Impatient Brazil investors are looking elsewhere
March 11 2019 01:23 AM
Expectations of a lengthy wait for Brazil’s flagship pension reform are prompting investors to seek more immediate results in other areas of the government’s pro-business agenda.
As the initial stock market euphoria over President Jair Bolsonaro’s election victory subsides, investors are clamouring for signs of concrete progress. With his proposals for an overhaul of social security still at the start of a marathon congressional debate, this week’s auction of 12 airports will offer a sign of market sentiment towards the Bolsonaro administration.
“While the pension reform process is on-going, it’s essential that the government moves on with other much-needed reforms like privatisations and the improvement of business conditions,” said Bernd Berg, strategist at Woodman Asset Management in Switzerland. The airport auction “gives an indication of foreign investor appetite.”
The 12 airports to be auctioned on March 15, together with railroads and ports that will be sold later in the month, are valued by the government at roughly 7.6bn reais ($2bn). Other measures attracting attention from financial markets include a proposal to grant the central bank formal independence and a bill that would open up the public sanitation sector to more competition.
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https://www.gulf-times.com/story/624564/Impatient-Brazil-investors-are-looking-elsewhere
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