Brazil can ride out financial storm

The turmoil in the global financial markets should not unduly affect Brazil, the country's president has insisted.

According to Luiz Inacio Lula da Silva, the South American nation is supported by strong economic fundamentals, reports Nasdaq.

As a result, he is optimistic that Brazil will be able to "ride out" a possible worldwide recession.

The markets were plunged into chaos earlier this week when US investment bank Lehman Brothers collapsed.

This was swiftly followed by the takeover of Merrill Lynch by the Bank of America, as well as AIG receiving a £48 billion rescue package from the US Federal Reserve.

President Lula commented: "We are monitoring the international situation closely but with serenity."

He added that the size of the Brazilian market, as well as its considerable foreign reserves, should cushion it from global financial problems, such as a possible recession.

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