Reuters: Brazil markets tumble on Lula's first full day in office
BRASILIA, Jan 2 (Reuters) - Brazilian markets delivered a withering verdict on leftist President Luiz Inacio Lula da Silva's first full day in office on Monday, after he pledged to prioritize social issues and ordered a budget-busting extension to a fuel tax exemption.
Lula's decision to extend the fuel tax exemption, which will deprive the Treasury of 52.9 billion reais ($9.9 billion) a year in fiscal income, was a stinging rebuke of his finance minister Fernando Haddad, a Workers Party (PT) loyalist who had said it would not be extended.
Haddad, who is seeking to dispel market fears that he might not maintain fiscal discipline, took office on Monday, pledging to control spending. "We are not here for adventures," he said.
Markets seemed unconvinced.
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Update: Petrobras Investors Tank Shares as Lula Makes a Populist Strategy Shift (Bloomberg)
Update #2: Petrobras Shares Tumble In Brazil Market Rout As Lula Returns (OilPrice.com)
WNU Editor: Investors have made it clear. They do not trust the Lula government, and are looking elsewhere to park their money.
Lula should check his privilege.
ReplyDeleteI read about his days as a press operator. That could be unpacked. It would be interesting. His 1sr wife dying of hepatitis could be explained. Was it A, B, C or D? He appears to be a better man than his father, but that may be faint praise. You could understand, why he would gravitate to labour.
The continual corruption scandals during his presidency is disappointing. Also you think he could learn from socialist countries in Eastern Europe, the USSR, China and Vietnam.
A Danish politicians said economically his country was capitalist, but socially it was socialist. Is Lula trying for that? It needs some more digging.
But I think Lula is a no learner and needs to check his privilege.
I do know that America blue collar and whte collar workers thank Lula. American jobs won't be offshored to Brasil.