Investors boost bets on post-Rousseff Brazil but doubts persist

Record ID: 103875

  • Title: Investors boost bets on post-Rousseff Brazil but doubts persist
  • Date: 12th May 2016
  • Summary: SAO PAULO, BRAZIL (MAY 12, 2016) (REUTERS) VARIOUS OF INTERIOR OF STOCK MARKET EXTERIOR OF BUILDING WORKER INSIDE STOCK MARKET WORKER WATCHING SPEECH BY DILMA ROUSSEFF VARIOUS OF BOARDS MONITOR DISPLAYING IMAGE OF ROUSSEFF DURING HER SPEECH MONITOR DISPLAYING MARKET VALUES (SOUNDBITE) (Portuguese) ECONOMIST ANDRE PERFEITO SAYING: "It was already a given (referring to Rousseff's impeachment), there were no big secrets regarding the Senate's decision. What we have seen now is that Dilma (Rousseff) is out. Now, what I would like to see is what will happen with (Michel) Temer taking over and for that, we require more information. Right now it is too soon to speculate. I suggest caution. The markets have increased by 40 percent in dollars but it would not be reasonable to say that it will continue rising with that same speed from here to the end of the year." VARIOUS OF STOCK MARKET WORKERS WATCHING MONITORS (SOUNDBITE) (Portuguese) ECONOMIST ANDRE PERFEITO SAYING: "We have to see what we are going to do, we have to create some medium to long-term indicators. The future belongs to the politicians, it is the politicians who create a longer perspective. The problem is that until now, we were the ones who were making the adjustments for the short term and that was complicating the economy too much. The hope with a Temer government is that he manage to reorganize the long-term outlook in order to pacify the politics. We will have to see if he is successful with that." VARIOUS OF STREET SCENES, GENERAL VIEW OF NEWSPAPER KIOSK (SOUNDBITE) (Portuguese) MARCOS HENRIQUE, VENDOR, SAYING: "What happened is that the Workers Party formed a series of alliances without every consulting their base and leaving behind its historic flags. So, on the one hand, it is a coup against democracy and the individual rights of the 54 million votes that she (Dilma) received and on the other hand, it had to do with too many absurd errors carried out by the Workers Party." VARIOUS MORE OF STREET SCENES
  • Embargoed: 27th May 2016 19:20
  • Keywords: Brazil Dilma Rousseff Michel Temer impeachment markets economy
  • Location: SAO PAULO, BRAZIL
  • City: SAO PAULO, BRAZIL
  • Country: Brazil
  • Topics: Government/Politics
  • Reuters ID: LVA0014HI7DXJ
  • Aspect Ratio: 16:9
  • Story Text: Brazil's Senate voted on Thursday (May 12) to impeach President Dilma Rousseff so she can stand trial for allegedly breaking budget laws. Despite many raising their bets on Brazil even before her suspension from office on Thursday, many investors are wary about the long-term recovery prospects of Latin America's largest economy.
    The growing likelihood that business-friendly Vice President Michel Temer would take power has already driven Brazil's Bovespa stock index 22 percent higher and its real currency up 12 percent against the dollar so far this year.
    Temer, who took the helm on Thursday named former central bank chief Henrique Meirelles as finance minister.
    "It was already a given (referring to Rousseff's impeachment), there were no big secrets regarding the Senate's decision. What we have seen now is that Dilma (Rousseff) is out. Now, what I would like to see is what will happen with (Michel) Temer taking over and for that, we require more information. Right now it is too soon to speculate. I suggest caution. The markets have increased by 40 percent in dollars but it would not be reasonable to say that it will continue rising with that same speed from here to the end of the year," economist Andre Perfeito said.
    "We have to see what we are going to do, we have to create some medium to long-term indicators. The future belongs to the politicians, it is the politicians who create a longer perspective. The problem is that until now, we were the ones who were making the adjustments for the short term and that was complicating the economy too much. The hope with a Temer government is that he manage to reorganize the long-term outlook in order to pacify the politics. We will have to see if he is successful with that," he added.
    Rousseff has denied any wrongdoing. But her popularity was crushed by a moribund economy and a spiralling probe into a corruption scheme at state-run oil company Petrobras, at a time when she was chairwoman of its board.
    "What happened is that the Workers Party formed a series of alliances without every consulting their base and leaving behind its historic flags. So, on the one hand, it is a coup against democracy and the individual rights of the 54 million votes that she (Dilma) received and on the other hand, it had to do with too many absurd errors carried out by the Workers Party," Marcos Henrique, a newspaper vendor, said.
    Temer was expected to announce his cabinet ministers later on Thursday.
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