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Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Accelerating Tomorrow’s Independent Research

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Cross Asset Strategy

<ul>
<li>Negative press "noise" on the pension reform process, with heightened friction between the Executive and the Legislature, has hit the currency and equity markets</li>
<li>This reflects the Bolsonaro administration's limited engagement with the Legislature so far on pension reform</li>
<li>Finance Minister Paulo Guedes is spearheading the effort on pension reform, and has the support of Rodrigo Maia, the leader of the Chamber of Deputies</li>
<li>The latest poll on pension reform voting intentions in the Chamber suggest it is heading in the right direction, but that the administration needs to accelerate support to get the legislation approved; we see 3Q19 more likely than 2Q19 for pension reform approval</li>
<li>We see the equity market and currency corrections as an opportunity, and we highlight our positive view on <a href="https://www.smartkarma.com/entities/24564" target="_blank" data-smartkarma-citation="entities:24564:1">Banco Do Brasil Sa (BBAS3 BZ)</a>
</li>
</ul>


Negative press "noise" on the pension reform process, with heightened friction between the Executive and the Legislature, has hit the currency and equity markets
This reflects the Bolsonaro administration's limited engagement with the Legislature so far on pension reform
Finance Minister Paulo Guedes is spearheading the effort on pension reform, and has the support of Rodrigo Maia, the leader of the Chamber of Deputies
The latest poll on pension reform voting intentions in the Chamber suggest it is heading in the right direction, but that the administration needs to accelerate support to get the legislation approved; we see 3Q19 more likely than 2Q19 for pension reform approval
We see the equity market and currency corrections as an opportunity, and we highlight our positive view on Banco Do Brasil Sa (BBAS3 BZ)



Brazil Politics; The "Noise" On Pension Reform Is an Investor Opportunity