Jair Bolsonaro

Brazil's Jair Bolsonaro is making investors nervous

Jair Bolsonaro
Brazilian President Jair Bolsonaro. Photo: Mandel Ngan/AFP/Getty Images

The CEO of Brazil's state-controlled oil company Petrobras says there was no government interference in the company's decision not to increase the price of diesel after he received a phone call from President Jair Bolsonaro.

Details: Castello Branco, Petrobras' CEO, said Bolsonaro simply warned him during the call about the risks of a potential new truckers' strike if diesel prices rose, Reuters reports.

Brazil, Bolsonaro and the Bovespa

Brazilian President Jair Bolsonaro is pictured here speaking at a podium at the White House, with an American and Brazilian flag behind him.
Brazilian President Jair Bolsonaro attends a joint news conference with President Trump at the White House. Photo: Chris Kleponis-Pool/Getty Images

Brazil's last 3 presidents have not fared well legally, but its market has managed to remain stable.

Why it matters: The country's stock market has largely shaken off political turmoil as investors continue to believe in a widely unpopular pension reform current President Jair Bolsonaro has backed in an effort to repair Brazil's highly overleveraged and underfunded budget.