Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Rousseff out - new era in for Brazil economy?

Thursday, September 01, 2016 - 01:58

The dismissal of Brazil's president sends shockwaves through Latin America as Venezuela, Ecuador and Bolivia recall their ambassadors in protest, while Brazil itself now finds itself at a difficult economic crossroads. David Pollard reports.

▲ Hide Transcript

View Transcript

Green light for go ... For Dilma Rouseff, the 61 votes for her impeachment mean exactly that. Brazil's first female president now ejected from office for, it's charged, breaking budget laws Sympathetic left-leading leaders across the continent are doing a symbolic walkout with her. Venezuela and Ecuador both recalling their ambassadors from Brazil. Cuba blaming imperialism for a 'coup'. As for Dilma herself ... "They think they've beaten us, but they are mistaken," she says. But the hard-noses of some foreign investors smell economic trouble ahead, rather than a glorious comeback. The country's central bank left rates at a decade high for the ninth straight time on Wednesday - but signalled that rate cuts could come - despite a 9% inflation rate. Thursday saw confirmation that manufacturing activity fell again August - it's been contracting for a year and half. That and more awaiting Michel Temer as he addressed the nation as its new president. (SOUNDBITE) (Portuguese) BRAZILIAN PRESIDENT, MICHEL TEMER, SAYING: "We've received a country mired in a severe economic crisis: there are almost 12 million people unemployed, and a deficit of over 170 billion in our current accounts." (SOUNDBITE)(English) CIBC, HEAD OF FX STRATEGY, JEREMY STRETCH, SAYING: "Mr Temer does have a coterie of pretty good economic advisors and he is seen as pro-business orientated. So whilst the democratically-elected previous president has obviously been moved aside, the economy and economic backdrop could gain some benefit from pro-business orientation as well as an attempt to deal with some of the fiscal pressures." But perhaps the real challenge for Temer: protests like these - for - and against - Rouseff - pointing to a divided society. Where many of the worst off worry that pro-business means against the poor - and that the gap for them is just about to get even bigger

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

Rousseff out - new era in for Brazil economy?

Thursday, September 01, 2016 - 01:58