ReportWire

Tag: Brazil

  • Volkswagen faces historic $30 million compensation for Amazon labor abuses in Brazil

    SAO PAULO (AP) — Brazil’s labor court on Friday ordered Volkswagen to pay 165 million reais (about $30 million) for collective moral damages after workers were subjected to slave-like conditions at a company-owned farm in the Amazon during the 1970s and 1980s. Prosecutors said it is the largest such reparation in the country’s history.

    The Labor Prosecutor’s Office launched an investigation in 2019 after obtaining extensive documentation from a local priest who had tracked the case for decades. Following further inquiries and witness testimony, prosecutors formally charged Volkswagen in 2024.

    The court accepted the charges that hundreds of workers were subjected to degrading conditions between 1974 and 1986 at a farm in Para state, owned by Volkswagen through a subsidiary. The farm was used for cattle ranching and logging.

    According to court filings, about 300 workers were hired under irregular contracts to clear the forest and prepare pastures. They were monitored by armed guards, lived in precarious housing, received insufficient food and were forced to stay on the farm under a system of debt bondage. No medical care was provided, even to those who contracted malaria.

    “These practices constituted one of the largest cases of slave labor exploitation in Brazil’s recent history,” the Labor Prosecutor’s Office said in a statement.

    In his ruling, Judge Otavio Bruno da Silva Ferreira said evidence confirmed the farm belonged to Volkswagen and that conditions met the legal definition of slave labor.

    “Slavery is a ‘present past,’ because its marks remain in Brazilian society, especially in labor relations,” Ferreira wrote. He added that the legacy of Brazil’s colonial slave system continues to shape social structures and that recovering this memory is essential to understanding current realities and guiding antidiscrimination judgments.

    Volkswagen’s Brazilian headquarters said in a statement it will appeal the decision. The company said that in its 72 years of operation in Brazil, it has “consistently defended the principles of human dignity and strictly complied with all applicable labor laws and regulations.”

    “Volkswagen reaffirms its unwavering commitment to social responsibility, which is intrinsically linked to its conduct as a legal entity and employer,” the company said.

    Brazil enslaved more people from Africa than any other country, according to estimates from the Trans-Atlantic Slave Trade database. It was the last country in the Western Hemisphere to abolish slavery, in 1888.

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    Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

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  • Brazil judge ‘suspends move to halt soy moratorium’

    A judge in Brazil has reportedly issued an injunction suspending a move by the country’s competition watchdog to halt the Amazon Soy Moratorium.

    Last week, CADE, Brazil’s competition regulator, ordered traders to halt the 2006 agreement – designed to protect the Amazon rainforest – citing concerns over companies sharing information.

    Soy traders had ten days to comply with the instruction or face fines.

    CADE’s move had angered environmental pressure groups, with one campaigner calling the decision “the biggest example of punching yourself in the face in conservation history”.

    Brazil’s Ministry of Environment and Climate Change had also “expressed concern” at CADE’s ruling.

    Yesterday, Reuters reported Judge Adverci Rates had sided with Abiove, the Brazilian Association of Vegetable Oil Industries, to suspend CADE’s decision until a panel at the regulator weighs up an appeal from the trade body.

    According to the Agência Brasil news agency, the judge said CADE’s decision did not take into account the opinions of Brazil’s Federal Public Ministry, the country’s Ministry of Environment and Climate Change and its Attorney General’s Office.

    “The Soy Moratorium, in effect since 2006, is voluntary in nature, comprises several public and private entities and has been recognised as an instrument for fostering sustainable development,” the news agency quoted the judge as saying. “In summary judgment, its immediate dismantling by a single-judge decision, without any collegial debate and without concretely addressing the technical arguments presented in the original proceedings, seems disproportionate and premature.”

    Just Drinks has approached CADE for comment.

    The soy moratorium was created to ensure the production of the ingredient in the Amazon region only occurs on existing agricultural land.

    According to FAIRR, an organisation advising investors on ESG issues in the animal protein sector, soy-related deforestation has decreased while Amazonian soy production has risen by 400% since the moratorium was implemented, “showing that forest protection and agricultural expansion can be compatible”.

    In a LinkedIn post last week in the wake of CADE’s decision, Glenn Hurowitz, the founder of campaign group Mighty Earth, hit out at the regulator.

    Hurowitz said the moratorium had saved around 18,000 square kilometres of rainforest from destruction and called CADE’s move “the biggest example of punching yourself in the face in conservation history”.

    He added: “This voluntary policy has for 19 years been the single most important model for private sector conservation in the world. Its foundation is simple: the largest agribusinesses agreed not to buy soy animal feed from plantations that bulldozed the Amazon.

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  • Israel-Brazil relations wither as Lula gov’t refuses to approve Israeli ambassador

    Israel’s decision to withdraw the application for an ambassador came after Brazil refused to approve Gali Dagan as the new ambassador from Israel.

    Diplomatic relations between Israel and Brazil are now operating “at a low level,” the foreign ministry confirmed after Israel withdrew its request to appoint a new ambassador to Brazil.

    The decision to withdraw the application came after Brazil refused to approve Gali Dagan as the new ambassador from Israel.

    “After Brazil, unusually, refrained from replying to Ambassador Dagan’s request for agrément, Israel withdrew the request, and relations between the countries are now being conducted at a lower diplomatic level,” the foreign ministry confirmed.

    The ministry further added that the “critical and hostile line that Brazil has displayed toward Israel” has worsened since Hamas ignited the war with its terror attack in 2023 and was further “intensified” by comments made throughout the duration of the war by Brazilian President Luiz Inácio Lula da Silva.

    China’s Premier Li Qiang, India’s Prime Minister Narendra Modi and Brazil’s President Luiz Inacio Lula da Silva, attend the BRICS Summit, at the Museum of Modern Art (MAM) in Rio de Janeiro, Brazil July 6, 2025. (credit: REUTERS/RICARDO MORAES)

    Brazil’s declining relationship with Israel

    Lula has been declared “persona non grata,” after he accused Israel of carrying out a genocide in Gaza and drawing on Holocaust references to illustrate his claim.

    The country also joined South Africa’s case against Israel at the Hague, formalizing Lula’s accusations of genocide.

    In July, Brazil withdrew from the International Holocaust Remembrance Alliance, where it had served as an observer member since 2021.

    Brazil, a member of BRICS, also has relations with Iran despite its attacks against the Jewish state, including civilian populations, and long record of human rights abuses.

    Brazil has not had an ambassador in Israel since it withdrew the former ambassador last year.

    Amichai Stein contributed to this report.

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  • Nubank using AI for underwriting, customer service

    Nubank is deploying AI within its operations for efficiency gains and to expand its reach globally.  The Brazil-based digital bank posted second-quarter earnings Aug.14, and shares of Nubank were up 9% at market close today to $13.11. The growing fintech has raised $4.2 billion in funding led by Berkshire Hathaway and Tencent, according to Crunchbase. […]

    Vaidik Trivedi

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  • FACT FOCUS: RFK Jr.’s reasons for cutting mRNA vaccine not supported by evidence

    Although mRNA vaccines saved millions of lives during the COVID-19 pandemic, U.S. Health Secretary Robert F. Kennedy Jr. incorrectly argued they are ineffective to justify the Department of Health and Human Service’s recent decision to cancel $500 million in government-funded research projects to develop new vaccines using the technology.

    The longtime vaccine critic said in an X video posted Tuesday evening that mRNA vaccines do not adequately prevent upper respiratory infections such as COVID-19 and the flu, advocating instead for the development vaccines that use other processes.

    COVID-19 is the only virus for which real-world data on mRNA vaccine effectiveness is currently available, as mRNA vaccines for other diseases, including the flu, are still under development. The two scientists whose discoveries enabled the creation of mRNA vaccines against COVID-19 won a Nobel Prize in 2023 for their work.

    Kennedy’s claim ignores how mRNA vaccines work, according to experts. They prevent against severe infection and death, but cannot completely prevent an infection from occurring in the first place. Plus, years of research supports the effectiveness of COVID-19 vaccines that use mRNA technology.

    Here’s a closer look at the facts.

    KENNEDY: “As the pandemic showed us, mRNA vaccines don’t perform well against viruses that infect the upper respiratory tract.”

    THE FACTS: His claim is contradicted by scientific evidence. Countless studies show that vaccinated individuals fare far better against COVID-19 infections than those who are unvaccinated, while others have estimated that COVID-19 vaccines prevented millions of deaths during the global pandemic. The mRNA vaccines do not prevent respiratory diseases entirely, experts say. Rather, they can prevent more serious illness that leads to complications and death. For example, an mRNA vaccine against COVID-19 may prevent an infection in the upper respiratory tract that feels like a bad cold from spreading to the lower respiratory tract, where it could affect one’s ability to breathe.

    “A vaccine cannot block a respiratory infection,” said Dr. Jake Scott, an infectious diseases physician and clinical associate professor at Stanford University School of Medicine. “That’s never been the standard for a respiratory virus vaccine. And it’s never been the expectation, and it’s never been that realistic.” He called Kennedy’s claim “misguided.”

    Jeff Coller, a professor of RNA biology and therapeutics at Johns Hopkins University, had a similar outlook.

    “Vaccinations don’t have to be neutralizing, meaning that you’re not going to get COVID,” he said. “But the important part of a vaccination is that they reduce hospitalization and death. And a reduction in hospitalization and death is proof of an effective vaccine.”

    HHS officials did not immediately respond to a request for comment.

