From: Daniel Sabba To: "'Jeffrey Epstein"' <[email protected]> CC: Paul Morris , Stewart Oldfield Ste anian , "Arian Dwyer" Subject: FW: Faria: Brazil Daily Update Date: Fri, 03 Jul 2015 21:43:33 +0000 , Vahe "'Richard Kahn" Original Message From: Isin Sumengen-Ziel (DEUTSCHE BANK AG, LO) Sent: Friday, July 03, 2015 04:54 PM Eastern Standard Time To: Subject: Faria: Brazil Daily Update The political risk is increasing Newspaper Folha de S.Paulo reported on Friday that a black-market dollar dealer who is currently under arrest in connection with the Petrobras bribery scandal recently testified that someone working on behalf of President Dilma Rousseff's campaign organizers asked for his help to repatriate BRL20mn illegally kept in offshore deposits last year. While the details are sketchy and it seems that the defendant does not have any proof to corroborate his allegations, the overall impression is that the investigations are getting closer to the government. Folha also reported that Vice President Michel Temer (PMDB) is seriously considering quitting the position of Rousseff's chief political coordinator. Speculation about Temer's abandoning the post increased this week after Lower House Speaker Eduardo Cunha (PMDB) argued that Temer should quit. The PMDB reportedly resents the fact that the government is blocking the appointments that Temer has offered lawmakers in exchange for passing the fiscal adjustment bills in Congress. Deterioration in the political atmosphere has led to some important defeats recently to the government, such as the proposed increase in wages for civil servants in the judiciary system, reduction in fuel taxes, and automatic adjustment of social security benefits — all of which will have to be vetoed by Rousseff in order to minimize the strain on the fiscal accounts. Writing on newspaper Valor Economico on Friday, columnist Claudia Safatle argued that, given the steep decline in Rousseff's approval ratings a