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Vale’s CEO shortlisted to be Brazil’s new finance minister

Vale’s CEO shortlisted to be Brazil’s new finance minister

Vale’s chief executive officer Murilo Ferreira.

Newly re-elected Brazilian President Dilma Rousseff is said to be planning the nomination of Vale’s (NYSE:VALE) chief executive officer Murilo Ferreira as her new finance minister.

According to Noticias de Mineracao (in Portuguese) Rousseff wants to use business leaders as unofficial ambassadors to help ease market concerns about her second term.

Other names said to be shortlisted to join the government are CEO of textile producer Companhia de Tecidos Norte de Minas, Christiano Gomes da Silva.

Rousseff received 42% of votes in the first round of the election, eight percentage points more than Aecio Neves of the Brazilian Social Democracy Party, former governor of Minas Gerais. On Sunday she scored 51.6% versus the 48.4% her challenger got in the second round.

The inclusion of well-known figures, such as Ferreira, is considered key for the success of Rousseff’s second period. Analysts say only a business-friendly appointment followed by credible action to strengthen the fiscal accounts and control inflation would reassure markets.

Brazil’s leader now faces the daunting task of sparking a moribund economy that’s underperformed since 2011, with some fearing it could put the social gains at risk.

Rating agencies have indicated they will downgrade Brazil if it cannot improve growth and address fiscal imbalances.

The new minister should be announced before the G-20 summit to be held on November 15 and 16 in Brisbane, Australia.