IBOV 174,014.45 ▼ 1.13% IPSA 10,947.38 ▼ 0.70% IPC MEX 66,409.65 ▼ 0.18% MERVAL 3,222,931 ▼ 2.08% COLCAP 2,267.96 ▼ 1.05% BVL PERÚ 57,112.22 — — USD/BRL5.10▲ 0.44% USD/MXN17.42▲ 0.20% USD/CLP927.65▲ 0.17% USD/COP3,226▼ 1.05% USD/PEN3.38▼ 0.07% USD/ARS1,475▼ 0.07% USD/UYU40.18▲ 1.21% USD/PYG6,030▲ 1.35% USD/BOB10.63▲ 3.73% USD/DOP58.14▼ 0.19% USD/CRC447.87▲ 1.07% USD/GTQ7.62▲ 2.25% USD/HNL26.73▲ 0.09% USD/NIO36.62▲ 0.34% USD/VES725.63▼ 0.13% USD/PAB1.00— 0.00% USD/BZD2.00— 0.00% USD/JMD157.49▲ 0.31% USD/TTD6.75▲ 1.34% EUR/BRL5.83▲ 0.44% BRENT 84.26 ▼ 0.81% WTI 78.38 ▼ 1.53% IRON ORE 161.91 — — COPPER 6.30 ▲ 0.02% GOLD 3,988 ▼ 1.40% SILVER 55.95 ▼ 2.04% SOY 1,194 ▼ 0.71% CORN 463.50 ▲ 3.58% WHEAT 674.25 ▼ 0.48% COFFEE 313.95 ▼ 6.13% SUGAR 14.41 ▼ 2.96% ORANGE JUICE 134.95 ▼ 2.81% COTTON 79.07 ▼ 1.85% COCOA 5,441 ▼ 5.16% BEEF 223.05 ▼ 3.07% CATTLE 346.88 ▼ 0.88% LITHIUM 68.75 ▼ 3.25% PETR4 40.19 ▼ 0.99% VALE3 72.79 ▼ 2.31% ITUB4 42.62 ▼ 1.21% BBDC4 18.42 ▼ 0.97% ABEV3 15.65 ▲ 0.51% BBAS3 20.61 ▲ 0.29% B3SA3 15.31 ▼ 2.42% WEGE3 43.16 ▼ 2.49% PRIO3 57.18 ▼ 0.56% SUZB3 41.91 ▲ 1.04% RENT3 38.90 ▼ 3.59% AZZA3 18.47 ▼ 1.02% CSAN3 3.88 ▼ 1.27% RAIZ4 0.30 ▲ 3.45% PCAR3 2.62 — 0.00% GMAT3 3.92 ▼ 1.51% PSSA3 55.24 ▲ 0.04% CVCB3 1.33 ▼ 0.75% POSI3 3.88 ▼ 1.77% SLCE3 13.60 ▲ 0.74% NATU3 8.60 ▼ 0.81% BRKM5 6.13 ▼ 4.37% RANI3 8.04 ▲ 0.75% CSNA3 5.12 ▼ 2.29% CMIN3 5.46 ▲ 4.20% USIM5 8.03 ▼ 2.07% GGBR4 23.91 ▼ 1.20% ENEV3 25.97 ▼ 3.64% CPFE3 46.70 ▼ 0.28% CMIG4 11.03 ▼ 1.08% EQTL3 39.60 ▼ 1.81% LREN3 13.68 ▼ 2.98% VIVT3 35.46 ▼ 0.03% RAIL3 13.97 ▼ 0.71% KLABIN 17.47 ▲ 0.46% RAIA DROGASIL 18.44 ▼ 1.23% RDOR3 35.72 ▼ 0.81% HAPV3 10.86 ▼ 1.18% FLRY3 16.38 ▼ 0.79% SMTO3 15.70 ▲ 1.09% UGPA3 31.82 ▲ 2.32% VBBR3 34.30 ▲ 1.63% BBSE3 41.22 ▲ 1.25% BPAC11 56.40 ▼ 1.12% CURY3 31.60 ▼ 3.45% AERI3 2.03 ▲ 0.50% VIVARA 23.25 ▼ 1.15% COMPASS 24.77 ▼ 1.35% VAMOS 3.16 ▲ 1.28% SANB11 26.92 ▼ 0.30% ASAI3 8.47 ▼ 2.19% SBSP3 29.31 ▼ 2.23% WALMEX 49.54 ▼ 0.32% GMEXICO 200.57 ▲ 0.18% FEMSA 224.52 ▲ 0.56% CEMEX 22.76 ▲ 0.62% GFNORTE 180.24 ▼ 1.76% BIMBO 