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After suspension of X in Brazil, mega-investor warns of flight of investments and compares the situation to that of China, where similar decisions led to capital flight and collapse of market valuations.
If you follow the world of investments and social media, you've probably heard about the recent controversy involving suspension of X (formerly Twitter)) in Brazil. The situation has generated a lot of noise, especially after criticism from Wall Street mega-investor Bill Ackman, who warned of the risks of this decision for the country's economic future. But what exactly is happening and how could this affect the investments in Brazil? Let's take a closer look.
What led to the suspension of X in Brazil?
It all started when the minister of the Federal Supreme Court (STF), Alexandre de Moraes, ordered the X suspension in Brazil, claiming that the platform failed to comply with a court order. The reason? Elon Musk, owner of X (formerly Twitter), did not appoint a legal representative for the company in Brazil, as had been requested by the court. The decision caused a real stir, both among users of the social network and in the business world.
Elon Musk, known for being very vocal on his social media, did not let it slide and made several criticisms of the STF's decision. He even created a profile on X called “Alexandre Files” to disclose confidential decisions by Minister Moraes, which only increased the tension between the company and the Brazilian authorities.
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- State of São Paulo will have a new bridge! Project valued at 27 MILLION has just been approved with the right to a roundabout and adaptation of a double lane
- APPROVED! Important railway will receive investment of 500 MILLION to be expanded and become one of the main railways in Brazil
- Petrobras gets a New Year's resolution in court and the fact alerts companies such as Vale, Americanas and others
The consequences for investments in Brazil
But what does this suspension mean for Brazil in terms of investments? According to Bill Ackman, one of the biggest investors in Wall Street, the decision puts Brazil on a dangerous path. He even compared Brazil's situation to that of China, where similar decisions have led to capital flight and a collapse in market valuations.
In a post on X itself, Ackman warned that Brazil could become an “uninvestable” market if it continues with this type of action. He highlighted that the illegal closure of the social network and the freezing of Starlink (another Elon Musk company) accounts in Brazil could drive away foreign investors and harm the country's economy in the long term.
This concern is not exaggerated. The business environment in Brazil is already facing challenges, and the suspension of one of the world’s largest communications platforms only increases the uncertainty for those considering investing in the country. Musk commented in a post that investing in Brazil under the current administration is “insane” and will only improve when there is new leadership.
The impact of the suspension of the old Twitter on the investment market
For those who follow the financial market, Ackman's speech sounds like a warning sign. suspension of old Twitter can be seen as an example of judicial intervention that directly affects the business environment, something that international investors usually avoid at all costs. When there is legal uncertainty, the foreign money begins to look for other more stable and predictable markets.
This is particularly worrying for a country like Brazil, which depends on investments external sources to leverage economic growth. If investors begin to view Brazil as a risky place to invest their resources, the impact could be devastating. This could lead to a pullback in investment in key sectors such as technology, energy and infrastructure, directly affecting the job creation and the country's economic development.
Elon Musk's reaction and the future of X in Brazil
Elon Musk, for his part, did not remain silent. In addition to criticizing the Supreme Court's decision, he also showed his dissatisfaction by sharing Ackman's post, reinforcing that investing in Brazil under the current administration is, in his words, "insane". This stance only increases tension and puts X's permanence in the country at risk, as well as Musk's other ventures, such as Starlink.
X's suspension also raises questions about freedom of expression and the role of social media in Brazilian society. Many users and experts question the extent to which the justice system should intervene in communication platforms and how this affects citizens' right to freedom of expression.
Is Brazil on a dangerous path?
The situation is still unfolding, but what is clear is that the suspension of old Twitter in Brazil could have serious consequences not only for the platform, but also for the country as a whole. If this trend of judicial intervention continues, we could see a decline in investments foreigners, something that Brazil cannot afford to face, especially in times of global economic uncertainty.
For now, the best thing investors can do is to closely monitor developments in this story and carefully assess the risks before making any decisions related to the Brazilian market. For the general public, this is a time to reflect on the balance between justice and freedom of expression, and how this affects society.
Bill Ackman's criticism of X suspension in Brazil should not be ignored. As one of the world's most influential investors, his words carry weight and reflect real concerns about the future of the investments in Brazil. The comparison with China, which saw a flight of capital after similar decisions, is a reminder that Brazil needs to act cautiously to avoid becoming an “uninvestable” market.
