Halister News

(Bloomberg) -- Brazil’s assets may benefit from relief in political backdrop after a bill capping public spending was approved Tuesday, suggesting that recent noises in President Temer’s cabinet haven’t damaged the reform agenda, Daniel Weeks, chief economist at Garde Investimentos, says in a phone interview.

• Temer government continues getting bills approved according to the schedule, with high margins
• Also positive for market scenario the reports in Brazil media with transcription of the tapes recorded by former minister Calero with talks with Temer and chief of staff Padilha
  • Tapes content failed to show “anything new,” Weeks says
• Brazil 3Q GDP was “negative, but not a disaster”; unlikely to change market expectation of a 25bps cut from Copom today
• NOTE: 3Q GDP contracted 0.8% Q/q; Est. -0.9%
• NOTE: DI rates drop, Ibovespa futures rises; BRL reverses early gains