Arab Today, arab today brazil markets cold on rousseff as voters warm to her
Last Updated : GMT 06:40:26
Arab Today, arab today
Arab Today, arab today

Brazil markets cold on Rousseff as voters warm to her

Arab Today, arab today

Arab Today, arab today Brazil markets cold on Rousseff as voters warm to her

Brazilian President Dilma Rousseff
Bras?lia - AFP

Brazil's market-movers hope President Dilma Rousseff's time is up, but there are signs that voters are moving back towards her as next month's election nears.
Rousseff's main challenger, environmentalist Marina Silva had been on course for victory, but the latest polls suggest the incumbent may have halted her momentum and closed the gap.
If stock prices are a guide, the business elite wants to see Rousseff go, blaming her for the low growth and high inflation that have combined to tip the economy into recession.
But some analysts say voters would prefer to give Rousseff a chance to turn the ship around rather than plump for the relatively untried Silva on October 26.
Brazil's financial world blames Rousseff for running the economy aground.
She took over as president from charismatic former union leader Luiz Inacio Lula da Silva in 2010, when GDP was racing ahead by a spectacular 7.5 percent per year.
Growth for this year is forecast at just 0.3 percent and, having suffered two quarters of negative growth, the economy is officially in recession.
Rousseff, who has promised to revamp her finance ministry team if re-elected, has blamed the slowdown on the global economic crisis.
And, when economists say her domestic policies are off beam, she points to strong consumer spending, near full employment and rising wages.
- Poor policy combination -
"Rousseff chose a bad combination of policies," says Pedro Tuesta, US-based chief economist with 4Cast consultancy.
"She changed her inflation model" to one of higher tolerance as the rate rose beyond the government ceiling.
"She thought the economy was going to rise on the back of demand, but that only happens in the short term. She was unable to change direction when it was evident that that was not working."
After taking office in early 2011, Rousseff tried to stop end the central bank's autonomy for setting interest rates, bringing rates down to cheapen credit and stimulate consumer spending.
That fueled price rises and 12-monthly inflation is now running at the 6.5 percent official ceiling. The inflationary pressures unleashed saw the central bank lift interest rates to try to keep them in check.
The government also sought to encourage growth across several sectors, including automobiles and white goods, by cutting taxes but analysts say that can only be a limited, short-term response.
They have also attacked what they deem to be too much government intervention in state oil giant Petrobras and on energy prices, which were cut following a severe drought.
Marcelo Latini, a partner with the Rio-based Latini-Bertoletti real estate firm, sees an uncertain outlook.
"The real estate sector needs low rates, low inflation and more confidence and stability for the future of the economy," Latini told AFP.
"We don't have this at present."
Alexandre Schwartsman, a former central bank director, told AFP the financial market is "allergic" to Rousseff.
"The possibility of a new government changing tack on such policies has seen the market react with euphoria to polls unfavorable to Rousseff," he said.
- Cautious electorate -
Despite the poor growth outlook, joblessness has remained low at 4.9 percent on the most recent April data.
Wages have been rising and domestic demand is moderately buoyant, with the government's welfare programs having lifted 40 million people out of poverty over the past decade.
"During this government's tenure the lower class has become an emerging one," said Aquiles Meneses, a businessman in the construction industry who says he will stick with Rousseff.
"Before, only the elite built a house. Now, there are more opportunities," the 32-year-old said.
Andre Cesar of consultants Prospective says a cautious electorate may agree, explaining: "It's hard to swap what you know for what you don't. They have a job, a TV, a car..."

 

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 markets cold on rousseff as voters warm to her Arab Today, arab today brazil markets cold on rousseff as voters warm to her

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today More than 100 injured in train collision in South Africa
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
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 Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
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