Lula defeats Bolsonaro in Brazil's historic presidential runoff

Luiz Inácio Lula da Silva won a historic fourth term as Brazil's president, defeating Senator Flávio Bolsonaro in a runoff with 51.8% of valid votes to 48.2%, according to the Superior Electoral Court. The victory marks the first time since 1989 that a candidate won the final runoff after losing in the first round. The election was marred by allegations of voter suppression, with Lula's campaign reporting suspended public transportation in key areas, prompting the court to extend voting by two hours. Bolsonaro's campaign also requested an extension due to heavy rains in the south. The 80-year-old leftist's win blocks a rightward shift in Latin America backed by U.S. President Donald Trump. Lula is set to govern from 2027 to 2030, facing a Congress where Bolsonaro's Liberal Party holds the largest bench in decades and substantial public debt. Brazil's gross debt reached 82.9% of GDP in August, the highest since March 2021. The iShares MSCI Brazil ETF plunged nearly 20% in overnight trading following the win.