Brazil: Investors buoyed as Dilma's 'damaging' reign nears an end

Following Brazil's Lower House of Congress vote to impeach President Dilma Rousseff earlier this week, investors have welcomed the possibility of regime change in the country. Here, three managers discuss what effects a change of government could have on the deteriorating Brazilian economy in the coming months as the country's stockmarket continues to see a sharp re-rating.

Gonzalo Pangaro, portfolio manager of the T. Rowe Price Emerging Markets Equity fund Investor sentiment towards Brazil has already improved over the last few weeks as the probability of impeachment has risen. A confirmation of this process will likely improve sentiment further. Over the last five years, Dilma Rousseff has been the driver of policies that have ultimately been harmful for the Brazilian economy and damaging for the fiscal and debt dynamics. The possibility of a change in government would at least be a first step in changing policy direction. Political change is needed ...