Haddad at the Farm and rumors of Mercadante at the BNDES exacerbate uncertainty in the markets

The choice of Fernando Haddad (PT) for the Ministry of Finance would be able to contain uncertainty about the economic management of the next government — if it weren’t so loaded with politics.

Loyalty to president-elect Luiz Inácio Lula da Silva (PT) prevailed over his Master’s degree in Economics, signaling more influence from the PT in the conduct of the portfolio. Therefore, the doubt about who will make up the entire economic team and what its new organization chart will be keeps uncertainty high.

The name of Aloizio Mercadante is taken for granted by the National Bank for Economic and Social Development (BNDES) — a bad sign about the management of the bank that was the largest subsidized credit instrument in PT mandates.

Mercadante, a classic interventionist, has already given hints that he wants to empty Planning, considered strategic for managing the Budget, and that he wants the BNDES under the umbrella of the Ministry of Industry and Commerce, which will be recreated.

In an economy where the service sector represents almost 70% of the Gross Domestic Product (GDP), the equation makes no sense.

When faced with the June 2013 demonstrations in the São Paulo City Hall, Fernando Haddad knew that the wave of protests was never about the 20 cents more on the bus fare. In the same way, he knows that his appointment will not redeem, or guarantee, a responsible management of Lula’s third term.

In this Monday’s episode (12), CNN Money also discusses the expectations of new announcements of ministers and the diplomacy of Lula and Geraldo Alckmin, in the Superior Electoral Court (TSE).

Presented by Thais Heredia and Priscila Yazbek, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.

*Posted by Tamara Nassif