Our EM Equity trip to Brazil revealed resilience beneath the uncertainty. We see select opportunities in quality equities at attractive entry points. Key takeaways Rate cuts delayed, not derailed : sticky inflation has paused Brazil's easing cycle for this year, but we expect rate cuts to resume in 2027 as conditions normalise. A big political year: momentum has shifted in incumbent Luiz Inácio Lula da Silva’s favour, following corruption headlines surrounding Bolsonaro. However, with voting in early October, the narrative could still change. Consumer resilience: bustling malls and thriving cosmetics retailers signal strong household spending, with management teams pivoting physical retail toward full-day experience destinations. Banking sector stress is contained: larger banks have anticipated deterioration in agricultural credit and have de-risked early, limiting broader contagion across the sector. GLP-1s are a structural growth story: high obesity in Brazil, combined with very low current adoption rates, point to significant long-term growth potential for GLP-1 therapies.