News about Lula

Rio de Janeiro's daily brief for Tuesday, October 27, 2026 forecasts rain through the morning, showers into the afternoon and temperatures around 22°C. The main business story is the market fallout from Lula's election win, with Brazil's stock index and the real hit hard after the weekend vote, and the Treasury pulled this week's bond auctions. Most of the article is a guide to indoor options, including Museu do Amanhã, Museu de Arte do Rio (free on Tuesdays), the Jardim Botânico and the Real Gabinete Português de Leitura, with opening hours and entry fees. It also lists cafés for laptop work, Lapa bars and transport options such as a R$7.90 single metro fare. The forecast shows drier, brighter weather from Thursday and Friday.

PagSeguro (PAGS) shares fell 26.4% as of 11:20 a.m. ET, after surging earlier this month when conservative candidate Flávio Bolsonaro led incumbent Luiz Inácio Lula da Silva 47.3% to 44.8% in Brazil's first round. Lula won the second round with 51.8% of votes to Bolsonaro's 48.2%, prompting investors to pull back from Brazil-related stocks broadly. Bolsonaro is refusing to concede and challenging the results, alleging the administration suppressed voting in key districts, though it is unclear whether the claims have merit. Several South American heads of state have already congratulated Lula, who will likely remain in office through 2030. The article notes PagSeguro trades at 7.7 times trailing earnings, with analysts expecting more than 10% annual earnings growth over the next five years, which it says makes the stock look cheap regardless of the election outcome.

Brazil's October 25 presidential runoff between President Luiz Inácio Lula da Silva and Senator Flávio Bolsonaro could reshape the country's trade ties with the United States and its global role, with polls showing Bolsonaro holding a narrow lead. If Bolsonaro wins, the right would likely have a more favorable environment to advance constitutional changes on the judiciary and presidential reelection, while Lula would face a Congress that has shifted right. Ambassador James Story says Bolsonaro would quickly seek an Agreement on Reciprocal Trade to ease Section 301 tariffs imposed in July and could expand security and critical minerals cooperation, though Lula declined a February minerals alliance with Washington. Story argues the window for a US-Brazil reset is narrow, and Brazil holds what some estimates place as the second-largest rare earth reserves in the world.