Brazilian President Jair Bolsonaro attends a joint news conference with President Trump at the White House. Photo: Chris Kleponis-Pool/Getty Images

Brazil's last 3 presidents have not fared well legally, but its market has managed to remain stable.

Why it matters: The country's stock market has largely shaken off political turmoil as investors continue to believe in a widely unpopular pension reform current President Jair Bolsonaro has backed in an effort to repair Brazil's highly overleveraged and underfunded budget.

  • Luiz Inacio Lula da Silva, who led the country until 2010, is in jail on corruption and bribery charges.
  • Dilma Rousseff served until 2016 when she was impeached and removed from office.
  • Michel Temer, who replaced her and served until 2018, was arrested and charged with leading a "criminal organization" that diverted 1.8 billion reais ($475.6 million) in funds yesterday.

Driving the news: Brazil's benchmark Bovespa stock index fell by nearly 4% following news of Temer's arrest, but ended the day just 1.34% lower. The country’s 10-year bond yield rose 4 basis points to 8.76% and the real currency ended little changed at 3.79 per dollar.

  • Brazil's main bourse has more than doubled the performance of the S&P 500 since Rousseff's powers were suspended in May 2016, and a recent Reuters poll showed traders expect the Bovespa to rise 36.5% in 2019.
  • It has risen less than 7% so far.

Yes, but: Investors' faith is being tested as the far-right Bolsonaro is fast losing popularity. The president's approval rating has declined significantly since he took office in January, falling most recently to just 34%, according to a poll by Ibope.

  • The clock is ticking for the pension reform to be approved on the government's timeline. Council of the Americas reports that a survey by Metapolítica shows that to pass on time, the pension reform would have to be the fastest constitutional amendment in the history of Brazil's Congress.

Go deeper: Trump suggests Brazil could become NATO member

Go deeper

10 mins ago - World

Trump announces new Iran sanctions in effort to maintain international arms embargo

Photo: Anna Moneymaker-Pool/Getty Images

President Trump signed an executive order on Monday that would impose sanctions on any person or entity that contributes to the supply, sale, or transfer of conventional arms to or from Iran or is engaged in providing training and financial support related to those weapons.

Why it matters: The executive order is the first step by the Trump administration to put teeth into its claim that international sanctions on Iran were restored over the weekend, one month after the U.S. initiated the "snapback" process under a United Nations Security Council resolution.

Exclusive: Conservative group launches $2M Supreme Court ad

Screengrab of ad, courtesy of Judicial Crisis Network.

The Judicial Crisis Network is launching a $2.2 million ad campaign to put pressure on vulnerable Senate Republicans in battleground states to support a quick confirmation when President Trump announces his Supreme Court nominee.

The big picture: "Follow Precedent," previewed by Axios, is one of the first national and cable television ads to run following Justice Ruth Bader Ginsberg's death Friday.

Updated 25 mins ago - Politics & Policy

CDC says it mistakenly published guidance about COVID-19 spreading through air

CDC Director Robert Redfield. Photo: Anna Moneymaker/Pool/Getty Images

The CDC has removed new guidance that acknowledged airborne transmission of the coronavirus, posting in a note on its website that the guidance was only a draft and had been published in error.

Why it matters: The initial update — which was little noticed until a CNN story was published Sunday — had come months after scientists pushed for the agency to acknowledge the disease was transmissible through the air. The CDC previously said that close person-to-person contact was the bigger concern, and the language has been changed back to erase the warning about airborne transmission.