1. Lula congratulates Trump on election win

President Luiz Inácio Lula da Silva congratulated Donald Trump on his victory in the U.S. presidential election and emphasized the importance of dialogue for peace and prosperity. Lula highlighted respect for democracy and wished success to the new administration.

Vice President Geraldo Alckmin also commented on the result, expressing hope for strengthened relations between the two countries. Lula’s statement came days after he publicly expressed support for Kamala Harris, which had sparked criticism in public opinion.

G1: Lula parabeniza Trump por vitória na eleição dos EUA, deseja sorte e prega diálogo

2. Central Bank raises Selic rate to 11.25% per annum.

The Central Bank’s Monetary Policy Committee (COPOM) decided to raise the basic interest rate by 0.50 percentage points, to 11.25% p.a., as a measure to align inflation with the target amid labor market pressures and persistent inflation in the price of services. According to the Central Bank, the global scenario remains uncertain, with diverging monetary policies and global inflationary risks, a context that calls for caution for emerging economies.

COPOM also emphasized the importance of responsible fiscal policy to reduce risk premiums, stating that future adjustments will depend on the evolution of inflation and the economic outlook.

G1: Selic: Copom acelera alta e eleva juros de 10,75% para 11,25% ao ano; nota cita ‘incerteza’ nos EUA
Banco Central: Copom eleva a taxa Selic para 11,25% a.a.

3. Chamber of Deputies approves legal framework for insurance

On Tuesday (5), the Chamber of Deputies approved the legal framework for insurance, a bill that establishes new guidelines for insurance contracts. Among the approved changes is the prohibition for insurers to unilaterally terminate the contract. On the other hand, it imposes responsibilities on the insured, such as not intentionally or significantly increasing the insurance risk, with the risk of losing coverage.

The legal framework for insurance is part of a series of microeconomic reforms implemented by the Ministry of Finance. The bill now moves on to await presidential approval.

Valor Econômico: Câmara aprova marco legal dos seguros

4. Amid dollar surge, government plans to control spending

The government’s economic team is working to finalize a spending cut proposal aimed at maintaining fiscal balance in response to market pressures and the rising price of the dollar. According to Finance Minister Fernando Haddad, two aspects still await President Lula’s approval, and the government expects to announce the plan soon.

Haddad emphasized that Congress would have early access to the draft, without additional changes, to avoid surprises and facilitate the process. The goal is to align the proposal with market expectations, which have reacted poorly to what is perceived as a lack of government commitment to fiscal balance.

G1: Haddad diz que espera anunciar corte de gastos nesta quarta, mas aguarda aval de Lula para ‘detalhes’ na proposta

5. Deforestation in the Amazon falls 30.6%, the lowest level in 9 years

The federal government announced a 30.63% reduction in Amazon deforestation between August 2023 and July 2024, marking the largest percentage decrease in 15 years. The data, provided by the National Institute for Space Research (INPE), also showed a 25.8% reduction of deforestation in the Cerrado biome, recording the first decrease in five years.

Vice President Geraldo Alckmin celebrated the results, following criticism the government had faced on the issue. Alckmin highlighted the positive impact on emissions, as well as the preservation of jobs and natural resources, and plans to present these findings at COP29, which begins next week in Baku, Azerbaijan.

G1: Inpe: taxa de desmatamento cai 30% na Amazônia e 25% no Cerrado