Lula's victory preserves a regional ally
Sheinbaum began her Oct. 26 morning press conference with an L-shaped hand gesture in support of Brazilian President Luiz Inácio Lula da Silva. "We're very, very happy," she said, describing his victory as "a breath of fresh air for Latin America and the Caribbean" and "the defeat of a rightist movement." She called his administration similar to her own and said she planned to congratulate him by phone at midday.
Lula defeated right-wing Sen. Flávio Bolsonaro, the son of former President Jair Bolsonaro, in the Oct. 25 runoff after trailing him in the Oct. 4 first round. Brazil's Superior Electoral Court reported about 51.8% of valid votes for Lula and 48.2% for Bolsonaro, a margin of roughly 4.4 million votes. According to BNamericas, Lula's fourth, non-consecutive term is scheduled to start Jan. 5, 2027.
The outcome preserves an important ideological ally for Sheinbaum while right-wing governments lead Argentina, Chile, Colombia and El Salvador. But Bolsonaro refused to concede and said he would seek annulment of the election, DW reported. His objection concerns a Supreme Court justice's decision to extend voting nationwide by two hours. The electoral court's president said the extension did not affect the outcome; legal experts cited by DW doubted the challenge would meet the requirements for annulment.
Brazilian financial markets fell sharply after the result. According to DW, a nearly 17% drop in the benchmark Ibovespa triggered a 30-minute trading suspension on the São Paulo stock exchange on Monday. The US dollar rose about 12% against the real, marking one of the Brazilian currency's largest daily moves on record.
Lula also faces what DW described as Brazil's most conservative Congress since the return to democracy in the 1980s. After parliamentary elections three weeks earlier, Bolsonaro's Liberal Party and its allies could hold more than 280 seats in the 513-seat lower house and as many as 50 in the 81-seat Senate.
Pemex-Petrobras cooperation remains on the agenda
Sheinbaum said the two governments would consider when to resume joint projects, including cooperation between Mexican oil company Pemex and Brazil's Petrobras.
The companies already have a framework for evaluating potential work together. They signed a memorandum of understanding in Rio de Janeiro on June 23, 2026, covering assessments of deepwater and ultra-deepwater projects in Mexico's portion of the Gulf of Mexico. Its scope also includes revitalizing mature fields, reprocessing seismic data, refining, petrochemicals and fertilizers, according to BNamericas.
The memorandum lasts two years and may be renewed. It does not commit either company to an investment.
INE faces an investigation and leadership transition
Turning to Mexico's National Electoral Institute, or INE, Sheinbaum called Taddei's decision to resign "good" and said the corruption allegations required investigation. She also called for an audit to examine alleged abuses or privileges, repeating her position from Friday that the institute must have "no hint of corruption."
The accusations concern contracts awarded to companies linked to José Alfredo Hernández Casillas, who is reportedly close to Taddei. Hernández Casillas legally represents Cajas Graf. According to Latinus, as reported by Bloomberg Línea, that company won at least 245 million pesos during Taddei's time at the INE and the Sonora state electoral institute. Mexico's Superior Audit Office, known as the ASF, has opened an investigation on its own initiative.
Former INE President Luis Carlos Ugalde told Bloomberg Línea that the resignation was unprecedented in the institute's 36-year history: no council president had previously resigned amid allegations of corruption and influence trafficking.
The Chamber of Deputies is responsible for choosing Taddei's successor. Morena's coordinator in the chamber, Ricardo Monreal, estimated that the selection could take four to five weeks. The remaining electoral council members are to agree on an interim presidency during that period, and current council members cannot run for the permanent post.
Sheinbaum said the leadership change would not interrupt the INE's work as it prepares for federal, state and municipal elections on June 6, 2027. More than 21,000 public offices will be contested, including governorships in 17 of Mexico's 32 states, all 500 Chamber of Deputies seats and positions in Mexico City's 16 boroughs, according to Bloomberg Línea. The federal election process formally opened on Sept. 10, 2026.
Construction and electronics support economic growth
Sheinbaum also welcomed the latest economic figures, calling August's 3.5% year-over-year growth "very good news." INEGI, Mexico's national statistics agency, released that figure on Friday and reported a 0.6% increase from July. Preliminary September data published earlier last week showed annual growth of 3.7%.
She pointed to housing and public infrastructure construction as contributors to the expansion. INEGI recorded a 7.9% annual increase in construction activity in August. Electronics production was another source of growth cited by the president.
A sharp rise in US-bound shipments of AI servers and other computer and electronic equipment has accounted for much of Mexico's export revenue surge this year. However, those products contain substantial inputs from Asia, especially Taiwan, limiting the share of their total value added that Mexico retains.
