The real weakened past 4 per dollar and the Ibovespa dropped on speculation newly appointed Finance Minister Nelson Barbosa won’t be a strong enough advocate for reining in Brazil’s growing budget deficit.
The benchmark equity gauge and the currency reversed gains after Barbosa ended a conference call with investors without providing a specific roadmap for restoring Brazil’s fiscal health. Lenders Itau Unibanco Holding SA and Banco Bradesco SA contributed the most to the decline in stocks. State controlled oil producer Petroleo Brasileiro SA, lender Banco do Brasil SA and power utility Centrais Eletricas Brasileiras were among the worst performers on the index. The real slumped to the lowest level since September.
The former planning minister took over the finance job amid a deepening economic crisis. The change, said to be spurred by former minister Joaquim Levy’s frustration at the government’s inability to push through fiscal reforms, adds to a muddled political outlook after the Supreme Court ruled last week on new impeachment procedures that may improve President Dilma Rousseff’s odds of hanging onto her job.
Brazil Energy Insight 
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