Special Report

Brazil's Political Honeymoon Is Over

18 Aug 2016

by Matt Gertken, Chief Geopolitical/US Political Strategist Marko Papic, Chief Strategist Arthur Budaghyan, Chief EM/China Strategist

Brazilian risk assets have rallied on the back of investor optimism about the impeachment of President Dilma Rousseff. But the political games have just begun. With all politicians looking to the October municipal elections and 2018 general elections, the Michel Temer administration is unlikely to impose fiscal and structural reforms. Debt dynamics are set to worsen, and we continue to short Brazilian equities.

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