https://brazilian.report/2017/11/28/luciano-huck-presidential-race/">explaining</a> that he wouldn&#8217;t run for president in 2018. At the time, <strong>The Brazilian Report</strong> explained to premium readers that it might simply be a stunt to preserve him from political attacks &#8211; at least until April, the deadline to join a political party. Now, there&#8217;s reason to believe that Huck has not given up on his candidacy.</p> <p>According to <em>Folha de S.Paulo</em>, in December Huck met with Carlos Montenegro, the head of Ibope, one of the leading polling institutes in Brazil. Huck asked not to be excluded from the polls for president. It’s an interesting request for someone who has no aspirations to run for office.</p> <p>Montenegro hasn’t confirmed that the meeting took place. However, he argued that Huck&#8217;s name should be included in the next polling scenarios. To justify the inclusion, he mentioned former President Lula da Silva. &#8220;It is highly probable that [Lula] won&#8217;t be able to run, but his name is in every poll.&#8221;

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