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Brazil's political arena is dominated by pre-electoral maneuvering as Lula courts the MDB and Bolsonaro's family faces legal pressure, while the economy sees strategic foreign investment and the society remains polarized over Lula's cultural tributes.
February 2026
Week of Feb 2, compared to 12-week average
Top sources covering Brazil
neutral with mixed signals
The economy is attracting major foreign investment in strategic sectors. Chinalco and Rio Tinto moved to buy control of a Brazilian aluminum maker, and Azul secured a $200 million deal with American and United airlines. However, the EU's move to provisionally apply the Mercosur deal was met with criticism from France's Macron.
Politics is consumed by coalition-building and legal battles ahead of elections. Lula is actively courting the MDB for a vice-presidential alliance while considering dropping Alckmin as his running mate. Concurrently, Bolsonaro's health is worsening as courts consider house arrest, and his family members face escalating legal and political scrutiny.
Security operations show a focus on organized crime and cross-border scams. Police found luxury properties linked to the Bacellar case, and a South Korea-Brazil police alliance was formed to combat a surge in K-pop romance scams. In São Paulo, thieves used bulletproof vests in street robberies, indicating brazen criminal tactics.
Society is sharply divided over the politicization of cultural events, centered on Lula. A samba school was downgraded after a Carnival tribute to Lula sparked a major political backlash, with parades featuring both tributes and protests targeting the president. This polarization unfolds against a backdrop of deadly floods in the southeast.