    Vaccines have traditionally required growing viruses or pieces of viruses called proteins and then purifying them. Then a small dose of the vaccine is injected to train the body how to recognize when a real infection hits so it’s ready to fight back. But this method takes a long time. The mRNA technology speeds up the process and allows existing vaccines to be updated more quickly.

    The “m” in mRNA stands for messenger because the vaccine carries instructions for our bodies to make proteins. Scientists figured out how to harness that natural process for vaccines by making mRNA in a lab. They take a snippet of the genetic code that carries instructions for making the protein they want the vaccine to target. Injecting that snippet instructs the body to become its own mini-vaccine factory, making enough copies of the protein for the immune system to recognize and react.

    Scott explained that mRNA vaccines are not a “magic force field” that the immune system can use to block an infection, as it can’t detect whether a virus is nearby. It can only respond to a virus that has already entered the body. In the case of COVID-19, this means that the virus could cause an upper respiratory tract infection — a cold, essentially — but would be significantly less likely to cause more severe consequences elsewhere.

    Myriad studies on the effectiveness of COVID-19 vaccines have been published since they first became available in late 2020. Although protection does wane over time, they provide the strongest barrier against severe infection and death.

    For example, a 2024 study by the World Health Organization found COVID-19 vaccines reduced deaths in the WHO’s European region by at least 57%, saving more than 1.4 million lives since their introduction in December 2020.

    A 2022 study published in the journal Lancet Infectious Diseases found that nearly 20 million lives were saved by COVID-19 vaccines during their first year. Researchers used data from 185 countries to estimate that vaccines prevented 4.2 million COVID-19 deaths in India, 1.9 million in the United States, 1 million in Brazil, 631,000 in France and 507,000 in the United Kingdom. The main finding — that 19.8 million COVID-19 deaths were prevented — is based on estimates of how many more deaths than usual occurred during the time period. Using only reported COVID-19 deaths, the same model yielded 14.4 million deaths averted by vaccines.

    Another 2022 study, published in The New England Journal of Medicine, reported that two mRNA vaccines were more than 90% effective against COVID-19.

    Operation Warp Speed, the federal effort to facilitate the development and distribution of a COVID-19 vaccine, began under the first Trump administration.

    “What I don’t understand is why is President Trump is allowing RFK Jr. to undermine his legacy that led to a medical intervention that literally saved millions of lives?” Coller said. “Why is Trump allowing RFK to undermine U.S. leadership in biomedical research and drug development?”

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    Find AP Fact Checks here: https://apnews.com/APFactCheck.

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  • Discover how Brazil is redefining finance, and what global FSI leaders can apply today. – Microsoft in Business Blogs

    Brazil is setting a global benchmark for innovation, inclusion and AI-driven growth in the financial sector. With bold regulation, cloud-native infrastructure and a mobile-first mindset, Brazilian institutions are delivering measurable impact across the entire value chain. Here’s what global financial leaders can learn and use right away. 

    The financial sector has undergone a dramatic shift over the past decade, accelerating its digitalization journey with cloud-native platforms, AI-powered services and customer-first innovations. 

    And the pace of change is only picking up. According to Accenture’s top 10 banking trends for 2025, the finance of 2030 will be hyper-personalized. Generative AI will fuel productivity and growth, open architectures drive speed and agility, and employees work alongside AI to create smarter, faster and more inclusive experiences.  

    A close up of a blue and green object

    That future is undeniably exciting. And it’s closer than we think, already taking shape in Brazil. 

    Why the world should be watching Brazil 

    Brazil is moving at full speed. The country’s financial sector has become a hotbed of innovation, where bold investments, forward-thinking regulation and a culture of experimentation are redefining what’s possible in finance.  

    A close up of a colorful object

    Here’s what makes Brazil a front-runner in the global transformation of financial services: 

    1. Policy-backed, innovation-led 

    Brazilian financial institutions aren’t weighed down by legacy systems. They’re building new digital foundations with AI at the center. With strong support from the Central Bank, they’ve delivered standout innovations like PIX, the real-time payment system now used by over 150 million people, and Open Finance, which puts data control directly in customers’ hands. In Brazil, innovation is a shared mission between regulators and the financial sector.  

    2. Tech-powered by design 

    Major Brazilian financial institutions are investing heavily in transformation. According to the Febraban Banking Technology Survey 2025, conducted by Deloitte, they are projected to invest over R$47.8 billion (around US$8.7 billion) in technology in 2025, a 13% increase over 2024. This growth is driven by a 61% rise in AI and generative AI spending and a 59% increase in cloud migration. These are not isolated initiatives, they’re system-wide commitments to long-term digital change. 

    3. Mobile-first, agent-ready 

    With some of the highest smartphone adoption rates in the world, Brazil is naturally positioned for the next wave of financial services: AI-powered agents. Customers already bank, pay and invest via mobile, making it easier to embed intelligent assistants across channels and meet customers where they are, in the ways they prefer to interact.

    See how Bradesco is transforming customer service through AI in partnership with Microsoft, and is already preparing for the adoption of intelligent agents. 

    Measurable impact across the banking value chain 

    Brazil is ushering in a new era of finance, powered by trusted Microsoft technology and deep, long-term collaboration. Together, they focus on co-creating scalable solutions that drive impact across the entire industry. Here’s how they’re doing it: 

    1. Customer Engagement at Scale 

    Brazilian financial institutions are reimagining how they connect with customers, building personalized, AI-driven experiences. 

    2. People-First Productivity 

    Brazilian financial institutions are empowering employees with AI tools that automate routine tasks, accelerate decision-making and elevate the way teams work. 

     
    3. Data Intelligence & Predictive Insights 

    Brazilian financial institutions are using AI to unlock efficiencies, improve accuracy and elevate the customer experience. 

    Explore the stories behind the transformation 

    Brazil’s financial transformation isn’t just a case study—it’s a movement. Meet the leaders, hear their stories, and see innovation in action in their own words. Discover how Brazil’s financial institutions are redefining what’s possible with AI, cloud, and trusted partnerships. 

    What global FSI leaders can learn from Brazil 

    Brazil’s transformation is a guided playbook in motion. It shows what’s possible when innovation is intentional, regulation is enabling, and institutions commit to both speed and responsibility. 

    Brazil is leading a financial revolution where customers stay engaged, teams thrive, and operations move at the speed of light. 

     So, what can financial services leaders around the world learn from Brazil’s approach? 

    1. Start fast. Learn as you go.
      Don’t wait for perfect. Pilot quickly, learn from real results, and scale what works. 
    2. Build trust from day one.
      Embed AI governance early, rooted in transparency, fairness and accountability. 
    3. Upskill your teams continuously.
      Empower employees with tools and training to build, automate and innovate. 
    4. Choose the right partner.
      Work with trusted experts to move faster, stay secure and advance responsibly. 

    The future of financial industry is here, and Brazil is showing us the way. Follow its lead.  

    Explore how Microsoft can help your organization lead with AI. 

    Priscyla Laham

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  • Court Approves Attorney General’s Decision to Not Whitelist Zeroumbet in Brazil

    Court Approves Attorney General’s Decision to Not Whitelist Zeroumbet in Brazil

    Dozens of betting companies have applied for a license before Brazil’s upcoming launch of regulated sports betting. Some of those who didn’t make it on time, took the matters to court, arguing that they couldn’t adapt to the new legalization schedule.

    While Brazilian authorities agreed to let some of the latecomers in, a court recently decided to keep an operator tied to an ongoing criminal investigation out.

    The Court Upheld AGO’s Decision

    The operator in question is Zeroumbet Plataforma Digital, an online gaming company owned by controversial lawyer and influencer Deolane Bezerra. For context, Bezerra was arrested in September amid ongoing AML investigations.

    Operação Integration, a major crackdown on potential money laundering in Brazil, saw several people arrested for suspected fraud involvement.

    In addition to Bezerra, who was arrested two times because of alleged involvement with a criminal organization, the authorities also arrested Darwin Henrique da Silva Filho, the owner of Esportes da Sorte. Interestingly enough, the latter site was able to scoop up a license eventually.

    Zeroumbet, which is one of the three brands Bezerra requested sports betting approvals for, tried to argue in court that it shouldn’t be punished for its owner’s crimes. According to company officials, keeping it off the whitelist was a violation of Brazil’s presumption of innocence.

    However, the 14th Civil Court of São Paulo agreed with the decision of the Attorney General’s Office to keep Zeroumbet off the list of approved operators. The court justified its decision with the high legal and regulatory standards Brazil’s online wagering sector seeks to uphold.

    In the meantime, Bezerra continues to deny the allegations against her.

    Brazil Betting to Launch on January 1

    Brazil’s legal sports betting market is set to launch on January 1, 2025. The country has so far approved 100 companies for operation during the transition period between October and January, although some of them had to fight for this right.

    The country is believed to have a huge untapped potential for regulated gambling because of its large population and well-known passion for sports. However, some fear that these qualities are a recipe for gambling harm problems.

    Fiona Simmons

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  • Putin hosts growing BRICS alliance in Russia, touting it as an alternative to the West’s “perverse methods”

    Putin hosts growing BRICS alliance in Russia, touting it as an alternative to the West’s “perverse methods”

    Kazan, Russia — Russian President Vladimir Putin on Thursday presided at the closing session of a summit of the BRICS bloc of developing economies, praising its role as a counterbalance to what he called the West’s “perverse methods.” The three-day summit in the city of Kazan covered the deepening of financial cooperation, including the development of alternatives to Western-dominated payment systems, efforts to settle regional conflicts and expansion of the BRICS group of nations.

