Police in Sao Paulo have occupied the Paraisopolis favela, the second largest squatter community in the city, the BBC reports. In typical fashion, what gains the headlines is the riot. The cause is in the 3rd paragraph: police shot and killed a local man they were trying to arrest. Sounds like there was no riot in the community until the police instigated one.
At the same time as the violence in Sao Paulo, Brazilian President Luis Ignacio Lula da Silva was in a favela in Rio, announcing a plan to stimulate the economy by building 500,000 apartments for poor people. The International Herald Tribune offers extremely bare bones details.