Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Economy tops agenda in Brazil

Tuesday, October 28, 2014 - 01:53

Brazilian markets are volatile after the re-election of president Dilma Rousseff. But as Sonia Legg reports she has promised comprehensive economic reforms to try and regain the trust of the financial sector and stimulate growth.

▲ Hide Transcript

View Transcript

It was a close victory - and Brazil's re-elected president knows she has to tackle some important issues. (SOUNDBITE) (Portuguese) REELECTED BRAZILIAN PRESIDENT, DILMA ROUSSEFF, SAYING: "I will take urgent action to focus on the economy in order to return to our rhythm of growth, to continue to guarantee high levels of employment, and maintain the rise in salaries." The markets however aren't so sure she can deliver. Although Brazil's benchmark Bovespa is ticking up, it's only making up for the large losses that followed her victory. Her Worker's Party has helped lift 40 million people out of poverty over the past 12 years. But her re-election wasn't liked by investors, who'd hoped for more business-friendly policy changes. Most are betting the Brazilian currency will weaken over the next few years as U.S. Treasury yields rise and the country tries to boost competitiveness. Gilberto Braga is a Brazilian economist. (SOUNDBITE) (Portuguese) ECONOMIST, GILBERTO BRAGA, SAYING: "What happened in relation to the Brazilian real after the election represents a lack of trust amongst the financial sector in Rousseff's ability to transform the economy. This also pushed up the dollar against the Brazilian real." Rousseff's economic policies have been blamed for tipping Brazil into recession. State-run companies such as oil producer Petrobras has been caught in the crossfire. Its share price fell after the government capped domestic fuel prices to help relieve inflation. But a government shake up has been promised. And speculation that Finance Minister Guido Mantega may be replaced is helping lift spirits. Investors hope a more market-friendly finance minister can restore fiscal discipline and bring transparency to the federal budget Not to mention opening up more lines of communication with business leaders.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Economy tops agenda in Brazil

Tuesday, October 28, 2014 - 01:53