Brazil trucker strike12/5/2023 Jumps in prices over the last couple of weeks will impact inflation, but it is unlikely to make the central bankers hawkish. “Consumer confidence is likely to decline.” “Because of the strike, companies may face further difficulties in generating positive operating cash flow, regardless of a relatively benign macro scenario amid lower interest rates,” Gallina says. When Petrobras began pegging fuel prices to international oil markets last year, it went unnoticed by commercial drivers until oil prices began to rise dramatically and the Brazilian real began to approach R$4 to the dollar. To them, it was more money going to more crooked politicians, and coming out of their pockets. It made perfect sense that Brazilian truck drivers, many of them self-employed, would protest the increase in diesel prices. The law bans people convicted by an appeals court from running for public office for eight years. He cannot run for office, even if released from prison, due to the country’s Clean Slate law. Like many other politicians and business executives, Lula is in jail for his role in the massive Petrobras contract rigging schemes that brought that company-and the country-to its knees. His polling numbers are irrelevant at this point. There are no front-runners this campaign season other than jailbird ex-president Luiz Inacio Lula da Silva. Temer could hire Rex Tillerson to lead Petrobras, and Rex Tillerson could find himself fired again a few months later under a new president. No one has an answer to this question because the presidential election in October could change everything for Petrobras. And whether price controls are coming back. Petrobras will likely trade sideways as investors weigh who will take Parente’s spot. But Petrobras shares fell under $10 for the first time since February 2015, when they were worth about $3. Then Pedro Parente, Petrobras’ CEO, who was brought in to make the company more adherent to the market rather than to the politicians that spent the last decade ransacking it, decided to resign. Then Temer extended a price break for 60 days. Animal feed wasn’t being delivered and chickens were reportedly cannibalizing themselves. (This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.The reason for the strike: Brazilian President Michel Temer hiked diesel fuel by 10%. He said that the problem would worsen over the course of the day if a solution was not reached. Gasoline shortages in Belo Horizonte, the capital of Minas Gerais, were causing long queues at gas stations on Friday, according to Paulo Miranda Soares, the president of national fuel retail group Fecombustiveis. Shortly after, four key Treasury officials quit amid signs the government is looking to lift a constitutional spending cap, a move that battered local equities markets and the real currency. On Thursday evening, President Jair Bolsonaro, who is expected to run for re-election next year, said that the government would give Brazil's 750,000 truckers 400 reais ($70) each, to help cushion the impacts of rising fuel prices. As a result, Brasilia remains attentive to their demands. Trucker groups have threatened a general strike next week, a move that could prove crippling for Brazil's economy, if widely observed.Ī truckers strike over high fuel prices in 2018 ground the economy to a halt, and destroyed the remaining political capital of the already unpopular government at the time. Truckers here have grown increasingly vocal in recent months as a rise in global crude prices has pushed up the cost of fuel domestically and eaten into margins. Since yesterday, they have blocked roads near the REGAP refinery in Minas Gerais and the REDUC refinery in neighboring Rio de Janeiro state. The protesters, principally truckers who deliver fuel, are demanding a decrease in taxes on diesel. The dispute underlines a delicate economic situation in Brazil, where the federal budget is already stretched uncomfortably thin. ![]() Gas stations in Minas Gerais, Brazil's second most populous state, are running out of fuel, as truckers calling for tax cuts blockade two major refineries.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |