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Brazil’s Lula appoints former mayor as finance minister

Photo: NELSON ALMEIDA / AFP

| By AFP |

Brazil’s president-elect Luiz Inacio Lula da Silva on Friday named former Sao Paulo mayor Fernando Haddad, viewed unfavorably by many in the business community, as his finance minister.

Lula da Silva, who narrowly defeated incumbent Jair Bolsonaro in October elections, unveiled ministers in the key posts of foreign affairs, justice, defense, and chief of staff.

However, all eyes were on his pick for finance minister, with markets nervous over the incoming government’s commitment to fiscal discipline and the inflation-hit economy in fragile recovery.

“(I chose) comrade Fernando Haddad as Minister of Finance,” Lula said during a press conference in the capital Brasilia.

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Haddad, 59, who served as education minister from 2005 to 2012, succeeds powerful liberal economy minister Paulo Guedes, an ally of far-right President Jair Bolsonaro.

After Lula’s new government takes office following his January 1 inauguration, the economy ministry will be dissolved and transformed into finance, industry and planning agencies.

When Haddad’s name started circulating for the role, markets reacted with unease, viewing him as too much on the left and fearing he would jeopardize the budgetary balance.

“He represents the heterodox economic policy” that Lula’s Workers’ Party (PT) defends, said Antonio Madeira of the MCM consultancy firm.

Madeira said that with Haddad in the finance ministry, he expects “an increase in spending” and “a more assertive state giving a significant role to public companies.”

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Despite some of the reluctance towards Haddad, the Sao Paulo Stock Exchange’s Ibovespa index was up Friday by 0.5% after the names of the future ministers were announced.

Lula also tapped Mauro Vieira as foreign minister. 

Vieira is a 71-year-old career diplomat who has already served as foreign minister as well as ambassador to Argentina, the United States and the United Nations.

He is currently serving as ambassador to Croatia, which on Friday knocked Brazil out of the World Cup.

For the justice ministry, Lula appointed Flavio Dino, a former governor of the northeastern state of Maranhao.

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Rui Costa, governor of the province of Bahia, was named to a ministry that falls between the roles of prime minister and chief of staff.

Jose Mucio Monteiro, a civilian, was named defense minister.

After appointing five white men to the key ministries, Lula promised that “in time, you will see more women than men here … as well as a number of Afro-Brazilians.”

“We will try and form a government in the image of Brazilian society.”

Lula, a former unionist who already served two terms as president between 2003 and 2010, said that he would announce the names of more ministers next week and he has “not yet decided the total number of ministers” he would have in his government.

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One of the most highly anticipated posts is that of the environmental minister, who will play a crucial role as Brazil seeks to tackle deforestation in the Amazon.

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International

Heat wave puts more than 70 million Americans under alerts as temperatures near 46°C

36 deaths reported due to heat wave in Nuevo Leon, Mexico

More than 70 million people remained under heat alerts Monday as an intense heat wave continued across the southern United States, particularly Florida and states along the Mexican border, where temperatures and heat indexes could reach as high as 46 degrees Celsius, according to the National Weather Service (NWS).

Several cities recorded or tied temperature records over the weekend and into Monday, including Miami and Fort Lauderdale in Florida; Laredo, Borger and Austin’s airport in Texas; Atlanta, Georgia; Raleigh and Charlotte, North Carolina; and Memphis, Tennessee.

The NWS warned that the heat wave will continue affecting the southern and southeastern United States, with maximum temperatures expected to remain near 38°C to 40°C for several days. The heat index, which combines temperature and humidity to estimate how hot conditions feel, could reach 46°C.

The extreme heat is also spreading into the Southwest, where temperatures began rising again between Monday and Tuesday. Forecast highs in the region range from about 38°C to 43°C.

Heat alerts remain in effect across Nevada, Arizona and California, including areas in southern Arizona and California near the Mexican border, as authorities warn of the risks posed by prolonged extreme temperatures.

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The NWS urged residents to limit outdoor activity, stay hydrated, ensure access to air conditioning or cooling centers, and check on vulnerable friends, neighbors and family members.

The United States is experiencing a summer marked by above-average temperatures and repeated heat waves. One of the most intense episodes occurred during the July 4 weekend, when extreme heat was blamed for roughly 30 deaths.

July was the hottest month ever recorded in the United States since measurements began, with the average temperature across the contiguous country approaching 25°C, according to the National Oceanic and Atmospheric Administration (NOAA).

The combination of extreme heat and drought conditions has also fueled wildfires. Nearly 3 million hectares have burned across the country so far in 2026, making it the largest area affected by wildfires in a decade.

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International

Trump warns Iran over nuclear ambitions as U.S.-Iran ceasefire deadline passes

U.S. President Donald Trump reiterated Monday that Iran must never be allowed to obtain a nuclear weapon, as a 60-day deadline set under a memorandum of understanding between Washington and Tehran expired without an agreement to end the conflict in the Middle East.

“The number one goal is, and always will be, that Iran cannot have, in any way or under any circumstances, a nuclear weapon,” Trump wrote in a post on his Truth Social platform.

The memorandum, signed on June 17, called for an “immediate and permanent cessation of military operations on all fronts” as part of a broader negotiation process aimed at ending the conflict. However, the deadline expired Monday without a peace agreement, while both Washington and Tehran continued to maintain their respective positions.

The expiration is largely symbolic, as military clashes resumed during the 60-day period. The Strait of Hormuz also remains blocked, contributing to elevated global oil prices.

Trump escalated his rhetoric toward Tehran last Friday, saying he planned to declare the Strait of Hormuz U.S. territory after defeating Iran.

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“After we finish defeating Iran, which is being very badly defeated, very soon I will essentially declare the Strait of Hormuz U.S. territory,” Trump said during a political rally in Long Island, New York. He also claimed that the United States currently controls the passage of vessels through the strategic waterway.

Meanwhile, U.S. Treasury Secretary Scott Bessent said Washington is preparing additional economic measures against Iran that he described as unprecedented.

“Stay tuned for new announcements next week because we are going to implement measures unlike anything ever seen in the history of the economic isolation of a country,” Bessent said.

The Treasury secretary indicated that the measures would form part of a broader “double hit” strategy that could also involve maintaining the blockade of Iranian ports.

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International

Brazil’s Lula and Flávio Bolsonaro kick off election campaigns amid focus on crime

Public security took center stage Sunday as Brazilian President Luiz Inácio Lula da Silva and Senator Flávio Bolsonaro formally launched their election campaigns, positioning themselves as the leading rivals ahead of the October presidential vote.

Lula, who leads most opinion polls, kicked off his campaign at the Vila Euclides stadium in São Bernardo do Campo, in São Paulo state, while Bolsonaro held his event in Rio de Janeiro, a political stronghold of his family.

During his speech, Lula announced plans to create a new Ministry of Public Security aimed at strengthening coordination between the federal government and Brazil’s states in the fight against crime.

The president pledged a tougher strategy to reclaim territories controlled or influenced by criminal groups. The proposed ministry would help “share responsibilities with the states” and confront those who seek to control favelas and impoverished neighborhoods, Lula told supporters.

The initiative places public security at the heart of Lula’s campaign as he seeks another term in office amid persistent concerns over crime and organized criminal activity in Brazil.

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Lula also used his first campaign speech to reinforce his position as a leading figure of Brazil’s left and to criticize his political opponents on the right.

“I will not allow the right to take power,” Lula said, accusing his opponents of having previously mocked children who died because they lacked access to medicine.

“I don’t know what future these people imagine for the Brazilian people,” he added.

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