America
Flavio Bolsonaro leads Lula as Brazil election heads to run-off
Brazil’s presidential contest between Lula and Flavio Bolsonaro is heading to a second round, as the Bolsonaro family secured a full contingent in the Senate.
Right-wing candidate Flavio Bolsonaro won the first round of the election, edging out incumbent Luiz Inacio Lula da Silva. However, he failed to secure the more than 50% of the vote required to win outright in a single round.
A run-off vote between the two candidates will take place on 25 October.
Flavio Bolsonaro is the son of former president Jair Bolsonaro, who was sentenced to 27 years in prison for plotting a failed coup attempt after losing the last election.
The race was neck and neck; during the campaign, President Lula had maintained a slight lead in the polls. With 99% of the votes counted, Bolsonaro took 47.03%, while Lula garnered 45.16%.
Bolsonaro’s result exceeded expectations, suggesting that the run-off is now within his grasp given that several other presidential candidates eliminated in the first round were right-wing alternatives.
Bolsonaro’s Liberal Party (PL) also emerged as the party securing the largest number of governors, senators, and federal deputies, according to results announced so far.
This means the party is expected to wield the greatest influence in Congress.
After casting his ballot, the 80-year-old Lula warned that the election was a choice between democracy and “barbarism”.
The 45-year-old Bolsonaro said he wanted to “liberate the Brazilian people”.
After winning election in 2002 and 2006, Lula defeated Jair Bolsonaro in 2022 by a margin of less than 2%, in what was the most closely fought presidential contest in Brazil’s history.
Following that election, on 8 January 2023, supporters of Bolsonaro ransacked government buildings.
Jair Bolsonaro was barred from running for office again even before he began serving his prison sentence; he endorsed the candidacy of his eldest son, Flavio, in his place.
Jair Bolsonaro’s wife, Michelle, was also elected to the Senate on Sunday.
Flavio Bolsonaro has pledged that, if elected, he will pardon his father and the supporters responsible for the 8 January riots.
Bolsonaro is more popular in the southern regions, among wealthier voters, and among evangelical Christians.
In a statement on Sunday, Bolsonaro said he was “very happy” to have finished ahead of Lula in the first round and expressed confidence that he would secure victory in the run-off in three weeks.
“I am very happy about the real possibility that in three weeks Brazil will give a definitive answer by electing a modern government,” the right-wing politician said.
Lula acknowledged that the election result was “unexpected” but stressed that the race was not over.
Speaking on Sunday, Lula said: “I admit I was convinced I would win in the first round. The match is about to begin. We are in extra time. In extra time, we will win the hearts of the Brazilian people.”
During the campaign, President Lula made the issue of “sovereignty” a cornerstone of his platform, periodically accusing the US of attempting to interfere in and influence Brazil’s elections.
Lula pledged to increase defence spending.
Earlier this year, Flavio Bolsonaro persuaded the US to designate Brazil’s two largest gangs as “terrorist organisations”.
In July, Brazil refused to grant visas to two US State Department officials. Brazil alleged that these officials had sought to cast doubt on the country’s voting system, a claim the US termed “unfounded”.
This development followed claims that Flavio Bolsonaro told a group of foreign diplomats that Brazil’s voting machines shared the same origin as those in Venezuela.
Last year, Donald Trump used Jair Bolsonaro’s coup trial as a pretext to impose tariffs on Brazil and sanction several senior officials and judges.
Should Flavio Bolsonaro win, Brazil is likely to join the US “Shield of the Americas” coalition against drug trafficking and pursue closer cooperation with the US.
However, Bolsonaro has pledged to maintain an “economically pragmatic” relationship with China, which has overtaken the US as Brazil’s largest trading partner and remains a vital customer for Brazilian soy and beef exports.
Corruption became a central theme of the campaign following a scandal involving Daniel Vorcaro, a now-imprisoned banker who orchestrated one of Brazil’s largest financial frauds, entangling senior figures from across the political spectrum.
Flavio Bolsonaro acknowledged that he had sought financing from Vorcaro for a biographical film about his father.
Lula was indirectly touched by the scandal after police alleged that Vorcaro sought assistance from Supreme Court Justice Alexandre de Moraes to evade arrest. Moraes denies any wrongdoing.
Although Moraes was not appointed by Lula, he is viewed as an ally of the president because he presided over Jair Bolsonaro’s coup trial.
Crime and insecurity were also among the electorate’s foremost concerns. While Brazil’s homicide rate has fallen, street offences that are highly visible to voters, such as mobile phone theft, have risen.
Violence and drug trafficking continue to be viewed as major problems.
Flavio Bolsonaro has pledged to designate Brazilian gangs as terrorists and construct maximum-security prisons modelled on those in El Salvador.
His father relaxed gun-ownership restrictions during his presidency.
While Lula criticised the US designation of Brazilian gangs as terrorist organisations, he introduced several reforms aimed at disrupting the financial networks of organised crime syndicates, improving homicide investigations, and investing in prisons.
