(Image: Reproduction)
ANDRÉ ESTEVESchairman and senior partner of BTG Pactualstates that the behavior of global markets in recent days is due to the troubled scenario of United States. For the executive, the domestic environment of each country has been having little influence.
“Today prices move mostly from what happens in the US. In the long run, the local scenario will always predominate in relation to the International, but this year we are seeing something very atypical, with the global being predominant,” he said.
For Esteves, despite the American president Donald Trump Having made speeches about rates during the campaign was not possible to predict how the measures would be implemented.
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The statements occurred during the Agroforum Cuiabáorganized by BTG. At the time, the executive stressed the admiration for the force of agribusiness Brazilian.
Trade war
The bank’s chairman pointed out that the Brazil It is one of the countries that has benefited from investor doubts about the US. With the money spreading around the world, some of the resources came to Brazilian soil.
Regarding tariffs, Esteves does not see great risks to Brazil, which is one of the few countries that has a fiscal deficit with the US. It also stated that the fare is an instrument used, in general, for industrialized products, not to commoditiesmain Brazilian force.
The executive evaluates international negotiations as positive. “It seems that we will not go into a tariff war. We will have more tariffs, more protectionism, but it will not be that horrible thing that has announced on the day of liberation,” he said.
In the case of a longer climbing in the tariff conflict between China and the USA, the executive considers that the Europe It would be the great damaged, for exporting industrial products overavitary with both countries.
Esteves comments on the fiscal scenario of Brazil
André Esteves commented on the Brazilian fiscal issue with BTG chief economist Mansueto Almeida. Esteves highlighted the contradiction of Federal governmentin carrying out movements to accelerate the economy while monetary policy raises interest rates to control the inflation.
“For some reason there is a belief within the government that fiscal balance is something secondary, that if you do not spend it is not governing, that spending is for the poor, while the Central Bank follows the manual,” he said.
Esteves stressed that despite the difficulties, in recent years Brazil has achieved institutional changes, such as labor, social security and tax reforms. In addition, the privatization of large state -owned companies were cited as an example.
“In the last three years we privatized three of the six largest Brazilian states. We privatize the Copel (CPLO6), a Sabesp (SBSP3) and Eletrobras (ELET3) And there was no protest on the streets. We think we are not walking to the right place, but in a more pragmatic way, I’m not that pessimistic, ”he said.
Almeida pointed out that regardless of which the next president is, an effective plan for fiscal responsibility is indispensable for the sustainable growth of the country. From this, the fall in interest and the control of inflation would be natural.
Source: Moneytimes
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