Brazilian stocks slumped more than three percent on President Luiz Inacio Lula da Silva’s first business day in office Monday, led by a selloff of shares in state-run oil company Petrobras.
Petrobras was among the biggest losers, with preferential shares falling 6.6 percent and ordinary shares 5.71 percent. Petrobras is especially in the spotlight, after Lula extended federal fuel-tax cuts and vowed to change the company’s pricing policy. Lula’s pick for chief executive at Petrobras, Senator Jean Paul Prates, said Friday he wanted to change the company’s pricing policy, which currently pegs what consumers pay for fuel to global prices.
This shows that CAPITALISM as a system is anti democratic.
The “veteran leftist” that was also convicted to 9 years in prison for money laundering and corruption. Expect stocks to plummet further.
That's fine. The country is not the stock market. For as long as the people of Brasil own their minerals, i.e petrobras remains state owned - its fine. We are tired or neoliberals pushing a bs privatization agenda, presenting state ownership as some sort of evil.
With his leftist ideals, rhetoric and corruption, expect more falls in the Brazilian stock exchange and currency!
No. He cancelled privatization of public entities and the establishment did not like that very much.
Yes because the capitalists from the USA and London are setting him for failure!!