HALISTER1: Brazil Temer Difficulties Concerning For Market: Analysts

Brazil Temer Difficulties Concerning For Market: Analysts

(Bloomberg) -- Reports showing VP Michel Temer, potential president if Brazil’s Senate confirms President Rousseff’s ouster, is struggling to form an economic team weighs on BRL, along with BCB reverse swaps auction, oil drop, analysts say.
  • Major newspapers report Fraga and Lisboa, two of the most prominent names cited as potential FinMins in a Temer govt, have declined joining his team
  • As impeachment in Senate is expected for May, VP Temer needs to have a plan set very soon to reassure the market that the govt shift is positive, Juliano Ferreira, strategist at Icap in Brazil says by phone
    • The new administration will demand political support
  • Uncertainty over Temer administration weighs on market along with BCB swaps and external backdrop, MCM, a Brazilian consultancy firm, wrote in a note sent ahead of opening
  • FX reverse swaps auctions negative for BRL as BCB tries to help exporters with a weaker currency, Reginaldo Galhardo, foreign exchange manager at Treviso Corretora says
    • BCB unlikely to hold further auctions today
  • NOTE: Former BCB President Meirelles, also seen as a pro- market name for potential Temer cabinet, would accept an invitation to become new FinMin, the blogger Kennedy Alencar reports
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Michel Temer (Federative Republic of Brazil)
Arminio Neto (Gavea Investimentos Ltda)
Dilma Rousseff (Federative Republic of Brazil)
Henrique Meirelles (J&F Investimentos SA)
Juliano Ferreira (ICAP PLC)

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