Rousseff Said to Eye Vale, Coteminas CEOs for Market OutreachAnna Edgerton
Brazilian President Dilma Rousseff will use business leaders as unofficial ambassadors to help ease market concerns about a possible second term, according to a member of her cabinet who asked not to be named because the information isn’t public.
Investors are rallying behind opposition candidate Aecio Neves, who in a surprise comeback ran second to Rousseff in the first round of Brazil’s presidential election yesterday. The Ibovespa index rose 5 percent at 4:39 p.m. local time on speculation Neves could beat Rousseff in the Oct. 26 runoff.
Murilo Ferreira, chief executive officer of iron-ore miner Vale SA, and Josue Christiano Gomes da Silva, CEO of textile producer Companhia de Tecidos Norte de Minas, have been suggested by Rousseff’s inner circle as ideal for outreach to the business community, the government official said. Neither executive has spoken out in support of the opposition, and they aren’t members of Rousseff’s Workers’ Party, so they have credibility to serve as bridges to industry and markets, the official said.
Rousseff received 42 percent of votes in the first round of the election, eight percentage points more than Neves of the Brazilian Social Democracy Party. Rousseff yesterday stood in front of an enormous sign saying “New Government, New Ideas,” as she told supporters her second term would have new policies for better controlling inflation without adjustments that would threaten salaries and employment.
Brazil’s economy slipped into a recession in the first half of the year, with inflation hovering near the 6.5 percent upper limit of the target range set by policy makers. Rousseff said Sept. 8 her new government would have a fresh team, including a replacement for Finance Minister Guido Mantega.
Gomes, 50, is the son of Josue Alencar Gomes da Silva, the late vice president of Dilma’s predecessor, Luiz Inacio Lula da Silva, and a member of the Brazilian Democratic Movement Party, the largest party in Rousseff’s allied base. He was elected a board member representing minority shareholders for state-controlled oil company Petroleo Brasileiro SA in 2012 and has voted with the government on most decisions.
Ferreira, 61, was appointed CEO of Vale in early 2011, his second stint as executive of the world’s largest iron-ore producer and Brazil’s biggest exporting company. With more than 30 years of experience in the mining industry, he hails from Minas Gerais state, Brazil’s second most populous.
Vale declined to comment in an e-mailed statement. Coteminas declined to comment when contacted by phone.