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Transition Team Meet To Discuss Budget, Markets Re-Open

BRAZIL
  • Conflicting forces might cloud the open for the Brazilian real following yesterday’s market closure. A much firmer USD index and weaker equities could weigh on the local currency, however, Bolsonaro’s vow to obey Brazilian law and ongoing plans for transition should also underpin BRL optimism.
    • Brazil’s Supreme Court has said that the president’s remarks show he admits defeat, according to an official statement. Vice-President-elect Geraldo Alckmin and senator Wellington Dias to meet with senator Marcelo Castro, rapporteur of the 2023 budget bill, in Brasilia. Alckmin, Dias and Castro to speak to the press at 11:30am local time.
  • Brazil’s state-controlled oil firm Petrobras might distribute as much as $9 billion in dividends during the third quarter, a slowdown from the colossal $17 billion payout a quarter earlier, according to analysts.
  • Separately, treasury auctions fixed-rate LTN local notes due 2023, 2024 and 2026; fixed-rate NTN-F local notes due 2029 and 2033.

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