Brazil Real, Stocks Lead World Declines Amid Political Turmoil
- Ibovespa drops to lowest since 2009, led by Itau and Bradesco
- Brazilian currency extends this year's slide to 33 percent
Brazil’s real and stocks led global declines amid speculation that President Dilma Rousseff would name Planning Minister Nelson Barbosa to replace Joaquim Levy as finance minister. The decision was announced after the market closed.
Barbosa is inheriting a deepening economic crisis marred by political turmoil, falling commodity prices and investor skepticism. The change, said to be spurred by Levy’s frustration at the government’s inability to push through fiscal reforms, adds to political turmoil after the Supreme Court ruled Thursday on new impeachment procedures that may improve Rousseff’s odds of hanging onto her job. Meanwhile, data showed economic activity declined more than forecast in October, while inflation accelerated to more than twice the the central bank’s target.