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Cabinet Changes To Be Announced, Haddad Sees Potential 2024 Deficit

BRAZIL
  • Following two months of negotiations, President Lula is expected to announce the new cabinet today. Lula should meet party leaders to discuss any necessary final adjustments. It is expected that Lula will appoint new names from PP and Republicanos for the Ports Ministry, Social Development Ministry and potentially creating a new Ministry – Small and Micro Enterprises. Federal Bank Caixa will have a new President and Directors freely chosen by the PP party. These measures are broadly in line with expectations and are expected to bring more support to the government in Congress (O Globo).
  • Despite continuous efforts from Haddad to balance 2024 Brazil budget, the Finance Ministry team is starting to acknowledge that Brazil may run a deficit next year. It is necessary USD40bn of revenues increase to balance the budget. However, Congress is showing little willingness to move forward with some tax related proposals that are pending approval (BBG).
  • BCB Governor Campos Neto will give a lecture at the Brazilian AI Forum, scheduled for 1330BST/0830ET, with Speaker Lira and Senator Pacheco also in attendance.

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