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BRICS, planes, and beef in spotlight as Brazil’s Lula set to visit Vietnam

Luiz Inacio Lula da Silva — REUTERS

HANOI — Brazil’s President Luiz Inacio Lula da Silva will visit Vietnam next week, bringing with him a business delegation including executives from planemaker Embraer and food giant JBS that are both in talks for possible deals in the Southeast Asian country, sources said.

Mr. Lula’s second visit to Vietnam as president will take place as Vietnam, under pressure from the Trump administration to reduce its large trade surplus, is pledging to boost imports from the United States, including of farm products such as soybeans of which Brazil is a top exporter to the country.

Mr. Lula will travel to Vietnam on March 27-29 after visiting Japan, according to the Brazilian government.

M. Lula is expected to invite Vietnam to attend a BRICS summit in Brazil in July, a Brazilian official said, noting Vietnam was invited last year to become a BRICS partner but has so far not taken an official position on the matter.

Vietnam’s foreign ministry did not reply to a request for comment. Brazil’s embassy to Vietnam declined to comment.

The two countries are expected to agree on an action plan on defense, agriculture and energy, which could boost cooperation on ethanol, a fuel of which Brazil is a major global producer, the Brazilian official said.

Brazil wants also to increase exports to Vietnam and is asking Hanoi to authorize imports of its beef, the official said confirming earlier reports on Vietnamese state media.

BUSINESS TALKS
The opening of the Vietnamese market for Brazilian beef is a precondition for an investment that Brazil’s food giant JBS is considering in Vietnam, three people briefed about the talks, including the Brazilian official, told Reuters.

The company is studying building a meat-processing hub in northern Vietnam, its first plant in Asia, with a possible investment of tens of millions of dollars, the three people said, declining to be named because the information was not public.

JBS declined to comment.

Separately, Embraer is also in talks for the possible sale of 10 E190 narrow-body jets to flag carrier Vietnam Airlines, the Brazilian official said.

It is also trying to sell C-390 military transport planes, with a possible showcase flight in Vietnam in May, the official and an industry source said.

Embraer declined to comment. Vietnam Airlines did not reply to a request for comment.

Hanoi is in talks with the US to buy C-130 military transport planes produced by Lockheed Martin.

Vietnam is one of the world’s fastest-growing aviation markets and local carriers have long been seeking to expand their fleets. — Reuters

Evidence mounts that universe’s dark energy is changing over time

STOCK PHOTO | Image by Arek Socha from Pixabay

WASHINGTON — New data involving millions of galaxies and luminous galactic cores is providing fresh evidence that the enigmatic and invisible cosmic force called dark energy  — responsible for the universe’s accelerated expansion — has weakened over time rather than remaining constant, as long hypothesized.

The findings announced on Wednesday are part of a years-long study of the history of the cosmos, focusing upon dark energy. The researchers analyzed three years of observations by the Dark Energy Spectroscopic Instrument, or DESI, at Kitt Peak National Observatory in Arizona.

“The DESI results tantalizingly hint at an evolving dark energy,” said Arjun Dey, an astrophysicist at the US National Science Foundation’s NOIRLab and the NOIRLab project scientist for DESI.

The new analysis used data from DESI’s first three years of observations of almost 15 million galaxies and quasars, which are extremely bright galactic cores where a supermassive black hole hungrily consumes surrounding material.

This analysis, combined with other astrophysical data, offers mounting evidence that the impact of dark energy may be weakening over time and that the standard model of how the universe works may need to be revised, the researchers said.

Those other measurements include the light left over from the dawn of the universe, exploding stars called supernovae and the manner in which light from distant galaxies is warped by gravity.

“The new findings, both from DESI and from a number of other experiments, now suggest that whatever is causing the universal expansion may be decaying — that is, decreasing in strength,” Mr. Dey said. “This once again changes our fundamental understanding of nature, and in particular our understanding of the future of our universe. Will the expansion continue forever, or will the acceleration slow, stop and turn into a deceleration?”

The Big Bang event roughly 13.8 billion years ago initiated the universe, and it has been expanding ever since. Scientists in 1998 disclosed that this expansion was actually accelerating, with dark energy as the hypothesized reason. The physical nature of dark energy is presently unknown.

