Audio – Brazil: Between a soft spot and a soft spot
A surprise run-off in Brazil’s presidential election should not be a cause for alarm for investors, emerging markets investment guru Mark Mobius told Reuters in a telephone interview.
Brazil’s stocks, bonds and currency markets gained on Monday after President Luiz Inacio Lula da Silva won only 48.6 percent of the vote on Sunday, short of the majority needed to win. Former Sao Paulo state Gov. Geraldo Alckmin won 41.6 percent of the vote, better than surveys had forecast.
“We’re not between a rock and a hard place, but between a soft spot and another soft spot,” said Mobius, who was speaking from Japan with reporters in New York. “He’s definitely the kind of guy that would follow similar policies to Lula, and maybe push the envelope a little further in terms of privatization,” he said of Alckmin.