Lula’s Surprise Win Hits Spain’s Brazil Trade
Lula da Silva's runoff victory in Brazil's presidential election caused a selloff in Spanish companies with significant Brazilian exposure. Telefónica, Santander, and Mapfre fell as much as 8%, 5%, and 3% respectively. Brazil accounts for 28% of Telefónica's revenue and 15% of Santander's earnings. The weaker real currency reduces the value of Brazilian revenue when translated to euros.