“DESI data tell us about how the size of the universe has grown over time. We can relate the rate at which it is growing directly to the strength — or energy density — of dark energy at a given time, since dark energy is what causes that growth rate to accelerate,” said University of Pittsburgh astrophysicist Jeff Newman, another of the researchers.

The universe’s contents include ordinary matter — stars, planets, gas, dust and all the familiar stuff on Earth — as well as dark matter and dark energy.

Ordinary matter represents perhaps 5% of the contents. Dark matter, which is known through its gravitational influences on galaxies and stars, may make up about 27%. Dark energy may make up about 68%.

“Dark energy is definitely one of the most puzzling and mysterious components of the universe. We don’t yet know what it is, but we can detect its clear effect on the expansion of the universe,” Mr. Dey said.

“All the matter in the universe has gravity which should be slowing down the rate of expansion. Instead, we observe that the universal expansion is accelerating, and we attribute this unexpected behavior to dark energy, a component of the universe which exerts a pressure to push things apart — kind of like a negative gravity,” Mr. Dey added.

The new findings were presented at the American Physical Society’s Global Physics Summit in Anaheim, California.

“Our findings in DESI that the dark energy is evolving in time and is not the cosmological constant is probably the most important result about cosmic acceleration since its discovery in 1998 that led to the Nobel Prize in physics in 2011,” said cosmologist Mustapha Ishak of the University of Texas at Dallas and co-chair of the working group that analyzed the DESI data.

“The new and unexpected result is likely to change the future of cosmology and our understanding of its standard model,” Mr. Ishak added. — Reuters

Philippines to resist large swings in peso, BSP governor says

Eli Remolona, governor of the Bangko Sentral ng Pilipinas, during a Bloomberg Television interview on the sidelines of the InvestPH conference organized by the Philippine Stock Exchange in Manila, the Philippines, on Wednesday, March 19, 2025. — LISA MARIE DAVID/BLOOMBERG

The Philippine central bank will resist big swings in the peso, particularly if it is weakening, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said, as emerging markets from Indonesia to Turkey turned volatile this week.

“A big swing toward the direction of depreciation tends to be inflationary,” Mr. Remolona said in an interview with Bloomberg TV’s Haslinda Amin on Wednesday. “So we worry about that, so we have to somehow resist that.”

Intervention by Bangko Sentral ng Pilipinas has helped a gauge of one-month peso volatility decline from a four-year high touched in November. However, worries over domestic politics hammered the Turkish lira and Indonesian stocks this week, putting emerging-market central banks on guard as risk sentiment turned fragile.

Volatility could rise again if the dollar regains strength and the local currency might be at risk of breaching the record-low 59 level it last touched in December, Mr. Remolona said. — Bloomberg

Toyota Motor Philippines inspires racers to push their limits through TOYOTA GAZOO Racing Academy

Leading mobility company brings motorsports closer to Filipinos through racing school

Toyota Motor Philippines (TMP) recently held the TOYOTA GAZOO Racing Academy Philippines (TGRA) at the Clark International Speedway, where aspiring racers got to experience the thrill of the racetracks for themselves.

During the first half of the program, participants were oriented on the basics of racing, proper racing etiquette, car control techniques, and braking points on the track.

In the second half of the program, students got to apply what they had learned during the orientation through guided track activities. The slalom activity tested the participants’ agility, while the ‘follow the leader’ activity allowed them to get a feel of the racetrack’s straights and corners by following the racing line.

The TGRA was met with enthusiasm by first-timers, who composed a majority of the participants:

“I race go karts, so I wanted to try driving a car — to see kung anong pinagkaiba. It’s almost the same, but also different because the car is bigger. For me, I feel like mas masaya ito,” shared Karis Alexandra Santos.

“Since bata pa ako mahilig ako sa kotse and manood ng racing. I’m also fascinated by the mechanical aspects of cars. Kaya I took the opportunity to sign up nung nakita ko na may slot sa TOYOTA GAZOO Racing Academy,” shared Nemuel Obas.

“The TGRA makes it more accessible to get into this sport. It was beyond my expectations. Akala ko yung first few exercises lang gagawin namin — yung avoiding the cones and braking. Yun pala we also get to go around the track a few times and at a good speed,” shared Miguel Corrales.

“Pangarap ko makapag-drive sa speedway, sa track — yung ma-experience yung ganitong driving environment at ma-enhance yung skills ko, so in-encourage ako ng mga anak ko mag-enroll [sa TGRA]” shared Javi Rios.

