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UBS upgrades Brazilian equities to attractive on fiscal optimism, sees 25% upside
Valor EconômicoSRC LO·BR·about 5 hours ago
Brazil has moved from ample fiscal space pre-2014 to a state of 'fiscal fatigue' since 2017, where high debt limits the government's ability to stabilize it, increasing fiscal risk and potential for capital flight. This structural deterioration raises sovereign risk and could pressure Brazilian assets, though the immediate market impact depends on policy response.