Donald Trump was elected president of the United States, staging a historic upset against former Secretary of State Hillary Clinton. For Brazil, this could mean bad news regardless of your political views. As the votes started rolling Trump\u2019s way, stock markets across the globe plunged due to the fear of Trump\u2019s anti-free trade agenda. The Republican\u2019s victory could cause problems for the recovery of Brazil\u2019s economy. Early on Wednesday, Brazil\u2019s currency, the Real, tumbled 2 percent after having gained nearly 24 percent in value this year.<\/p>\n
Trump\u2019s election has also had a negative impact on Brazil\u2019s stock market. The BM&F Bovespa index, Brazil\u2019s stock exchange, had risen 50 percent between January and October. Last week, though, it dropped 5.1 percent \u2013 and Petrobras\u2019 shares lost 6 percent of its market value. All because of the \u201cTrump risk.\u201d<\/p>\n
Before the markets opened, the Brazilian Central Bank announced that it would cancel an auction of up to $250 million worth of reverse currency swaps scheduled for the day, without offering an explanation.<\/p>\n
We don\u2019t know quite just yet how Donald Trump\u2019s administration will impact Brazil. \u201cThe biggest problem for us, right now, is the uncertainty created by his victory,\u201d posits Fernando Brancoli, a professor of international relations at Funda\u00e7\u00e3o Getulio Vargas. \u201cHillary Clinton was more open to free-trade deals; we knew what to expect from her.\u201d<\/p>\n
Notwithstanding the stock market results, Pedro Vartanian, a professor of economics at Mackenzie University, doesn\u2019t believe that Trump\u2019s election will have a major impact in trading deals between Brazil and the United States. \u201cRegardless of who their president is, we don\u2019t have much access to the American market,\u201d he says. \u201cRight now, all we can do is wait and see if he will fulfill promises like toughening the relationship with China.\u201d<\/p>\n
There is also the issue of immigration. There are currently 1.3 million Brazilians living in the United States \u2013 and most of them are undocumented. If Trump keeps his promises of mass deportations, it could severely impact those immigrants.<\/p>\n
The Trump trend could spread around Latin America, and especially in Brazil. \u201cPeople are tired of the establishment, and these individuals who describe themselves as \u2018outsiders,\u2019 even when they\u2019re not, are capitalizing,\u201d says Professor Fernando Brancoli. Brazil\u2019s recent municipal elections showed the strength of this phenomenon when S\u00e3o Paulo elected, in the first-round election, a businessman with limited political experience. Does that ring any bells?<\/p>\n
Brazilian Congressman Jair Bolsonaro celebrated the result. On Twitter, he declared: \u201cThe victory goes to the man who fought \u2018everyone and everything.\u2019 In 2018, Brazil will follow the same path.\u201d<\/p>\n
It might actually happen. Bolsonaro, a man who gained notoriety for his racist, homophobic rants, is polling at 10 percent for the presidential race. He is the candidate preferred by 25 percent of wealthy Brazilians. The question is, after Trump\u2019s win, can we doubt such results?<\/p>\n
<\/p>\n
Source:\u00a0<\/strong> plus55.com<\/p>\n","protected":false},"excerpt":{"rendered":" Donald Trump was elected president of the United States, staging a historic upset against former Secretary of State Hillary Clinton. For Brazil, this could mean bad news regardless of your political views. As the votes started rolling Trump\u2019s way, stock markets across the globe plunged due to the fear of Trump\u2019s anti-free trade agenda. The Republican\u2019s victory could cause problems… Read more »<\/a><\/p>\n","protected":false},"author":26,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-381","post","type-post","status-publish","format-standard","hentry","category-article"],"_links":{"self":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts\/381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/comments?post=381"}],"version-history":[{"count":1,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts\/381\/revisions"}],"predecessor-version":[{"id":382,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/posts\/381\/revisions\/382"}],"wp:attachment":[{"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/media?parent=381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/categories?post=381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/theamericasblog\/wp-json\/wp\/v2\/tags?post=381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}