Arab Today, arab today brazil business world bets on rousseff exit
Last Updated : GMT 18:14:55
Arab Today, arab today
Arab Today, arab today

Brazil business world bets on Rousseff exit

Arab Today, arab today

Arab Today, arab today Brazil business world bets on Rousseff exit

Brazilian President Dilma Rousseff
Rio de Janeiro - AFP

The Federation of Sao Paulo Industries is lit up in the green and yellow of the Brazilian flag, a giant black banner cutting across its facade with a blunt message: "Resign now."
The powerful industry group is not the only major player in the Brazilian economy that is openly hostile to embattled President Dilma Rousseff.

With Latin America's largest economy plunged in its deepest recession in 25 years, business chiefs have exuberantly welcomed new impeachment proceedings against the leftist leader, who is accused of manipulating the government's accounts.

The Sao Paulo stock exchange leapt 6.6 percent Thursday, its biggest gain in seven years, after the latest series of damaging setbacks for Rousseff.

"The market is celebrating the end of this government," economic analyst Andre Leite of TAG Investimentos told AFP.

Markets normally abhor instability, but Brazil's toxic combination of runaway recession, inflation and debt -- plus an explosive corruption scandal centered on state oil company Petrobras -- have the financial world rooting for the downfall of Rousseff and her Workers' Party.
"Investors seem to be betting that the Workers' Party and Dilma will lose power, giving rise to better times," said David Rees, an economist and Latin America specialist at consultancy Capital Economics.

Analysts have been critical of Rousseff's economic policy, bemoaning a lack of budgetary oversight or strong measures to escape the current crisis.

"Every time Dilma seems close to going down, stocks go up and the country risk rating goes down," said Margarida Gutierrez, a professor of macroeconomics at the Federal University of Rio de Janeiro.

- Deeper problems -

On Thursday, the Federation of Sao Paulo Industries (FIESP), an umbrella group of some 130,000 businesses, publicly came out in favor of impeaching Rousseff.
"Society wants a change. It wants the removal of the president," said FIESP president Paulo Skaf.

He then slipped into a reverie about a Brazil where it will be possible to "renew investment, job creation, entrepreneurship, strengthening businesses."

But Rees, of Capital Economics, was more circumspect.

"We are not convinced that better policy-making lies ahead," he said.

"Even if there was a change of government, it's not clear that anyone would have the ability to get tough reforms passed, so the structural problems in the economy could remain for some time."

The impeachment process is long and complicated: It can take six months or more and requires two-thirds of votes in both the lower house and the Senate.

That timeline could be sped up in a climate of growing hostility toward the government, said Joao Augusto de Castro Neves, Latin America director at the Eurasia Group consultancy.

"The odds of a government change are definitely increasing. This could happen as soon as early May," he said.

If Rousseff is removed, Vice President Michel Temer of the centrist PMDB party would serve out the rest of her term, until the winner of the 2018 presidential election takes office.

"It is sure that the Temer administration will have a honeymoon period, but the question is, how long will it last?" said Castro Neves.

"Even if we believe Temer will introduce positive changes in the economy, he won't have the political capital to implement ambitious reforms."

He warned that Temer also risked stumbling himself, if he or his allies become bogged down in scandal.

Several leading PMDB figures are implicated in the Petrobras scandal, which has already felled a Who's Who of powerful politicians and business execs.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brazil business world bets on rousseff exit Arab Today, arab today brazil business world bets on rousseff exit

 



Arab Today, arab today
Arab Today, arab today Rabia Fatima reveals role of "Facebook" in her career

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday