BRAZIL · POLITICS
Key Facts
- The country Brazil, where re-elected President Lula is planning his next cabinet after the 25 October runoff.
- What happened Lula met the heads of Congress on Monday 26 October 2026 and began talks on ministers.
- The ministries Finance and Defense are in play, but no minister has been named and no date is set.
- The start Lula’s fourth term begins on 5 January 2027, and no transition team is announced.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
Brazilian President Luiz Inácio Lula da Silva spent the week after his 25 October runoff win planning his next cabinet. He will lead the new government from 5 January 2027.
His main meeting was on Monday 26 October with the heads of both houses of Congress. A key question for US readers is who will run the Finance Ministry, as the Ibovespa stock index fell 13.88% on the first trading day.
In Plain English
Lula is the sitting president, so no other leader hands over power and no formal transition team has been announced. The Esplanada dos Ministérios is the avenue in Brasília lined with ministry buildings, and Brazilians use the word for the cabinet itself.
The Chamber of Deputies is the lower house of Congress and the Senate is the upper house. Each house elects its own president, and the next votes are set for 1 February 2027.
What Happened in the First Week
Lula won the runoff on Sunday 25 October with 51.78% of valid votes, or 64,239,788 votes. Senator Flávio Bolsonaro of the conservative Liberal Party (PL) got 59,818,160 (48.22%) with 99.98% of ballots counted.
Our Big Read on the election result covers the margin of about 4.4 million votes. The first week after the vote went to planning the next cabinet.
On Monday 26 October, Lula received Hugo Motta, president of the Chamber of Deputies, and Davi Alcolumbre, president of the Senate. They met at the Palácio da Alvorada, his official residence in Brasília.
The two left at 18:27 without speaking to reporters. Alcolumbre later said in a statement that the houses would keep working with independence and in dialogue.
Finance Minister Dario Durigan and Planning Minister Bruno Moretti joined the final part of the meeting, which was held outside Lula’s official agenda. Motta and Alcolumbre plan to seek new terms leading their houses on 1 February 2027, and Lula is expected to back both.
Durigan said on Tuesday 27 October that he briefed Lula the night before on the market turmoil. He said Finance Ministry changes were not discussed, and he called Piauí Governor Rafael Fonteles an excellent name.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-1.06%
169,186.42
-1.06%
69,787.41
+0.87%
10,545.23
-1.24%
2,848,945
—
2,489.93
-0.63%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 169,186.42 | -1.06% | +19.56% | 171,006.10 | 178,526 | 175,157 | — |
| USD/BRL | 5.34 | -1.32% | -0.84% | 5.42 | 5.42 | 5.30 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 53.31 | -1.06% | +77.70% | 53.88 | 53.70 | 52.83 | 43,239,500 |
| VALE3 | 62.88 | -2.33% | +1.98% | 64.38 | 64.43 | 62.80 | 24,652,300 |
| ITUB4 | 41.42 | -0.67% | +11.30% | 41.70 | 42.60 | 41.15 | 28,160,700 |
| BBDC4 | 15.69 | -1.63% | -13.88% | 15.95 | 16.30 | 15.67 | 65,766,400 |
| BBAS3 | 17.59 | +0.69% | -15.59% | 17.47 | 18.31 | 17.51 | 67,844,600 |
| B3SA3 | 15.27 | +1.33% | +21.71% | 15.07 | 15.78 | 15.20 | 75,282,000 |
| ABEV3 | 15.40 | +0.20% | +26.75% | 15.37 | 15.68 | 15.31 | 27,307,400 |
| WEGE3 | 45.78 | +2.81% | +10.06% | 44.53 | 47.08 | 45.06 | 9,823,200 |
| PRIO3 | 69.21 | -2.71% | +87.14% | 71.14 | 70.98 | 69.15 | 6,663,200 |
| SUZB3 | 47.14 | -0.55% | -3.79% | 47.40 | 47.84 | 46.10 | 7,151,800 |
| RENT3 | 31.14 | -1.67% | -20.73% | 31.67 | 32.68 | 31.02 | 19,092,400 |
| AZZA3 | 16.72 | +1.15% | -42.24% | 16.53 | 17.42 | 16.72 | 4,875,400 |
| CSNA3 | 4.76 | -4.99% | -47.09% | 5.01 | 5.14 | 4.76 | 14,327,900 |
| GGBR4 | 24.87 | -2.28% | +36.28% | 25.45 | 26.20 | 24.79 | 7,507,900 |
| ENEV3 | 26.79 | +0.45% | +49.78% | 26.67 | 27.35 | 26.30 | 12,263,000 |
Which Ministries Are in Play
The Finance Ministry sets tax and budget policy and manages the national debt, so foreign bond and stock investors watch it closely. Edinho Silva, president of Lula’s Workers’ Party (PT), has said the minister will be chosen by the end of 2026.
Silva also said the new government will aim for a budget surplus every year of the term. Fonteles has said he never discussed the post with Lula.
Central bank chief Gabriel Galípolo ruled himself out on 27 October. Vice President Geraldo Alckmin is also named among possible picks, but none of the names is confirmed.
The Defense Ministry has been led since January 2023 by José Múcio Monteiro, a civilian who earlier sat on the federal audit court. Lula has not said whether he stays for the fourth term, and no replacement has been confirmed.
Why It Matters
Lula’s allies do not hold a majority in Congress, so the heads of both houses decide which bills reach a vote. Motta and Alcolumbre therefore matter to every budget and tax bill the new government sends.
Every seat in the next cabinet is also a bargaining chip with the parties Lula needs in Congress. Parties usually seek ministries in return for votes, so the cabinet list will show who backs him.
What It Means for You
Investors in Brazil funds or bonds should watch the Finance Ministry pick. The Ibovespa lost 13.88% in reais on Monday 26 October, and the dollar rose 8.21% to 5.40 reais (about US$0.19 per real).
No pick for the next cabinet has been made, so there is no new policy signal yet. Travellers still gain from the stronger dollar, which buys about 9% more reais than on 23 October.
Defense and foreign policy posts shape security cooperation with the United States. No change in either has been announced.
What Is Not Known
No date has been set for naming ministers, and the end-of-2026 timeline applies only to Finance. How many ministries change hands is also unknown.
It is not known whether Lula will build a formal transition team, since he stays in office until his new term begins. It is also unclear how fast he will move, because the first formal votes in Congress are set for 1 February 2027.
Connected Coverage
Our reports on the central bank chief ruling out the Finance job and the Workers’ Party surplus pledge cover the money side. Each page has the details for its own day.
The Latin America Power Map ranks Brazil’s political weight. Our Brazil news page lists the latest stories.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
When does Lula’s new term start?
Lula’s fourth term starts on 5 January 2027. Until then he stays in office with his current ministers.
Who will be Brazil’s next finance minister?
Nobody has been named. Fonteles and Alckmin are among the names mentioned, but Lula has announced no decision.
Has Lula named a transition team for the next cabinet?
No formal team had been announced by 30 October 2026. Because Lula is already president, the government carries on while he plans changes.
Sources: Tribunal Superior Eleitoral (TSE), 2026 runoff results, 25 October 2026; Constitution of Brazil, Article 82 (start of the presidential term), consulted 30 October 2026; Ministério da Fazenda, press conference of Finance Minister Dario Durigan, 27 October 2026; Senado Federal, statement of Senate President Davi Alcolumbre, 26 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
Brazil runoff, Sunday, October 25: When is the Brazil runoff election. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.