In this week’s issue: The most important facts of the week.
THE WEEK IN REVIEW
- Petrobras. Brazil’s oil and gas company has lost the largest labor dispute in its history. The Superior Labor Court ruled that Petrobras must consider employee benefits as part of base salary, as well as pay a BRL 17bn fine to workers and increase its annual payroll by BRL 2bn. In January, the already-indebted company settled a lawsuit worth nearly USD 3bn with U.S. investors.
- Interest rates. As predicted, the Central Bank kept the basic interest rate at 6.5%. The bank’s president, Ilan Goldfajn, previously stated that the institution wouldn’t use the interest rate to influence exchange rates. At the same time, he said the bank would increase its swap operations to hold down the USD.
- Operation Car Wash. The Supreme Court decided on Wednesday that the Federal Police is also able to sign plea bargain agreements with defendants – a prerogative once exclusive to prosecutors. However, the Feds cannot offer immunity to investigation targets, as it is the prosecution that decides whether or not to press charges.