Home' Trinidad and Tobago Guardian : May 29th 2014 Contents A51
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LONDON---England defender Glen
Johnson has bad news for his
country: his Liverpool teammate and
Uruguay striker Luis Suarez has told
him he expects to be fit for their
World Cup match. Suarez is doubtful
for the Group D match on June 19
after undergoing knee surgery last
But Johnson said he spoke with
Suarez earlier this week and the
striker did not seem worried.
Johnson, who has been included in
England's squad for the World Cup,
said Suarez "doesn't think that it is
that bad so he thinks he will be OK."
Suarez scored a Premier League-
leading 31 goals for Liverpool this
season and was voted player of the
year in England by the players'
England plays its World Cup
opener against Italy on 14 June.
Suarez tells teammate he expects to be fit at WCup
SAO PAULO---As if Brazil didn t have enough
to deal with as the World Cup approaches, the
worst drought in more than 80 years is hitting
the country s largest city just as it prepares
for the tens of thousands of foreigners expected
at the tournament opener.
The hotel industry says tourist areas at Sao
Paulo s lower elevations shouldn t be affected
by the water shortage. Many places where Cup
visitors will stay have contracts with private
companies to supply water if cuts occur, said
Bruno Hideo Omori, president of the Brazilian
Hotel Industry Association in Sao Paulo state.
"They have contingency plans and are very pre-
pared to deal with emergencies," he said.
But residents of Sao Paulo s poorer neigh-
borhoods are convinced that the government
is rationing their water to ensure that cuts aren t
made in the wealthier areas expecting a flood
of visitors for the June 12 open of international
soccer s premier tournament.
The poorer areas, many on the city outskirts
or at higher elevations, are unquestionably the
most affected when Sao Paulo state s local water
company reduces water pressure as a conser-
vation method throughout the system during
off-peak hours, between 10 p.m. and 5 am
Some poorer satellite cities around Sao Paulo
have suffered cuts every other day since March.
"Water stops running when night falls. There s
a lack of water, and the government won t
admit it," said Luis Henrique Oseliero, who
manages and lives in an apartment building in
a working-class neighborhood in the city s
west. "They are doing it in these areas because
they know it s not where tourists will stay."
The state government s water utility acknowl-
edges that areas at higher altitudes or farthest
from the reservoir could suffer interruptions
in water service. But it denies the suspicions
of people living in poorer neighborhoods that
their water is being rationed.
"There is no rationing or restriction of water
consumption in any of the 365 municipalities
served by our company," the Basic Sanitation
Company of the State of Sao Paulo said in an
emailed statement answering questions about
drought measures. "(The company) invested
heavily in measures to increase the security of
water supply in the metropolitan region of Sao
Paulo, and these investments are more than
enough to meet the extra demand during the
Sao Paulo s water shortage is the result of
insufficient rain this year, with levels at Sao
Paulo s main reservoir supplying freshwater to
9 million people dipping lower than ever before.
In a normal year, torrential rains shower Sao
Paulo, channeling water through rivers down
the lime-green hills to the north. But this year,
only a third of the usual rain arrived, with 9
inches (23 centimetres) falling during the
December to February wet season.
The sanitation company recently started
pumping water from underneath the gates of
the reservoir s dams, which they say should
provide a four-month supply. The state is also
diverting water from other basins around Sao
But at Jaguari dam, part of Sao Paulo s main
reservoir, mud cracks are growing and spreading.
The system of dams Jaguari belongs to saw
levels drop under 9 per cent before the state
government began pumping from the bottom
to bring up more water and channel it to the
Experts say what Sao Paulo really needs is
rain, and without it rationing will be neces-
The Weather Channel s long term forecast
for Sao Paulo calls for only a 20 per cent or
less chance of rain for most of the next ten
days, with a 70 per cent chance of precipitation
on just one day.
The longer rationing measures are delayed,
the more extreme they will be, said Jose Carlos
Mierzwa, a University of Sao Paulo professor
who focuses on sanitary engineering.
"The government needs to resort to
rationing," he said. "The levels keep dropping,
and it is becoming more and more critical."
Drought headaches in World Cup opener city
This May 14 photo shows cracked earth where there once was water at the Jaguari dam,
which is part of the Cantareira System, responsible for providing water to the Sao Paulo
metropolitan area, in Braganca Paulista, Brazil. (AP PHOTOS
LONDON---Winning the soccer
World Cup can bring instant
rewards to that country s stock
market investors. But they better
be quick as the post-victory rally
doesn t last long.
That s the conclusion of invest-
ment bank Goldman Sachs, which
published a wide-ranging report on
the World Cup and its economic
impact. Goldman Sachs analysts
found "a clear pattern of outper-
formance by the winning team in
the weeks after the World Cup final."
On average, the victorious country s
stocks outperform the global market
by 3.5 percent in the first month,
the investment bank s strategy team
The conclusions are based on sta-
tistics since 1974, when West Ger-
many beat the Netherlands, and
appear to be fairly consistent over
time. Only Brazil failed to outper-
form after its win in 2002, largely
because the football-mad nation
was consumed by recession and a
"In the absence of a severe eco-
nomic crisis, the winner tends to
enjoy the spoils of success in the
markets for a brief period at least,"
Peter Oppenheimer, Goldman Sachs
chief global equity strategist, said
in the report published late Tues-
A notable exception was Spain,
whose stock market rallied 5.7 per-
cent in the month after the national
team won in 2010 its first World
Cup---even though the country,
along with many of its peers in
Europe, was in the midst of an eco-
nomic and financial crisis. Investors
should be careful, however, not to
think that such euphoria will yield
"Sentiment can only take you so
far, in markets at least --- the winning
nation doesn t tend to hold on to
its gains and, on average, sees its
stock market underperform by
around 4 percent over the year fol-
lowing the final," Oppenheimer said.
"The message seems to be: enjoy
the gains while they last."
For the country that loses the
final, Goldman Sachs found a more
modest outperformance of 2 percent
in the first month as the runners-
up "seem to experience a post-final
bout of the blues."
However, Goldman Sachs found
that figure is heavily skewed by the
fact that Argentina enjoyed a 33 per-
cent outperformance in the month
after it lost the 1990 World Cup
final to Germany as it was recovering
from a prior stock market collapse
and currency devaluation. Aside
from this, Goldman Sachs found
that seven of the nine losing finalists
underperformed by 1.4 per cent.
"Interestingly, the poor perform-
ance doesn t stop there," said
Oppenheimer. "Most of the World
Cup runners-up have seen their
stock markets continue to under-
perform, with an average relative
fall of 5.6 percent over the first three
Oppenheimer said the "ultimate
goal" is to win the trophy and host
the tournament as there s a 2.7 per-
cent outperformance on that front
in the first month after the event.
That s certainly the goal for Brazil,
this year s host and one of the
The 32-country World Cup kicks
off on June 12. (AP)
Lifting trophy could boost country's stock market
This is a file photo of Spain's goalkeeper Iker Casillas, centre as he holds
up the World Cup trophy with team members as they celebrate their
victory at the end of the 2010 World Cup final soccer match between the
Netherlands and Spain at Soccer City in Johannesburg, South Africa.
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