BRAZIL: Leftist Luis Inacio Lula da Silva vowed yesterday that he would win Brazil's presidency in a run-off after failing to capture an outright victory on Sunday. The result heralded three more weeks of anxiety and market volatility for Latin America's largest country.
Brazilians will return to the polls on October 27th for a showdown between Mr Lula, a former metalworker and union boss, and second-placed Mr Jose Serra, the favourite of the political and financial establishment.
"We are going to win the election, it was only delayed a bit," Mr Lula, flanked by Workers' Party leaders, said at a news conference. "We start our campaign today." Despite the inconclusive outcome, Mr Lula's supporters danced and sang in the streets of Sao Paulo through the night, confident he was still on track to become Brazil's first working-class president.
Domestic and international markets, concerned Mr Lula would mismanage Brazil's economy and its $260 billion debt, were cheered briefly by the indecisive result but still saw Mr Serra as facing a daunting task in the run-off.
Brazil's currency, the real, weakened 1.6 per cent, leaving it some 37 per cent weaker than at the start of the year. The Sao Paulo Stock Exchange's Bovespa index was down 3.4 per cent yesterday.
"Although Serra went to the second round, in general he did not do very well at all," said Novacao brokerage foreign exchange director Mr Mario Battistel. "I believe the market will remain tense and is in for another 20 days of suffering."
Mr Lula, who has vowed to bring social change and create jobs in this country of 170 million people, had 46.4 percent of the ballot with 98 per cent counted. Mr Serra, standing for the centrist Brazilian Social Democratic Party, took 23.1 per cent. Mr Lula needed 50 per cent plus at least one vote to win outright in the first round while in the second round, it will be winner takes all. - (Reuters)