“As a woman in motorsports, I’m excited to promote diversity and break down barriers in a traditionally male-dominated sport. I think the TOYOTA GAZOO Racing Academy is the perfect place to bring this passion of mine to life,” shared Ella Nicole Bornilla.

“The TGRA is our way of making motorsports more accessible to racing fans,” shared TMP Assistant Vice-President for Marketing Services Andy Ty. “We’ll have more batches of the TGRA this year, so we invite those who missed this first batch to join us in the next ones.”

The TGRA was launched in 2014 as a training ground for hopefuls looking to kick-start their racing career. Some graduates of the program have gone on to pursue professional racing careers, with some participating in the TGR Philippine Cup, TMP’s premier racing series.

Racing fans can continue to join in the fun at Race Weekend 1 of the TGR Philippine Cup, which will be happening this Saturday, March 22, 2025 at the Clark International Speedway. Admission is free.

The TOYOTA GAZOO Racing Academy Philippines is accredited by the Automobile Association Philippines (AAP) and brought to you by Official Fuel & Lubricants Partner Petron and Official Tire Partner GT Radial. This event is also supported by Toyota Financial Services Philippines, myTOYOTA Wallet, Denso, AVT, 3M, ROTA, Tuason Racing, OMP, and Kinto One.

For more information on the TGRA and other TGRA events, visit https://toyota.com.ph/tgrphilippines. Follow TOYOTA GAZOO Racing on Facebook and Instagram and TMP’s official pages — Toyota Motor Philippines on Facebook and Instagram, ToyotaMotorPH on Twitter, and join the Viber community at Toyota PH for updates.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Philippines eyes expansion of Squad group to India, South Korea

PHILIPPINE STAR/EDD GUMBAN

NEW DELHI – The Philippines and its allies are trying to expand the Squad grouping of nations to include India and South Korea to counter China in the Indo-Pacific region, the Philippines’ Armed Forces chief General Romeo S. Brawner said on Wednesday.

The Squad is an informal multilateral grouping made up of Australia, Japan, the Philippines and the United States, whose defence forces have conducted joint maritime activities in the Philippines’ exclusive economic zone in the South China Sea since last year.

Brawner’s remarks at the Raisina Dialogue security forum in New Delhi come at a time when Manila and Beijing have had a series of escalating confrontations in the disputed waters of the South China Sea.

China claims almost all of the strategic waterway – through which $3 trillion in commerce moves annually – disregarding sovereignty claims by the Philippines, Indonesia, Malaysia and Vietnam. A 2016 arbitration ruling invalidated China’s expansive claim but Beijing does not recognise the decision.

Brawner said his country was making efforts to enhance its deterrence capabilities, including by working with partners in the Squad, which he said was an informal collaboration between the four nations on military aspects, intelligence sharing, and joint exercises and operations.

“Together with Japan and our partners we are trying to expand the squad to include India and probably South Korea,” Brawner said during a panel discussion that included his counterpart from Japan, the chief of the Indian Navy, the commander of the US Indo-Pacific Command, and Australia’s chief of Joint Operations.

Spokespersons of the Indian defence ministry and the embassies of South Korea and China did not immediately respond to requests for comment.

“We find commonality with India because we have a common enemy. And I’m not afraid to say that China is our common enemy. So, it’s important that we collaborate together, maybe exchange intelligence,” Brawner later told reporters, adding that his country already had a partnership with the Indian military and defence industry.

He said that he will “open up” the potential for India’s Squad membership later in the day in a meeting with India’s Chief of Defence Staff General Anil Chauhan.

A senior Indian defence officer said the meeting had happened, but it was not immediately clear if the matter was discussed.

At a press conference on March 7, Chinese foreign minister Wang Yi said the Philippines’ actions in the South China Sea were not independent but part of a “screenplay written by external forces,” to smear China. — Reuters

Trump to sign order to shut down Department of Education, White House says

RAWPIXEL

WASHINGTON – U.S. President Donald Trump will sign a long-anticipated executive order on Thursday that aims to shut down the Department of Education, acting on a key campaign pledge, according to a White House summary seen by Reuters.

Even before it was signed, the order was being challenged by a group of Democratic state attorneys general, who filed a lawsuit seeking to block Trump from dismantling the department and halt the layoffs of nearly half of its staff announced last week.