    The alliance that initially included Brazil, Russia, India, China and South Africa when it was founded in 2009 has expanded to embrace Iran, Egypt, Ethiopia, the United Arab Emirates and Saudi Arabia. Turkey, Azerbaijan and Malaysia have formally applied to become members, and several other countries have expressed interest in joining.

    The summit was attended by leaders or representatives of 36 countries, highlighting the failure of U.S.-led efforts to isolate Russia over its war in Ukraine. The Kremlin touted the summit as “the largest foreign policy event ever held” by Russia.


    Putin hosting BRICS Summit amid western sanctions, international warrant for his arrest

    04:24

    Speaking at what was dubbed the “BRICS Plus” session, which included countries that are considering joining the bloc, Putin accused the West of trying to stem the growing power of the Global South with “illegal unilateral sanctions, blatant protectionism, manipulation of currency and stock markets, and relentless foreign influence ostensibly promoting democracy, human rights, and the climate change agenda.”

    “Such perverse methods and approaches — to put it bluntly — lead to the emergence of new conflicts and the aggravation of old disagreements,” Putin said. “One example of this is Ukraine, which is being used to create critical threats to Russia’s security, while ignoring our vital interests, our just concerns, and the infringement of the rights of Russian-speaking people.”

    Putin ordered the full-scale invasion of neighboring Ukraine more than two years ago, and Russian forces now occupy an estimated 20% of the country. Tens of thousands of people have been killed in the war, which Putin has claimed at various stages was either a response to NATO’s eastward expansion, or a defense of pro-Russian populations in eastern Ukraine.


    North Korea sends troops to Russia, U.S. says

    02:52

    Support from the U.S. and its NATO allies has helped Ukraine prevent Russia’s complete takeover, but many in the region fear the November U.S. presidential election could bring a second term for former President Donald Trump, who’s seen as more sympathetic to Putin and less likely to maintain current levels of support for Kyiv.

    Russia has specifically pushed for the creation of a new payment system that would offer an alternative to the global bank messaging network SWIFT, which would enable Moscow to dodge Western sanctions and trade with its partners — some of which are also heavily sanctioned by the U.S. and its allies — more easily.

    In a joint declaration Wednesday, participants voiced concern about “the disruptive effect of unlawful unilateral coercive measures, including illegal sanctions,” and reiterated their commitment to enhancing financial cooperation within BRICS. They noted the benefits of “faster, low-cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimizing trade barriers and non-discriminatory access.”

    Annual BRICS summit, in Kazan
    Russian President Vladimir Putin stands with Chinese President Xi Jinping as other participants in the outreach/BRICS Plus format meeting pose for a family photo during the BRICS summit in Kazan, Russia, Oct. 24, 2024.

    MAXIM SHIPENKOV/Pool via REUTERS


    China’s President Xi Jinping has emphasized the bloc’s role in ensuring global security. Xi noted that China and Brazil have put forward a peace plan for Ukraine and sought to rally broader international support for it. Ukraine has rejected the proposal.

    “We should promote the de-escalation of the situation as soon as possible and pave the way for a political settlement,” Xi said Thursday.

    Putin and Xi had announced a “no-limits” partnership weeks before Russia sent troops into Ukraine in 2022. Moscow declared its intention at the time to forge a new “democratic world order” with China. Putin and Xi met again twice earlier this year, in Beijing in May and at a Shanghai Cooperation Organization summit in Kazakhstan in July.


    Putin and Xi meet for 2nd time in 2 months

    06:07

    Russia’s cooperation with India also has flourished as New Delhi sees Moscow as a time-tested partner since the Cold War despite Russia’s close ties with India’s rival, China. While Western allies want New Delhi to be more active in persuading Moscow to end the fighting in Ukraine, Indian Prime Minister Narendra Modi has avoided condemning Russia while emphasizing a peaceful settlement.

    Putin, who held a series of bilateral meetings on the summit’s sidelines, was set to meet Thursday with U.N. Secretary-General Antonio Guterres, who is making his first visit to Russia in more than two years. Guterres’s trip to Kazan drew an angry reaction from Kyiv.

    Addressing the BRICS Plus session, Guterres urged an immediate end to the fighting in Gaza, Lebanon, Ukraine and Sudan. “We need peace in Ukraine, a just peace in line with the U.N. Charter, international law and General Assembly resolutions,” he said.

    Russia’s Kremlin-controlled media touted the summit as a massive policy coup that left the West fearing the loss of its global clout. State TV shows and news bulletins underscored that BRICS countries account for about half the world’s population comprising the “global majority” and challenging Western “hegemony.”

    TV hosts elaborately quoted Western media reports saying that the summit highlighted the failure to isolate Moscow. “The West, the U.S., Washington, Brussels, London ended up isolating themselves,” said Yevgeny Popov, host of a popular political talk show on state channel Rossiya 1.

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  • Elon Musk’s X is back in Brazil after its suspension, having complied with all judicial demands

    Elon Musk’s X is back in Brazil after its suspension, having complied with all judicial demands

    RIO DE JANEIRO (AP) — The social media platform X began returning to Brazil on Wednesday, after remaining inaccessible for more than a month due to a clash between its owner, Elon Musk, and a justice on the country’s highest court.

    Internet service providers began restoring access to the platform after Supreme Court Justice Alexandre de Moraes authorized lifting X’s suspension on Tuesday.

    “TWITTER IS ALIVE,” Lucas dos Santos Consoli, known as luscas on X, wrote on the platform to his more than 7 million followers.

    “I’m happy that the platform decided to follow the laws of Brazil and finally adapted, after all I’ve been using the app for almost 15 years so I can’t deny that I was missing it,” the 31-year-old told The Associated Press.

    De Moraes ordered the shutdown of X on Aug. 30 after a monthslong dispute with Musk over free speech, far-right accounts and misinformation. Musk had disparaged de Moraes, calling him an authoritarian and a censor, although his rulings, including X’s nationwide suspension, were repeatedly upheld by his peers.

    Musk’s company ultimately complied with all of de Moraes’ demands. They included blocking certain accounts from the platform, paying outstanding fines and naming a legal representative. Failure to do the latter had triggered the suspension.

    “This sends a message to the world that the richest person on the planet is subject to local laws and constitutions,” said David Nemer, who specializes in the anthropology of technology at the University of Virginia. It could set a precedent as to how other countries that are clashing with Musk — such as Australia — could move forward, as it shows Musk is not unbeatable, he added.

    Brazil — a highly online country of 213 million people — is one of X’s biggest markets, with estimates of its user base ranging from 20 million to 40 million.

    “X is proud to return to Brazil,” the company said in a statement posted on its Global Government Affairs account. “Giving tens of millions of Brazilians access to our indispensable platform was paramount throughout this entire process. We will continue to defend freedom of speech, within the boundaries of the law, everywhere we operate.”

    Julia Bahri, an 18-year-old law student, said she was delighted with X’s return. She said that losing access to the platform had led to “one of the most desperate feelings I’ve experienced for a while,” adding that she had felt lost with regards to news.

    Bahri said she uses X to express herself, whereas Instagram and Snapchat are mostly for posting photos.

    The Aug. 30 ban came two days after the company said it was removing all its remaining staff in Brazil. X said de Moraes had threatened to arrest its legal representative in the country, Rachel de Oliveira Villa Nova Conceição, if the company did not comply with orders to block accounts.

    Brazilian law requires foreign companies to have a local legal representative to receive notifications of court decisions and swiftly take any requisite action — particularly, in X’s case, the takedown of accounts.

    Sleeping Giants Brazil, a platform for activism that seeks to combat fake news and hate speech, said the resumption of X’s activities in Brazil marked “a significant victory for Brazilian democracy.”

    “It is crucial to remain steadfast against efforts to weaken democratic state authority, institutions and values,” it said in a statement.

    Some of Brazilian X’s users have migrated to other platforms, such as Meta’s Threads and, primarily, Bluesky. It’s unclear how many of them will return to X.

    In a statement to the AP, Bluesky reported that it now has 10.6 million users and continues to see strong growth in Brazil. Bluesky has appointed a legal representative in the South American country.

    “Never get back with your eX,” Paul Frazee, a developer at Bluesky, wrote on the platform on Tuesday.

    X is returning to Brazil weaker than it was before the ban, said Nemer, noting that X is now worth less than a fifth than when Musk bought Twitter. The platform has lost a lot of users, especially in Brazil, he said.

    Brazil was not the first country to ban X — but such a drastic step has generally been limited to authoritarian regimes. The platform and its former incarnation, Twitter, have been banned in Russia, China, Iran, Myanmar, North Korea, Venezuela and Turkmenistan. Other countries, such as Pakistan, Turkey and Egypt, have also temporarily suspended X before, usually to quell dissent and unrest.

    X’s dustup with Brazil has some parallels to the company’s dealings with the Indian government three years ago, back when it was still called Twitter and before Musk purchased it for $44 billion. In 2021, India threatened to arrest employees of Twitter (as well as Meta’s Facebook and WhatsApp), for not complying with the government’s requests to take down posts related to farmers’ protests that rocked the country.

    Musk’s decision to reverse course in Brazil after publicly criticizing de Moraes isn’t surprising, said Matteo Ceurvels, research firm Emarketer’s analyst for Latin America and Spain.

