Brazil corruption probe reaches higher

• Brazilian police today arrested Marcelo Odebrecht, head of Latin America's largest engineering and construction company - and Otavio Marques Azevedo, head of Brazil's second-largest construction firm, Andrade Gutierrez.
• Lead prosecutor Carlos Fernando dos Santos Limas, has "no doubt" the two led a "cartel" which overcharged Petrobas (NYSE:PBR) for work, using the extra money to grease executives and politicians as necessary.
• Calling the arrests the most significant to date, Eurasia's Christopher Garman and Joao Augusto de Castro Neves suggest a 40% chance the ballooning corruption probe could push the economy into a deeper-than-expected recession. The arrests, they say, means the investigation could be getting closer to former President Lula.
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