The NAACP, a leading civil rights group, also blasted the expected order as unconstitutional.

“This is a dark day for the millions of American children who depend on federal funding for a quality education, including those in poor and rural communities with parents who voted for Trump,” NAACP President Derrick Johnson said in a statement.

Mr. Trump and his billionaire adviser Elon Musk have attempted to shut down government programs and institutions such as the U.S. Agency for International Development without congressional approval, but abolishing the Department of Education would be Trump’s first bid to shut down a cabinet-level agency.

Mr. Trump cannot shutter the agency without congressional legislation, which could prove difficult. Trump’s Republicans hold a 53-47 majority in the Senate, but major legislation, such as a bill eliminating a cabinet-level agency, would need 60 votes and thus the support of seven Democrats to pass.

Senate Democrats have given no sign they would support abolishing the Education Department.

“Trump and Musk are taking a wrecking ball to the Department of Education and firing half its staff,” Democratic Senator Patty Murray said in a statement, vowing to fight what she called “Trump and Musk’s slash and burn campaign.”

The order directs Education Secretary Linda McMahon to “take all necessary steps to facilitate the closure (of) the Department of Education and return education authority to the States, while continuing to ensure the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely.”

It mandates that any programs or activities receiving remaining Department of Education funds should not “advance DEI or gender ideology,” according to the White House summary.

Mr. Trump has repeatedly called for eliminating the department, calling it “a big con job.” He proposed shuttering it in his first term as president, but Congress did not act.

Last month Mr. Trump said he wanted the department to be closed immediately, but acknowledged he would need buy-ins from Congress and teachers’ unions.

“Federal government control of education has failed students, parents and teachers,” the White House said in its summary. It said that the department had spent over $3 trillion since its creation in 1979 without improving student achievement as measured by standardized test scores.

Prior to the department’s creation, education was part of the U.S. Department of Health, Education and Welfare, which operated from 1953 to 1979.

Ms. McMahon told SiriusXM’s “The David Webb Show” on Tuesday the administration’s goal was to foster innovation and encourage best practices in education at the state level.

“The Department of Education doesn’t educate anyone. It doesn’t hire teachers. It doesn’t establish curriculum. It doesn’t hire school boards or superintendents,” she said.

The department’s defenders say it is crucial to keeping public education standards high and accuse Republicans of trying to push for-profit education. An immediate closure could disrupt tens of billions of dollars in aid to K-12 schools and tuition assistance for college students.

Ms. McMahon, co-founder and former CEO of the WWE professional wrestling franchise, who was confirmed by the Senate on Monday, had defended Trump’s plans to abolish the agency, but promised that federal school funding appropriated by Congress to assist low-income school districts and students would continue.

A source familiar with the order said student loans and services for children with disabilities were codified in law and would continue.

The department oversees some 100,000 public and 34,000 private schools in the United States, although more than 85% of public school funding comes from state and local governments. It provides federal grants for needy schools and programs, including money to pay teachers of children with special needs, fund arts programs and replace outdated infrastructure.

It also oversees the $1.6 trillion in student loans held by tens of millions of Americans who cannot afford to pay for university outright.

 

LEGAL CHALLENGE

Attorneys general from 20 states and the District of Columbia filed a lawsuit in federal court in Boston last week after the department announced plans to lay off more than 1,300 of its employees as part of the agency’s “final mission.”

The job cuts would leave the department with 2,183 workers, down from 4,133 when Trump took office in January, and come on top of staff cuts through buyout offers and the firing of probationary employees carried out as part of Trump’s sweeping effort to downsize the federal government.

The lawsuit argues that the massive job cuts will render the agency unable to perform core functions authorized by statute, including in the civil rights arena, effectively usurping Congress’ authority in violation of the U.S. Constitution.

It said Ms. McMahon “is not permitted to eliminate or disrupt functions required by statute, nor can she transfer the department’s responsibilities to another agency outside of its statutory authorization.” – Reuters

Zelenskiy says energy strike ceasefire could be established quickly

Ukrainian President Volodymyr Zelensky speaks at the Shangri-La Dialogue in Singapore, June 2, 2024. — REUTERS

Ukrainian President Volodymyr Zelenskiy said on Wednesday that a halt on energy strikes in the war with Russia could be established quickly, but warned Ukraine would respond in kind if Moscow violated the terms of the limited ceasefire.

