Market Roundup: Is mining giant Vale free from the state’s clutches?

Overestimating Lula’s reach in Vale decisions

Three weeks ago, Brazilian President Luiz Inacio Lula da Silva tried to influence who would be the next chief executive of mining giant Vale, one of the world’s largest producers of iron ore and nickel. 

He asked the mines and energy minister, Alexandre Silveira, to call some of the company’s largest shareholders and suggest they appoint Guido Mantega, Brazil’s finance minister between 2006 and 2015, as the new CEO. 

Bad omen. In addition to being targeted in the Operation Car Wash investigation, Mr. Mantega’s name became associated with Ms. Rousseff’s fiscal wrongdoing — she was formally accused of cooking the government’s books to hide the extent of Brazil’s deficit problem during her 2014 re-election campaign, which led to her impeachment in 2016.

State of play. The term of Vale’s current CEO, Eduardo Bartolomeo, ends in May. The company’s board members can choose to extend his tenure or replace him. Under pressure from the government, the company postponed a board meeting scheduled for February 6, but tensions remain. 

• Board members want more time to review Mr. Bartolomeu’s performance and draw up a list of candidates for the position, which could include names other than the current CEO.

Why it matters. The market has not welcomed the government’s attempts to interfere. The company’s shareholders read Lula’s...