# Lula Ignores Aides and Sparks Market Rout That Threatens Economy - Bloomberg

> Brazilian President Lula reportedly overrode aides by weaving tax-relief measures for the poor into a fiscal package, diluting the spending plan. The move helped trigger a stock market rout, and the real fell to a record low against the dollar.

- Date: 2024-12-02 · published 2024-12-02T12:00:00.000Z
- Category: policy · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/12458-lula-ignores-aides-and-sparks-market-rout-that-threatens-economy-bloomberg
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Fiscal uncertainty weakens the real, which raises the cost of imported feed ingredients and inputs for Brazilian buyers and can push up domestic inflation and interest rates.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2024-12-02 | 5 | +4.7% | 2.9 | Reports of Lula diluting the fiscal package with tax relief deepened fiscal credibility worries and triggered a market rout with the real at a record low on Dec 2. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-11-28 | [(USD BRL) Brazil’s Real Drops to All-Time Low as Spending Cuts Fall Flat - Bloomberg](https://feedsoft.ai/events/12461-usd-brl-brazil-s-real-drops-to-all-time-low-as-spending-cuts-fall-flat-bloomberg.md) | +1.7% | +5.6% |
| USDBRL | 2025-05-22 | [(BRL/USD) Real Sells Off as Brazil Taxes Remittances to Boost Budget - Bloomberg](https://feedsoft.ai/events/24891-brl-usd-real-sells-off-as-brazil-taxes-remittances-to-boost-budget-bloomberg.md) | -0.2% | -2.7% |
| USDBRL | 2021-03-02 | [Brazilian stocks, currency fall as tax hikes spook investors - Markets - Business Recorder](https://feedsoft.ai/events/12206-brazilian-stocks-currency-fall-as-tax-hikes-spook-investors-markets-business.md) | +2.9% | +3.7% |
| USDBRL | 2017-05-19 | [For These Die-Hard Investors, Now Is the Time to Buy Brazil - Bloomberg](https://feedsoft.ai/events/4357-for-these-die-hard-investors-now-is-the-time-to-buy-brazil-bloomberg.md) | -2.8% | -2.7% |
| USDBRL | 2017-05-18 | [Latest thoughts on Brazil (and EM) - BBH — Octa](https://feedsoft.ai/events/4361-latest-thoughts-on-brazil-and-em-bbh-octa.md) | +5.6% | +5.6% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2024-12-02/lula-ignores-aides-and-sparks-market-rout-that-threatens-economy

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.