Investors continued to follow the fiscal saga that has been going on for five weeks. In the afternoon, the Minister of Institutional Relations, Alexandre Padilha, said that President Luiz Inácio Lula da Silva (PT) and the Minister of Finance, Fernando Haddad, are doing “appropriate pruning of a tree that is growing”, in a reference to a fiscal package of spending cuts.
Padilha also stated that he believes the government will have the support of the National Congress for the measure, and that the Legislative Branch will remain committed to the Executive Branch's economic agenda. The announcement of the measures is expected to take place next Tuesday, according to Haddad. He will have a final meeting with President Luiz Inácio Lula da Silva (PT) on Monday to finalize details about the text.
Earlier, the Ministry of Planning, through a statement, informed that the bimonthly revenue and expenditure report will be sent after 9 pm and the press conference will take place on Monday. According to Haddad, the report should bring a blockage “in the region of R$5 billion” in the 2024 budget.
If this week was empty of indicators, next week will be full of action. In Brazil, in addition to the announcement of the fiscal package by the Brazilian government, on Tuesday there will be the IPCA-15 for November, while on Thursday (28) there will be producer inflation and on Friday (29), the unemployment rate and more employment data for October. In the US, get ready: on Tuesday, there will be the minutes of the Fed's last monetary policy meeting; on Wednesday (27), there will be the second preview of GDP and the dreaded personal expenditure inflation (PCE), the Fed's favorite.
We conclude our market updates here. Tomorrow a new week begins, so get ready, adjust your mind and focus, and return to the market ready to face all the opportunities that this new week will bring us.