Petrobras Investors Tank Shares as Lula Makes a Populist Strategy Shift
- Lula reverses course to shield consumers from fuel cost swings
- Shares decline 11% in New York trading, most since late Nov.
Luiz Inacio Lula da Silva
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
Brazilian President Luiz Inacio Lula da Silva has pledged to steer the state-controlled oil giant Petrobras in a more populist direction and investors aren’t happy.
Petroleo Brasileiro SA will shield consumers from sharp fuel price swings and increase investments in refining projects to curb fuel imports, according to initial comments from Lula and his economic team. Petrobras fell 11% in New York Tuesday as investors gauge just how much the policy shift will erode profits and dividends.