Investment Event - Brazil Elections
The key takeaways:
- Jair Bolsonaro of the Social Liberal Party (PSL) has been elected the next president of Brazil
- Brazil's economic growth has struggled to gain traction in recent years
- Brazilian assets have performed well in recent weeks on hopes that Bolsonaro will implement crucial economic reforms, although his ability to do this is uncertain
For the time being, Brazil's economic and corporate earnings growth is lagging other EM peers. Therefore, we retain our neutral view on the country's equity markets. We have a preference for the country's local-currency government bonds.
Victory for Bolsonaro in Brazil elections
At the second round of the Brazilian presidential elections, held on 28 October, Jair Bolsonaro of the Social Liberal Party (PSL) beat his run-off rival, Fernando Haddad of the left-wing Workers' Party (PT), by just over 10 percentage points (winning 55.2 per cent of the vote with 99.5 per cent of votes counted).
Around a third of voters spoiled their ballots or abstained.