Brazil's runoff elections have piqued the interest of on-lookers in Rio de Janeiro and Belo Horizonte in the past week. Both cities are hubs for business and travel in Brazil, with major extractive industries and tech sector companies based there, as well as being the second and fourth richest (GDP) cities in Brazil, respectively.
The arrest of João Santana in Brazil has brought the Lava Jato scandal much closer to President Dilma Rousseff and her campaign team. While investigators have yet to pin corruption specifically to Rousseff, the news that third party payments passed to Santana during recent campaigns could be reason to invalidate her election. This specific scandal also hits former President Lula da Silva, highlight corruption of a key ally and knocking down an important element of his potential 2018 campaign machine. More important this year, Santana’s arrest could hurt the PT’s chances in key mayoral races, particularly São Paulo.