HALISTER1: Brazil Markets Eye Senate Impeachment Role, Eco. Team: Analysts

Brazil Markets Eye Senate Impeachment Role, Eco. Team: Analysts

(Bloomberg) -- After President Rousseff’s impeachment approved in Lower House yday, process moves to Senate, where top leader Renan Calheiros will likely play a decisive role; Senate decision will be crucial for markets, along with the formation of potential new president Michel Temer’s economic team, analysts say.
  • “Maybe the Senate will not be as speedy as the House was, but the process will evolve anyway,” Silvio Campos Neto, economist at Tendencias Consultoria says
    • “There is no room to delay the process” after the decisive win of the impeachment seen in the House
  • Calheiros tends to adopt an at least neutral approach; he won’t create hurdles for the impeachment process, Paulo Petrassi, FI trading manager at Leme Investimentos says
    • Market also tracks reports showing VP Temer is already considering appointments for his team in case he replaces Rousseff, Campos Neto says
    • Naming the team to be the “first measure” Temer takes to instill investor confidence, should he pick ministers well known in the markets, Campos Neto says
  • NOTE: If impeachment is approved in next vote in Senate, Rousseff will be temporarily ousted for up to 180 days
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Michel Temer (Federative Republic of Brazil)
Dilma Rousseff (Federative Republic of Brazil)
Paulo Petrassi (Leme Investimentos Ltda)
Renan Calheiros (Federative Republic of Brazil)
Silvio Neto (Tendencias Consultoria Integra)

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