This issue: The most important facts of the week. The pension reform whip list. How Brazilian markets performed. Brazil’s debt ceiling and possible government shutdown.
The week in review
Privatizations. The Supreme Court has allowed state-controlled companies to sell off their subsidiaries without the need for congressional authorization. Parent companies, however, such as Petrobras, can only be privatized through traditional bidding processes, in which all competitors enjoy the same conditions to reach a deal. Following the decision, Petrobras informed market regulators it will take further steps towards reducing its share in its fuel distribution subsidiary to a minority role.
Telecom. Despite intense lobbying from Washington, the Brazilian government has no intention of imposing restrictions on Chinese telecommunications behemoth Huawei—said VP Hamilton Mourão, who was recently in China and met with the firm’s CEO, Ren Zhengfei. “I told him that we need to build an environment of trust. While we trust [Huawei], there will be no problem.” Next year, Brazil plans to auction off 5G frequencies in March 2020, hoping to foster investments and make sure there will be enough coverage across the country, something that has been lacking...