Lula's market lure fades after Brazil's 'Leeds truss moment'

C ). Investors may have mistakenly assumed Lula would pursue an orthodox fiscal agenda, it said in a note, adding that the bank had decided to cut its exposure to Brazil in the face of the reassessment. “The market seems to have been convinced that Lula will be financially orthodox. Recent news now calls into question that assumption,” Citi Research Emerging Markets Strategy Director Dirk Willer wrote Thursday night. Milton Ma, CEO of Brazil’s largest bank Itau Unibanco Lucy Filho said on Friday that a balance needs to be struck between social spending and public finances. Order. “We believe that fiscal responsibility and social responsibility should go hand in hand,” he said on the conference call. Investors and even Lula’s allies have expressed concern about the delay in appointing his finance minister. Lula has said that he will only name his cabinet when he returns from the COP Egypt Climate Summit.

centrist Brazilian Democratic Movement Party (MDB) Senator Simone Tebet), said the finance minister Should be his first cabinet pick to clarify what his economic policy will be. “It takes a Treasury secretary to explain the president’s political thinking,” she told reporters. On Thursday, Lula tried to downplay investors ‘s concerns. “The market is nervous for no reason. I’ve never seen a market as sensitive as ours,” said the president-elect, who will take office on Jan. 1. ($1=5.25 Real)