Dozens of protesters demand Brazilian president's resignation

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"I will not resign".

One of the country's largest newspapers reported on Wednesday evening that a secret recording exists of Temer approving a payment to Eduardo Cunha, the mastermind behind last year's impeachment of former president Dilma Rousseff. The columnist who reported the bombshell claims clarified today that he had not personally heard the recording but had had it described to him "in the most detail possible".

If the end does not come through resignation, which we expect to happen, then it will be sanctioned by this House and the Senate, said the leader of the bench of the Workers' Party (PT), Carlos Zarattini, who proclaimed the end of Michel Temer's term.

Traders aren't convinced. Brazil's stock market fell by 10% in early trading this morning, wiping out almost all of the year's gains in a matter of minutes.

The news sent the United States dollar rocketing by 7.20% to 3.37 against Brazil's currency unit, the real, as of 1236 BST, after triggering circuit breakers.

Simon Quijano-Evans, an emerging-market strategist, said all the optimism generated over the past year in Brazil has been crushed.

A major newspaper in Brazil, O Globo, is reporting that Temer was caught on tape discussing bribery payments.

What happens next? If Mr Temer keeps his job, he will need a Herculean effort to get Congress behind him again.

"I am trying to do my homework to see what is cheap", he said.

The scandal is the latest shockwave from the "Car Wash" graft probe ripping through Brazilian politics.

Even in this country tired from the constant drip of revelations of a wide-ranging corruption investigation, the incendiary accusation set off a firestorm and Brazil's highest court opened an investigation.

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The crisis underscored the extent to which Brazil's political agenda is being dictated by an increasingly fearless generation of corruption-fighting police and prosecutors.

Temer's office has denied the allegations that he endorsed paying off a witness.

There were immediate demands for Temer's removal following O Globo's report.

Mr Batista told Mr Temer that he was paying money to make sure that Cunha - thought to have encyclopaedic knowledge of Brazil's notoriously dirty political world - would keep quiet while serving his sentence for taking bribes.

Globo also reported that Sen.

He cleared the rest of the day's schedule to react to the crisis and was expected to address the nation on national TV within hours, aides said.

Executives from the Odebrecht construction group have said in plea bargain testimony that they made 300 million reais ($97 million) in illegal campaign contributions to Rousseff's 2014 re-election campaign, which Rousseff strongly denies.

Some of the president's leftist opponents have already called for his impeachment over the report.

But with so many lawmakers under investigation for corruption, there are widespread calls for the constitution be changed to allow for direct elections now.

Parliamentarians are now calling for Temer's impeachment, while social movements renewed their call for democratic elections. Should large demonstrations occur, pressure on Temer to step aside would increase significantly.

On Thursday morning the supreme court suspended Mr Neves's mandate after police searched his house and secured an arrest warrant for his sister as part of the ongoing investigation.

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