Halister News

(Bloomberg) -- Parties from president Temer coalition achieving a wide win reinforces prospects for economic reforms; second outcome could be a pro-market candidate election in 2018 presidential run, analysts say.

• “The PT was the party that suffered the most with the Carwash probe”, Rafael Cortez, political scientist at Tendencias Consultoria says in a phone interview
  • While the scandal still represent risks for wide range on politicians, including even the president, threat for Temer is relatively small as he is supported by biggest part of Congress
  • PT likely to show few competitiveness in 2018, even if Lula is not condemned in Carwash
• Brazil market’s reaction to election result which was “clearly positive‘‘ for Temer, Jose Francisco Goncalves, chief economist at Banco Fator, says
• Temer government has great potential to approve spending cap bill this years and social security reform in 2017
• The most important for who plans to invest in long-term projects such as infrastructure is the scenario for 2018; and in this matter, this election was very important, Alvaro Bandeira, economist at brokerage ModalMais says
• BRL and BZ stocks rise, outpacing peers after municipal vote * NOTE: After election, government now feels more comfortable discussing pension reform, Valor reports