HALISTER1: Alleged Tape of Brazil’s Temer Poses Risk for BRL: Mizuho

Alleged Tape of Brazil’s Temer Poses Risk for BRL: Mizuho

(Bloomberg) -- Brazil assets may suffer further if there’s confirmation of the reports in Brazilian press that Temer talk with former minister Calero was recorded, and shows Temer pressuring Calero to favor another minister, Luciano Rostagno, chief-strategist at Banco Mizuho, says in a phone interview.
  • If the tapes are disclosed and show improper talks, a new political crisis may emerge, damaging government efforts to approve fiscal reforms
    • “The environment could become unfavorable for the reforms debate. The population risks going back to the streets to protest against the Temer government”
  • NOTE: Calero, who resigned last week as minister of culture, said Temer urged him to settle an impasse over a construction project in which his top congressional liaison Geddel Lima has a stake, local media reported
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Luciano Rostagno (Banco Mizuho do Brasil SA)
Michel Temer (Federative Republic of Brazil)

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