58.00 ▲ 0.83% TELEVISA 9.52 ▼ 0.42% AMX 22.84 ▲ 0.18% GAP 392.39 ▼ 1.18% ASUR 280.52 ▼ 1.04% OMA 232.65 ▼ 1.08% KOF 179.26 ▲ 1.30% GRUMA 285.42 ▲ 1.45% KIMBER 38.74 ▲ 0.21% SQM-B 66,050 ▼ 2.72% COPEC 6,126 ▼ 1.35% BSANTANDER 78.16 ▼ 0.61% FALABELLA 5,853 ▼ 0.37% ENELAM 84.80 ▼ 1.11% CENCOSUD 2,005 ▼ 1.72% CMPC 1,074 ▼ 2.63% BANCO CHILE 188.88 ▼ 0.33% LATAM AIR 25.40 ▲ 2.01% YPF 76,700 ▼ 2.36% GGAL 7,860 ▼ 4.20% PAMPA 5,090 ▼ 2.86% TXAR 661.50 ▼ 1.42% ALUAR 942.00 ▼ 1.82% TGS 9,385 ▼ 3.74% CEPU 2,250 ▼ 4.01% MIRGOR 16,650 ▼ 1.91% COME 44.30 ▼ 2.91% LOMA NEGRA 3,610 ▼ 0.07% BYMA 299.00 ▼ 1.64% TELECOM ARG 4,180 ▼ 3.13% ECOPETROL 15.80 ▼ 1.13% BANCOLOMBIA 79.11 ▼ 2.99% GRUPO AVAL 5.00 ▼ 0.60% CREDICORP 388.87 ▼ 2.34% SOUTHERN COPPER 175.30 ▼ 3.44% BUENAVENTURA 30.17 ▼ 1.76% MERCADOLIBRE 1,854 ▲ 0.57% NUBANK 13.76 ▼ 0.87% XP 16.70 ▼ 1.04% PAGSEGURO 9.10 ▼ 1.19% STONE 11.20 ▼ 0.75% GLOBANT 32.68 ▲ 2.19% TECNOGLASS 47.22 ▲ 3.39% GAP AIRPORT 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1.40% SILVER 55.95 ▼ 2.04% SOY 1,194 ▼ 0.71% CORN 463.50 ▲ 3.58% WHEAT 674.25 ▼ 0.48% COFFEE 313.95 ▼ 6.13% SUGAR 14.41 ▼ 2.96% ORANGE JUICE 134.95 ▼ 2.81% COTTON 79.07 ▼ 1.85% COCOA 5,441 ▼ 5.16% BEEF 223.05 ▼ 3.07% CATTLE 346.88 ▼ 0.88% LITHIUM 68.75 ▼ 3.25% PETR4 40.19 ▼ 0.99% VALE3 72.79 ▼ 2.31% ITUB4 42.62 ▼ 1.21% BBDC4 18.42 ▼ 0.97% ABEV3 15.65 ▲ 0.51% BBAS3 20.61 ▲ 0.29% B3SA3 15.31 ▼ 2.42% WEGE3 43.16 ▼ 2.49% PRIO3 57.18 ▼ 0.56% SUZB3 41.91 ▲ 1.04% RENT3 38.90 ▼ 3.59% AZZA3 18.47 ▼ 1.02% CSAN3 3.88 ▼ 1.27% RAIZ4 0.30 ▲ 3.45% PCAR3 2.62 — 0.00% GMAT3 3.92 ▼ 1.51% PSSA3 55.24 ▲ 0.04% CVCB3 1.33 ▼ 0.75% POSI3 3.88 ▼ 1.77% SLCE3 13.60 ▲ 0.74% NATU3 8.60 ▼ 0.81% BRKM5 6.13 ▼ 4.37% RANI3 8.04 ▲ 0.75% CSNA3 5.12 ▼ 2.29% CMIN3 5.46 ▲ 4.20% USIM5 8.03 ▼ 2.07% GGBR4 23.91 ▼ 1.20% ENEV3 25.97 ▼ 3.64% CPFE3 46.70 ▼ 0.28% CMIG4 11.03 ▼ 1.08% EQTL3 39.60 ▼ 1.81% LREN3 13.68 ▼ 2.98% VIVT3 35.46 ▼ 0.03% RAIL3 13.97 ▼ 0.71% KLABIN 17.47 ▲ 0.46% RAIA DROGASIL 18.44 ▼ 1.23% RDOR3 35.72 ▼ 0.81% HAPV3 10.86 ▼ 1.18% FLRY3 16.38 ▼ 