After speaking to U.S. President Donald Trump on Wednesday for the first time since their disastrous Oval Office talks, Mr. Zelenskiy said Kyiv would draw up a list of facilities that could be subject to a partial ceasefire brokered by Washington.

That list could include not only energy, but also rail and port infrastructure, he said, a day after Russian President Vladimir Putin spoke to Trump and agreed to pause attacks on energy infrastructure.

“I understand that until we agree (with Russia), until there is a corresponding document on even a partial ceasefire, I think that everything will fly,” Mr. Zelenskiy said, referring to drones and missiles.

As Mr. Zelenskiy’s online briefing with reporters drew to a close, regional authorities reported a mass drone attack on the central Ukrainian city of Kropyvnytskyi, with footage on social media showing large fires and damage to apartment buildings.

Officials said the attack also damaged rail infrastructure. The regional governor said some injuries were reported.

The Ukrainian leader, who looked tired as he spoke to reporters, described his phone call with Trump as “probably his most substantive and positive” talks yet and added that he had not felt under pressure.

The readout contrasted with the acrimonious optics of Mr. Zelenskiy’s last meeting with Trump on February 28, which was meant to lead to them signing a minerals deal but instead spiraled into a shouting match.

Asked at the briefing if he still wanted Trump to visit Ukraine, Mr. Zelenskiy said that he did and that he believed it would be helpful for the U.S. president in his efforts to halt the war.

 

NEW MEETING TO DISCUSS TECHNICAL DETAILS

Mr. Trump’s Middle East envoy Steve Witkoff has said another round of talks between Russian and U.S. officials, aimed at a permanent ceasefire and end to the war, will take place in Jeddah, Saudi Arabia on Sunday, but it was unclear whether Ukraine would be involved in those talks.

Mr. Zelenskiy said Ukrainian and U.S. officials could meet next in Saudi Arabia on Friday, Saturday or Sunday to discuss technical details.

The Ukrainian leader said he wanted to understand how the partial ceasefire would be monitored, though he added that he thought it would be successful if the United States set out to do it.

A statement by the U.S. presidential administration said earlier that Trump suggested to Mr. Zelenskiy that the U.S. could help run, and possibly own, Ukraine’s nuclear power plants and energy infrastructure.

Mr. Zelenskiy said he and Mr. Trump discussed only the vast Russian-occupied Zaporizhzhia nuclear power plant in southeastern Ukraine during their phone call.

He added that he told Trump that Kyiv would be ready to discuss U.S. involvement in modernizing and investing in the nuclear plant if it is returned to Ukraine.

Mr. Zelenskiy said he believed Putin would not agree to a full ceasefire while Ukrainian troops remained in Russia’s western Kursk region.

Kyiv’s forces launched a surprise incursion into the region in August last year, but have since been pushed back to a tiny sliver of land during a multi-stage operation by Russia.

Mr. Zelenskiy also said that Ukraine had received new supplies of several F-16 fighter jets, but he declined to say exactly how many or when exactly the delivery had happened. – Reuters

Bank of England set to sit tight on rates as uncertainty mounts

People walk outside the Bank of England in the City of London financial district in London, Britain, May 11, 2023. — REUTERS

LONDON – The Bank of England looks set to keep interest rates on hold on Thursday as it awaits the impact on the economy of U.S. President Donald Trump’s trade tariff onslaught and of the British government’s imminent tax hike for employers.

With UK inflation stuck firmly above its 2% target, the BoE has cut borrowing costs by less than the European Central Bank and the U.S. Federal Reserve since last summer, contributing to the country’s sluggish growth rate.

When it trimmed its benchmark Bank Rate to 4.5% in February, the BoE stressed it would move gradually and carefully with further cuts given the uncertainties hanging over the economy.

Since then, those uncertainties have only mounted in large part due to Trump gearing up to announce import tariffs for a host of trading partners of the United States on April 2, muddying the outlook for growth and inflation around the world.

The Fed on Wednesday cut its economic growth forecasts for this year, raised its inflation projection and said uncertainty had increased as it kept borrowing costs on hold.

At home, a hike in social security contributions paid by British employers goes into effect on April 6, something the BoE thinks could lead to price increases, weaker hiring or both.

Also on the Monetary Policy Committee’s radar is finance minister Rachel Reeves’ budget update speech next Wednesday in which she is expected to announce cuts to public spending plans, a big component of Britain’s economic growth outlook.

