Free Trial
USDCAD TECHS

Remains Vulnerable

AUDUSD TECHS

Northbound

US TSYS

Late SOFR/Eurodollar/Treasury Option Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Lula-Many Things Considered Gov't Spending Should Be Seen As Investment

BRAZIL

Brazilian President Elect Luiz Inacio Lula da Silva speaking earlier today delivered comments on the economy that veered closer towards his leftist governing persona seen in previous terms as president in the mid 2000s, as opposed to the more moderate, market-friendly face he sought to portray during the October presidential election campaign.

  • Wires carried comments from Lula stating that what the market calls gov't spending, he considers investment, adding that those who talk of a spending cap should instead focus on social issues.
  • Raised concerns that Lula could tack the spending commitments made in his campaign, totaling BRL160-200bn (USD-30-37bn), onto next year's budget.
  • However, Lula faces a major obstacle in getting these measures through in the form of a Congress where his leftist Workers' Party and its allies do not hold a majority. Will require support of moderate parties in the 'centrist bloc' to get measures through, blunting the prospect of major spending hikes.
154 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Brazilian President Elect Luiz Inacio Lula da Silva speaking earlier today delivered comments on the economy that veered closer towards his leftist governing persona seen in previous terms as president in the mid 2000s, as opposed to the more moderate, market-friendly face he sought to portray during the October presidential election campaign.

  • Wires carried comments from Lula stating that what the market calls gov't spending, he considers investment, adding that those who talk of a spending cap should instead focus on social issues.
  • Raised concerns that Lula could tack the spending commitments made in his campaign, totaling BRL160-200bn (USD-30-37bn), onto next year's budget.
  • However, Lula faces a major obstacle in getting these measures through in the form of a Congress where his leftist Workers' Party and its allies do not hold a majority. Will require support of moderate parties in the 'centrist bloc' to get measures through, blunting the prospect of major spending hikes.