🛫 C-390 take off

Good morning! Today, we talk about how Embraer is conquering new markets with its state-of-the-art military cargo plane. Why Brazilians are still quitting their jobs in droves. And X will not get involved in a Supreme Court initiative against disinformation.

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Embraer boosting cargo plane production 

Brazilian planemaker Embraer is working to be able to produce one model of its C-390 Millenium aircraft, its state-of-the-art military cargo plane, per month. Its current pace sits at four models a year, which will increase to six in 2025.

 Why it matters. Boosting sales is crucial for reaching the stage of building one aircraft a month, and Embraer is bullish about how its cargo plane is being perceived by armed forces worldwide. One key milestone was earning the trust of NATO countries.

State of play. So far, Embraer has inked deals with the air forces of Brazil, Portugal, and Hungary. But four other countries — Austria, the Netherlands, the Czech Republic, and South Korea — have already selected the C-390 or the KC-390 (the plane’s version with an air-to-air refueling kit).

• Embraer is also in talks with India, where it will participate in a bidding process against other competitors for the sale of 80 models, and Saudi Arabia, which could order up to 33 planes.

The plane. Embraer and the Brazilian Air Force partnered to develop the C-390 aircraft, which is regarded as cutting-edge equipment. Charles Atkeison of Avgeekery Magazine has described it as a potential game-changer in military air transportation due to its impressive capabilities. 

• This model can transport up to 80 troops, three tanks, or a single Black Hawk H-60 helicopter.

Europe. The C-390’s success with NATO countries led Embraer to discuss moves such as implementing a training center dedicated to the European market — in partnership with German defense company Rheinmetall, which manufactured the aircraft’s first complete flight and mission simulator.

What they are saying. “With the ongoing success of the C-390 throughout Europe, it is the right moment to start the evaluation and planning for a European C-390 training hub, providing comprehensive training facilities for aircrew and cargo operation training,” notes Timo Haas, CDO of Rheinmetall AG and deputy chief executive of Rheinmetall Electronics GmbH.

Brazil’s Great Resignation is still going

The Great Resignation, a phenomenon that defined the pandemic-era labor market, is not yet over. Brazilians are still quitting their jobs in droves, with the highest number of resignations on record (since 2004) coming last year. 

• According to consultancy firm LCA, the trend is continuing throughout this year — in the first four months of 2024, the number of Brazilian job hoppers is 15.6 percent higher than between January and April last year.

What’s happening. Experts see many reasons for the continuation of Brazil’s Great Resignation — such as an entrepreneurship drive, how young workers are more prone to switch companies in search of better pay, or the fact that a heated job market means firms are poaching talent from competitors. 

• Glass half-full: Economists believe Great Resignation numbers indicate that workers are bullish about the economy. When people think the economy will tank, they get fearful of not finding a better job than the one they currently have, and tend to stay in their current situation for longer.

• Glass half-empty: But the numbers also indicate an element of worker dissatisfaction. Low pay, excess work, and often clashes about whether to work remotely or in person have created a wedge between bosses and their employees.

 Why it matters. The lion’s share of workers quitting their jobs are aged 42 or under — generations that value flexibility from companies and the possibility of balancing their personal lives with their careers. Companies need to adapt fast to avoid churning talent.

X not joining initiative against disinformation 

The Supreme Court celebrated on Thursday the inclusion of Google, YouTube, Meta, TikTok, Kwai, and Microsoft in its program to fight disinformation. They were the first social media platforms to join the initiative — created in 2021 and which includes over 100 partnering organizations.

• Yes, but … Elon Musk’s X (formerly known as Twitter) was a notable absence among the signatories. 

There will be signs. Social media platforms have for years pledged to collaborate with authorities to fight disinformation. But experts complain that they are only doing the bare minimum, if that. Choosing not to at least pay lip service to the Supreme Court is Mr. Musk’s way of flipping off the Brazilian justice system.

• Experts in disinformation have called X a “cesspit of disinformation.” According to analysts from the European Union, the platform has the worst ratio of disinformation/misinformation to posts not spreading falsehoods among mainstream social networks.

Context. Back in April, Brazilian Supreme Court Justice Alexandre de Moraes decided to investigate Mr. Musk for obstruction of justice, incitation of criminal activity, and “willful criminal instrumentalization” — after the billionaire used his platform to call Justice Moraes a dictator-like figure that censors political speech. 

• He also threatened to disregard court orders to block certain accounts in Brazil (a threat he has yet to carry out).

The partnership. According to the Supreme Court, by joining the anti-disinformation program, platforms pledge to develop initiatives to raise awareness about the nasty effects of disinformation — which often violates democratic tenets and citizens’ constitutional rights. 

 Why it matters. Social media has been used to echo false claims discrediting Brazil’s voting system. Such claims can have real-world implications — as they drove radicals to plot a bomb attack against the Brasília airport and inspired hordes of supporters of former President Jair Bolsonaro to storm government buildings in 2023 while desperately trying to trigger a military coup.

• “There is no way of fighting disinformation without the cooperation of platforms,” Supreme Court Chief Justice Luís Roberto Barroso summed up on Thursday. 

Quick catch-up

Petrobras on Thursday decided to resume operations at a fertilizer plant in the southern state of Paraná, which has been shut down since 2020. The move aims to reduce Brazil’s dependence on imported fertilizers.

The Agriculture Ministry has requested BRL 452 billion to finance the Harvest Plan, which offers subsidized credit to large and middle-sized farmers. The amount would obliterate last year’s record of BRL 364 billion.

The National Supply Company deemed an auction to purchase 300,000 tons of rice a success. It bought 87 percent of the intended quantity — aimed at avoiding price hikes due to the floods affecting Rio Grande do Sul, Brazil’s top rice producer.

Zamp, the operator of fast-food chains Burger King and Popeyes in Brazil, agreed to purchase Starbucks Brazil’s assets from holding company SouthRock for BRL 120 million.

The Supreme Court ordered the arrest of 208 suspected January 8 rioters. They were free but failed to comply with precautionary measures. By early evening, 49 of them had been detained. The court is expected to request the extradition of 65 fugitives living in Argentina.

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