WALL STREET JOURNAL
DECEMBER 10, 2010, 3:19 P.M. ET
Brazil President Pledges Solidarity with WikiLeaks
By JEFF FICK
RIO DE JANEIRO--Brazilian President Luiz Inacio Lula da Silva offered
his support to embattled WikiLeaks founder Julian Assange on
Thursday, pointing the finger of blame directly at the U.S.
"The guy was arrested, and I haven't seen any protest against the
siege on freedom of expression," Mr. da Silva said on Brazil's
presidential blog, referring to the lack of outcry in Brazilian
newspapers about the case. "It's funny, there's nothing."
Mr. da Silva said that he wanted the first protest against the attack
on freedom of expression on the Internet posted on his presidential
blog "so that we can all protest together."
Mr. Assange is in custody in London after being arrested on an
international warrant issued by Sweden, where he is accused of rape,
molestation and unlawful coercion by two women. The WikiLeaks
founder, who for the past few months has hopped between countries,
had sexual encounters with the women during a stint in Sweden last
summer. Mr. Assange, who has confirmed the sexual encounters but
denied the assault allegations, hasn't been charged in either case.
The latest release by WikiLeaks of thousands of classified documents
from the U.S., many containing embarrassing comments about foreign
officials and details about State Department activities overseas, has
elicited strong reactions from officials around the world. The U.S.
considers the documents stolen.
"The guy was only publishing that which he read. And if he read it,
it's because someone else wrote it. The blame doesn't belong to who
released it, the blame is with who wrote it," the former union
firebrand said. "So, WikiLeaks, my solidarity for disclosing (the
documents) and my protest against the siege against freedom of
expression."
-jeff.f...@dowjones.com
LATIN AMERICA NEWS
DECEMBER 17, 2010, 3:17 P.M. ET
Brazil Joblessness Hits Record Low
By MATTHEW COWLEY
SAO PAULO?Brazil's unemployment rate fell below 6% in November,
underscoring the strong recovery of the Brazilian economy from global
crisis, but prompting fresh calls for higher interest rates to tame
inflation.
Unemployment was 5.7% last month, lower than October's 6.1%, the
Brazilian Census Bureau, or IBGE, said Friday. October's rate was the
previous low for unemployment recorded under the IBGE's current
methodology. Unemployment in November 2009 was 7.4%.
Official jobs data only measure part of the Brazilian economy,
covering six metropolitan areas and just under 24 million
"economically active" people, roughly a quarter of Brazil's total
working population.
Nonetheless, unemployment has fallen for six consecutive months, and
the numbers present a clear picture of demand for labor outstripping
supply. Brazil's economy is roaring, with gross domestic product
likely to grow more than 7.5% this year, reversing last year's 0.6%
contraction.
Low unemployment, though a sign of a growing economy, is a
"significant and growing risk" to the government's inflation target,
said Luiza Rodrigues, an economist at Banco Santander, in a research
note. Ms. Rodrigues sees the central bank raising its Selic base
interest rate, currently 10.75%, "as early as January" to rein in
prices.
Ms. Rodrigues said the falling unemployment numbers mean it's "likely
that workers are going to ask for more salary adjustments, and given
the tight labor market, they are likely to succeed; more inflation is
coming."
Consumer price inflation is pushing toward 6%, above the government's
2010 goal of 4.5%, and orthodox economists say the jobs numbers add
to concerns about price pressures. But the central bank has been
reluctant to raise interest rates and is now awaiting the impact of
measures it took earlier this month to slow bank lending.
RBS economist Zeina Latif said the jobs data "warrants fast reaction"
from the government. This means cutting spending and refraining from
raising the minimum wage faster than inflation, she said.
Minutes from the central bank's latest rate-setting meeting,
published Thursday, were ambiguous, leaving the field wide open for
the incoming central bank president, Alexandre Tombini, to chart his
own course. Mr. Tombini will take over from incumbent Henrique
Meirelles in January.
Not everyone believes interest rates will move higher. Some voices in
both government and business argue that higher rates attract more
speculative investments in Brazilian debt, exaggerating the strong
appreciation of the Brazilian real. With rates in much of the
developed world close to zero, Brazil's sky-high numbers are
irresistible.
On Friday, the real lost ground against the dollar as worries about
the state of Europe's finances outweighed inflation concerns in
Brazil. The real was trading at BRL1.7135 per dollar, weaker than
Thursday's close of BRL1.702.
Much depends on whether President-elect Dilma Rousseff, who takes
office Jan. 1, cuts spending, as she has suggested. If that is reined
in, then some economists have argued there may be room for Brazil to
steady or even cut interest rates.
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