Brazil President Luiz Inácio Lula da Silva has become the first president in over a century to have a Supreme Court nominee rejected by the Senate — a stinging political blow ahead of October's general election. The Economist describes the defeat as a major setback for an 80-year-old leader preparing his seventh presidential campaign. His likely opponent will be Flávio Bolsonaro, son of jailed former president Jair Bolsonaro. The country's benchmark interest rate stands at a punishing 14.75%, with credit card rates averaging an eye-watering 452% annually — fuelling widespread economic discontent. Three-quarters of Brazilians believe the Supreme Court has too much power, while corruption scandals have enveloped the judiciary itself. One in four Brazilians report falling behind on debt repayments. With the October election approaching and no centrist alternative emerging, the country faces yet another deeply polarising contest — a pattern that has defined Brazilian politics since Bolsonaro's rise in 2019.
Sources: The Economist, Reuters, Bloomberg