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Transition Team Announcement Awaited, BCB’s Serra Speaks

BRAZIL
  • The Brazilian Real lagged regional peers and EM counterparts on Monday as market participants scaled back their optimism following the victory for Lula at last Sunday’s runoff vote. Lingering anxieties surrounding the fiscal trajectory as well as technical support ahead of 5.00 in USDBRL has prompted a swift bounce, which is extending at today’s open to around 5.25.
  • President-Elect Lula’s transition team wants to combine three tools to open 175b reais in the country’s budget in order to fulfill campaign promises, O Globo newspaper said without informing how it obtained the information.
  • Vice-president elect Geraldo Alckmin is expected to announce some of the transition team’s members, according to his press office. President-elect Luiz Inacio Lula da Silva is also expected to travel from Sao Paulo to Brasilia later today.
  • Central bank director Bruno Serra grants lecture at Moody’s event in Sao Paulo, 11am local time.

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