Bulls Reign in Brazil as Reform Push Overshadows Graft Scandal

BloombergIt’s hard to find a pessimist among Brazil investors these days, even though there’s plenty to be worried about.

Traders who pushed the real and Ibovespa stock index to some of the world’s biggest gains over the past year see a rosy outlook for President Michel Temer’s chances of pushing through pension, labor and tax reforms that are needed for Brazil to regain investment-grade status. They’re ignoring signs of a sluggish economy, chaotic politics and a new chapter in a corruption scandal that threatens to paralyze the government.

That investors are turning a blind eye to Brazil’s problems is all the more surprising considering just how recently its markets and economy seemed to be in free fall. The currency plunged to a record in 2015 and stocks sank to a seven-year low amid the worst recession in a century and political turmoil that ended in the president’s impeachment. But all was forgiven when Temer took over with a plan to revive growth and shore up the budget, while the central bank pledged interest-rate cuts to help revive the economy. …



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to our newsletter!

Latest Tweets by @IASecurity

Videos Featuring Our Experts

Kingpins and corruption: Targeting transnational organized crime in the Americas Roger Noriega on the Crisis in Venezuela: The world's response | IN 60 SECONDS

Venezuelan crisis: A brief history by Roger Noriega | IN 60 SECONDS

WAC Philadelphia: Latin America’s Role in 2017 and Beyond, feat. José R. Cárdenas

Promo for CNN's AC360°: "Passports in the shadows", feat. Roger Noriega

Ambassador Roger Noriega on PBS NewsHour discussing U.S.-Mexico relations under Trump

José Cárdenas Interview with Opinion Journal: "Hungry in Venezuela"

Ambassador Noriega Analyzes President Obama’s visit to Cuba on PBS’ ‘Newshour’


During the last several decades, the United States has invested billions of dollars in trying to help the governments of Latin America and the Caribbean deliver better lives for their citizens. This has meant helping them increase internal security by combating the illicit growing and trafficking in narcotics and the activities of terrorist groups, as well as helping them to shore up their democratic and free market institutions.

Unfortunately, in recent years, continued progress in these areas has been threatened, not least by the elections of radical populist governments in Venezuela, Bolivia, and Ecuador. These governments have instituted retrograde agendas that include the propagation of class warfare, state domination of the economy, assaults on private property, anti-Americanism, support for such international pariahs as Iran, and lackluster support for regional counter-terrorism and counter-narcotics initiatives.

We are a group of concerned policy experts that fear the results of these destructive agendas for individual freedom, prosperity, and the well-being of the peoples of the region. Our goal is to inform American policymakers and American and international public opinion of the dangers of these radical populist regimes to inter-American security.