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Lula da Silva: Brazil is back

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Brazil’s former president Lula da Silva (2003-2010) won the second round of presidential election that was held on October 30th, with 50.83 percent. Left-wing candidate Lula da Silva, who defeated incumbent right-wing leader Jair Bolsonaro, said he would restore his country to its rightful place in the international arena.

In Brazil, Latin America’s largest country with a population of over 212 million, about 156 million voters went to the polls on Sunday. 

Labour Party candidate Luiz Inácio Lula da Silva won 50.83 per cent of the vote, compared to 49.17 per cent for Liberal Party candidate and incumbent President Jair Bolsonaro, according to polling results published by the Superior Electoral Court (TSE).

Lula da Silva also surpassed Bolsonaro (43.20 percent) with 48.43 percent of the vote in the first round of the presidential election held on October 2nd.

Lula, who previously ruled Brazil for two terms, will take over the presidency from Bolsonaro on January 1st, 2023.

A single country, a single people…

Lula da Silva addressed to his supporters after winning the election “as of January 1st, 2023, I will govern for 215 million Brazilians, and not just for those who voted for me. There are not two Brazils. We are a single country, a single people, a great nation.”

Referring to the corruption charges and spending time in jail, Lula said “I think I am experiencing a resurgence in Brazilian politics. They tried to bury me alive, but now I’m here to rule the country. We are in a very difficult situation, but I am sure that with the help of the people, we will find a way out and restore peace.”

The most urgent task is to fight hunger

Emphasizing the fight against hunger, Lula said, “Our most urgent commitment is to end hunger again, we cannot accept it as normal for millions of men, women and children to go hungry or consume less protein than necessary in this country. We are the third largest food producer and the first in animal protein.”

“We are able to export all over the world and we have a duty to ensure that every Brazilian can have breakfast, lunch and dinner every day,” Lula reiterated. “This will once again be my government’s number one commitment,” he said.

Referring to the housing problem, Lula said, “We cannot accept that families are forced to sleep on the streets as normal, so we will continue the ‘my home is my life’ program and bring back the participation programs. Brazil can no longer live with this huge wall of inequality.”

Lula listed the demands of the people as follows: “The Brazilian people want to have a good job, a salary which is always above inflation, a quality public health and education system. They want books instead of guns. Brazilian people want to regain hope.”

Democracy message

Describing the election victory as a “victory of democracy”, Lula said, “This is the victory of an enormous democratic movement founded beyond political parties, personal interests, and ideologies for the victory of democracy,”

Lula shared the Brazilian flag on his Twitter account with a “Democracy” note.

Foreign policy remarks:

Prestige in the world

“Today, we are telling the world that Brazil is back and is too big to be relegated to the sad role of a pariah,” Lula said, “What I hear the most in my international trips is that the world misses that sovereign Brazil that spoke on equal terms with the richest and most powerful countries and, at the same time, contributed to the poorest countries.” 

Regional integration

“We are going to reconquer the credibility, predictability and stability of the country so that investors regain confidence in Brazil, so that they stop seeing our country as a source of immediate and predatory profit and become our allies in economic growth,” Lula said, recalling that in his previous terms, he had strengthened Mercosur and other regional integration organizations.

New standards with the US and EU

Talking about forming partnerships with US and EU on new standards, Lula da Silva added “We are not interested in trade agreements that condemn our country to enter the role of the seller of commodities and raw materials. We are going to reindustrialize and invest in the green economy.”

Lula also raised the issue of five permanent members of the UN, which undermine the balance between countries and prevented the enlargement of the General Assembly and the Security Council.

Fighting the climate crisis

“We are ready to re-engage in the fight against hunger in the world,” Lula da Silva stated and added that Brazil is ready to gain its leading role in the fight against the climate crisis by protecting all rainforests, especially the Amazon rainforest.

“We are open to international cooperation to preserve the Amazon, but always under Brazil’s leadership, without giving up our sovereignty,” Lula said, stressing that the growing deforestation and destruction in the Amazon rainforest will end.

Rise of the left in Latin America

The “pink tide” continues to rise in Latin America, which has defeated US-backed coups.

