HALISTER1: Brazil Assets May Further Gain With Economic Changes: Votorantim

Brazil Assets May Further Gain With Economic Changes: Votorantim

(Bloomberg) -- “Another round” of gains may be in store for Brazil stocks, currency if expected political changes materialize, allowing for a more pro-market economic policy, Banco Votorantim economist Roberto Padovani says in a phone interview.
  • Asset gains also dependent on global scenario; recent losses reflect more cautious Fed, BOJ stances
  • Brazil is becoming a “normal country again,” which may benefit eventual inflows
    • Contrasts with period of very high uncertainty on policies
    • Investors see possibility of a more pro-market and pro- reforms government led by VP Temer, should he replace President Rousseff, whose impeachment may be approved by Senate next week
  • Would-be FinMin Meirelles likely to pick a BCB team with strong credibility, showing that the bank no longer will tolerate high inflation
  • Reports showing that Temer struggles to form a cabinet aren’t a special concern for market; the president in Brazil needs to deal with politicians to form a cabinet as without the support of Congress, it’s impossible to approve fiscal measures, Padovani says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Roberto Padovani (Banco Votorantim SA)
Dilma Rousseff (Federative Republic of Brazil)
Henrique Meirelles (J&F Investimentos SA)
Michel Temer (Federative Republic of Brazil)

To de-activate this alert, click here

UUID: 7947283