Brazil's Lula wraps up negotiatons to form govt

BRASILIA, Feb 15 (Reuters) - Brazilian President Luiz Inacio Lula da Silva will finalize negotiations to form a new Cabinet within two weeks, a top official said on Thursday.

Investors are closely watching Lula's talks with leaders of 10 parties, as they could help strengthen his support in Congress. Several parties have conditioned their support on receiving Cabinet posts.

Lula, who began his second term on Jan. 1, will negotiate with two allied left-wing parties -- the socialist PSB and the communist PCdoB -- on Feb. 22, said Tarso Genro, Lula's top political advisor.

"This meeting is very important because both parties are big enough to warrant participation in government," Genro said.

Lula will wrap up the coalition talks with his own Workers' Party and is expected to announce his new Cabinet in early March.

Workers' Party President Ricardo Berzoini said on Thursday that his party had abandoned earlier ambitions of gaining more seats in the Cabinet. Lula wants to appoint more ministers from allied parties and fewer from the Workers' Party.