    “The move was pragmatic, likely driven by the economic consequences of losing access to millions of users in its third-largest market worldwide, along with the millions of dollars in associated advertising revenue,” Ceurvels said.

    “Although X may not be a top priority for most advertisers in Brazil, the platform needs them more than they need it,” he said.

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    Ortutay reported from San Francisco

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  • Brazil Gambling in Healthy State Ahead of Regulated Market Launch

    Brazil Gambling in Healthy State Ahead of Regulated Market Launch

    A new study, prepared by LCA Consultoria Econômica and commissioned by the Brazilian Institute of Responsible Gaming, shines new light on how gambling affects Brazilian households. According to the report, while Brazil’s sports betting sector records stable growth, its impact on family financial health remains relatively small. New government initiatives should help further reduce gambling harm, ushering in a safe and sustainable market.

    Average Spending on Gambling Remains Quite Low

    The study aimed to provide a clear understanding of how the betting market functions within Brazil while highlighting the need for robust regulatory safeguards to protect consumers. Data revealed that, on average, gambling represents between 0.2% and 0.5% of total household consumption. Regarding the broader economy, gambling expenditures account for only 0.1% to 0.3% of Brazil’s GDP.

    Compared to other forms of entertainment, the spending on gambling pales in significance. According to this study, Brazilian families usually spend from 7.3% to 15.7% of their family income on entertainment in general, underscoring that gambling represents only a fraction of that amount. The study also didn’t discover a correlation between betting expenditure and household debt.

    There is no evidence that there was a significant change in household debt due to participation in games and betting.

    LCA Consultoria Econômica study

    The study’s findings support Brazil’s growing focus on promoting safe and responsible gambling, even as the country moves closer to the official launch of a regulated sports betting market. However, the nation still struggles to contain black market operators that may offer risky products, leading to excessive gambling. The government has taken measures to limit access to such services, channeling users towards regulated offerings.

    Brazil Has Made Efforts to Combat Problem Gambling

    Amid concerns over gambling-related harm, Brazilian lawmakers are taking steps to protect vulnerable groups.  Two recent legislative proposals aim to address potential risks associated with the sector. PL 3,718/2024 will ban gambling among middle and low-income senior citizens dependent on social welfare. The bill also recommends spending limits based on a player’s declared income, with restrictions on excessive betting.

    Meanwhile, PL 3,745/2024 will set a ceiling for all bettors, preventing them from spending more than 15% of their monthly income on wagers. The bill establishes a general spending limit for all bettors and does not target specific risk groups. Although the recent study shows a relatively low average expenditure on gambling, such measures are necessary to prevent vulnerable individuals from overspending.

    Brazil’s regulated betting market will officially launch on 1 January 2025. All operators who hadn’t applied for a license had to cease their operations as of 1 October 2024. The gradual implementation of these regulations is part of a broader effort to create a safe and responsible gaming environment while balancing the potential economic benefits of the expanding market.

    Deyan Dimitrov

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  • (Media News) Elon Musk’s Stance Against Brazil’s Court Order Proves Costly for X

    (Media News) Elon Musk’s Stance Against Brazil’s Court Order Proves Costly for X

    Elon Musk initially opposed a Brazilian court order, which led to significant financial penalties for X (formerly Twitter). The Brazilian government requested the censorship of accounts promoting false claims that the 2022 election was “stolen.” Musk, who supported ousted President Jair Bolsonaro, resisted the order, claiming it violated free speech. He also criticized Brazilian Supreme Court Minister Alexandre de Moraes for making what he described as illegal demands.

    After weeks of being banned in Brazil, X has now complied with the court’s demands and appointed a local representative. However, the company still faces over $5 million in accumulated fines before it can resume operations. The fines include penalties for attempting to bypass the ban.

    While Musk’s stance attempts to demonstrate his commitment to free speech, the financial hit—especially for a company already facing economic challenges—raises questions about whether X should have complied from the start. The situation also prompts broader inquiries about why X selectively complies with government requests from some nations and not others.


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  • X requests it be reinstated in Brazil after complying with judge’s orders, source says

    X requests it be reinstated in Brazil after complying with judge’s orders, source says

    In the high-stakes showdown between the world’s richest man and a Brazilian Supreme Court justice, Elon Musk blinked.Musk’s social media site X has complied with Alexandre de Moraes’ orders and requested its service be reestablished in the country, a source said Thursday.X complied with orders to block certain accounts from the platform, name an official legal representative in Brazil, and pay fines imposed for not complying with earlier court orders, his lawyers said in a petition filed Thursday, according to the source, who is familiar with the document. The source spoke on condition of anonymity because they were not authorized to speak publicly about the matter.On Saturday, de Moraes ordered the platform to submit additional documentation about its legal representative for court review, which the source said has been done.X was blocked on Aug. 30 in the highly online country of 213 million people, where it was one of X’s biggest markets, with more than 20 million users. De Moraes ordered the shutdown after sparring with Musk for months over free speech, far-right accounts and misinformation. The company said at the time that de Moraes’ efforts to block certain accounts were illegal moves to censor “political opponents” and that it would not comply. Musk called the judge an enemy of free speech and a criminal. But de Moraes’ decisions have been repeatedly upheld by his peers — including his nationwide block of X.In a twist, X’s new representative is the same person who held the position before X shuttered its office in Brazil, according to the company’s public filing with the Sao Paulo commercial registry. That happened after de Moraes threatened to arrest the person, Rachel de Oliveira Villa Nova Conceição, if X did not comply with orders to block accounts.In an apparent effort to avoid her getting blamed for potential violations of Brazilian law — and risk arrest — a clause has been written into the representation agreement that any action on the part of X that will result in obligations for her requires prior instruction in writing from the company, according to the company’s filing at the registry.Associated Press emails and calls to her office were not returned. The Supreme Court’s press office has not confirmed receipt of X’s documents, and X did not immediately respond to a request from the AP.An encouraging sign, perhaps motivated by business senseIt’s still early to know whether the feud between X and Brazil’s top court is over, said Bruna Santos, a lawyer and global campaigns manager at nonprofit Digital Action. However, the platform’s decision to appoint a representative indicates the company has entered “a state of good-faith cooperation with Brazilian authorities.”And the fact that Brazilian users migrated in droves to rival platforms BlueSky and Threads may have played into X’s backstep, Santos added.“There must be a genuine concern on the platform that they are losing users, the core users from the early Twitter days, or the loyal ones, who stick around for good,” she said.At a university in Rio de Janeiro, some students told the AP they were heartened by the news.“I used it a lot as a way to search for information and news, and I missed it,” said João Maurício Almeida Raposo, a 19-year-old economics student. He started using Threads, but doesn’t like it.Brazil is not the first country to ban X — far from it — but such a drastic step has generally been limited to authoritarian regimes. The platform and its former incarnation, Twitter, have been banned in Russia, China, Iran, Myanmar, North Korea, Venezuela and Turkmenistan, for instance. Other countries, such as Pakistan, Turkey and Egypt, have also temporarily suspended X before, usually to quell dissent and unrest.X’s dustup with Brazil has some parallels to the company’s dealings with the Indian government three years ago, back when it was still called Twitter and before Musk purchased it for $44 billion. In 2021, India threatened to arrest employees of Twitter (as well as Meta’s Facebook and WhatsApp), for not complying with the government’s requests to take down posts related to farmers’ protests that rocked the country.Speech is more limited in Brazil than in the USUnlike in the U.S., where free speech is baked into the constitution, in Brazil speech is more limited, with restrictions on homophobia and racism, for example, and judges can order sites to remove content. Many of de Moraes’ decisions are sealed from the public and neither he nor X has disclosed the full list of accounts he has ordered blocked, but prominent supporters of former President Jair Bolsonaro and far-right activists were among those that X earlier removed from the platform.Some belonged to a network known in Brazil as “digital militias.” They were targeted by a yearslong investigation overseen by de Moraes, initially for allegedly spreading defamatory fake news and threats against Supreme Court justices, and then after Bolsonaro’s 2022 election loss for inciting demonstrations across the country that were seeking to overturn President Luiz Inácio Lula da Silva’s victory.In April, de Moraes included Musk as a target in an ongoing investigation over the dissemination of fake news and opened a separate investigation into the U.S. business executive for alleged obstruction.In that decision, de Moraes noted that Musk began waging a public “disinformation campaign” regarding the top court’s actions, and that Musk continued the following day — most notably with comments that his social media company X would cease to comply with the court’s orders to block certain accounts.Musk, meanwhile, accused de Moraes of suppressing free speech and violating Brazil’s constitution, and noted on X that users could seek to bypass any shutdown of the social media platform by using VPNs. In an unusual move for a democratic country, de Moraes also set exorbitant daily fines for anyone using virtual private networks, or VPNs, to access the platform.X’s defiant stance appears to have softened following the shutdown.On Sept. 18, after X became accessible to some users in Brazil despite the ban, the Government Affairs account posted that this was due to a change in network providers and was “inadvertent and temporary.” But, it added, “we continue efforts to work with the Brazilian government to return very soon for the people of Brazil.”The score is 1-0, but the game isn’t necessarily over, said Carlos Affonso Souza, a lawyer and director of the Institute for Technology and Society, a Rio-based think tank.“The first round ends with a victory for de Moraes, who adopted drastic measures, but which wound up producing the effect of making X do a reversal and comply with orders,” Affonso Souza said.___Ortutay reported from San Francisco. AP videojournalist Mario Lobão contributed from Rio.

