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Brazil crisis deepens with probe of president, top senator

Brazil crisis deepens with probe of president, top senator

He claimed to have "nothing to hide" and demanded a "full investigation and a rapid clarification of matters for the Brazilian people". The country's supreme court says it's going to investigate.

According to the O Globo report, Batista allegedly recorded the discussion with Temer about hush money the executive paid to Cunha, according to the newspaper. Brazil's political crisis deepened sharply on Thursday with corruption allegations th.

When the audio recording was released to the public on Thursday it did not appear to contain any explosive proof that President Temer committed a crime.

Brazil has plunged back into political crisis, reminiscent of the chaos surrounding last year's impeachment process, following reports that President Michel Temer was involved in an alleged cover-up scheme with the jailed former speaker of the lower house of Congress. Both chambers of Congress canceled sessions and Temer's office canceled his planned activities.

The news sparked calls for Temer's impeachment, halted debate on controversial neoliberal reforms and raised serious questions about the ability of the government to survive until the 2018 presidential election.

Anti-Temer demonstrations have also been held in San Paolo and the country's capital, Brasília, where demonstrators gathered in front of the parliament building. Globo did not say how it obtained the recording. He came to power as interim president after embattled former President Dilma Rousseff was suspended and impeached on charges of financial mismanagement.

If Temer resigns, his term will be completed by the next in line, Rodrigo Maia, speaker of the Lower House, who is facing his own federal graft investigation.

The Supreme Federal Tribunal opened an investigation into the accusations and lifted the seal on the recording.

Mr. Cunha was convicted this year of money laundering and corruption as part of the Operation Car Wash anticorruption probe.

Already a Who's Who of the elite has been imprisoned or placed under investigation. On being stripped of the presidency her vice president, Temer automatically took over.

The average yield spread of Brazilian sovereign bonds over U.S. Treasuries on the JP Morgan EMBI Global Diversified was trading at 295 basis points (bps), after blowing out to 297 bps on Thursday - its widest since January. JBS, the world's biggest meatpacker, declined to comment. Ronaldo Caiado, another member of Temer's coalition in the legislature. That's basically a huge inquiry into an enormous interlocking set of scandals in which politicians here have basically been handing out contracts to the country's industrial giants in return for kickbacks into the party coffers or, in some cases, offering to pass legislation favorable to those industrial entities in return for payments.

Aecio Neves former presidential candidate was the latest to fall in a corruption scandal prompting a removal from his Senate seat.

Globo reported late on Wednesday that Mr Neves had been recorded asking JBS meat-packing company executive Joesley Batista for 700,000 USA dollars (£540,000) to pay for his "Car Wash" defence.

The statement from Temer's office acknowledges a meeting took place between Temer and Batista, adding "there was no dialogue that could compromise the President of the Republic's conduct".

"Resignation is the easiest way to resolve this", said Senator Ana Amelia, from the PP, who had supported Rousseff's impeachment past year.

Recorded the conversation: Joesley Batista, chairman of JBS.

The new scandal could further undermine support in Congress for austerity reforms, particularly a push to raise the minimum age for retirement in a bid to fix Brazil's costly pension system.

On Tuesday, a congressional panel backed by Brazil's powerful farm lobby called for the dismantling of the Indian affairs agency Funai. The leftist Workers' Party of Rousseff scents the chance for revenge.

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