Petrobras CEO saga sends bonds tumbling as fiscal fears mount

Petrobras bonds slumped on Monday after Brazil's president Jair Bolsonaro nominated retired general and former defence minister Joaquim Silva de Luna to be the state-owned oil and gas giant’s new CEO. One analyst decried “corporate statism” as others saw the decision as a warning about the direction of Brazil’s fiscal policy.

Brazil’s Ministry of Mines and Energy sent Petrobras a letter after market close on Friday requesting that Silva de Luna — who has no experience in the oil and gas industry — replace Roberto Castello Branco as CEO. This came after Bolsonaro had criticised Castello Branco for his ...