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Brazilian Stocks Explode Higher On Neves "Change" Hope

Tyler Durden's picture




 

After collapsing on the heels of a poll a week ago suggesting Dilma Rousseff was leading in Brazil's Presidential election (and thus bad for business, more of the same lack of reform), the weekend's vote - while confirming Rousseff's lead - did not give her a majority and pro-business candidate Aecio Neves had a strong showing. Brazil's stock market IBOVESPA index exploded 8% higher on hope that this may mean 'change' as Brazilians clearly signaled disenchantment with current policies... even as Rousseff is still the strong favorite.

 

 

As The NY Times reports,

President Dilma Rousseff emerged on Sunday as the front-runner in one of the most tightly contested presidential elections since democracy was re-established in Brazil in the 1980s, but she failed to win a majority of the vote, opening the way for a runoff with Aécio Neves, the pro-business scion of a powerful political family.

 

Ms. Rousseff got 41.5 percent of the vote, against 33.7 percent for Mr. Neves and 21.3 percent for Ms. Silva, electoral officials said, with 99 percent of votes counted.

 

While Ms. Rousseff, 66, is expected to remain the favorite going into the Oct. 26 runoff, the surge by Mr. Neves reflects disenchantment among many voters with Ms. Rousseff’s leftist Workers Party, which is seeking to remain in power amid criticism over a sluggish economy and a scandal shaking the nation’s oil industry.

 

...

 

Mr. Neves, 54, has signaled that he would put in place policies aimed at calming the markets, like easing controls on fuel prices and improving the transparency of public finances. A top adviser of his campaign is Armínio Fraga, a Princeton-trained former central bank president who now operates an investment firm based in Rio.

 

...

 

Mr. Neves has to lure the support of voters like Mr. Ferreira if he is to mount a more serious challenge to Ms. Rousseff. But Mr. Neves’s party faces some skepticism from poorer voters and corruption problems of its own, including a bribery and price-fixing scandal over contracts to supply subway equipment in São Paulo.

 

The race between Ms. Rousseff, a former leftist guerrilla, and Mr. Neves, whose grandfather was elected president in 1985 but fell ill and died before he could take office, suggests that polarization could grow more acute.

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Mon, 10/06/2014 - 09:30 | 5293861 LULZBank
LULZBank's picture

Look, we got an excuse to ramp it up higher, Bitchezz!!

Tue, 10/07/2014 - 05:55 | 5293876 GetZeeGold
GetZeeGold's picture

 

 

 

Change....it's the magic secret word.

 

Throw a little hope in there....and you can rule the world.

Mon, 10/06/2014 - 09:30 | 5293867 NoDebt
NoDebt's picture

OK, an 8% move is worthy of a little hyperbole, I suppose.

Funny how in the US the stock market never "explodes" or "collapses" 8% based on election polling.  Maybe because it doesn't matter who wins.

Mon, 10/06/2014 - 10:06 | 5293997 NotApplicable
NotApplicable's picture

Not like it matters there either. You either elect a Western puppet or some socialist fool. Either way, society continues it's inevitable collapse, and civil war grows ever closer.

Mon, 10/06/2014 - 09:36 | 5293881 mastersnark
mastersnark's picture

"A politician will save us" herdthink: its not just for Americans.

Mon, 10/06/2014 - 09:58 | 5293963 LULZBank
LULZBank's picture

I heard voting is mandatory in Brazil, otherwise you cannot get a passport, open a bank account etc.

Thats is the B in the brics for you!

Mon, 10/06/2014 - 13:20 | 5294909 smacker
smacker's picture

I think you heard wrong. As far as I know you just get a trivial multa (fine) for not voting.

Mon, 10/06/2014 - 09:59 | 5293966 First There Is ...
First There Is A Mountain's picture

Short it. Brazilians love them some handouts, too. Buck tooth dyke still gonna take it.

Mon, 10/06/2014 - 10:00 | 5293974 First There Is ...
First There Is A Mountain's picture

$PBR in particular a good short bet up here.

Mon, 10/06/2014 - 10:02 | 5293980 youngman
youngman's picture

Its Brazil..they like the Socialists....and yes they are required to vote....

Mon, 10/06/2014 - 12:35 | 5294697 BovespaBroker
BovespaBroker's picture

who like socialists my boss ?

i dont like,

for sure some people in brazil like socialiasts becouse the "all for free for everyone" fake promises.

by as the time goes, people realize that socialists are big liers assholes.

rumors here, saying Neves will privatize brazils petrobras by next year.

 

will be a great trade for sure.

 

Mon, 10/06/2014 - 11:03 | 5294289 Platypus
Platypus's picture

Who cares? 

Mon, 10/06/2014 - 11:04 | 5294301 SilvertonguedAngel
SilvertonguedAngel's picture

Rouseff will get ALL of Silva's supporters, Neves and his US backers are going down, the Brazilians have already chosen the BRICS and will not accept US meddling anymore.

 

ALL of the BRICS nations are under full financial attack by the western debt empire.

 

Ukraine is punishment for Russia, hong kong is punishment for China, the massive demonstrations earlier in Brazil, and all of the rest of the riots across the world are funded and run by the CIA mostly.

 

The debt empire is finished.

Mon, 10/06/2014 - 12:06 | 5294600 Jano
Jano's picture

The next plane accidnet should happen, this time on the side of CIA puppet.

Mon, 10/06/2014 - 12:37 | 5294702 BovespaBroker
BovespaBroker's picture

the actual rulling party - PT, is sending out money to cuba.

most people doenst agree with this policy.

 

 

Mon, 10/06/2014 - 13:30 | 5294946 smacker
smacker's picture

Neves is supported by Washington and will turn his attention there if elected. But he fails to recognise why Brazil turned away from the Washington set in the first place. It got fed up playing second fiddle and having no say in global governance.

Rousseff will continue looking towards the BRICS for the country's future where it can play first fiddle among equals.

This is a big choice for the Brazukas to make.

It could be solved by Rousseff abandoning her Lefty-socialist policies - which of course have not worked - and getting a grip.

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