this is the business briefing. i'm sally bundock. high debt, high unemployment and sluggish growth — we look at the economic challenges facing brazil's new president. and shinzo abe pledges to strengthen co—operation with india, as narenda modi's visit to japan draws to a close. and on the markets, it's a mixed picture in asia right now, and the dramatic swings that marked last week have abated for now, but investors remain on edge. voters in latin america's biggest economy have chosenjair bolsonaro as their new president. he secured 55% in the second round runoff. let's take at the look at the big economic issues in his intray: brazil's economy is currently emerging from the country's

worst—ever recession, growing 1.0% in 2017 after two years of contraction. it was once one of the fast—growing so—called brics. unemployment has begun to decline, after reaching an all—time high last year. but almost 13 million brazilians remain out of work, with the unemployment rate at 12.1%. another major headache for the incoming president will be the country's ballooning debt. the key to reducing that will be an overhaul of the country's generous pensions system, which the incumbent michel temer tried and failed to reform. and brazil's new leader will be hoping to usher in a new era of accountability, after a string of high—profile corruption scandals. the state—run oil company petrobras last month agreed to pay a us fine of more than $850 million to settle charges that former executives bribed politicians to secure lucrative contracts. jimena blanco is the principal

analyst for the americas as verisk maplecroft. always good to see you. so we sort of outlined some of the economic challenges. what were his policies, what has he promised? well, in the past, part of his campaign, he has come out with a liberal economic plan, so also now he's talking about privatisations, talking about pension reform, talking about giving com plete pension reform, talking about giving complete autonomy to the central bank and markets have reacted really positively to those promises. and his economic team seems to be very committed to those. and in terms of getting those promises through the parliamentary system, he will do that, will he? well, he has a strong chance because the far right and the centre—right have a majority. we can't forget that the brazilian

congress has 30 parties in it so there will be a lot of negotiation happening but he does have a chance of passing it politically. the question is whether there is a political personal commitment on his side because jair bolsonaro comes from you know a very nationalist economic background through his parliamentary career and he has only just converted to liberalism recently. so we will watch his space in terms of delivering on low promises but what is critical is the people of brazil have said we do wa nt people of brazil have said we do want change, they are fed up with the 13 years of the left, as it were, and where that led to with the impeachment of dilma rousseff, lula in prison, they felt they needed significant change this time. yes, no questionjair bolsonaro's win was a backlash against the establishment. the left of course was the main target and this was a key pa rt was the main target and this was a key part ofjair was the main target and this was a key part of jair bolsonaro's campaign, but also the centrist parties, the established, light parties, the established, light parties in brazil were hard hit in

the first round of the election and their support in congress has been massively reduced. so this is people really saying to the established parties if you haven't been able to fight corruption, you haven't been able to deliver the strong economic growth that we want and you haven't been able to deliver security. so what is the outlook for the 13 million who are out of work, for those who have been dealing with recession fears and a slight bit of growth now, what are we looking at? in the short term if we are thinking one 01’ in the short term if we are thinking one or two years ahead the outlook is positive. the economic policies the jair bolsonaro's campaign promises will make the brazilian economy grow. the key risk is if we think longer term whether he finds stumbling blocks that he is unable to ove rco m e stumbling blocks that he is unable to overcome in passing those reforms, then we can reconsider the outlook. but for the nearfuture it is positive. all right, thank you for now. a really interesting story. and we will unpack that further. we are looking at the resilient press a

little bit later on. it's the final day of a summit between indian prime minister narendra modi and japanese prime minister shinzo abe in tokyo. countering china's growing influence is high on the agenda. sharanjit leyl is in our asia business hub in singapore. it is nice to see you, sharanjit, just tell us about what the two discussed. that's right, sally, japanese prime minister shinzo abe and indian counterpart narendra modi are having talks on monday to wrap up are having talks on monday to wrap upa summit are having talks on monday to wrap up a summit in tokyo after a very scenic weekend tour through japan's autumn colours where mr modi became the first leader to be invited to mr abe home in the country. the leaders wa nt to abe home in the country. the leaders want to enhance security cooperation and enhance the economic alliance between the nations, and thrashing out a security cooperation pact which will essentially see joint military drills betweenjapan‘s self

defence forces and the indian military, the aim of course of being to keep the indian and pacific ocea ns to keep the indian and pacific oceans free and open and counter china's rising claims over some of those areas. japan — india, together with the us, they have been boosting defence cooperation to try to counter china's growing influence in the region with the three countries conducting naval exercises regularly in the indian ocean. and deals on the horizon including a sale of a japanese bullet train with the japanese bullet train with the japanese aiming essentially to assist a planned project to construct high—speed rail networks in western india. also on the cards isa in western india. also on the cards is a possible agreement aimed at welcoming more skilled indian workers into japan and this of course to address japan's rapidly ageing population. all right, thanks ageing population. all right, thanks a lot, interesting. sharanjit there in our bureau in singapore. now let's brief you on some other business stories: ibm is buying the software company red hat for $34 billion.

