For both men, the close embrace of their party establishments may damage them with voters.

ECONOMIST: All sewn up?

And both major German political parties - Mrs Merkel's Christian Democrats and the Social Democrats led by Foreign Minister Frank-Walter Steinmeier - make clear there is no turning back from a close embrace of Russia.

BBC: Russia strengthens ties with Germany

They will also pay close attention to Antonio Palocci, who oversaw Lula's embrace of market-friendly policies as his first finance minister and is part of Ms Rousseff's transition team.

ECONOMIST: Brazil's next president

So it was a choice to allow sequester to take effect rather than embrace the idea that the American people strongly embrace, that a majority of Republicans strongly embrace out in the country, which is that we can close a few loopholes for the wealthy and well-connected, cap a few deductions, and achieve balanced deficit reduction in a way that would eliminate the sequester entirely.

WHITEHOUSE: Press Briefing

And Iran, while shying from any formal embrace with America (see article), is quietly courting America's close friends in the region, such as Kuwait, Jordan, Saudi Arabia and Egypt.

ECONOMIST: Is a Pax Americana in the offing? | The