The elected president of the Brazilian far right turns a blind eye to his relations with the United States

RIO DE JANEIRO (Reuters) – Jair Bolsonaro, former right-wing captain of the army and winner of the Brazilian presidential election, announced Monday that he would continue loosening legislation on firearms and that he would go to Washington after a friendly call to the American president. Donald Trump.

Bolsonaro, who at the beginning of his legislative career declared that he was "favorable" to dictatorships and demanded the dissolution of Congress, vowed to adhere to democratic principles while retaining a copy of the country's constitution.

Trump said he had an "excellent call" congratulating Bolsonaro and tweeted about their project to "work closely on trade, the military and everything else!"

Investors quickly applauded Bolsonaro's victory, making BSCSP, Brazil's benchmark stock index, an all-time high early in the trading session, before stock prices tumbled as traders posted profits after a sharp selloff. up this month.

In opinion polls, Bolsonaro experienced a sharp rise in the markets, pledging to quickly fill Brazil's budget deficit and privatize state-owned companies. Investors stated that the additional gains would depend on the clarity of the signs it could provide in a market-friendly program.

His election, however, alarmed critics around the world, given his defense of the 1964-1985 military dictatorship, his promise to sweep away left-wing political opponents and his history of derogatory comments about homosexuals, women and men. the minorities.

Bolsonaro's victory brings the Brazilian army back to the center of the political scene after three decades in the barracks following the country's return to civilian rule. Several retired generals will serve as ministers and close advisers.

"You are all my witnesses that this government will defend the constitution, freedom and God," Bolsonaro said in a live video on Facebook, in his first comments after his victory.

The future chief of staff of the president-elect told Reuters that his first international trip would be to Chile, another South American country that swung to the right in the last election, and hoped to visit the United States shortly. of time after.

Trump's declared admirer, Bolsonaro also promised to realign Brazil with more advanced economies, such as the United States, by reshaping diplomatic priorities after nearly fifteen years of party of the left party.

GREFT AND CRIME

Bolsonaro easily won the race for the presidency, despite the lack of campaign resources and the lack of support from major parties, as he exploited Brazil's anger over corruption and crime.

In an interview with TV Record on Monday night, Bolsonaro presented some of his first concrete steps on both fronts.

Bolsonaro said he would pressure the Brazilian Congress to relax the country's restrictive firearms laws this year, even before it took office on Jan. 1.

He reiterated that the widespread possession of firearms would limit crime, even though critics fear that it will no longer add to Brazil's record, which recorded nearly 64,000 homicides last year, the highest in the world. .

Bolsonaro also said that he wanted to appoint Sergio Moro, judge of the anti-corruption crusade, his justice minister or the newest member of the Supreme Court.

Moro, who oversaw the "Car Wash" trials that sent many politicians and powerful businessmen to jail, including former president Luiz Inacio Lula da Silva, did not immediately respond to a request for comment.

Bolsonaro, a 63-year-old former paratrooper, joins the list of right-wing populist personalities who have won elections in recent years, including Trump, Philippine President Rodrigo Duterte and Hungarian Prime Minister Viktor Orban.

Trump's friendly appeal points to closer political ties between the two largest economies in the Americas, both now led by conservative populists promising to overthrow the political establishment.

In a telephone conversation Monday with US Secretary of State Mike Pompeo, Bolsonaro discussed collaboration on priority foreign policy issues, including Venezuela, the fight against transnational crime and ways to strengthen economic ties.

Bolsonaro has pledged to step up pressure on Venezuela's left-wing authoritarian government to hold free elections that could stem the flow of refugees into neighboring Brazil and Colombia, also ruled by a conservative president.

Politician at the State University of Rio de Janeiro, Mauricio Santoro has expressed concern that Brazil will not soon dispel the tense and sometimes violent atmosphere surrounding the polarization campaign.

"It is possible that even with his victory, we could witness a new wave of violence among Bolsonaro supporters against those who supported his opponent," Santoro said.

Bolsonaro supporters carried out physical attacks and organized online harassment campaigns just before Sunday's vote, targeting in particular journalists, according to a report by Abraji, an investigative journalism group.

Bolsonaro himself was stabbed in the abdomen at a rally last month and will have to undergo surgery in mid-December to remove a colostomy bag before being able to travel to Santiago and Washington.

EASY WINNER

Bolsonaro won 55% of the vote in a second round against the leftist candidate Fernando Haddad of the Workers Party (PT), which got 45%, according to the TSE Electoral Authority.

The controversial rise of the legislator was motivated by the rejection of the left-wing PT that led Brazil for 13 of the last 15 years and was ousted two years ago in the midst of a severe recession and corruption scandal policy.

Thousands of Bolsonaro supporters applauded and set fireworks outside his home in the Barra de Tijuca waterfront district of Rio de Janeiro when he announced his victory. .

"I do not adopt Bolsonaro and I do not know if he will rule well, but we are hopeful. People want to get out of the PT, they can not stand corruption anymore, "said Tatiana Cunha, a 39-year-old systems analyst at loud celebrations.

Investors hope that Bolsonaro will carry out the tax reforms proposed by his orthodox economic guru, Paulo Guedes.

Brazil's benchmark index, the Bovespa .BVSP stock index, rose 3.0%, hitting a record high in terms of market opening, followed by the shares of the companies. State and leading companies, before falling back and closing down 2.2%.

The Brazilian currency, the real BRL =, gained about 10% against the US dollar this month, as Bolsonaro's outlook improved.

Investors were particularly encouraged by the choice of Bolsonaro by Guedes, an economist and investment banker educated at the University of Chicago, as future minister of the economy.

Guedes, who wants to privatize a large number of state-owned companies, said on Sunday that the new government would try to erase Brazil's budget deficit in one year, simplify and reduce taxes and create 10 million jobs by reducing Social charges. New rules will boost investment in infrastructure, he told reporters.

Nevertheless, Fitch Ratings on Monday highlighted the "major fiscal challenges" facing the Bolsonaro team, while weak economic growth and a huge budget deficit leave little room for maneuver.

"The exact details of how his administration intends to achieve its goals are limited," wrote Fitch analysts, led by Shelly Shetty. "Lack of fiscal space, high unemployment and sluggish economic recovery will likely limit economic policy options."

Onyx Lorenzoni, a member of Congress whom Bolsonaro has appointed as chief of staff, told reporters that Guedes would be responsible for structuring relations between the government and an independent and autonomous central bank with objectives.

Asked about the Brazilian currency, Mr Lorenzoni said Mr Bolsonaro would offer companies more predictability, but ruled out an exchange rate target. Lorenzoni reiterated his view that the reform efforts of the Brazilian pension system should wait until next year.

In another interview with Reuters, he said the president-elect would meet Guedes and other members of his team on Tuesday. He will oversee the transition between Rio this week and fly to the capital Brasilia next week, Lorenzoni added.

Retired General Augusto Heleno, who is expected to become Defense Minister, told reporters that Mr. Bolsonaro had a favorable opinion on the creation of a $ 4.75 billion joint venture between Boeing Co (PROHIBIT) and the Brazilian planner Embraer SA (EMBR3.SAHe stated that the Temer government could approve the agreement before leaving.