“We expect the committee to hold rates steady, with little change to the guidance that will continue to favor caution and time optionality while the incoming cost shocks are digested,” economists with Citi said in a note on Wednesday.

The BoE last month said it expected inflation to reach 3.7% later this year, up from January’s 3%. Some economists say it will hit 4%, testing the BoE’s assumption that there is little threat to longer-term price pressures through wage demands.

Data on Britain’s labor market, including wage growth, are due to be released at 0700 GMT on Thursday.

 

“EXTRA INFLATION PERSISTENCE”

“The BoE is far too sanguine about elevated long-term consumer inflation expectations,” Robert Wood, chief UK economist at Pantheon Macroeconomics, said. “We think extra inflation persistence is likely to result from faster price rises this year.”

All 61 economists polled by Reuters this month predicted the BoE would keep Bank Rate on hold at 4.5% at its March meeting, with the next cut likely in May with further reductions in August and November.

Pricing in financial markets suggests investors see only two quarter-point rate cuts over the remainder of this year.

The economists polled by Reuters mostly expected seven members of MPC to back no change this week and the other two to favor a quarter-point reduction.

In February, the MPC voted 7-2 for its quarter-point cut with the two dissenters wanting a bigger, half-point reduction.

Another wildcard for the BoE at its discussions this week is the 500-billion-euro infrastructure and defense investment plan announced by Germany’s leading political parties, on top of a new, 150 billion-euro European Union-wide defense program.

Spending on that kind of scale is likely to boost economic growth in euro zone, potentially helping Britain. – Reuters

German tax revenue jumps again in February, finance ministry says

THE SKYLINE with its office buildings and the banking district are photographed during sunset in Frankfurt, Germany, Nov. 18, 2021. — REUTERS

BERLIN – Germany’s federal and state government tax revenue rose again strongly in February, by 8.1% on the previous year, the finance ministry said in its monthly report on Thursday.

At that, total tax revenue reached just over 69 billion euros ($75.19 billion).

In January, German tax revenue had risen by 8.9%.

State coffers got a boost in particular from income and sales tax, while income from corporate tax paid by companies was down on the prior-year level, according to the report.

The ministry said recent economic data did not indicate a noticeable recovery any time soon for Germany’s economy and pointed to little momentum in the job market.

Europe’s largest economy has been lagging other major economies in recent years, contracting in 2023 and 2024.

The parties seeking to form a new government plan a seismic boost in public spending, but companies and economists have warned of deep-rooted structural problems such as high energy prices and excessive red tape weighing on the economy. – Reuters

Brazil raises interest rates 100 bps, sees smaller hike ahead

NATANAELGINTING-FREEPIK

BRASILIA – Brazil’s central bank raised interest rates by 100 basis points on Wednesday for the third consecutive time, sticking to previous guidance, and signaled a smaller rate hike at its next policy meeting as it monitors signs of an economic slowdown.

The bank’s rate-setting committee, known as Copom, lifted the benchmark Selic rate to 14.25% — a level last seen in 2016 — in a unanimous decision, meeting the expectations of all 37 economists polled by Reuters.

“The Committee anticipates an adjustment of lower magnitude in the next meeting, if the scenario evolves as expected,” policymakers wrote in a statement announcing their decision.

More than the widely expected rate hike, markets were focused on the central bank’s message about its next steps, now seen fully in the hands of its new governor, Gabriel Galipolo.

Flavio Serrano, chief economist at Banco BMG, said the central bank’s communication reinforced his view that the pace of monetary tightening would slow by half at the next meeting.

“We believe a 50-basis-point hike in May will be the final move of this tightening cycle,” he said. Mr. Galipolo, a close ally of President Luiz Inacio Lula da Silva, took over in January as the central bank chief from Roberto Campos Neto, who was a frequent target of criticism from the leftist president.

In the two monetary policy meetings held under his leadership so far, Mr. Galipolo has closely followed guidance set in December, when Campos Neto was at the helm, which had penciled in 200 basis points of tightening in this year’s first quarter.

Attention has now centered on Mr. Galipolo’s signals about bringing inflation back to target, as Lula grapples with low approval ratings and ramps up stimulus to spur consumption – at odds with the central bank’s efforts to cool economic activity.