    In the high-stakes showdown between the world’s richest man and a Brazilian Supreme Court justice, Elon Musk blinked.

    Musk’s social media site X has complied with Alexandre de Moraes’ orders and requested its service be reestablished in the country, a source said Thursday.

    X complied with orders to block certain accounts from the platform, name an official legal representative in Brazil, and pay fines imposed for not complying with earlier court orders, his lawyers said in a petition filed Thursday, according to the source, who is familiar with the document. The source spoke on condition of anonymity because they were not authorized to speak publicly about the matter.

    On Saturday, de Moraes ordered the platform to submit additional documentation about its legal representative for court review, which the source said has been done.

    X was blocked on Aug. 30 in the highly online country of 213 million people, where it was one of X’s biggest markets, with more than 20 million users. De Moraes ordered the shutdown after sparring with Musk for months over free speech, far-right accounts and misinformation. The company said at the time that de Moraes’ efforts to block certain accounts were illegal moves to censor “political opponents” and that it would not comply. Musk called the judge an enemy of free speech and a criminal. But de Moraes’ decisions have been repeatedly upheld by his peers — including his nationwide block of X.

    In a twist, X’s new representative is the same person who held the position before X shuttered its office in Brazil, according to the company’s public filing with the Sao Paulo commercial registry. That happened after de Moraes threatened to arrest the person, Rachel de Oliveira Villa Nova Conceição, if X did not comply with orders to block accounts.

    In an apparent effort to avoid her getting blamed for potential violations of Brazilian law — and risk arrest — a clause has been written into the representation agreement that any action on the part of X that will result in obligations for her requires prior instruction in writing from the company, according to the company’s filing at the registry.

    Associated Press emails and calls to her office were not returned. The Supreme Court’s press office has not confirmed receipt of X’s documents, and X did not immediately respond to a request from the AP.

    An encouraging sign, perhaps motivated by business sense

    It’s still early to know whether the feud between X and Brazil’s top court is over, said Bruna Santos, a lawyer and global campaigns manager at nonprofit Digital Action. However, the platform’s decision to appoint a representative indicates the company has entered “a state of good-faith cooperation with Brazilian authorities.”

    And the fact that Brazilian users migrated in droves to rival platforms BlueSky and Threads may have played into X’s backstep, Santos added.

    “There must be a genuine concern on the platform that they are losing users, the core users from the early Twitter days, or the loyal ones, who stick around for good,” she said.

    At a university in Rio de Janeiro, some students told the AP they were heartened by the news.

    “I used it a lot as a way to search for information and news, and I missed it,” said João Maurício Almeida Raposo, a 19-year-old economics student. He started using Threads, but doesn’t like it.

    Brazil is not the first country to ban X — far from it — but such a drastic step has generally been limited to authoritarian regimes. The platform and its former incarnation, Twitter, have been banned in Russia, China, Iran, Myanmar, North Korea, Venezuela and Turkmenistan, for instance. Other countries, such as Pakistan, Turkey and Egypt, have also temporarily suspended X before, usually to quell dissent and unrest.

    X’s dustup with Brazil has some parallels to the company’s dealings with the Indian government three years ago, back when it was still called Twitter and before Musk purchased it for $44 billion. In 2021, India threatened to arrest employees of Twitter (as well as Meta’s Facebook and WhatsApp), for not complying with the government’s requests to take down posts related to farmers’ protests that rocked the country.

    Speech is more limited in Brazil than in the US

    Unlike in the U.S., where free speech is baked into the constitution, in Brazil speech is more limited, with restrictions on homophobia and racism, for example, and judges can order sites to remove content. Many of de Moraes’ decisions are sealed from the public and neither he nor X has disclosed the full list of accounts he has ordered blocked, but prominent supporters of former President Jair Bolsonaro and far-right activists were among those that X earlier removed from the platform.

    Some belonged to a network known in Brazil as “digital militias.” They were targeted by a yearslong investigation overseen by de Moraes, initially for allegedly spreading defamatory fake news and threats against Supreme Court justices, and then after Bolsonaro’s 2022 election loss for inciting demonstrations across the country that were seeking to overturn President Luiz Inácio Lula da Silva’s victory.

    In April, de Moraes included Musk as a target in an ongoing investigation over the dissemination of fake news and opened a separate investigation into the U.S. business executive for alleged obstruction.

    In that decision, de Moraes noted that Musk began waging a public “disinformation campaign” regarding the top court’s actions, and that Musk continued the following day — most notably with comments that his social media company X would cease to comply with the court’s orders to block certain accounts.

    Musk, meanwhile, accused de Moraes of suppressing free speech and violating Brazil’s constitution, and noted on X that users could seek to bypass any shutdown of the social media platform by using VPNs. In an unusual move for a democratic country, de Moraes also set exorbitant daily fines for anyone using virtual private networks, or VPNs, to access the platform.

    X’s defiant stance appears to have softened following the shutdown.

    On Sept. 18, after X became accessible to some users in Brazil despite the ban, the Government Affairs account posted that this was due to a change in network providers and was “inadvertent and temporary.” But, it added, “we continue efforts to work with the Brazilian government to return very soon for the people of Brazil.”

    The score is 1-0, but the game isn’t necessarily over, said Carlos Affonso Souza, a lawyer and director of the Institute for Technology and Society, a Rio-based think tank.

    “The first round ends with a victory for de Moraes, who adopted drastic measures, but which wound up producing the effect of making X do a reversal and comply with orders,” Affonso Souza said.

    ___

    Ortutay reported from San Francisco. AP videojournalist Mario Lobão contributed from Rio.

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  • WA.Technology Unveils Ambitious Acquisition of Onseo

    WA.Technology Unveils Ambitious Acquisition of Onseo

    WA. Technology, a leading platform provider within the iGaming industry, will be acquiring technology developer Onseo in a reportedly multi-million euro deal. While the exact terms of the deal remain undisclosed, industry insiders agree that this ambitious move could lead to significant long-term gains for WA.Technology, solidifying the company’s presence in a highly promising jurisdiction.

    The Two Companies Are a Natural Fit

    A recent report by news outlet Next.io revealed that WA.Technology aims to jumpstart its official entry into the  Brazilian iGaming market ahead of the nation’s upcoming gambling regulation. Incorporating Onseo should significantly bolster WA.Technology’s growing portfolio with new capabilities in game production, sportsbook, and platform expertise.

    Onseo, known for its rapid development capabilities, boasts over 700 developers who, going forward, will also support the WA.Technology platform, sportsbook, casino, and sweepstake verticals. Tim Scoffham, CEO of WA.Technology was optimistic regarding this newest development, highlighting the past collaborations between the two companies and their shared values.

    (Onseo’s) ability to deliver high-quality technology quickly makes them a force to be reckoned with. Their client base is a clear testament to their quality.

    Tim Scoffham, WA.Technology CEO

    This acquisition further bolsters WA.Technology’s ability to provide bespoke solutions with quick turnaround times. This substantial edge will be crucial in navigating the highly competitive Brazilian market.  Onseo currently develops games for industry giants such as Aristocrat, bet365, Bally’s, IGT, LiveScore, and Gamesys. WA.Technology will likely attempt to maintain these connections, setting itself up for sustained growth.

    Brazil Remains a Magnet for Operators and Suppliers

    The deal continues an accelerating trend of M&As in the iGaming space. Brazil has been a focal point of such deals. For example, Flutter Entertainment made two significant acquisitions targeting the Brazilian market, acquiring Playtech’s consumer arm and a 56% stake in NSX Group, which operates the highly popular Brazilian betting Betnacional.

    Brazil’s Ministry of Finance recently announced that from 1 October, any sportsbook company that has not applied for a license will be considered to be operating illegally. This warning has spurred significant competition as operators and suppliers scramble to be among the first to secure their position during the market’s highly anticipated launch.

    CEO Scoffham heralded the deal as a new chapter for WA.Technology. He noted that Onseo’s extensive expertise would drive new and innovative experiences for clients worldwide, helping the company remain competitive. WA.Technology should be perfectly positioned to expand its footprint and adapt to the evolving demands of the global iGaming market, particularly in Brazil.

    Deyan Dimitrov

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  • JMP Is Optimistic about Flutter’s Stake in Betnacional  

    JMP Is Optimistic about Flutter’s Stake in Betnacional  

    JMP Securities analysts are optimistic about Flutter’s recent acquisition of a 56% stake in NSX Group, arguing that it would allow the latter company to drive strong synergies in Brazil.

    Flutter’s Brazil Bid Is In Line with the Company’s Strategy

    According to a NEXT.io report, JMP Securities believes that Brazil’s large population and ongoing sports betting regulation will be a catalyst for success.

    Flutter, for context, just acquired a 56% stake in Betnacional’s parent company, NSX Group. This arrangement, expected to close in early 2025 and subject to regulatory approvals, would combine Betfair Brazil’s operations into NSX, creating a new entity called Flutter Brazil.

    The move, according to JMP, aligns with Flutter’s usual strategy of ushering in growth via key M&A activity and acquisitions of well-known local brands in regulating regions. The analysts estimate that Flutter has so far spent $11.5 billion on M&A activity outside the United States.

    JMP Experts Are Optimistic about Brazil

    JMP experts highlighted the huge untapped potential of Brazil where gaming and betting have been largely unregulated for years. The firm noted that when markets go green, their size usually increases, providing more opportunities for investment, as well as marketing and media deals.

