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Brazil Summons G20 Members for Meeting This Weekend in Washington

Bovespa Bovespa

Bovespa Brazil's finance Minister, Guido Mantega, at the request of Henry Paulson, the US Treasury secretary, has called for a meeting this coming Saturday, October 11, of the G20, a group composed of the rich countries of the G7 plus the European Union, Australia, China, India, Brazil, Argentina, Mexico, Russia, Indonesia, Saudi Arabia, South Africa, South Korea and Turkey.

Mantega, who is the current president of the G20, was expected to travel to Washington this Wednesday to participate in the annual meetings of the IMF and the World Bank. Henrique Meirelles, the president of Brazil's Central Bank, will also be in Washington for the meeting and encounters with investors.

Paulson suggested the gathering of G20 Finance ministers and Central Bank chiefs as a way to discuss other options to deal with the world's financial  meltdown. In a note to the press Mantega wrote: "The goal is to discuss the aspects of the world financial crisis and its impact on the global economy."

The Brazilian Foreign minister, Celso Amorim, suggested that the Brics (Brazil, Russia, China, India and South Africa) operate in a coordinated fashion in order to fight the effects of the global crisis.

"I think this is very important," he noted, "and this crisis drives home the need to coordinate with other emerging economies, such as, the so-called Brics. We have a growing huge trade with these countries, however,  we cannot leave it at the mercy of credit difficulties that can originate from rich countries' problems."

The Bovespa, Brazil's stock exchange fell for the 5th day in a row, this Wednesday, October 8, accumulating losses of 23% in October alone. The Ibovespa, the Bovespa index slipped 1,546. points or 3.9%, closing at 38,593.54, this Wednesday.

Meanwhile the real, the Brazilian currency, declined as much as 10% against the US dollar during the day reaching 2.45 reais a dollar before recuperating and closing at 2.272 reais, a 1.73% drop.

LatAm Down

Latin American markets finished sharply lower on Tuesday under pressure from the slide on Wall Street, falling commodity prices and uncertainty about the future. Growth forecasts have also been downgraded.

Brazil's Bovespa fell 4.7% to 40,139.85, for the fourth time in a row. It was the first close under the 41,000-points level since May 2006.

Mexico's IPC declined 4% to 20,884.74 for its first finish under 21,000 since September 2006. It has closed lower for fourth straight sessions.

Argentina's Merval fell 2.7% to 1,384.60, the lowest since July 2005 having accumulated losses of 8.47% in two days. Chile's IPSA tumbled 4.3% to 2, 345.22, while the US dollar kept approaching the 600 Pesos benchmark.

The Brazilian real remained under pressure with the US dollar gaining as much as 5.7%, pushing it down to its lowest level in two years. The dollar against gained against the Mexican Peso by 4%.

On Wall Street, the Dow industrials (DJI) crumbled 508 points to 9,447.11 after investors turned its focus from the Federal Reserve's entrance into the commercial paper to ease frozen credit markets, to minutes from the central bank's meeting in September that showed that rate policymakers set aside rate cuts.

Bernanke said Tuesday that commodity prices are likely to move even lower because of the global economic slowdown

Given the dependence of the region on commodity exports experts are downgrading economic forecasts for a number of LatAm economies. Brazil is expected to expand 3% instead of 3.5% just a couple of weeks ago. Mexico’s outlook was cut to 1.7% from 3.2%; Argentina to 2.5% from its previous forecast of 4.4%; and Chile to 3.2% from 4.2%.

Bzz/MP

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  • Show Comments (6)

  • Claude Gelinas

    World banks are about to setup a world tax
    The globalists are racing to take -everything- from the remaining middle class, all over the world.

    The billionnaire bankers will continue to illegally loot honest citizens of the world until everybody has been reduced to economic slavery.

    And to tops things off, world banks will enforce a global tax on the very air we breathe.

    These are dark times so it’s no wonder the elite want to meet…

  • dnbaiacu

    OCTOBER
    So funny all this stuff happens in a month known for “increased demonic activity” capitulating in Halloween. 😉 😀 😉 😀
    Actually it isn’t funny. But very interesting.
    We’ll see what they come up with 😉

  • CH.C.

    Brazil Summons G20 Members
    and then….”Brazil’s finance Minister, Guido Mantega, at the request of Henry Paulson, the US Treasury secretary, has called for a meeting this coming Saturday, October 11, of the G20,”

    Is that what Brazil Their Summon ??????

    No doubt Brazil Summoned the other 19 members, the USA, EU, China, Russia, India etc etc !!!!!

    My regards to the second in command….after God !!!!!
    😀

  • aes

    Bernanke said Tuesday that commodity prices are likely to move even lower because of the global economic slowdown

    Yeh well Buffet said inflation would be an inevitable consequence of the measures being taken to quell financial markets and free up liquidity by printing money.

    Commodities ie gold and silver are inevitible hedges against inflation as well as other commodities.

  • Ric

    In That Case
    Brazil will invoke the time-honored response of “achando ruim”.

  • João da Silva

    [quote]Brazil Summons G20 Members for Meeting This Weekend in Washington [/quote]

    What happens if the G20 Members reject the “Summons” of Brazil and decide to stay home? 😉

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