Neuberger Berman duo: Brazil's reform-minded Bolsonaro could restore EM sentiment

Second round on Sunday

Conrad Saldanha, senior portfolio manager, and Gorky Urquieta, global co-head of EMD at Neuberger Berman, have previewed what to expect in the second round of the Brazil elections on Sunday and how they are positioned in the country.

Jair Bolsonaro will face off against Fernando Haddad in the second round of Brazil's presidential election this Sunday, after Bolsonaro narrowly missed winning the first round outright two weeks ago. Financial markets have made Bolsonaro the favourite, particularly now the centre-right alternatives are out of the race. Brazilian assets have opened up an unusually wide performance gap against other emerging markets since the first round of the election, in the face of a globally volatile environment for risk. But are markets justified in setting so much store in Bolsonaro as an econ...