0.79% SMTO3 15.70 ▲ 1.09% UGPA3 31.82 ▲ 2.32% VBBR3 34.30 ▲ 1.63% BBSE3 41.22 ▲ 1.25% BPAC11 56.40 ▼ 1.12% CURY3 31.60 ▼ 3.45% AERI3 2.03 ▲ 0.50% VIVARA 23.25 ▼ 1.15% COMPASS 24.77 ▼ 1.35% VAMOS 3.16 ▲ 1.28% SANB11 26.92 ▼ 0.30% ASAI3 8.47 ▼ 2.19% SBSP3 29.31 ▼ 2.23% WALMEX 49.54 ▼ 0.32% GMEXICO 200.57 ▲ 0.18% FEMSA 224.52 ▲ 0.56% CEMEX 22.76 ▲ 0.62% GFNORTE 180.24 ▼ 1.76% BIMBO 58.00 ▲ 0.83% TELEVISA 9.52 ▼ 0.42% AMX 22.84 ▲ 0.18% GAP 392.39 ▼ 1.18% ASUR 280.52 ▼ 1.04% OMA 232.65 ▼ 1.08% KOF 179.26 ▲ 1.30% GRUMA 285.42 ▲ 1.45% KIMBER 38.74 ▲ 0.21% SQM-B 66,050 ▼ 2.72% COPEC 6,126 ▼ 1.35% BSANTANDER 78.16 ▼ 0.61% FALABELLA 5,853 ▼ 0.37% ENELAM 84.80 ▼ 1.11% CENCOSUD 2,005 ▼ 1.72% CMPC 1,074 ▼ 2.63% BANCO CHILE 188.88 ▼ 0.33% LATAM AIR 25.40 ▲ 2.01% YPF 76,700 ▼ 2.36% GGAL 7,860 ▼ 4.20% PAMPA 5,090 ▼ 2.86% TXAR 661.50 ▼ 1.42% ALUAR 942.00 ▼ 1.82% TGS 9,385 ▼ 3.74% CEPU 2,250 ▼ 4.01% MIRGOR 16,650 ▼ 1.91% COME 44.30 ▼ 2.91% LOMA NEGRA 3,610 ▼ 0.07% BYMA 299.00 ▼ 1.64% TELECOM ARG 4,180 ▼ 3.13% ECOPETROL 15.80 ▼ 1.13% BANCOLOMBIA 79.11 ▼ 2.99% GRUPO AVAL 5.00 ▼ 0.60% CREDICORP 388.87 ▼ 2.34% SOUTHERN COPPER 175.30 ▼ 3.44% BUENAVENTURA 30.17 ▼ 1.76% MERCADOLIBRE 1,854 ▲ 0.57% NUBANK 13.76 ▼ 0.87% XP 16.70 ▼ 1.04% PAGSEGURO 9.10 ▼ 1.19% STONE 11.20 ▼ 0.75% GLOBANT 32.68 ▲ 2.19% TECNOGLASS 47.22 ▲ 3.39% GAP AIRPORT 224.93 ▼ 1.26% ASUR 280.52 ▼ 1.04% OMA AIRPORT 106.86 ▼ 0.96% AMX ADR 26.11 — 0.00% FEMSA ADR 128.97 ▲ 0.16% CEMEX ADR 13.06 ▼ 0.11% PETROBRAS ADR 17.55 ▼ 1.76% VALE ADR 14.22 ▼ 3.10% ITAU ADR 8.32 ▼ 1.54% SANTANDER BR 5.30 ▼ 1.03% AMBEV ADR 3.05 ▲ 0.50% CSN 1.02 ▼ 0.97% GERDAU 4.71 ▼ 1.98% LATAM ADR 52.97 ▼ 3.46% BTC 64,213 ▼ 0.77% ETH 1,873 ▼ 2.29% SOL 75.74 ▼ 1.97% XRP 1.09 ▼ 1.67% BNB 575.42 ▼ 0.81% ADA 0.16 ▼ 1.70% DOGE 0.07 ▼ 0.96% AVAX 6.59 ▼ 1.58% LINK 8.38 ▼ 1.85% DOT 0.85 ▲ 0.78% LTC 45.20 ▲ 0.17% BCH 221.87 ▼ 0.57% TRX 0.32 ▼ 0.43% XLM 0.19 ▲ 0.55% HBAR 0.07 ▼ 0.72% NEAR 2.02 ▼ 2.08% ATOM 1.53 ▼ 1.58% AAVE 92.31 ▼ 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Brazil Politics - Brazil

