The Brazilian presidential election is set for a second round of voting on 31st October and the latest opinion polls suggest that it may be a tighter race than many had expected. While Dilma Rousseff is still the favourite, Jose Serra is closing the gap. In an added twist, however, the opposition coalition’s poor performance in the legislative elections suggests that Mr. Serra, who is perhaps the most market friendly, would struggle to push through his plans even if he were victorious. For now though, the markets have been largely unmoved.
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