Lula Halts Privatization of Brazil’s State Companies; Wall Street Retaliates

Upon assuming Brazil’s Presidency on Jan. 1, Lula acted immediately to halt the privatization of Brazil’s state companies, most importantly oil giant Petrobras and its large Pre-Salt oil deposits. This was one of the central issues of the campaign, and it was widely expected as a defining policy issue for the incoming Lula government, along with a return to the BRICS and Mercosur pro-development international policies.