Brazil Reform Bills May Hit Trouble, Though Not Yet: Analysts
Source: BFW (Bloomberg First Word)
People
Luciano Rostagno (Banco Mizuho do Brasil SA)
Michel Temer (Federative Republic of Brazil)
Vladimir Caramaschi (Credit Agricole Brasil SA DTVM/Brazil)
To de-activate this alert, click here
UUID: 7947283
(Bloomberg) -- Fresh political tension is seen in Brazil after President Temer is cited in the Carwash probe, creating uncertainties that worry the market, though Tuesday’s vote on a spending cap bill is not seen at risk.
Alert: HALISTER1- The spending-cap bill is still likely to be approved, as the bill usually does not generate much opposition from citizens; a greater test may come with pension regime reform, which is more politically sensitive as it directly impacts most people, Vladimir Caramaschi, chief strategist at CA Indosuez, says
- Another risk is that the opposition uses the Carwash accusations as a lever to stir up anti-reform protests, akin to the middle-class uprising that last year helped to remove former President Rousseff
- So far there is no evidence to push for removal of Temer, Luciano Rostagno, strategist at Mizuho, says
- Bigger risk for the government is to lose the political capital needed to pass reforms in Congress
- Temer’s popularity may remain low, making it more difficult for him to lead debate on pension changes
Source: BFW (Bloomberg First Word)
People
Luciano Rostagno (Banco Mizuho do Brasil SA)
Michel Temer (Federative Republic of Brazil)
Vladimir Caramaschi (Credit Agricole Brasil SA DTVM/Brazil)
To de-activate this alert, click here
UUID: 7947283