    JMP noted that Betfair and NSX Group have largely been posting unexciting EBITDA results in Brazil as they were held back by a lack of scale and market-specific factors. However, the to-be-regulated Brazilian market would likely provide Flutter Brazil with plenty of growth opportunities, allowing it to capitalize on its position to achieve synergies. 

    In any case, experts believe that Brazil will cement itself as the most attractive betting market outside the US by the end of the decade. The JMP experts were likewise optimistic about NSX’s business and its growth potential.  

    The analysts concluded that Flutter is likely to provide further insights into its plans at its investor day on September 25.

    Brazil Adopts Stricter Rules as Betting Regulation Looms

    Speaking of Brazil, Isaac Sidney, president of the Brazilian Federation of Banks, demanded that the government accelerate the ban on betting via credit cards. Citing problem gambling-related concerns, Sidney argued that such a measure would protect Brazilian players from harm.

    A week ago, Brazil also took a stance against riskier online gambling games such as Fortune Tiger and Fortune Dragon. The Ministry of Finance restricted addictive products that were deemed to be too dangerous and addictive. The ministry also accused several operators of misleading players with unrealistic odds and prompting them to overspend.

    Fiona Simmons

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  • It’s a big week for central banks around the world, with a slew of rate moves on the table

    It’s a big week for central banks around the world, with a slew of rate moves on the table

    Federal Reserve Chair Jerome Powell announces interest rates will remain unchanged during a news conference at the Federal Reserves’ William McChesney Martin Building in Washington, D.C., on June 12, 2024.

    Kevin Dietsch | Getty Images

    A flurry of major central banks will hold monetary policy meetings this week, with investors bracing for interest rate moves in either direction.

    The Federal Reserve’s highly anticipated two-day meeting, which gets underway on Tuesday, is poised to take center stage.

    The U.S. central bank is widely expected to join others around the world in starting its own rate-cutting cycle. The only remaining question appears to be by how much the Fed will reduce rates.

    Traders currently see a quarter-point cut as the most likely outcome, although as many as 41% anticipate a half-point move, according to the CME’s FedWatch Tool.

    Elsewhere, Brazil’s central bank is scheduled to hold its next policy meeting across Tuesday and Wednesday. The Bank of England, Norway’s Norges Bank and South Africa’s Reserve Bank will all follow on Thursday.

    A busy week of central bank meetings will be rounded off when the Bank of Japan delivers its latest rate decision at the conclusion of its two-day meeting on Friday.

    “We’re entering a cutting phase,” John Bilton, global head of multi-asset strategy at J.P. Morgan Asset Management, told CNBC’s “Squawk Box Europe” on Thursday.

    Speaking ahead of the European Central Bank’s most recent quarter-point rate cut, Bilton said the Fed was also set to cut interest rates by 25 basis points this week, with the Bank of England “likely getting in on the party” after the U.K. economy stagnated for a second consecutive month in July.

    “We have all the ingredients for the beginning of a fairly extended cutting cycle but one that is probably not associated with a recession — and that’s an unusual set-up,” Bilton told CNBC’s “Squawk Box Europe.”

    “It means that we get a lot of volatility to my mind in terms of price discovery around those who believe that actually the Fed [is] late, the ECB [is] late, this is a recession and those, like me, that believe that we don’t have the imbalances in the economy, and this will actually spur further upside.”

    Fed decision

    We'd 'love' to see a 50-basis-point cut by the Fed, analyst says — here's why

    “We are more likely 25 but [would] love to see 50,” David Volpe, deputy chief investment officer at Emerald Asset Management, told CNBC’s “Squawk Box Europe” on Friday.

    “And the reason you do 50 next week would be as more or less a safety mechanism. You have seven weeks between next week and … the November meeting, and a lot can happen negatively,” Volpe said.

    “So, it would be more of a method of trying to get in front of things. The Fed is caught on their heels a little bit, so we think that it would be good if they got in front of it, did the 50 now, and then made a decision in terms of November and December. Maybe they do 25 at that point in time,” he added.

    Brazil and UK

    For Brazil’s central bank, which has cut interest rates several times since July last year, stronger-than-anticipated second-quarter economic data is seen as likely to lead to an interest rate hike in September.

    “We expect Banco Central to hike the Selic rate by 25bps next week (to 10.75%) and bring it to 11.50% by end-2024,” Wilson Ferrarezi, an economist at TS Lombard, said in a research note published on Sept. 11.

    “Further rate hikes into 2025 cannot be ruled out and will depend on the strength of domestic activity in Q4/24,” he added.

    Traffic outside the Central Bank of Brazil headquarters in Brasilia, Brazil, on Monday, June 17, 2024.

    Bloomberg | Bloomberg | Getty Images

    In the U.K., an interest rate cut from the Bank of England (BOE) on Thursday is thought to be unlikely. A Reuters poll, published Friday, found that all 65 economists surveyed expected the BOE to hold rates steady at 5%.

    The central bank delivered its first interest rate cut in more than four years at the start of August.

    “We have quarterly cuts from here. We don’t think they are going to move next week, with a 7-2 vote,” Ruben Segura Cayuela, head of European economics at the Bank of America, told CNBC’s “Squawk Box Europe” on Friday.

    He added that the next BOE rate cut is likely to take place in November.

    South Africa, Norway and Japan

    South Africa’s Reserve Bank is expected to cut interest rates on Thursday, according to economists surveyed by Reuters. The move would mark the first time it has done so since the central bank’s response to the coronavirus pandemic four years ago.

    The Norges Bank is poised to hold its next meeting on Thursday. The Norwegian central bank kept its interest rate unchanged at a 16-year high of 4.5% in mid-August and said at the time that the policy rate “will likely be kept at that level for some time ahead.”

    The Bank of Japan, meanwhile, is not expected to raise interest rates at the end of the week, although a majority of economists polled by Reuters expect an increase by year-end.

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  • G20 nations agree to join efforts to fight disinformation and set AI guidelines

    G20 nations agree to join efforts to fight disinformation and set AI guidelines

    SAO PAULO (AP) — Group of 20 leaders agreed Friday to join efforts to fight disinformation and set up an agenda on artificial intelligence as their governments struggle against the speed, scale and reach of misinformation and hate speech.

    The ministers, who gathered this week in Maceio, the capital of the northeastern state of Alagoas, emphasized in a statement the need for digital platforms to be transparent and “in line with relevant policies and applicable legal frameworks.”

    It is the first time in the G20’s history that the group recognizes the problem of disinformation and calls for transparency and accountability from digital platforms, João Brant, secretary for digital policy at the Brazilian presidency, told The Associated Press by phone.

    G20 representatives also agreed to establish guidelines for developing artificial intelligence, calling for “ethical, transparent, and accountable use of AI,” with human oversight and compliance with privacy and human rights laws.

    “We hope this will be referenced in the leaders’ declaration and that South Africa will continue the work,” Renata Mielli, adviser to Brazil’s ministry of science, technology and innovation, said. The G20 Leaders’ Summit is scheduled for November, in Rio de Janeiro.

    Mielli, Brazil’s negotiator in the AI working group, said there were disagreements from countries including China and the United States, but declined to provide details. In the end, she said, a consensus prevailed that the world’s richest countries should collaborate to reduce global asymmetry in AI development.

    This week’s meeting took place in the aftermath of X’s ban in Brazil, ordered by Supreme Court Justice Alexandre de Moraes after a monthslong feud with its owner, tech billionaire Elon Musk.

    Since last year, X has clashed with de Moraes over its reluctance to block some users, mostly far-right activists accused of undermining Brazilian democracy. Musk has called the Brazilian justice a dictator and an autocrat due to his rulings affecting his companies in Brazil.

    Brazil currently has the presidency of the 20 leading rich and developing nations and President Luiz Inácio Lula da Silva has put issues that concern the developing world — such as the reduction of inequalities and the reform of multilateral institutions — at the heart of its agenda.

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  • Brazil judge withdraws $3.3 million from Musk’s Starlink and X to pay for social media fines

    Brazil judge withdraws $3.3 million from Musk’s Starlink and X to pay for social media fines

    SAO PAULO (AP) — A Brazilian Supreme Court justice on Friday seized about $3 million from bank accounts belonging to social media platform X and satellite-based internet service provider Starlink, both companies controlled by tech billionaire Elon Musk.

    The move by Justice Alexandre de Moraes was aimed at collecting funds that are equivalent to the amount that X owes to the country in fines. The bank accounts of the two companies have since been unfrozen.

    Legal analysts have questioned de Moraes’ prior decision to freeze Starlink’s bank account to pay for cases related to X. While Musk owns both X and SpaceX, which operates Starlink, the two companies are separate entities.

    Brazil’s Supreme Court said Friday in a statement that de Moraes ruled to transfer more than 7.2 million Brazilian reais ($1.3 million) from an X bank account and almost 11 million Brazilian reais ($2 million) from a Starlink account.

    De Moraes made the decision on Wednesday, Brazil’s Supreme Court said. His ruling on the case is yet to be made public.

    Brazil’s Supreme Court also said that the banks that hold accounts of the two companies were informed on Thursday they had complied with the decision.

    “After the payment of the full amount that was owed, the justice (de Moraes) considered there was no need to keep the bank accounts frozen and ordered the immediate unfreezing of bank accounts/financial assets,” the Brazilian Supreme Court said.

    X did not immediately respond to a request for comment from The Associated Press.

    The social media platform has been under fire in Brazil since it refused to remove content flagged as illegal by the Supreme Court justice.

