Trump says he will talk to Lula after the election and claims not to have taken sides

Donald Trump stated that he intends to talk to Lula after the election on Sunday (25). The statement, according to InfoMoney, was made this Thursday (29), to journalists, before Trump embarked for a rally in South Carolina.

According to the report, Lula asked Trump not to take sides in the dispute. Trump responded that he did not take sides and that he watched the election and let it happen. Lula is from the PT, the party contesting the election.

The toughest speech came in the evaluation of the process. Trump classified the Brazilian election as a "disgrace" and said that what he saw in Brazil was "disgrace", according to the same survey.

The episode gains weight because it mixes foreign politics and domestic disputes. A statement by a foreign head of government about an ongoing electoral process tends to reignite the debate about interference and sovereignty, sensitive topics for the relationship between Brazil and the United States.

For those who defend institutional predictability and clear rules, the central point is noise. An environment in which statements by foreign leaders change the tone of the campaign makes it difficult to read the scenario and prolongs uncertainty.

What changes for the investor

Political statements of this type tend to increase the sensitivity of Brazilian assets to external noise, especially exchange rates and interest rates, while the dispute remains open. If uncertainty about the bilateral relationship increases, investors may start to price more risk in the dollar and domestic assets. If there is conversation and détente, the effect may be the opposite. This report does not provide a buy or sell recommendation and does not predict price behavior.

Automatically translated from Portuguese.