20081023

'Stocks fell in Bovespa"

São Paulo - Brazil's stocks fell 10% despite moves to let state-run banks buy up stakes in private financial institutions. Trading in Sao Paulo was halted for the fifth time in recent weeks. International demand is declining for many of Latin America's commodity exports, including oil, copper, iron ore and soy as global growth slows amid the current financial global crisis. The Brazilian currency, the real, has lost one-third of its value against the US dollar in recent weeks. Brazil hopes its plan, announced from president Luiz Inacio Lula da Silva, to allow government-controlled Banco do Brasil and Caixa Economica Federal to purchase shares in private financial institutions will eventually succeed in shoring up the market. Says that while Brazil is better placed to weather the storm than in previous crises, there are increasing signs of unease about the potential fallout for Latin America's biggest economy. The President Luiz Inacio Lula da Silva said for the first time the downturn might eventually force a change in the country's budget. Fontes: BBC, CFR, Economist, The New York Times. By Ton.

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