Brazil's market turned lower after an initial high
88 views · Published 3 November 2018 · 3:13 · Indexed 25 September 2026
Channel: AP Archive · 2018 · News & Politics
(29 Oct 2018) Brazil's Bovespa rose in morning trading after after far-right politician Jair Bolsonaro was elected president, but it later turned lower and fell 2 percent. Bolsonaro signalled Monday his administration would make tackling the country's budget-crushing pension system a top priority, doubling down on a campaign promise that made him the choice of the business community despite frequently saying he doesn't understand the economy. The tough-talking former army captain, who takes office Jan. 1, cruised to a 10-point victory Sunday by capitalizing on widespread frustration in Latin America's largest nation, including with the region's largest economy, which has fallen on hard times less than a decade after being a world darling of emerging markets. While Brazil grew 1 percent last year after a punishing recession in 2015 and 2016, unemployment is high, the Brazilian real has been volatile against the U.S. dollar and a colossal corruption scandal has scared many international investors away. A looming deficit of 34 billion US dollars in 2019 has economists warning that without drastic spending cuts or substantial tax increases the country is only a year or two away from a full-blown crisis. Glauco Legat, chief analyst at the brokerage Spinelli, said pension reform will be key to bringing credibility to the market. Stocks climbed earlier this month after Bolsonaro led the previous round of voting, as investors preferred him to leftist parties. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter: https://twitter.com/AP_Archive Facebook: https://www.facebook.com/APArchives Instagram: https://www.instagram.com/APNews/ You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/d9f8ce923420679a88370c9a5cb2232f
