October 29, 2018

NOW WALK THE WALK:

Brazil's president-elect wants 'Car Wash' judge in cabinet or top court (Reuters, 10/29/18) 

Brazil's president-elect Jair Bolsonaro said on Monday that he wants to nominate crusading anti-corruption judge Sergio Moro to either the Supreme Court or to serve as his justice minister.

Bolsonaro made the comments during a wide-ranging interview with TV Record. Moro is the judge leading the "Car Wash" trials that have convicted scores of high level politicians and business elite for a sprawling graft scheme. Among those Moro convicted was former president Luiz Inacio Lula da Silva.  [...]

Investors are particularly heartened by his choice of Paulo Guedes, a Chicago University-trained economist and investment banker, as his economic guru and future economy minister.

Guedes said the new government will try to erase Brazil's unsustainable budget within a year, simplify and reduce taxes, and create 10 million jobs by cutting payroll taxes. New rules will boost investment in infrastructure, he told reporters.

Guedes is keen to privatize an array of state enterprises, including units of oil company Petroleo Brasileiro SA (Petrobras) and power utility Centrais Eletricas Brasileiras SA (Eletrobras).

However, his free-market ideas have clashed with the views of the retired army generals who are helping Bolsonaro flesh out his government program.

On Sunday, Guedes said Brazil would seek to improve trade relations outside the restrictions of the Mercosur bloc founded with neighboring Argentina, Uruguay and Paraguay.

Bolsonaro's rise follows conservative electoral victories in Argentina, Chile, Colombia, Paraguay, and Peru, pushing the continent to the right and undermining support for the authoritarian socialist regime in Venezuela. [...]

Bolsonaro said he would "unite Brazil" by cutting bureaucracy and red tape for businesses. He said he was committed to fiscal discipline and called for the early elimination of the federal government's budget deficit.

"We are going to think in terms of more Brazil and less Brasilia," he said, referring to the nation's capital where he will take office on Jan. 1.

Financial markets are expected to rally on Monday on Bolsonaro's victory.

The real currency has gained about 10 percent against the dollar in the last month as Bolsonaro's prospects of winning increased. Sao Paulo's benchmark Bovespa stock index has risen 13.5 percent since mid-September.

Investors are particularly heartened by his choice of Paulo Guedes, a Chicago University-trained economist and investment banker, as his economic guru and future economy minister.

Guedes said the new government will try to erase Brazil's unsustainable budget within a year, simplify and reduce taxes, and create 10 million jobs by cutting payroll taxes. New rules will boost investment in infrastructure, he told reporters.

Guedes is keen to privatize an array of state enterprises, including units of oil company Petroleo Brasileiro SA (Petrobras) and power utility Centrais Eletricas Brasileiras SA (Eletrobras).

However, his free-market ideas have clashed with the views of the retired army generals who are helping Bolsonaro flesh out his government program.

On Sunday, Guedes said Brazil would seek to improve trade relations outside the restrictions of the Mercosur bloc founded with neighboring Argentina, Uruguay and Paraguay.

Bolsonaro's rise follows conservative electoral victories in Argentina, Chile, Colombia, Paraguay, and Peru, pushing the continent to the right and undermining support for the authoritarian socialist regime in Venezuela.

Posted by at October 29, 2018 7:44 PM

  

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