American midterms enter the Lula government's account on the relationship with Washington
Planalto awaits the vote on Tuesday (3) to calibrate the relationship with Washington after Flávio Bolsonaro's trip to the United States.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
While observing the American legislative election, the Lula government adopted caution in the face of an episode that affects diplomacy between Brasília and Washington. According to InfoMoney, Senator Flávio Bolsonaro's (PL) trip to the United States did not provoke an official reaction from the Executive, which preferred to wait for the results of the midterms, scheduled for Tuesday (3), before calibrating its relationship with the American government.
The reading in Planalto, according to the same report, is that the vote could change the balance of forces within the United States and, consequently, influence bilateral relations. In other words, the government treats the American election as a factor capable of redesigning the scenario with which Brasília will have to deal.
According to InfoMoney, Lula wants to leave the issues involving Flávio Bolsonaro under the responsibility of Brazilian justice, removing the topic from the diplomatic agenda. The movement seeks to separate an issue of an internal nature from the conduct of relations with other countries.
The central objective, according to the report, is to avoid an escalation of tensions with Donald Trump, president of the USA, and Javier Milei, president of Argentina. What is at stake is Brasília's ability to maintain open channels with these governments without entering into open confrontation, precisely at a time when the American electoral result is still unknown.
What changes for the investor
For those who follow the stock market, Nasdaq, interest rates and exchange rates, the central point is the degree of predictability. A change in tone in the relationship with the United States after the midterms could alter the perception of risk regarding the Brazilian economy, and this political noise could appear in assets sensitive to the external scenario. The report does not provide market data on the topic, so the effect should be treated as a possibility to be monitored, and not as a prediction. It is worth following the results of the American vote and the government's stance in the following weeks, without drawing early conclusions.
Automatically translated from Portuguese.