Following the elections in Peru, Bolivia, Argentina, Chile, Honduras, and Colombia, victory of yet another left-wing candidate in Brazilian elections too have raised the expectations on the strengthening of regional integration efforts. Lula da Silva’s emphasis on regional integration in his victory speech also points to this. Lula and Brazil are expected to boost cooperation among other governments, such as Argentina, Chile, Mexico, and Colombia, which share similar perspectives.

So much so that the leaders of Latin America, who strongly embraced Lula’s victory, shared enthusiastic congratulatory messages, and emphasized that this victory would strengthen the unification of Latin America.

Full support from Latin American leaders

Argentine President Alberto Fernandez shared his photo with Lula on his Twitter account, saying: “Congratulations, Lula da Silva! Your victory opens a new era for the history of Latin America. A time of hope and future that begins today. Here you have a partner to work and dream big for the good life of our peoples. After so many injustices that you experienced, the people of Brazil have elected you and democracy has triumphed.”

Venezuelan President Nicolas Maduro also tweeted: “We celebrate the victory of the Brazilian people, who this October 30th, elected Lula as their new President. Long live the peoples determined to be free, sovereign, and independent! Today in Brazil democracy triumphed. Congratulations Lula!”

Cuban President Miguel Diaz Canel said in his post, “They delayed your victory with heinous methods, but they couldn’t prevent you from winning with the vote of the people. Social justice will return.”

Mexican President Andres Manuel Lopez Obrador also shared his photo with Lula on his social media account, saying, “Lula won, blessed people of Brazil. There will be equality and humanism.”

Bolivia’s President Luis Arce Catacora, emphasizing integration in his Twitter account, said: “Congratulations, brother Lula, Brazil’s elected president! Your victory strengthens democracy and Latin American integration. We are sure that you will lead the Brazilian people along the path of peace, progress and social justice.”

Honduras President Xiomara Castro also shared her photo with Lula and posted “He faced the most conservative powers in history, and together with the people of Brazil he has defeated them. Latin America is reborn with hope in a true humanist process of change and liberation.”

Colombian President Gustavo Petro, who posted “Yay Lula” on his social media account, emphasized integration in Latin America in his following posts.

President of the Republic of Chile, Gabriel Boric retweeted Lula’s post and added “Lula. Happiness!”

Peru’s President Pedro Castillo congratulated Lula on his victory, saying: “Peru congratulates the president-elect of Brazil, the comrade Lula, worker, trade unionist, fighter. His victory is essential to strengthen the unity of Latin America and the social justice of the Great Homeland.”

With Lula taking over in Brazil, most of the Latin American countries will be governed by leftist governments. In addition, Brazil, Argentina, Chile, and Colombia together with Mexico constitute the 5 largest economies of the continent.

Relations with China expected to improve

Chinese President Xi Jinping congratulated the winner of the election, Lula da Silva, stressing that “deepening long-term friendship and mutually beneficial cooperation serves the fundamental interests of both countries.”

Xi said he highly values the development of China-Brazil relations, and he is ready to work with Lula to push forward China-Brazil comprehensive strategic partnership to a higher level to benefit to the two countries and their people.

Speaking to the Global Times, Chinese experts expect Lula’s return to significantly improve the atmosphere of cooperation between China and Brazil in terms of trade, investment, and global governance. It’s also emphasized that Lula’s return also means the strengthening of the autonomy of Latin American diplomacy.

“Lula’s return is likely to bring back a smoother China-Brazil relationship” Zhou Zhiwei, an expert on Latin American studies at the Chinese Academy of Social Sciences, told the Global Times on Monday. Zhou said this would allow both sides find more space and improve economic and trade cooperation, especially in agriculture and infrastructure construction.

“Brazil may also seek to participate in the Belt and Road Initiative (BRI) under Lula” Zhou said.

Lula and BRICS could be more compatible

Given that Lula was instrumental in the establishment and launch of the BRICS mechanism during his last stint in office, the Chinese expert believes that he will continue to be active and positive about BRICS.

According to the Chinese expert, cooperation between Lula and BRICS countries and communication on international hotspot issues and global affairs will be smoother and more stable than under Bolsonaro.

