Lula's historic comeback: What's next for Brazil?

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That's supporters of president Luiz Inácio Lula da Silva celebrating his re-election in Brazil. This as he secured another term in a dramatic comeback, winning 51.8% of the vote against 48.2% for Flavio Bolsonaro, the son of jail former president Jair Bolsonaro.

Lula lost the first round of voting, but has now become the first Brazilian president since the return to civilian rule in 1985 to overcome a first round defeat and win the presidency in a runoff. But his opponent, Flavio Bolsonaro, is refusing to go quietly.

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What he did was an unprecedented abuse of political and economic power that completely upset the balance of the electoral contest. And that's without even mentioning the fake news industrial complex they created, illegally spreading lies on a massive scale to terrorize the Brazilian people.

So, yes, I will seek to have Lula's ticket disqualified over all the abuses he committed. The law has to apply to everyone. The competition has to be fair and equal.

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Bolsonaro alleges irregularities surrounding a Supreme Court ruling that extended voting hours, and says he will seek to have Lula's election victory annulled. For political analyst Juliano Cortinas from the University of Brasilia, the result will have a ripple effect.

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This election in Brazil will serve as a paradigm for many political movements around the world and will also help confirm various political analyses. Anyone who fails to look at Brazil from this point forward is making a mistake.

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Political scientists from all over the globe will study and come to understand what happened here.

SPEAKER_3 (2:35)

It was truly powerful.

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But the political result has also rattled investors. Brazilian markets fell sharply shortly after the win, reversing a rally fuelled by expectations of a Bolsonaro victory. The Brazilian real suffered its biggest one-day fall since 1999 Well, the benchmark Bovespa stock index briefly triggered a trading halt after plunging more than 10 percent. Now, investors seem concerned about Lula's pending plans and the pressure his campaign promises could place on the budget. Economic analyst Gilberto Braga says the priority now is clarity about the incoming government's economic direction.

In fact, it is unlikely that the result will change.

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What matters to foreign investors is knowing who the president will be, who will serve as finance minister, and what economic policies will be implemented during the next term.

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So for foreign investors to confirm their investments, the key is to have clarity on the economic agenda of the president-elect's fourth term.

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As well as globally in some countries, Lula's victory has also drawn congratulations from across Latin America. Venezuela's acting president, Delcey Rodriguez, praised the result as a rejection of extremism.

Delcy Rodríguez (4:13)

Once again, because Brazil gave a lesson, neither extremism nor fanaticism of any kind will prevail. It is a healthy society that has sent a message to the world, and especially to the peoples of our Latin America and the Caribbean, and of this region.

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Mexican President Claudia Mora, who has been a member of the Latin American people, and of the Caribbean, and of this region.

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Mexican President Claudia Sheinbaum also congratulated Lula.

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And beyond social media, it is the people who win.

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And that is very good.

SPEAKER_6 (4:45)

Very good. Because it shows that when the people decide to mobilize and defend their rights, they always win. And that is a lesson for Brazil, for Mexico, and for the whole world.

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And the victory has resonated in other parts of the world. New York City Mayor Zohran Mamdani reflects on when he had the opportunity to sit down with President Lula at the UN General Assembly.

Zohran Mamdani (5:14)

I shared how much he has meant to so many across the city, across this country, across the world, frankly, and a real admiration for the tangible things that he has been able to deliver for working people. And we've seen in the time since that meeting, he's gone on to reduce the work week from 44 hours to 40 hours to guarantee two days of rest for Brazilians without a pay cut. These are the kinds of things that working people everywhere are looking for, a life with more dignity, a life with more rest, a life with a little bit more room to breathe.