How a Petrobras sacking ended Bolsonaro's free-market flirtation

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For many investors, President Jair Bolsonaro killed the dream of Brazil’s free-market renaissance with a Friday night Facebook post.

FILE PHOTO: Brazil's President Jair Bolsonaro speaks during a ceremony to launch a program to help new mayors, at Planalto Palace in Brasilia, Brazil, February 23, 2021. REUTERS/Ueslei Marcelino

While the Petrobras bombshell took some investors by surprise, it was consistent with Bolsonaro’s track record. An ex-Army captain and outspoken admirer of Brazil’s former military dictatorship, he has long espoused a brand of right-wing populism that, in his support for government-controlled industries, overlaps with that of the leftist politicians he loves to trash. In nearly three decades as a legislator, Bolsonaro voted repeatedly to maintain state monopolies.

“All these controversial reforms have lost their appeal for a president who was never a fan of orthodox economic policies,” said Leonardo Barreto, director at the political consultancy Vector in Brasília. “Bolsonaro will increasingly wear a populist vest.”Bolsonaro did not respond to requests for comment. He said recently that Brazil’s state companies must have a “social vision” and that any CEO who did not share that vision had to go.

The issue came to a head on Friday, Feb. 5 when Castello Branco arrived in Brasília for an in-person meeting to discuss fuel prices with Bolsonaro and his cabinet. The story triggered a 4% drop in Petrobras shares, reversing an initial 3.5% rally on Bolsonaro’s “hands off” promise. Analyst downgrades followed.

 

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S.O.S. 🇧🇷

How are Bolsonaro's accounts in Switzerland!

Posing these guys with haloes, they do this on purpose, right?

Although what was said, the fuel prices are rising freely and the new Petrobras ceo was very successful at Itaipu energy generation company. Actually the reporters did not mentioned that the federal taxes were cut to zero for fuels (increased taxes on banks) and the (+)

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thanks for this news

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