Mexico bowing to US, Lula support growing

A “handshake deal” between Mexico and the US on auto trade rules is apparently close, but several hurdles must be cleared before a new Nafta treaty is agreed. Elsewhere, Brazilian markets finally seem to be waking up to the risk of a populist victory in October’s presidential election. Unless market-friendly candidates see an improvement in their polling, the real is likely to come under further pressure in the coming months.