Good morning! Markets & Bolsonaro: is the honeymoon over? Senate could force government shutdown. Brazil’s bold plan for deepwater oil reserves.
Markets & Bolsonaro: is the honeymoon over?
Ever since Jair Bolsonaro became the leading presidential candidate last year, Brazilian investors have gotten really excited, wagering the government would have the muscle to pass the liberal agenda of economic guru Paulo Guedes. What investors failed to consider is Mr. Bolsonaro’s own track record—as a congressman, he voted for more state intervention. Just 3 months into his term, investors seem to realize they’ve bet in the wrong horse.
Mr. Bolsonaro has...