The economy was likewise at the centre of the campaign, amid high levels of personal debt and slowing growth.
Lula built his legacy through a series of social welfare programmes, most notably the Bolsa Familia initiative, which pays families conditional on keeping children in education and ensuring they receive healthcare such as vaccinations.
He also built more universities. These programmes were credited with lifting millions of Brazilians out of poverty.
He supported increased investment in data centres and rare earth minerals, where Brazil holds rich resources, securing active state participation to ensure Brazil benefits.
He also backed oil exploration near the mouth of the Amazon River, which drew controversy among environmentalists.
However, Lula possesses a track record of tightening environmental protections and reducing the deforestation rate in the Amazon.
Deforestation increased significantly during Jair Bolsonaro’s presidency.
Flavio Bolsonaro has pledged to introduce a cap on public debt, cut government spending, revise welfare programmes, and bolster the critical minerals sector.
Brazil accounts for approximately 31% of the total gross domestic product (GDP) of Latin America and the Caribbean.
Writing on his personal blog, Michael Roberts noted that Lula’s commitment to higher public spending was facing scrutiny.
According to Roberts, Lula’s advisers are secretly weighing cuts to healthcare services as well as benefits for the elderly and disabled.
Bolsonaro, meanwhile, is openly calling for significant cuts to social spending and public investment, accompanied by the privatisation of state assets.
According to Roberts, both candidates are discussing austerity because, despite an improvement in living standards during the first three years of Lula’s mandate, those gains began to erode last year.
Economic growth has fallen below an annual rate of 2%, while the manufacturing and industrial sectors are declining rapidly.
America
Unauthorised AI agents access customer accounts at major US banks
Incidents have been detected at the largest US banks in which unauthorised artificial intelligence agents gained access to customer accounts.
According to a report by Axios based on sources, some of these AI agents attempted to take actions that were not included in user instructions.
Institutions facing risks arising from such agents include leading lenders such as Morgan Stanley, Bank of America, JPMorgan, Wells Fargo, and Citi.
In some cases, AI software entered customer accounts using usernames and passwords directly with user consent.
In contrast, security rules at most banks require users to log in to their accounts personally.
According to Axios, in other instances, AI agents designed to carry out tasks on behalf of customers contacted bank call centres directly or tried to take independent steps without receiving any instruction from the user.
Bank executives worry that such software with access to credentials could make unauthorized purchases or transfer funds.
Following these risks, banks are moving to restrict third-party AI agents from accessing their platforms. While Morgan Stanley has begun blocking such software, JPMorgan, Bank of America, and Citi are also introducing similar restrictions.
Banks are also considering offering a financial access model that gives AI agents read-only permissions while completely cutting off transaction capabilities.
Sources speaking to Axios point out that it is extremely difficult for banks to determine whether an agent is acting on user instructions or accessing the account entirely on its own initiative.
Regulators hold emergency meeting with systemically risky banks
According to reports by Bloomberg and the Financial Times citing sources, US Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell held an extraordinary meeting in April with top executives of the country’s largest banks over concerns about cyber threats that could be posed by a new AI model developed by Anthropic.
Sources providing details on the talks stated that US officials wanted to gauge bank awareness regarding risks tied to the Claude Mythos model and inspect the measures they have taken to protect their systems.
Senior executives from Citigroup Inc., Bank of America Corp., Wells Fargo & Co., Goldman Sachs Group Inc., and Morgan Stanley attended the meeting.
Organised at short notice, the summit indicated that regulatory authorities view this new breed of cyber attack as one of the greatest threats to the financial sector.
All of the banks represented at the table are classified as systemically important institutions within the global financial architecture.
Axios reported that leading AI firms, including Anthropic and OpenAI, harbour concerns that an AI-driven “catastrophic event” could take place over the next 6 to 12 months.
America
US wealthy demolish multimillion-dollar mansions for land
Wealthy buyers in the US are tearing down multimillion-dollar homes shortly after purchasing them for hundreds of millions of dollars.
According to a report by The Wall Street Journal, the trend is driven by a shortage of land in prestigious locations, particularly along coastlines.
For ultra-wealthy buyers, the prime factor has become the land’s location rather than the structure standing on it. After the acquired properties are flattened, newer, more modern homes are built on the cleared lots.
Drawing attention to the shift in the luxury real estate market, the report noted:
“The home itself, formerly the primary driver of an expensive real estate purchase, is now almost beside the point. Buyers are competing first and foremost for well-located land, situated on the ocean or a mountaintop.”
The newspaper cited moves by US billionaire William Lauder as an example. Lauder purchased the oceanfront estate of radio host Rush Limbaugh, who died in March 2023, for $155 million and had it completely demolished in July.
Lauder had previously torn down two homes situated on roughly 1.2 hectares of land along the Palm Beach coast. Having initially planned to construct his own residence on the parcel, Lauder subsequently sold the cleared plot for approximately $200 million.
Jonathan Miller, a real estate appraiser, stated that such transactions are becoming increasingly common as land prices rise.