Regional integration and rejection of US hegemonism

Yang Jianmin, another Chinese Latin American expert, told the Global Times about the rising “pink tide” in the region.

Stating that the “pink tide” that continued with Lula’s election can be viewed as the opportunity to support regional integration, to reject US hegemony in the region, and to advocate independent diplomacy, Yang stressed that this is also China’s opportunity to develop a more profound bond with these countries.

He may also follow a more pragmatic policy…

Wang Youming, director of the Institute of Developing Countries at the China Institute of International Studies in Beijing, pointed out that unlike others, Lula could also pursue a more pragmatic policy.

“Lula’s emphasis on South-South cooperation and bonding with emerging powers does not mean that he will reject the US” Wang noted and added that it’s very likely that Lula will may have a more pragmatic style and less anti-American voice in his third term. According to Wang, instead, Lula may prioritize more practical tasks such as stabilizing the economy and mitigating the negative impact of COVID-19.

Brazil and China may explore new areas of cooperation

Tatiana Prazeres, director of trade and international relations for the Federation of Industries of the State of São Paulo, told the Atlantic Council on China’s policy, which Lula would likely to pursue, that despite negative rhetoric against China during the Bolsonaro administration, trade and investment between the two countries developed largely undisturbed, but the political unrest created by the anti-Chinese rhetoric prevented the deepening of bilateral relations in other areas such as science and technology.  Under Lula, Prazeres said, he expects Brazil and China to explore new areas of cooperation.

Lula may also be more enthusiastic about BRICS and the Belt Road, Prazeres said, adding that he may prefer to leverage Chinese investments and technologies to help reinvigorate Brazilian industry.

Biden may try to get closer through climate

Another expert spoken to the Atlantic Council is former secretary of foreign trade of Brazil, senior researcher Abrão Neto.

Lula’s election would lead to a significant change in Brazil’s environmental agenda, among other things, Abrão Neto said, adding that this would enable Brazil to improve its relationship with the United States.

Arguing that US-Brazil economic relations during the Lula era would continue to be driven by pragmatic mutual interests, the expert said: “A renewed stance from the Brazilian government on climate change and other environmental issues might offer an extended avenue for bilateral cooperation, with positive spillovers for the overall political and economic relationship between the United States and Brazil.”

Experts comment that Biden will try to get closer to Lula to lure Brazil into intense power rivalry.

It’s commonly expressed that Lula’s idea of strengthening the protection of the Amazon forests could be compatible with Biden’s climate policy.

US President Joe Biden was among the first world leaders to congratulate Lula.

On Sunday, Biden congratulated Lula on his victory following “free, fair and credible elections” and said he looked forward to continuing the cooperation with Brazil.

‘CIA’ plot against Lula

Lula da Silva, 77, who chaired Brazil for two terms in 2003-2010, was indicted for corruption in 2016. Lula, who argued that the case was political, applied to the court, but was sentenced to 9 years and 6 months in prison in 2017. He went to prison in 2018 and spent a year and a half in prison.

Lula was unable to run for president because he was in prison and could not run in the 2018 election. The lawsuits against Lula paved the way for Bolsonaro’s election.

In 2021, Lula’s convictions and cases were dismissed by the Supreme Court, which ruled that the judge responsible for these cases, Sergio Moro, was biased and political, paving the way for him to participate in the elections.

At the time, some messages about this investigation were leaked to the press by a Brazilian news site. The leaked messages revealed that federal judge Sergio Moro, who was conducting the investigation at the time, collaborated with prosecutors in ways that overstepped ethical lines and affect the decision on prison sentences.

It was understood that the corruption cases were conspiracy against Lula da Silva. The Brazilian federal prosecutor’s office announced that prosecutors conducting the investigation have been assigned to other units.

It was alleged that the CIA was behind the conspiracy against Lula at the time.

Lula, who followed policies to end the neoliberal impositions of the USA in Brazil and the region, IMF dependence, made Brazil the 10th largest economy in the world, improved relations with China, made the country one of the founders of BRICS, advocated regional integration, gained the love of the people by ensuring that approximately 30 million Brazilians got rid of poverty with the social policies he implemented.

The trial and imprisonment of Lula was described as a US-backed coup that brought the right to power.

