News in brief: Brazil, politics, Brexit, EU, Europe

News in brief
News in brief

Political uncertainty rocks Brazilian markets

Brazilian president Dilma Rousseff is facing potential impeachment. The latest figures from the Datafolha institute show that 68% of Brazilians want Rousseff to leave her post.

This political uncertainty is affecting the financial markets. Sun Global Investments CEO Mihir Kapadia says: “Anger over corruption combined with the worst recession in years, have led to a tense political climate with polls suggesting two thirds of Brazilians wanting Rousseff to go.

“This has been reflected in the financial markets, whereby loss of confidence in the government is now widespread. The increased likelihood of impeachment is buoying investor confidence in Brazilian assets with the Sao Paulo stock exchange leaping 6.6% last week, up 28.1% in 2016, as both stocks and the currency has advanced. This is a strong indication that the odds are now against Rousseff remaining in power.”

Entrepreneurs still undecided about Brexit

Entrepreneurs and early stage investors are still split on the issue of whether the UK should leave the European Union.

While half of investors (51%) and entrepreneurs (48%) would vote to stay in the EU, 47% of investors and 43% of entrepreneurs would vote to leave, according to new research from Seedrs. Nearly one in 10 entrepreneurs (9%) said that they had no preference either way, compared to just 2% of investors.

In a separate poll, Seedrs asked respondents what impact Britain leaving the EU would have on the UK start-up environment. Almost two thirds (63%) said it would have a negative effect, while 16% said it would be positive. More than one in five (21%) said they were unsure what impact it would have.

Seedrs CEO Jeff Lynn said: “The very even split between the in and out vote shows what a complicated issue this is. It’s clear that this has become a debate lacking real information and that we are instead hearing soundbites from both sides. There is a need to present people with real information to help them make an informed decision in June.”