Waack: Political uncertainties dampen market optimism about 5G auction

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On the CNN Power board this Friday (5), on CNN Radio, William Waack analyzes the discreet reaction of the financial market to the 5G auction in Brazil.

“Thursday (4) was a day for us to celebrate, because if we look at what happened, this 5G auction is one of the biggest in Brazilian history,” said Waack.

“Since the pre-salt, there hasn’t been such a large volume involved in an auction, but the most important thing: it points to a future of technological innovation, transformation, the internet of things, integration of Brazil into the most modern in the digital age”, he added.

He then questioned why there was no celebration in the markets, why this successful auction was not followed up with “a little less skeptical” behavior?

“Because of politics. Markets understand that, for example, the Precatório PEC – which means a way for the government to get a lot of money to spend in an election year, despite the ceiling – exemplifies the posture of a large part of Congress”, said Waack.

“In favor of this type of scheme, deputies of all political lines voted, thinking, above all, of their own political-electoral interests. And between what points to the future, such as 5G, and the policy that holds us to the past, economic agents understood that this policy is winning.”

Reference: CNN Brasil

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