Brazil’s president, Luiz Inácio Lula da Silva was sworn in Monday for his second term in office. Lula was re-elected in October in a second-round victory against rival Geraldo Alckmin. The president has promised to prioritize growth and job creation during this second four-year term but has also pledged to keep public spending under control. However, the news last week that treasury secretary Carlos Kawall – an advocate of fiscal restraint and market favorite - had resigned gave little comfort to investors. Although Kawall resigned citing personal reasons, it has been rumored for some time that he was unhappy with the uptick in public spending. Kawall, who took over in March from Joaquim Levy, is replaced by his deputy Tarcisio José Massote de Godoy as interim secretary.
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