    De Moraes is the same justice who suspended X in Brazil due to Musk’s decision to not have a legal representative for the company in the South American nation, which is against the law.

    The company has claimed that de Moraes wants an in-country representative so that local authorities can exert leverage by having someone to arrest.

    Many legal analysts, including some who have supported de Moraes’ rulings related to X, disagree with charging Starlink for X’s fines.

    “Starlink is a different company. Belonging to the same economic group doesn’t mean it is also responsible for a debt it did not take part of. It didn’t even have a chance to defend itself,” Lênio Streck, a renowned Brazilian jurist, said in his social media channels. “What could Starlink have done to avoid what other company did?”

    Luís Henrique Machado, a law professor at the IDP university in the capital, Brasilia, said de Moraes’ decision is consistent.

    “The social media company was sanctioned for not removing content after an order of the Supreme Court amid ongoing investigations. It is totally understandable that the judge requests that the fines be paid,” Machado said. “The ruling is legitimate in imposing the transfer of the amounts in compulsorily fashion.”

    Since last year, X has clashed with de Moraes over its reluctance to block some users, mostly far-right activists accused of undermining Brazilian democracy. Musk has called the Brazilian justice a dictator and an autocrat due to his rulings affecting his companies in Brazil.

    On. Aug. 31, Musk’s social media platform was banned nationwide and de Moraes set a $9,000 daily fine for anyone using a virtual private network (VPN) to skirt the suspension. Brazil’s X users mostly started washing up on Threads and Bluesky.

    On Saturday, tens of thousands of supporters of former Brazilian President Jair Bolsonaro flooded Sao Paulo’s main boulevard for an Independence Day rally, buoyed by de Moraes’ decisions on X, a ban they say is proof of their political persecution.

    X had 22 million users in Brazil, according to estimates in the Digital 2024: Brazil report, just one-sixth the number on Instagram, and about one-fifth of Facebook or TikTok.

    Since January 2022, when Starlink began operations in Brazil, it has captured a 0.5 percent share of the internet market, according to Brazil’s telecommunications agency Anatel.

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  • Peabody celebrates Brazilian Independence Day for second year

    Peabody celebrates Brazilian Independence Day for second year

    PEABODY — Under a cloudy sky and a fluttering green, blue and yellow flag gathered two dozen community members at Peabody City Hall Friday morning to celebrate what it means to be Brazilian. Particularly, the pride of being a Brazilian immigrant in America.

    “This is so motivating,” Peabody resident Jose Vieira said. “This day means a lot because I’m an American citizen born in Brazil. I’m representing my culture from my country for the new generation living here.”

    Vieira immigrated to America from Northern Brazil more than 20 years ago. He organized Friday’s flag raising in honor of Brazilian Independence Day.

    The holiday is known as Sete de Setembro in Portuguese and is observed each Sept. 7 to commemorate the day Brazil formally declared independence from Portugal in 1822, more than 300 years after the European country had made Brazil one of its territories.

    This is the second year of what Vieira hopes to become a long, growing tradition each September in Peabody. He organized the first Brazilian Independence Day flag raising outside of City Hall last year to share his love of his homeland with neighbors and fellow Brazilian Americans.

    “(This) for me represents a lot about Brazil and all those doors that have been opened in America for guys like me. Simple guys…” he said. “My vision for this country, for the Brazilian community, for American people, is big.

    “Never dream small in your life,” he said.

    In 2020, 1,662 foreign-born Brazilians lived in Peabody, according to the Decennial Census. It’s unclear how that figure compares with today’s population.

    At Friday’s event, Brazilian students from Thomas Carroll Elementary School led the crowd in singing the Brazilian national anthem alongside Beverly residents Lucas Fonseca and Breno Tonon, a pastor at Netcast Church in Danvers.

    “It’s easy to forget that being free is not the norm and if we’re not careful with that, things can get weird,” Tonon said.

    “I try to remind myself of that because I was born in Brazil and we had to fight for it, and someone did.”

    He shares that lesson with his children when Brazilian Independence Day comes around.

    “The idea of providing a place like this where people can celebrate Brazilian culture is really nice,” Tonon said.

    Mayor Ted Bettencourt assisted Vieira in raising the Brazilian flag and read a proclamation from the city commemorating the holiday.

    “Today we’re celebrating Brazilian Independence Day,” Bettencourt said ahead of presenting the proclamation.

    “It’s also to pay respect to the contributions made by the Brazilian community to the city of Peabody, and there are many in so many ways.”

    Contact Caroline Enos at CEnos@northofboston.com .

    By Caroline Enos | Staff Writer

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  • Eagles beat Packers 34-29 in Brazil

    Eagles beat Packers 34-29 in Brazil

    Saquon Barkley scored three touchdowns in his debut for Philadelphia, leading the Eagles past the Green Bay Packers 34-29 on Friday night in the first NFL game in South America.Packers quarterback Jordan Love limped off the field with assistance after getting injured with 6 seconds left. Backup Malik Willis was sacked by Zack Baun on the final play of the game, preventing him from launching a Hail Mary from the Philadelphia 47.Video above: Packers fans from Milwaukee paint Sao Paulo green and goldBarkley rushed for 109 yards and scored on an 18-yard catch and runs of 11 and 2 yards. Barkley spent six seasons with the New York Giants before Philadelphia signed him to a three-year, $37.75 million deal with $26 million guaranteed.He became the first player to score three touchdowns in his Eagles debut since Terrell Owens in 2004.Jalen Hurts was 20 of 34 for 278 yards with two touchdowns and two interceptions for the Eagles. A.J. Brown caught five passes for 119 yards, including a 67-yard touchdown.Green Bay’s Jayden Reed scored on a 33-yard jet sweep and a 70-yard reception, which was the longest touchdown completion of Love’s career. Reed caught Love’s pass inside Philadelphia’s 40 and made a move at around the 30 that sent safety C.J. Gardner-Johnson sprawling.Reed became the first player to have a touchdown catch of 30-plus yards and a touchdown run of 30-plus yards in a season opener since Hall of Famer Jim Brown of the Cleveland Browns against Washington in 1963.Reed also had an apparent 38-yard touchdown reception on the opening drive get wiped out because both teams had 12 men on the field. He finished with four catches for 138 yards.Love went 17 of 34 for 260 yards with two touchdowns and an interception.Barkley’s third touchdown put the Eagles ahead 31-26 with 4:26 left in the third quarter. Reed Blankenship set up that score with an interception that gave Philadelphia the ball at Green Bay’s 25.The Eagles still led 31-26 when Jaire Alexander intercepted Hurts in the end zone early in the fourth quarter. Green Bay drove into the red zone but settled for a 26-yard field goal by rookie Brayden Narveson, who went 3 for 4 on his attempts.Philadelphia then controlled possession until Jake Elliott kicked a 21-yard field goal with 27 seconds left.Some Eagles players had expressed reluctance earlier this week about traveling to Brazil, which cost them the opportunity to play their season opener in front of a friendly crowd at Lincoln Financial Field. The crowd at NeoQuimica Arena instead was balanced among Packers fans, Eagles fans and spectators who just cheered any positive development.Players from both teams were slipping on the playing surface throughout the first half. A Brazilian soccer league game was played in the stadium five days earlier.NeoQuimica Arena’s field is often praised by soccer players as Brazil’s best, but it had never hosted an American football game. The hybrid field includes both grass and synthetic fiber.The slippery surface may have contributed to a sloppy start.Philadelphia committed turnovers on each of its first two series, enabling Green Bay to start back-to-back drives in the red zone, but the Packers settled for field goals both times.Then, the offenses took over. Six of the next seven possessions resulted in touchdowns.Once the game began, it became clear there were three groups in attendance: Eagles supporters, Packers fans and those who were happy to cheer for either team. Local authorities estimated that roughly 20% of the expected crowd of 42,000 was from the United States.Game officials, though, didn’t get any sympathy. Insults in Portuguese chanted every weekend for soccer referees rang out whenever a divisive decision was made. Fans also gasped when Packers quarterback Jordan Love limped off the field with assistance after getting injured with 6 seconds left.Before the game, Packers fan and schoolteacher Cody Armstrong, 32, told The Associated Press he spent much of the money he made over the summer to travel from Oakland, California, with three friends, including two Eagles fans. They were all dressed in green as they waited for their orders at a fast-food restaurant next to the stadium.“Is it true that they don’t like green here?” Armstrong said. “Well … they will have to bear with us.”Also dressed in green, the friends watched Kansas City’s season-opening victory over Baltimore on Thursday night at a Sao Paulo bar, and they were excited to see so many locals enthusiastic about American football. Marketing experts have estimated there are 38 million fans of the sport in soccer-mad Brazil.Bruno Silva, 37, bought an unofficial black Eagles jersey, which was being sold for about 50 Brazilian reals ($10) in a subway station near the stadium. A Corinthians fan, he said he would support Philadelphia — designated as the home team in Brazil — because it declined to wear green.“This is our home,” said Silva, who started following the NFL five years ago. “We support who supports us.”William Camargo, 39, also a Corinthians fan, showed up wearing a green Packers jersey, which many supporters of the soccer club would consider to be heresy.“We like to say that Corinthians is owned by its fans. Green Bay is the same thing,” Camargo said of the community-owned franchise.He said he became a fan of the Packers because of their former quarterback, Aaron Rodgers — whose jersey was a popular choice among fans in the stadium Friday night.Other fans wore jerseys of other NFL teams, including New England, San Francisco, Buffalo and Baltimore.Some were dressed out for a night out. Wearing a long blue dress, Narrima Oliveira, 34, attended with her boyfriend and was most interested in the halftime performance of Brazilian pop star Anitta.“This feels like a party. We are going out to dance after this, too. I am not a football fan, but I can feel the joy that you guys have by watching it. It is a big celebration,” she said.Local fans didn’t appear too excited about listening to Anitta singing in English and Spanish.The party could have been less rowdy if the Sao Paulo state government had not made a special authorization for in-stadium beer sales. Brazil rarely authorizes the sale of alcoholic beverages inside sporting venues to avoid violence among fans.Russell Okung, who played for four teams over 11 NFL seasons, was among the attractions off the field Friday night. He joined other Brazilian practitioners of capoeira, an African-Brazilian martial art disguised as a dance, to perform in front of applauding fans at various spots outside the stadium.“I love Brazil,” Okung told reporters before one of his several capoeira performances. “So glad the NFL made it here.”Before kickoff, several Brazilian Olympic athletes saluted the crowd, including gymnast Rebeca Andrade and skateboarder Rayssa Leal, both Corinthians fans and medalists at the Paris Games.Neither wore green.