Analysis: If Biden Wins, Will Bolsonaro Choose “Realpolitik” or Frontal Clash?

By · October 28, 2020 · 4 min read

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By Mauro Mantica

RIO DE JANEIRO, BRAZIL – If Biden wins, will Bolsonaro choose “realpolitik” or a frontal clash? The American presidential elections are fast approaching and the possibility of a Joe Biden victory becomes more and more a concrete possibility. But what consequences could this victory have for Brazil?

The American presidential elections are approaching and the possibility of a Joe Biden victory becomes more and more a concrete possibility.
The American presidential elections are approaching and the possibility of a Joe Biden victory becomes more and more a concrete possibility.(Photo internet reproduction)
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It is well known that Bolsonaro, along with his family clan, is a huge fan of Trump. Since he was elected, he has transformed a relationship that should be state vs state, into a government vs government, if not a real personal relationship with Trump.

It must be said, however, that this sort of Bolsonaro idolatry of Trump has never generated great benefits for Brazil, not even from an economic point of view.

In other words, if for Bolsonaro Trump represents the only international reference, for Trump Brazil is an ally of little importance at the geopolitical level. The gestures of submission by the Bolsonaro government towards the USA (threat of exit from the WHO and abandonment of the Paris agreements on the environment, to name just the two most striking examples) have never been matched with concrete gestures of support by Trump and therefore of the USA (not even the support for Brazil’s entry into the OECD). On the contrary, true to his “America First” line, Trump had no hesitation in creating tariffs or non-tariff barriers to protect US companies from competition from Brazilian industry (see the case of ethanol quotas and export barriers. of Brazilian steel and aluminum).

Despite the poor results of this policy of privilege of the relationship with Trump, his eventual non-re-election can cause serious damage to Brazil. The fact of not having cultivated state vs state diplomatic relations would have the first consequence of having to build a new relationship from scratch and with US interlocutors who are certainly not benevolent.

Biden’s agenda is exactly the opposite of Trump’s (and, consequently, Bolsonaro’s) and favors the fight against global warming, returning to the Paris agreement, the preservation of the Amazon, the protection of indigenous peoples, the protection of human rights, gender policies and is against the culture war. So, on what basis would this relationship be reconstructed? What common points could there be? According to Rubens Ricupero, a renowned expert in international relations and former Brazilian ambassador to Washington, there are two possibilities: either Bolsonaro maintains his positions unchanged, however manifesting them in a more moderate way, or he starts a dialogue on these issues, modifying his positions and aligning them more to those of most Western countries.

The internal political price of a radical change would probably be too high, which is why Bolsonaro – in the event of Biden’s election – is likely to try to keep a very low profile, without exposing himself unnecessarily on issues in which he would find himself isolated.

The problem is that on issues related to the preservation of the Amazon and the protection of indigenous peoples, the positions of the Democratic Party are very harsh towards Brazil.

The Democratic majority in the Ways and Means Committee of the House of Representatives, a key committee for any negotiation, sent a letter two months ago to the USTR, the US government’s foreign trade department, saying that they were opposed to any negotiation or agreement involving the increase of Brazilian exports to the United States. The letter stated that the Brazilian government cannot benefit from trade with the United States because it is destroying the Amazon, violating the rights of workers and indigenous peoples. Therefore, unless the Democrats change their minds, the possibility of finding a deal with the possible future government is very remote today.

Biden himself, during the election campaign, openly criticized the environmental policy of the Bolsonaro government. His proposal is to create an international fund of 20 billion dollars to protect the Amazon, which should be managed by the Brazilian government. If there were not enough interventions to slow the fires and deforestation in the region, heavy economic sanctions would be triggered against Brazil.

In the hypothesis of a “slam” (victory by Biden and conquest of the democratic majority also in the Senate) the scenario would be even more adverse to Brazil. With the support of Congress (Senate and House of Representatives both with a Democratic majority), Biden would have an easy time to pass laws and reforms, unlike Trump, who in his first term could not count on the Republican control of the House of Representatives.

In conclusion, in the event of Biden’s victory, Bolsonaro will need a high dose of “realpolitik” to minimize the risk of strong repercussions at all levels and avoid political isolation that would also be extremely damaging to trade.

Source: Updatebrazil.com

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