Lula’s spending plans turn heat on Brazilian markets

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Brazil’s financial markets have sold off sharply this year as investors grow increasingly anxious about the spending plans of leftwing President Luiz Inácio Lula da Silva’s government.

The Brazilian real is the second-worst performing emerging market currency against the US dollar so far this year, its 10 per cent…