Venezuela's Maduro concedes National Assembly defeat

Venezuela’s President Nicholas Maduro has conceded defeat to the opposition centrist and conservative alliance in elections for the country’s National assembly, ending 16 years of dominance by his Socialist Party.

According to Rede Globo, the Centrist and Conservative Parties had bagged 99 seats, while the socialists had 46 seats, with another 22 yet to be declared.

Speaking on national television, Maduro conceded the worst-ever defeat for the leftist movement founded by former leader Hugo Chavez in 1999.

The result followed chronic problems in the Venezuelan economy with GDP down 10% on an annualised basis and the unemployment rate hovering above 18.1%, according to IMF estimates. With rampant inflation, Venezuelans also faced shortages of staple foods and basic items, conditions described by Maduro as an "economic war" being conducted by the opposition from both inside and outside the country.

Venezuelan bonds rallied with news of the result. The price of Venezuela’s benchmark 9.25% securities, due in 2027, was up 2.58 cents to 44.7 cents on the dollar at 1524 GMT; the biggest increase since June. The yield on the securities fell 129 basis points to 23%; the largest decrease on a closing basis since 27 August, according to Bloomberg.

The country continues to struggle in the wake of the oil price decline, with OPEC, of which Venezuela is a member, opting in favour of maintaining its market position rather than supporting the oil price via production cuts at its latest meeting on Friday. At 1524 GMT, Brent was down 2.77% to $41.81 per barrel.

According to consensus estimates, Venezuela needed the oil price to be between $120-130 per barrel to balance its budget.

The next presidential election has been set for April 2019, with the opposition likely to curb the current government's powers and Maduro’s capacity to carry out populist measures.