it's ibm's biggest ever acquisition and is part of the firm's efforts to expand its subscription software offerings. ibm hopes it will help it to catch up to amazon, microsoft and alphabet in the rapidly growing cloud business. and we have mentioned this: the uk's finance minister, chancellor philip hammond, is preparing to present the country's last budget before brexit. earlier this month, prime minister theresa may promised an end to austerity, and mr hammond will be under pressure to spell out how that will work. shares in hitachi chemical have tumbled during trade in tokyo. it follows reports injapanese media that the firm falsified inspections for a material used in semi conductors. the material is used to protect chips from scratches. so that report causing the shares to fall significantly. so that report causing the shares to fall significantly.

let's go to china, where pet pampering has reached new heights. with a growing middle class in china, many pet owners can now afford extravagant gifts for their cats and dogs. 0wners are splashing the cash on spa visits and even acupuncture for their beloved animals. take a look at this. don't hold back, # bbc the briefing. tell us what you thought. i have a cat and dog and i don't think they would be up for that kind of pampering. tell us what you think. what do you pay for when it comes to your pets and what you indulge them in? let's look at markets really quickly. 0f in? let's look at markets really quickly. of course last week was about extreme volatility. 0n the dow, quite significant falls for the main market in the us, following

three in asia today. slight gains for the asian market but everyone is still on edge. is itjust a short correction for global financial markets, what we saw last week, or is it more of a long—term rout? that's what we don't know the answer to. let's quickly look at the next board in terms of what is happening on commodity markets. the price of oil is slightly lower. gold is perhaps seen as a safe haven which is why we might have seen the upside in goal. we have the news briefing injusta in goal. we have the news briefing injust a few in goal. we have the news briefing in just a few minutes. the chancellor, phillip hammond, will deliver his last budget before brexit today. as mentioned, he is under pressure to find extra funding for other

public services after years of austerity. 0ur political correspondent ben wright reports. a mid—afternoon budget on monday is very unusual, and so is the backdrop to philip hammond's statement later, because with the uk set to leave the eu in five months' time, he doesn't know if there will be a brexit deal with the eu or not. the impact on his plans for the economy could be huge. but some commitments have already been made. the government has promised to set aside an extra £2 billion a year for round—the—clock mental health support in major a&e centres in england. there will also be more specialist ambulances and new dedicated mental health teams in schools. the money is part of the £20 billion boost to nhs funding announced in june. the £20 billion boost to nhs funding announced injune. the treasury has also set aside a £30 billion package for england's roads with money to repair motorways and potholes. there will be more money spent on business

rates relief for small businesses and funds for rejuvenating high—street. and the chancellor is expected to announce another freeze in fuel duty. 0ne expected to announce another freeze in fuel duty. one big consideration for philip hammond is the prime minister's pledge at the tory party conference earlier this month to bring austerity to an end after eight years of cuts. the tax spending decisions will come next year but the chancellor will try and match rhetoric with money. he is also mindful of calls from labour and tory mps to help people make the transition onto universal credit. there is a lot of concern in the commons about that. but with no parliamentary majority and no certainty about the impact brexit will have on the economy, the chancellor is likely to be cautious rather than bold. ben wright, bbc news. this is the briefing from bbc news. the latest headlines: a passenger plane has crashed into the sea off the indonesian coast with 189 people on board.

a sea rch—and—rescue operation is underway. the far—right candidate wins brazil's presidential election. jair bolsonaro promises to protect freedom and democracy. now it is time to look at the stories making the headlines across the world. we begin with the israel times, leading on the weekend's shooting at a synagogue in pittsburgh. it is the deadliest assault onjews in us history and has ignited a worldwide discussion on the rise of anti—semitism. the front page of the independent features a poignant picture of tributes laid after a helicopter crashed at the leicester city ground, killing everyone on board, including the club's thai owner. he is being remembered for his generous donations to the community, and for helping deliver a premier league title. heading over to brazil,

in the rio times, where far—right candidaejair bolsonaro has just been elected as the next president of the country. the victory constitutes a rightwards swing in the largest democracy in latin america. staying with elections, this time in germany, deutsche welle has more on the large drop in support for angela merkel‘s coalition in regional elections. the results have cast doubt over the future governance of the country, and merkel‘s political future. and finally, in the financial times, could micro—expression technology predict your intentions? chinese banks have started using it on customers in an effort to flag potential fraud cases. it sounds like a scene from minority

report.