Brazil’s financial markets will calm down following yesterday’s declines as the country’s new government engages in dialog to promote growth, President Dilma Rousseff said after winning re-election.
“The correct way to do things is to open up dialog,” Rousseff told “Jornal da Record” in her first televised interview since her Oct. 26 victory.
“We expect the market to calm down. It will calm down.” Rousseff, who has maintained record-low unemployment even as the economy posted the slowest growth under any Brazilian president in more than two decades, won 52 percent of the vote, while opposition candidate Aecio Neves earned 48 percent.
That was the narrowest victory since Brazil’s return to democracy. Brazil’s first female president will have to pull the economy out of recession while slowing above-target inflation and narrowing a budget deficit that threatens the country’s investment grade status.
She also needs to put investors at ease after the Ibovespa (IBOV) fell 2.8 percent on news of her re-election and shares of state-run oil company Petroleo Brasileiro SA tumbled 12 percent.
Rousseff said there’s no need to introduce measures right away to convince investors she’s heard their concerns, saying in a second interview aired minutes later on Globo TV that she will announce new economic policies by year-end. Brazil needs to simplify its tax policy, she said.
Mantega Replacement
Now isn’t the time to name members of her second cabinet, including a replacement for Finance Minister Guido Mantega, who says he is leaving office this year, she said on Jornal da Record. “The big word at this time is dialog -- dialog with all social forces, producers from all segments: society, agriculture, financial services,” she told Globo TV.
“We have a commitment to ensure we have a more modern, more inclusive and more productive country.”
The real decreased 1.9 percent to 2.5211 per dollar at the close of trading in Sao Paulo yesterday, the weakest level on a closing basis since April 2005. The drop was the largest among 31 major currencies tracked by Bloomberg.
Most of the Brazilians who voted for the opposition are more worried about the economy than political reform, according to Eric Farnsworth, vice president of the Council of the Americas. He said the expanded social programs and continued low unemployment Rousseff promised in her campaign will be hard to maintain without economic growth.
“One of the reasons the results were so close is a sense of economic frustration,” Farnsworth said by phone from Washington. “Working with the opposition on some economic agenda items could be the foundation of this unity she’s calling for.”
Brazil’s Finance Ministry said yesterday the government is working on new policies to help boost industry to help stimulate economic growth.
“New measures should be announced, but they aren’t ready yet,” Mantega told reporters yesterday in Brasilia. Rousseff’s victory ’’shows the population approves of the economic policy we are implementing.’’
bloomberg.com
“The correct way to do things is to open up dialog,” Rousseff told “Jornal da Record” in her first televised interview since her Oct. 26 victory.
“We expect the market to calm down. It will calm down.” Rousseff, who has maintained record-low unemployment even as the economy posted the slowest growth under any Brazilian president in more than two decades, won 52 percent of the vote, while opposition candidate Aecio Neves earned 48 percent.
That was the narrowest victory since Brazil’s return to democracy. Brazil’s first female president will have to pull the economy out of recession while slowing above-target inflation and narrowing a budget deficit that threatens the country’s investment grade status.
She also needs to put investors at ease after the Ibovespa (IBOV) fell 2.8 percent on news of her re-election and shares of state-run oil company Petroleo Brasileiro SA tumbled 12 percent.
Rousseff said there’s no need to introduce measures right away to convince investors she’s heard their concerns, saying in a second interview aired minutes later on Globo TV that she will announce new economic policies by year-end. Brazil needs to simplify its tax policy, she said.
Mantega Replacement
Now isn’t the time to name members of her second cabinet, including a replacement for Finance Minister Guido Mantega, who says he is leaving office this year, she said on Jornal da Record. “The big word at this time is dialog -- dialog with all social forces, producers from all segments: society, agriculture, financial services,” she told Globo TV.
“We have a commitment to ensure we have a more modern, more inclusive and more productive country.”
The real decreased 1.9 percent to 2.5211 per dollar at the close of trading in Sao Paulo yesterday, the weakest level on a closing basis since April 2005. The drop was the largest among 31 major currencies tracked by Bloomberg.
Most of the Brazilians who voted for the opposition are more worried about the economy than political reform, according to Eric Farnsworth, vice president of the Council of the Americas. He said the expanded social programs and continued low unemployment Rousseff promised in her campaign will be hard to maintain without economic growth.
“One of the reasons the results were so close is a sense of economic frustration,” Farnsworth said by phone from Washington. “Working with the opposition on some economic agenda items could be the foundation of this unity she’s calling for.”
Brazil’s Finance Ministry said yesterday the government is working on new policies to help boost industry to help stimulate economic growth.
“New measures should be announced, but they aren’t ready yet,” Mantega told reporters yesterday in Brasilia. Rousseff’s victory ’’shows the population approves of the economic policy we are implementing.’’
bloomberg.com
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