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Mercado sees Haddad’s “generalist” speech on the economy at Febraban; stock market falls, dollar rises

The Ibovespa increased the fall after the speeches of Fernando Haddad, quoted as Minister of Finance in the Lula government, at lunch with the Brazilian Federation of Banks (Febraban). At 4:10 pm, the index was down 2.75%.

The dollar reached BRL 5.40 at the same time, with no respite in the uncertainties related to the country’s fiscal course and the ministerial team of the new government.

The assessment of bankers who attended the Febraban luncheon is that Fernando Haddad’s speech was too general and not consistent enough for bankers.

One of these bankers believes that the elected government has neither a team nor a plan, informs the policy analyst at CNN Thais Arbex.

Haddad at table with bankers

Minutes before the start of the event, Haddad went to the main hall, which receives 350 guests, and was the center of attention. He was greeted by several executives present, and much harassed by the press, as reported by the analyst of the CNN Business Fernando Nakagawa.

At the lunch table, Haddad was seated between the president of Febraban, Isaac Sidney, and the chairman of the board of directors of BTG, André Esteves. It contains all the main executives who attend the event.

main guest

Quoted to be the new Minister of Finance, Fernando Haddad, was very pampered when he arrived at the annual Febraban lunch. Haddad appears as a representative of President-elect Luiz Inácio Lula da Silva.

The former Minister of Education arrived around 11:45 am at the venue in the Itaim Bibi neighborhood, in the south zone of São Paulo, and went straight to a reserved room. There, he spent about 20 minutes with Febraban’s management and some of the sector’s main executives, who are participating in the event.

Minutes before the start of the event, Haddad went to the main hall, which receives 350 guests, and was the center of attention. He was greeted by several executives present, and much harassed by the press. But the former Minister of Education did not speak to journalists.


Fernando Haddad (PT) made a speech about a future finance minister during lunch. “My life changed a lot from Tuesday to yesterday, now I speak on behalf of President Lula”, he said, explaining why he was there.

He promised tax reform in 2023, starting with consumption taxes. And it was specific: PEC 45, which unifies the ICMS. He also said he will review public spending, without giving details.

But he didn’t say a word about the main topic today: the PEC of the Explosion, which provides for the withdrawal of almost R$ 200 million from the spending ceiling. Haddad only said that “what doesn’t work is for Brazil to grow by 0.5% because social tensions are getting worse” and presented Lula as someone who listens to society.

He even mocked and called the pre-election package approved by Congress to try to boost Jair Bolsonaro’s candidacy as the PEC of the Explosion or PEC Kamikaze. “I don’t know what you in the market call it, but that was uneducating.”

Tax reform

On behalf of elected president Luiz Inácio Lula da Silva, former Minister Fernando Haddad defended harmony between the powers and highlighted that tax reform will be the priority of the first year of the new Government.

Haddad had declined an invitation to participate in the event, but ended up accepting Lula’s request to represent him, as the president-elect is still recovering from surgery.

The former minister pointed out that in the first months of government, the focus will be on tax reform to improve the quality of revenue, with a second moment directing energies towards a reform of taxes on income and assets.

Haddad also stated that it is necessary to turn the page of the war that has been established between the Presidency, governors, mayors and other powers. He also pointed out that Lula has never seen incompatibility between the social and fiscal aspects.

On the other hand, Haddad said that he did not go to the event to talk about the PEC that puts Bolsa Família outside the spending cap. Haddad also avoided talking about the possibility of being appointed to the Ministry of Finance.

The president of the Central Bank, Roberto Campos Melo, also spoke, giving an overview of the situation in Brazil in recent years and defending the maintenance of reforms and fiscal coherence. Earlier, the president of Febraban, Isaac Sidney, gave a speech, guaranteeing that the banks will contribute to governance.

*With information from Thais Arbex, Raquel Landim, Fernando Nakagawa and Matheus Meirelles

Source: CNN Brasil

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