(Bloomberg) -- One of Brazil’s most revered investors is bracing for a longer period of high inflation and elevated interest rates as leading presidential candidates double down on increasing public expenditures, jeopardizing the country’s fiscal outlook.Most Read from BloombergRussia Slips Into Historic Default as Sanctions Muddy Next StepsBig Tech Sinks Stocks Bruised by Recession Jitters: Markets WrapChina Cuts Travel Quarantine in Biggest Covid Zero Shift YetTesla Lays Off About 200 Autopilo
(Bloomberg) -- Brazil’s top hedge fund managers are piling into inflation-linked bonds, worried that the government’s bid to reduce fuel prices will worsen the nation’s fiscal outlook and end up keeping consumer prices high for longer.Most Read from BloombergTarget Tries to Save Itself by Putting Everything on SaleAmazon’s Stock Split Delivers More Than Bargained ForHedge Fund D1 Borrowed Billions for a Hot Bet That Now Faces ReckoningTarget's Oversupply Problem Should Scare All RetailersThese A
Brazilian stocks will rise less than previously expected this year as fears over October's presidential vote tarnish the outlook for the second half and double-digit interest rates prompt a switch to deposit accounts, a Reuters poll showed. In recent weeks, Brazil's benchmark Bovespa stock index has pared the bulk of its first-quarter gains, pressured by intensifying election rhetoric and the impact of the central bank's ultra-hawkish push to fight inflation. "We will face brutal election times, high interest rates are with us for the foreseeable future, and we have sticky inflation around the globe," said Andre Leite, partner and senior portfolio manager at Kairos Capital.