Good morning! The momentary truce between Congress and the Brazilian government. Government could backpedal on gun decree. OECD slashes Brazil’s growth estimate, in make-or-break moment. (This newsletter is for platinum subscribers only. Become one now!)
Brazilian government strikes momentary truce with Congress
Good news from Brasília has been hard
to come by these days, but yesterday, markets were excited about what appeared to be a truce between Congress and the Jair Bolsonaro administration. The lower house decided to begin voting on the queue of provisional decrees which are set to expire next week, keeping the government from plunging into chaos.
- Airlines: Yesterday, lawmakers confirmed the decree allowing full foreign ownership of airlines (the bill still must be voted on by the Senate before next Wednesday). The House also slashed a controversial article which forced airlines to reserve at least 5% of their flights for regional routes—catering to the companies’ requests. However, passengers will be allowed to check one piece of luggage without being charged extra (which could keep low-cost companies from setting up shop in Brazil).
- Cabinet: The House is set to vote today on the decree establishing the...