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Lula, who is currently in a tight presidential race against Flávio Bolsonaro, said the industry was a "cancer" that he must "remove".
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Local media report the property included a holiday rental, with US tourists and a UK national among the missing.
An emergency has been declared across the capital of Thailand as days of heavy rain leave the city inundated.
CNN was scheduled to fly with US President Donald Trump for his trip to Tennessee on Saturday.
Asked about the Iranian offer, a US official told the BBC "constructive discussions" were taking place through mediators.
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