Brazil’s oil and gas giant Petrobras is on the brink of appointing its 12th CEO in 21 years. President Luiz Inácio Lula da Silva’s choice, Magda Chambriard, follows the recent ousting of Jean Paul Prates. The move comes amidst government attempts to influence leadership changes in other key sectors, raising concerns about interventionist policies.
In addition to Petrobras, government interference in Vale and potential shifts at the Central Bank are causing unease among analysts. The administration is also aiming to maintain a zero deficit and navigate complex tax reforms in Congress.
Analysts foresee continued intervention impacting asset pricing and the performance of the Brazilian real. Silvio Campos Neto and Diego Bonomo highlight the consequences of such measures, which include subsidies and state developmentalist strategies in industrial policy.
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