Nelson de Sá: FT sees Haddad’s ‘ambitious program’ to ‘face deficit’

In the Financial Times, on the fiscal package launched by the Minister of Finance, Fernando Haddad, “Brazil seeks to face deficit with an ambitious economic program”. Just below, “Lula Government announces tax increase and spending cut package”.

The postponement of the announcement was expected “after the violent disturbances in Brasilia, but the ministry decided to demonstrate that its work had not been interrupted”.

The newspaper hears, from Faria Lima voices like Mariam Dayoub, that the package is “a good strategy until more structural measures are elaborated”, “the market already reacted well when it was leaked last week” and “the announced objective is in fact ambitious”.

The Minister of Planning, Simone Tebet, also highlights, “alongside Haddad”, saying that “this fiscal restructuring program is based on the premise that there is no lasting sustainable growth with a deficit of R$ 230 billion”, as projected until then.

Shared by Robin Brooks, an influential economist in Washington, the chief economist at US asset manager VanEck, Natalia Gurushinaprojects interest rate cuts for emerging countries, now that “even expectations for Brazil look better, with the government working on its fiscal message”.

In the background, the FT also publishes that the “Political crisis gives an opportunity for Lula to solidify his support”, listening to political scientists such as Camila Rocha, from Cebrap.

REPUTATION

On the other hand, the same FT highlighted the “dip” of the actions of the “Brazilian retailer supported by the billionaire co-founder of 3G Capital” Jorge Paulo Lemann, Americanas. He notes that “Lemann’s son, Paulo Alberto, is on the board”.

Bloomberg also points out, in the statements, that Americanas is “supported by Lemann” and that its “meltdown affects billionaires from the 3G fund” (below), who “are at risk of a reputational stain after accounting irregularities”.