The confirmation of former PT minister and former mayor of São Paulo Fernando Haddad to the Ministry of Finance in the government of Luiz Inácio Lula da Silva, although it was not the ideal scenario in the view of the financial market, it was also not, at this point , a surprise.
This helped the stock exchange and the dollar to go through the announcement relatively smoothly this Friday (9), after the official announcement made by Lula at the end of the morning, shortly before the start of the game between Brazil and Croatia for the World Cup.
According to economists consulted by the CNN the main focus now will be to wait for the appointment of the team of secretaries and technicians who will respond to Haddad within the Treasury, and, mainly, how the economic policy will be conducted, starting with the outcome of the PEC of the Explosion.
For some, a name with a political profile – although Haddad also has a degree in economics – might even be useful at that moment.
“Of course, a more technical name would be ideal, but the market also understands the need to have a political personification at the head of the Ministry of Finance”, said Edmar de Oliveira, variable income operator at One Investimentos.
“Dialogue with the political class tends to happen more naturally. O [ministro da Economia, Paulo] Guedes had great difficulty in dialoguing with Congress and wings of other ideological spectrums”, he adds.
“Haddad has the skills that Lula deems relevant for political articulation”, said Bradesco’s chief economist, Fernando Honorato, mentioning that both Guido Mantega and, mainly, Antonio Palocci, already had this profile when they commanded the Treasury in the first terms. from PT.
“I believe that Haddad will have a team that manages to preserve fiscal responsibility, which is the critical point, with social demand. Lula learned during his mandates that high inflation and a devalued exchange rate destroy the president’s popularity, and Haddad knows that too.”
Around 5 pm, the Ibovespa was up 0.45%, to 107,735 points, after advancing more than 1% shortly after the announcement, in the early afternoon, and the dollar closed the day at a high of 0, 5%, at BRL 5.24.
“Haddad’s announcement today only made official what everyone already knew; it is something that has been talked about for a long time”, says economist and partner at BRA BS Beto Saadia. “So the market had already prepared itself, already set prices and set up its position.”
In fact, despite the day on the rise, the stock exchange has been losing points since the end of the election, when it reached 116 thousand points.
Since then, the drop has been around 7%, amidst Lula’s criticism of fiscal adjustment policies, the processing of the PEC of the Explosion and, also, expectations for the formation of his economic team.
Source: CNN Brasil
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