AMERICA

Biden plans to write off Ukraine’s $4.6bn debt ahead of Trump

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President Joe Biden’s administration has officially notified Congress of its intention to forgive Ukraine’s $4.65 billion debt, a move tied to ongoing efforts to support the country amid its conflict with Russia.

This debt represents half of the $9 billion provided to Kyiv as part of the $61 billion aid package approved by Washington in April. Unlike other forms of assistance, this funding was issued as conditionally repayable loans, with provisions allowing the United States President to cancel up to 50% of the debt if deemed necessary.

In a statement, the U.S. State Department explained that the debt cancellation is intended to “help Ukraine win” and serves the national interests of the U.S., the EU, G7+, and NATO.”

According to Bloomberg, President Biden is determined to maximize aid to Ukraine before President-elect Donald Trump assumes office. However, the decision to write off the debt has drawn sharp criticism from Republicans.

Republican Senator Rand Paul argued that the Biden administration’s decision places undue financial burden on the American public. He pledged to demand a vote in the Senate to challenge the proposal.

Despite this, Bloomberg notes that any effort to overturn the debt cancellation would require approval from both houses of Congress, a scenario that appears unlikely given the Democratic majority in the Senate. Furthermore, President Biden holds veto power, making reversal of the decision even more challenging.

Earlier, U.S. Secretary of State Antony Blinken announced plans to exhaust all remaining aid approved by Congress before President Trump’s inauguration on January 20.

National Security Advisor Jake Sullivan emphasized that one of the administration’s key goals is to position Ukraine as strongly as possible—both militarily and at the negotiating table.

Pentagon officials reported that $9.3 billion in military aid is currently in the pipeline. Pentagon spokeswoman Sabrina Singh confirmed plans for weekly arms deliveries to Kyiv, with the aim of expediting aid distribution before the presidential transition.

On November 20, the Pentagon unveiled an additional $275 million military aid package for Ukraine, further underscoring the administration’s commitment to strengthening Ukraine’s defense capabilities.

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AMERICA

Donald Trump taps Howard Lutnick to lead Commerce Department

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Donald Trump has announced his intention to nominate Wall Street investor and campaign donor Howard Lutnick as the new head of the U.S. Department of Commerce, placing the billionaire at the forefront of implementing the sweeping tariffs promised during his presidential campaign.

Lutnick, who co-chaired Trump’s transition team, had previously been considered for the role of Treasury Secretary. He is also the CEO of Cantor Fitzgerald, a prominent investment firm.

In a statement on Tuesday, Trump declared that Lutnick would be “directly responsible” for leading the Commerce Department and overseeing the Office of the U.S. Trade Representative (USTR).

The USTR, established in 1974 to manage negotiations with U.S. trading partners, traditionally reports directly to the president. If confirmed by the Senate, the 63-year-old Lutnick will play a pivotal role in aiding U.S. businesses and executing Trump’s proposed tariffs on international trade partners.

Trump has outlined plans for a 60% tariff on imports from China and a global tariff of up to 20%, signaling a major shift in U.S. trade policy.

Lutnick, despite lacking prior government experience, has been a steadfast advocate for Trump’s economic agenda. During a New York campaign rally, Lutnick remarked, “When was America great? At the turn of the century, our economy was floundering! That was 125 years ago. We had no income tax and all we had were tariffs.”

While Lutnick has emerged as a major donor to Trump, he has also supported establishment Democrats and Republicans in the past, including Chuck Schumer and Jeb Bush. He contributed to both Hillary Clinton’s 2008 and 2016 campaigns, hosting a fundraiser for her in 2015. Lutnick maintains a personal friendship with the Clintons, noting their attendance at a Cantor Fitzgerald fundraiser in September 2022.

Lutnick has also maintained a long-standing relationship with Trump, even appearing on The Celebrity Apprentice in 2008. He disclosed to the Financial Times in October that he has donated over $10 million to Trump’s 2024 campaign and another $500,000 to the transition team, totaling approximately $75 million.

