HALISTER1: Brazil Political Tension Has Muted Impact on Markets: Analysts

Brazil Political Tension Has Muted Impact on Markets: Analysts

(Bloomberg) -- BRL underperformance, DI rates increase reflects limited impact of reports that acting president Temer asked for illegal financial help for his fellow party members, analysts say.
  • Political reports involving the government may generate “tail wind risks,” affecting the emerging investors confidence in Brazil, Leonardo Monoli, partner-director at Jive Asset Gestao de Recursos, says in a phone interview
    • If the allegations against Temer and his ministers aren’t confirmed and after the suspended president Rousseff’s impeachment is complete, foreign investors may return to local market, pushing BRL to near 3.00/USD
  • Allegations against Temer is unlikely to change the score of Rousseff impeachment vote, Paulo Petrassi, FI manager at Leme Investimentos, says
    • Without the reports on Temer, DI could drop today, reflecting the bellow est. IGP-DI inflation index and CPI outlook improvement shown by BCB survey
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Leonardo Monoli (Jive Asset Gestao de Recursos Ltda)
Michel Temer (Federative Republic of Brazil)
Paulo Petrassi (Leme Investimentos Ltda)

To de-activate this alert, click here

UUID: 7947283