Islamophobia threatens global peace and coexistence, not just Muslims, says MWL chief at UN    Power bank likely caused South Korea plane fire, investigators say    Gold prices hit $3,000 for the first time as investors push the panic button    Hungary drops veto and agrees to prolong EU sanctions on Russian individuals    China hits out at 'threats of force' on Iran as Trump pushes for new nuclear deal    Makkah Lanterns Festival returns for the eighth year as part of Ramadan activities    Crown Prince receives Yazeed Al-Rajhi after historic Dakar Rally 2025 victory    SR17 million fines slapped on 16 individuals and companies convicted of violating Capital Market Law    Saudi Arabia welcomes border agreement between Tajikistan and Kyrgyzstan    Saudi ambassadors take oath before Crown Prince    16 endangered species released into AlUla's Protected Areas    Saudi Crown Prince reaffirms support for a political solution to Ukraine crisis in call with Putin Putin praises Saudi Arabia's constructive role and mediation efforts    NCM forecast: Thunderstorms to hit most Saudi regions until Monday    Saleh Al-Shehri's late penalty rescues Al Ittihad against Al Riyadh    Grand Mufti rules against posting prayers and preaching in mosques on social media    Man lives for 100 days with titanium heart in successful new trial    Argentinian court begins trial of seven healthcare professionals over Maradona's death    Al Hilal crushes Pakhtakor to storm into AFC Champions League quarter-finals    Singer Wheesung who wooed Korea with his ballads, found dead at 43    Prince Frederik of Luxembourg dies from rare disease    Real-life shipwreck story wins major book award    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Order vs. Morality: Lessons from New York's 1977 Blackout    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Brazil's Serra losing ‘market favorite' status
By Raymond Colitt
Published in The Saudi Gazette on 31 - 07 - 2010

Jose Serra began his campaign for Brazil's president as the clear favorite of financial markets, but his recent heavy hand on economic policy is now raising doubts with many investors.
Several investors and political experts told Reuters they are now more wary of Serra than his main rival, ruling party candidate Dilma Rousseff. Serra, a 68-year-old veteran politician from the opposition PSDB party, has concerned many with talk of exerting control over the central bank, cutting interest rates, and boosting the state's role in the economy.
The apparent shift in sentiment turns the conventional wisdom in Brazil's presidential race upside-down, and could move currency and debt markets if Serra remains strong in polls as the October vote approaches, investors said.
“The financial system secretly prefers Rousseff,” said Tony Volpon, head of Americas emerging market research at Nomura Securities in New York.
By most measures, Serra should be the investor favorite. He boasts a doctorate in economics from Cornell University, a laundry list of executive experience, and a party that championed privatization and market reforms under Lula's predecessor, President Fernando Henrique Cardoso (1995-2002).
Rousseff, a career civil servant, by contrast, was once an urban guerrilla and never held an elected office before.
However, Rousseff has gone out of her way to win over investor support, distancing herself from some of her party's more leftwing proposals. She also pledged to continue the largely market-friendly policies of President Luiz Inacio Lula da Silva that helped fuel Brazil's economy in recent years.
“Neither candidate is Wall Street's dream but Serra is the bigger risk. He brings more uncertainty and chance for change,” said Alexandre Barros, a political analyst who followed Serra since they were both student activists in Sao Paulo in 1962.
Xico Graziano, a senior aide to Serra, played down the investor concerns, telling Reuters: “Investors know Serra's qualities and how he sees the economy. It's no surprise to anyone.”
So far, few investors have been concerned with the Oct. 3 vote, content that neither of the leading candidates is a populist threatening economic stability.
But that sense of calm is at risk as the vote grows closer and the candidates more clearly articulate their platforms.
Serra this week said that interest rates needed to be cut and that the real was “mega overvalued.”
“Regarding Serra there is concern over interest rates and currency, though I do think he'd be tougher on fiscal discipline than Dilma,” said Reginaldo Alexandre, head of the Association of Capital Market Analysts in Sao Paulo.
Rousseff has steadily climbed in opinion polls on the back of a booming economy and support from the hugely popular Lula, though she has still not established a clear lead.
“The market has not priced in Serra risk because it thinks Rousseff will win,” said Rafael Cortez, a political analyst at Tendencias, one of the country's largest consulting firms. If Rousseff doesn't establish a clear advantage over Serra by August, Volpon said “you could see some pretty violent (market) moves, especially the foreign exchange rate.”
Serra has also given mixed signals on the role of the state in the economy. He has criticized the creation of a new state oil company, the use of state funds to build a high-speed train, and pledged to restore powers to industry regulators.
But he has also applauded Lula's economic stimulus measures and proposed more state-led economic development.
“I favor a national development project for Brazil with government activism,” Serra said.
While Serra wants to cut government fat, he also wants to double Lula's flagship welfare program, Bolsa Familia, which many of his supporters criticized for years.
Some analysts say Serra's policy mix reflects his campaign strategy. He wants to be seen as proposing change but not abandoning policies that made Lula hugely popular.
“Dilma tells the market what it wants to hear. Serra's message is more political because he needs to win votes,” says Dany Rappaport, partner in InvestPort financial consultancy.
But Serra has a history of government intervention and is linked to a school of thought that advocates economic planning, a strong state, capital controls and import-substitution.
As planning minister, he clashed with the pro-market wing in the Cardoso government and was quickly moved to the health ministry. There he forced Swiss pharmaceutical giant Roche to slash its prices under threat of breaking its patent.
“His proposals reflect his beliefs – it's not marketing. But either way it generates uncertainty,” said Barros.


Clic here to read the story from its source.