Treasury Secretary selection process still uncertain

The position of Treasury Secretary, one of the most significant roles in Trump’s administration, remains undecided. Lutnick’s name has been floated for the role, though he faces competition from hedge fund manager Scott Bessent, private equity billionaire Marc Rowan, and former Federal Reserve governor Kevin Warsh.

Marc Rowan, the CEO of Apollo Global Management, has emerged as a leading contender and is expected to meet with Trump to present his case. Rowan’s supporters cite his extensive expertise in financial markets, though competition remains fierce.

Forecasting site Polymarket currently lists Warsh as the favorite for Treasury Secretary, followed by Bessent, Rowan, and William Hagerty. If unsuccessful in his bid for Treasury Secretary, Bessent is reportedly vying for the chairmanship of the National Economic Council.

Trump names Mehmet Oz to run Medicare and Medicaid

Trump also announced on Tuesday his nomination of Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS). Describing Oz as “one of the most talented physicians” capable of “making America healthy again,” Trump expressed confidence in Oz’s ability to reduce waste and fraud within the nation’s largest government agency.

Dr. Oz, a former heart surgeon and Columbia University professor, rose to prominence as Oprah Winfrey’s health expert before hosting his own popular talk show. However, his career has been controversial, with critics accusing him of promoting scientifically dubious theories and unproven treatments.

Oz’s political experience includes a 2022 Senate race in Pennsylvania, where he was endorsed by Trump but ultimately lost to Democrat John Fetterman.

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U.S. may start its plan to separate Google from Chrome

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The Department of Justice (DOJ) may move forward with plans to force the sale of Google’s Chrome web browser as part of its ongoing antitrust case against Alphabet (Google).

According to sources familiar with the case, the department intends to ask the judge—who ruled in August that Google illegally monopolized the search market—to address concerns related to artificial intelligence (AI) and the Android smartphone operating system. This information was reported by Bloomberg.

Antitrust officials, along with participating state attorneys, are expected to recommend that federal Judge Amit Mehta impose data licensing requirements on Google. These officials have indicated that Chrome, the world’s most widely used browser, is a critical gateway for many users accessing Google Search. For this reason, they are urging the judge to mandate the sale of Chrome.

Officials stated that a Chrome sale could be considered later if other settlement measures fail to foster a more competitive market. Currently, Google Chrome commands a dominant 61% share of the U.S. browser market, according to StatCounter, a web traffic analysis service.

Over the past three months, state attorneys interviewed numerous companies to prepare their recommendations. Officials noted that some recommendations are still under review, and details may evolve before submission.

While a proposal to force Google to sell its Android platform was considered, officials have since stepped back from this more aggressive option.

If Judge Mehta adopts these recommendations, the ruling could significantly reshape the online search market and influence the emerging artificial intelligence industry.

The case, originally filed during the Trump administration and continued under President Joe Biden, represents one of the most aggressive efforts to regulate a major tech company in decades. The last comparable attempt was Washington’s unsuccessful bid to break up Microsoft in the early 2000s.

Chrome plays a crucial role in Google’s advertising business by providing user data that enhances ad targeting, a primary revenue source. Additionally, Google has been leveraging Chrome to promote Gemini, its new AI bot. Gemini has the potential to evolve from a simple answer bot to a comprehensive assistant, supporting users across the web.

Bloomberg Intelligence analyst Mandeep Singh estimates that Chrome could be worth $15–20 billion if sold, considering its more than 3 billion monthly active users. However, Bob O’Donnell of TECHnalysis Research notes that Chrome’s value depends on its integration with other services, stating: “It’s not directly monetizable. It acts as a gateway to other things. Monetization would depend on how buyers link Chrome to their services.”

Google has strongly opposed the DOJ’s recommendations. Lee-Anne Mulholland, Google’s vice president of regulatory affairs, criticized the move as government overreach, arguing: “This agenda goes far beyond the legal issues in this case and will harm consumers, developers, and American technological leadership at a critical time.”

Former Google CEO Eric Schmidt echoed this sentiment in an interview with CNBC. He emphasized the value of Chrome in enhancing the Google ecosystem, stating: “Singling out these companies won’t fundamentally solve the broader issues.”

In a blog post, Google warned that under new ownership, Chrome might no longer remain free or receive the same level of investment, potentially leading to a shift in its business model.

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