The Brazilian central bank’s decision came on the same day the U.S. Federal Reserve held rates steady, assessing the new Trump administration’s policies before moving ahead with lower borrowing costs.

In its policy statement later on Wednesday, Brazil’s central bank said the global environment remains challenging due to U.S. economic policy and outlook, particularly the uncertainty surrounding trade policy and its effects.

Although Brazil’s currency BRBY has gained more than 9% against the U.S. dollar so far this year, longer-term inflation expectations have continued to deteriorate, underscoring doubts about a sustained convergence toward the 3% official target.

Brazil’s economic activity, which policymakers have been closely tracking for signs of a slowdown, weakened more than expected last quarter. However, early data from this year still showed some resilience, as central bank officials noted in recent remarks.

“The set of indicators on economic activity and labor market has been exhibiting strength, even though we observe signals that suggest an incipient moderation in growth,” Copom said in its policy statement on Wednesday.

Reflecting updated economic conditions, the central bank lowered its 2025 inflation forecast to 5.1%, from 5.2% projected in January.

For the third quarter of 2026, the period most influenced by current monetary policy decisions, it now expects 12-month inflation of 3.9%, compared with a previous estimate of 4.0%.

JP Morgan analysts noted the central bank made only slight changes to its inflation outlook, despite weaker-than-expected fourth-quarter growth and sharp currency appreciation, describing the statement as hawkish.

“We continue to expect two additional 50 basis-point hikes in the upcoming meetings in May and June, concluding the tightening cycle at 15.25%,” they wrote. – Reuters

Macron and Saudi Crown Prince discuss Gaza, Ukraine peace process

EMMANUEL MACRON — PICRYL

French President Emmanuel Macron said on Wednesday he spoke with Saudi Arabia’s Crown Prince Mohammed bin Salman and the two leaders condemned the resumption of Israeli strikes on Gaza.

Mr. Macron said they will co-chair a conference on a two-state solution, aimed at “helping revive a political perspective for both Israelis and Palestinians”.

“A return to the ceasefire is essential for the release of all hostages and the protection of civilians,” Mr. Macron said in a post on X, adding that both leaders discussed the need to work together on the issue of Gaza’s future.

The Israeli military on Wednesday resumed ground operations in central and southern Gaza, as a second day of airstrikes killed at least 48 Palestinians, according to health workers in the coastal strip.

The renewed ground operations came a day after more than 400 Palestinians were killed in airstrikes in one of the deadliest episodes since the beginning of the conflict in October 2023, shattering a ceasefire that has largely held since January.

Separately, Mr. Macron welcomed the crown prince’s Jeddah initiative, which enabled the start of peace negotiations in Ukraine.

The leaders also discussed Syria and Lebanon.

“France and Saudi Arabia share the same objectives: a fully sovereign Lebanon and a united, stable Syria engaged in an inclusive transition,” Mr. Macron said. – Reuters

PFA brings Franchise Negosyo regional event to Tuguegarao

The Philippine Franchise Association (PFA) is set to bring the Franchise Negosyo Para Sa Region II to SM City Tuguegarao on March 21-22, 2025. This much-anticipated event aims to empower aspiring entrepreneurs by showcasing a wide array of franchise opportunities through business matching and educational seminars.

The event will feature over 20 exhibitors representing more than 200 brands, allowing visitors to know some of the most promising and successful franchise concepts available in the market. Aspiring franchisees and business owners will also have the chance to explore business opportunities and gain valuable knowledge on smart franchise investments.

One of the event’s key highlights is the free seminar, “How to Invest in the Right Franchise,” where a franchising expert will share the do’s and don’ts of franchising, selecting and managing franchise businesses, and, most importantly, the signs of a franchise scam. This seminar aims to guide attendees in making informed decisions to ensure franchise business success.

The Franchise Negosyo Para Sa Region II Expo and How to Invest in the Right Franchise Seminar are free to attend and will officially open on Friday, March 21, at 10:00 a.m. Whether you are a seasoned entrepreneur or just starting your business journey, this event offers a unique opportunity to learn, connect, and grow in the franchising sector.

To register, visit https://www.pfa.org.ph/regionalevents.

The Franchise Negosyo Para sa Region II is supported by DTI, OWWA, PCCI Region II, Local Chambers, SM Supermalls, PLDT Enterprise, Carrier — The Air Authority, Grainsmart Café, and Miguelitos Ice Cream.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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