Amid this momentum, estate agents have also begun marketing luxury homes directly as teardown lots.
Listings use artificial intelligence-generated imagery to showcase how the land would look without the structures on it.
Marketers avoid using the word “demolition” directly, resorting instead to terms such as “adaptive reuse”.
Teardown listings rise across luxury housing market
The trend is not confined to the coast and is spreading to other regions across the US.
Data from property brokerage Redfin reveals that references to demolishing buildings are becoming more frequent in sales listings.
The share of such listings exceeds 15% in the Bunker Hill Village area of Houston, while standing at 6.67% in Pimmit Hills, Virginia.
Dina Goldenteyer, a real estate agent working in Miami, remarked that serial demolitions have become more frequent because buyers no longer appreciate homes older than a decade.
Former retail executives Jamie Dooley and Christine Scott spent $3.7 million in 2020 to demolish a seaside home near Destin, Florida.
Although the couple spent five years building a modern home on the cleared site, they listed the resulting new structure with a demolition condition, citing the fact that no one wanted to buy the property as it stood.
William Paddock, an employee at the environmental consultancy WAP Sustainability, pointed to the environmental damage caused by this construction cycle.
Paddock emphasized that tearing down a home of roughly 1,000 square metres and replacing it with a new building of approximately 2,700 square metres generates a carbon footprint equivalent to the annual emissions of an average 250 American households.
America
US inflation reaches 3.7% as midterm election campaign intensifies
An uptick in September inflation as the US midterm elections approach has pushed the cost-of-living debate back to the centre of the agenda for Democrats seeking to regain control of Congress from Republicans.
Annual inflation stood at 3.7% in September, according to the Consumer Price Index published by the Bureau of Labour Statistics, with energy, petrol, and electricity costs rising on a monthly basis.
Food prices remained flat from August to September, recording a 2.5% increase compared with the same period last year.
Democrats are anchoring their election campaigns to pledges of easing the cost of living, blaming the price increases on President Donald Trump’s tariffs and the war with Iran.
Trump and Republicans, pointing to the numerous left-wing candidates who won primary elections this year, contend that the opposition has become captive to “communists” within the party.
When annual inflation stood at 2.4% in February, the US and Israel launched the Iran war on the final day of that month, and prices continued to climb throughout the conflict.
The recent acceleration has not entirely reversed the retreat from the 40-year peak of 9.1% recorded in June 2022; however, the rate has remained above the Federal Reserve’s 2% target for over five years.
Fed policymakers raised the benchmark interest rate by a quarter of a percentage point last month, citing the battle against stubborn inflation. Officials will convene again next week to consider whether to raise rates or hold them within the 3.75% to 4% target range.
Energy and fuel record sharpest increase since first month of war
In September, energy prices posted their largest monthly jump since March, the first full month of the war with Iran, climbing 20.4% year-on-year. Energy costs had risen 2.1% from July to August, after falling 1.5% from June to July and 5.7% from May to June.
Recent escalations in Iranian attacks on oil tankers in the Strait of Hormuz, alongside more frequent strikes by Ukrainian forces against Russian refineries, have strained global crude oil and refined product markets, driving up US petrol and diesel prices.
Petrol prices also recorded their sharpest monthly increase since the first month of the war, climbing 9.1% from August to September, bringing the annual increase to 35.3%.
American Automobile Association (AAA) data shows the average price of regular petrol across the US stands at $4.26 per gallon; while below the level of roughly $4.48 recorded a month ago, it remains more than $1.20 higher than a year earlier. Average gallon prices exceed $6 in California and $5 in both Washington state and Nevada.
Electricity prices rose 0.2% from August to September, offsetting the 0.2% decline between July and August, and were up 4.4% year-on-year.
Heavy power demand from new data centres is feeding through into local household electricity bills. Trump argued that companies must cover the cost of the electricity required by their data centres themselves.
In a post on Truth Social, Trump claimed that he was requiring large data centres to generate their own power and feed the surplus back into the local grid, suggesting this could bring about “a major drop” in electricity prices.
Used vehicle market posts monthly rise as food costs stabilise
The cost of food at home fell 0.1% month-on-month in September, while dining out increased 0.2%.
Egg prices dropped to $2.27 a dozen, falling roughly 35% compared with September 2025 and remaining well below the 20-year peak of $6.23 recorded in March 2025.
Ground beef prices rose roughly 2.4% compared with September 2025, but at $6.48 a pound, they remained below the 20-year high of $6.98 reached in June.
Chicken held steady at its year-earlier level of $2.06 per pound last month, having fluctuated between $2.01 and $2.09 since November 2024.
Used car and truck prices fell 1.5% compared with September 2025, but rose 0.7% month-on-month in September following 0.4% increases in both July and August.
Heather Long, chief economist at Navy Federal Credit Union, noted that the sector faces severe pressure stemming from a combination of expensive replacement parts and a shortage of skilled labour.
Speaking to The Hill, Long emphasised that every cost pressure across the market is being felt directly at local auto repair shops.
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