    Saquon Barkley scored three touchdowns in his debut for Philadelphia, leading the Eagles past the Green Bay Packers 34-29 on Friday night in the first NFL game in South America.

    Packers quarterback Jordan Love limped off the field with assistance after getting injured with 6 seconds left. Backup Malik Willis was sacked by Zack Baun on the final play of the game, preventing him from launching a Hail Mary from the Philadelphia 47.

    Video above: Packers fans from Milwaukee paint Sao Paulo green and gold

    Barkley rushed for 109 yards and scored on an 18-yard catch and runs of 11 and 2 yards. Barkley spent six seasons with the New York Giants before Philadelphia signed him to a three-year, $37.75 million deal with $26 million guaranteed.

    He became the first player to score three touchdowns in his Eagles debut since Terrell Owens in 2004.

    Jalen Hurts was 20 of 34 for 278 yards with two touchdowns and two interceptions for the Eagles. A.J. Brown caught five passes for 119 yards, including a 67-yard touchdown.

    Green Bay’s Jayden Reed scored on a 33-yard jet sweep and a 70-yard reception, which was the longest touchdown completion of Love’s career. Reed caught Love’s pass inside Philadelphia’s 40 and made a move at around the 30 that sent safety C.J. Gardner-Johnson sprawling.

    Reed became the first player to have a touchdown catch of 30-plus yards and a touchdown run of 30-plus yards in a season opener since Hall of Famer Jim Brown of the Cleveland Browns against Washington in 1963.

    Reed also had an apparent 38-yard touchdown reception on the opening drive get wiped out because both teams had 12 men on the field. He finished with four catches for 138 yards.

    Love went 17 of 34 for 260 yards with two touchdowns and an interception.

    Barkley’s third touchdown put the Eagles ahead 31-26 with 4:26 left in the third quarter. Reed Blankenship set up that score with an interception that gave Philadelphia the ball at Green Bay’s 25.

    The Eagles still led 31-26 when Jaire Alexander intercepted Hurts in the end zone early in the fourth quarter. Green Bay drove into the red zone but settled for a 26-yard field goal by rookie Brayden Narveson, who went 3 for 4 on his attempts.

    Philadelphia then controlled possession until Jake Elliott kicked a 21-yard field goal with 27 seconds left.

    Some Eagles players had expressed reluctance earlier this week about traveling to Brazil, which cost them the opportunity to play their season opener in front of a friendly crowd at Lincoln Financial Field. The crowd at NeoQuimica Arena instead was balanced among Packers fans, Eagles fans and spectators who just cheered any positive development.

    Players from both teams were slipping on the playing surface throughout the first half. A Brazilian soccer league game was played in the stadium five days earlier.

    NeoQuimica Arena’s field is often praised by soccer players as Brazil’s best, but it had never hosted an American football game. The hybrid field includes both grass and synthetic fiber.

    The slippery surface may have contributed to a sloppy start.

    Philadelphia committed turnovers on each of its first two series, enabling Green Bay to start back-to-back drives in the red zone, but the Packers settled for field goals both times.

    Then, the offenses took over. Six of the next seven possessions resulted in touchdowns.

    Once the game began, it became clear there were three groups in attendance: Eagles supporters, Packers fans and those who were happy to cheer for either team. Local authorities estimated that roughly 20% of the expected crowd of 42,000 was from the United States.

    Game officials, though, didn’t get any sympathy. Insults in Portuguese chanted every weekend for soccer referees rang out whenever a divisive decision was made. Fans also gasped when Packers quarterback Jordan Love limped off the field with assistance after getting injured with 6 seconds left.

    Before the game, Packers fan and schoolteacher Cody Armstrong, 32, told The Associated Press he spent much of the money he made over the summer to travel from Oakland, California, with three friends, including two Eagles fans. They were all dressed in green as they waited for their orders at a fast-food restaurant next to the stadium.

    “Is it true that they don’t like green here?” Armstrong said. “Well … they will have to bear with us.”

    Also dressed in green, the friends watched Kansas City’s season-opening victory over Baltimore on Thursday night at a Sao Paulo bar, and they were excited to see so many locals enthusiastic about American football. Marketing experts have estimated there are 38 million fans of the sport in soccer-mad Brazil.

    Bruno Silva, 37, bought an unofficial black Eagles jersey, which was being sold for about 50 Brazilian reals ($10) in a subway station near the stadium. A Corinthians fan, he said he would support Philadelphia — designated as the home team in Brazil — because it declined to wear green.

    “This is our home,” said Silva, who started following the NFL five years ago. “We support who supports us.”

    William Camargo, 39, also a Corinthians fan, showed up wearing a green Packers jersey, which many supporters of the soccer club would consider to be heresy.

    “We like to say that Corinthians is owned by its fans. Green Bay is the same thing,” Camargo said of the community-owned franchise.

    He said he became a fan of the Packers because of their former quarterback, Aaron Rodgers — whose jersey was a popular choice among fans in the stadium Friday night.

    Other fans wore jerseys of other NFL teams, including New England, San Francisco, Buffalo and Baltimore.

    Some were dressed out for a night out. Wearing a long blue dress, Narrima Oliveira, 34, attended with her boyfriend and was most interested in the halftime performance of Brazilian pop star Anitta.

    “This feels like a party. We are going out to dance after this, too. I am not a football fan, but I can feel the joy that you guys have by watching it. It is a big celebration,” she said.

    Local fans didn’t appear too excited about listening to Anitta singing in English and Spanish.

    The party could have been less rowdy if the Sao Paulo state government had not made a special authorization for in-stadium beer sales. Brazil rarely authorizes the sale of alcoholic beverages inside sporting venues to avoid violence among fans.

    Russell Okung, who played for four teams over 11 NFL seasons, was among the attractions off the field Friday night. He joined other Brazilian practitioners of capoeira, an African-Brazilian martial art disguised as a dance, to perform in front of applauding fans at various spots outside the stadium.

    “I love Brazil,” Okung told reporters before one of his several capoeira performances. “So glad the NFL made it here.”

    Before kickoff, several Brazilian Olympic athletes saluted the crowd, including gymnast Rebeca Andrade and skateboarder Rayssa Leal, both Corinthians fans and medalists at the Paris Games.

    Neither wore green.

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  • Sergio Mendes, Brazilian bossa nova legend, dies at 83

    Sergio Mendes, Brazilian bossa nova legend, dies at 83

    Music legend Sergio Mendes to play Long Beach Jazz Festival for the first time


    Music legend Sergio Mendes to play Long Beach Jazz Festival for the first time

    03:45

    Sergio Mendes, the Brazilian Grammy-winning musician whose hit “Mas Que Nada” made him a global legend, died after months of battling the effects of long COVID, his publicist Karen Vock confirmed to CBS News on Friday. He was 83.

    The Brazilian pianist, songwriter and arranger died on Thursday in Los Angeles, his family said in a statement.

    “His wife and musical partner for the past 54 years, Gracinha Leporace Mendes, was by his side, as were his loving children,” the statement Friday said. “Mendes last performed in November 2023 to sold out and wildly enthusiastic houses in Paris, London and Barcelona.”

    Sergio Mendes
    Brazilian musician Sergio Mendes sits for a portrait at home in Los Angeles.

    AP Photo/Chris Pizzello, File


    His composition “Mas Que Nada” was one of the songs that helped popularize the Brazilian music genre bossa nova worldwide in the 1960s.

    In 2006, a modern version of the song topped U.S. charts, as performed by Black Eyed Peas. It was included in his album “Timeless,” produced by will.i.am and featuring Stevie Wonder, Justin Timberlake and the Black Eyed Peas, among others.

    “Sergio Mendes was my brother from another country,” trumpet player Herb Alpert wrote on Facebook, along with a photo from decades ago, sitting next to Mendes at the piano. “He was a true friend and extremely gifted musician who brought Brazilian music in all its iterations to the entire world with elegance.”

    Mendes also composed the soundtrack for the film “Pelé,” featuring saxophonist Gerry Mulligan, and even produced an album recorded by the Brazilian legendary soccer player.

    Mendes won the 1992 Grammy Award for Best World Music Album for “Brasileiro” and two Latin Grammy Awards. He also received an Oscar nomination in 2012 for Best Original Song for “Real in Rio,” from the animated film “Rio.”

    Mendes’ family said they will provide details regarding funeral and memorial services at a later date.

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