HALISTER1: Brazil’s Optimism May Not Hold up in the Medium Term: Mapfre

Brazil’s Optimism May Not Hold up in the Medium Term: Mapfre

(Bloomberg) -- Despite a series of positive factors in the short term, there are many structural doubts that put some caution in relation to very optimistic market projections, says Luis Afonso Fernandes Lima, an economist at Mapfre Investimentos, in a telephone interview.
  • Inflation data show room for continuity of interest rate cuts, new long term interest rate TLP is being voted in Congress and external scenario has been very positive for emerging countries, amid the difficulty of Donald Trump to approve some promises of its campaign in the U.S., which weakens the dollar
  • However, political issue "is still very uncertain" in Brazil, with doubts about the candidates and proposals for 2018, as well as huge challenges in the fiscal front
  • Mapfre sees BRL at 3.40/USD at the end of 2017 and doesn’t count with pension reform approval in its base scenario for this year
To contact the translator on this story: Daniela Milanese in Sao Paulo at dmilanese@bloomberg.net To contact the translation editor responsible for this story: Daniela Milanese at dmilanese@bloomberg.net; Danielle Chaves at djelmayer@bloomberg.net Reporter on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Donald Trump (United States of America)
Luis Fernandes Lima (Mapfre Investimentos e Participacoes SA)

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