WEBVTT - Bloomberg's Colitt on Impeachment of Brazil's Rousseff(Audio)

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<v Speaker 1>This is taking stock with Pim Fox and Kathleen Hayes

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<v Speaker 1>on Bloomberg Radio. Til Marussof, the president of Brazil, could

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<v Speaker 1>be hours away from being forced out of office, at

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<v Speaker 1>least temporarily. Let's find out the details from Raymond. Call

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<v Speaker 1>it he is Bloomberg Bureau chief joining us from Brazilia

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<v Speaker 1>in Brazil. Raymond, thank you for joining us. Tell us

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<v Speaker 1>the latest. What is going on right now? The debate

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<v Speaker 1>in the Senate, the upper house of Brazil's Congress, started

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<v Speaker 1>this morning. It's a bit behind schedule. Only twelve of

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<v Speaker 1>the sixty three senators that signed up to speak have

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<v Speaker 1>done so so far, so we're expecting this actually to

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<v Speaker 1>go well into the night or the early morning hours

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<v Speaker 1>of Thursday. UM. The latest polls show that the opposition

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<v Speaker 1>will have the votes to have her stand a trial

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<v Speaker 1>and and and stepped down temporarily, meaning that the Vice President,

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<v Speaker 1>Michelle Tamer will will power takeover UM sometime on Thursday.

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<v Speaker 1>So what has been delmo recess biggest sin? Please explain

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<v Speaker 1>to our listeners. Is it a recession? Is it a

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<v Speaker 1>budget deficit that wants to get into control? Is it

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<v Speaker 1>a taint of scandal that's a good question. I mean, technically,

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<v Speaker 1>the charges against her in the Senate currently is for

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<v Speaker 1>having illegally used tapped into state banks UH to finance

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<v Speaker 1>a budget deficit. Now, obviously it goes much further than that.

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<v Speaker 1>There's a sense that she mismanaged the economy in recent years.

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<v Speaker 1>The budget deficit, for example, tripled in only two years

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<v Speaker 1>UM to to around ten per of GDP. Inflation is

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<v Speaker 1>way above target, there's no investor confidence, UM, the economies

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<v Speaker 1>in its worst recession in over a century. UM. So

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<v Speaker 1>you get a picture of Brazilians are not happy. They're

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<v Speaker 1>not happy with their president. And this is not entirely

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<v Speaker 1>a legal process. In other words, it's not based only

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<v Speaker 1>on legal facts, but it is also a political process.

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<v Speaker 1>Hence it went to Congress and not to the Supreme

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<v Speaker 1>Court for her to stand trial. Can you outline the

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<v Speaker 1>process of what happens next if indeed she is impeached?

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<v Speaker 1>As I said that, we're expecting the vote sometime late

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<v Speaker 1>to night early tomorrow morning. Then the Senate officially UH

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<v Speaker 1>communicates the the vote to the president she will have

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<v Speaker 1>to step down. The Senate also decides under what conditions

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<v Speaker 1>what kind of privileges does she maintain? If any she

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<v Speaker 1>for example, she's likely to stay in the presidential palace

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<v Speaker 1>but probably won't be able to, you know, use the

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<v Speaker 1>presidential plane and those kinds of things. Then hours later

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<v Speaker 1>the Vice President takes over UM as acting presidents and

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<v Speaker 1>in essence that the country will be in his hands.

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<v Speaker 1>A very few people expect rusself to be able to

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<v Speaker 1>bounce back to find the support in in in the

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<v Speaker 1>Senate to avoid a definitive ousta with a two thirds

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<v Speaker 1>majority in the Senate. So Raymon, tell us more about

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<v Speaker 1>Vice President Michael Tamayer. Uh, there is a question of

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<v Speaker 1>what kind of leader he would be. Delmo Roussef herself

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<v Speaker 1>has accused him throughout this process of deliberately undermining her

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<v Speaker 1>prolotting to get her out of office. What's he like?

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<v Speaker 1>How would he? But what is for his prospects vetted

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<v Speaker 1>in Brazil well, the financial markets, of course, UH see

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<v Speaker 1>him very favorably. He's more of a business friendly UM

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<v Speaker 1>person than than Dilma was. Thema, of course, from a

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<v Speaker 1>leftist party, from the Workers Party. UM. Timor has already

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<v Speaker 1>outlined some of his economic policies. Downsized government, try to

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<v Speaker 1>cut spending, give more room to the private sector, especially

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<v Speaker 1>in the oil industry and telecommunications. So for for the

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<v Speaker 1>better part of this year, financial markets have been been rallying. Now,

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<v Speaker 1>as we said, there are also some clouds hanging over

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<v Speaker 1>Michelle timer Um One is several of his aids, closest

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<v Speaker 1>allies within his own party are being investigated in the

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<v Speaker 1>same corruption probe that essentially rattled Brazil's political establishment, including

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<v Speaker 1>roussef In over the past two years. So that that

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<v Speaker 1>is a big caveat that that he faces that some

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<v Speaker 1>of his closest aids maybe become involved in the same

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<v Speaker 1>scandal as well. And the political establishment as a whole

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<v Speaker 1>is not very popular. As a matter of fact, two

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<v Speaker 1>thirds close to two thirds of the Brazilians are extremely disenchanted,

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<v Speaker 1>and that is something that will make his life difficult

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<v Speaker 1>when he tries to push for more austerity measures to

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<v Speaker 1>put the economy back on track. Thanks for spending time

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<v Speaker 1>with us and bringing us up to date, Raymond call

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<v Speaker 1>It is Bloomberg bureau chief in Brazilia and the Brazilian

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<v Speaker 1>Ebovespa index, the stock index is up nearly four so

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<v Speaker 1>far this year.