Venezuela. For the past few days, Venezuela has been engulfed by even more turmoil and uncertainty—as forces opposing President Nicolás Maduro staged a botched coup and Caracas saw waves of violent protests. With the opposition calling for a general strike next week, the country seems to be edging closer to a civil war. Which could have severe consequences for Brazil—including a bigger inflow of migrants, a flee of investors who would see South America as an unreliable bet, and the potential of placing Brazil between its two largest trading partners, China and the U.S.—which are on opposite sides of the issue.
M&A. Retailer Magazine Luiza announced its intention to acquire online sportswear retailer Netshoes for USD 62m (USD 2/share). A KPMG report to the U.S. Securities and Exchange Commission raises serious doubts about Netshoes’ “operational continuity”—which should force stakeholders to accept the deal, despite share prices being way below their levels on the stock exchange.
Economy.Just before Labor Day, President Jair Bolsonaro signed a provisional decree to reduce bureaucracy for businesses. The main changes include allowing companies engaging in low-risk activities to operate without the need for permits (safety, sanitary, and environmental), and giving total freedom to firms to establish their prices. For all details, subscribe to Brazil On The Record.
A mining structure in the town of Barão de Cocais, in Minas Gerais state, will collapse by Saturday, according to Vale. The issue was forecast last week and is overseen by the National Mining Agency. Experts in the area don't know if the burst will be gradual or abrupt. https://t.co/yMf1as4KgT
Homicides caused by the police continue to rise in Rio, going up 23% in April when compared to the same month in 2018. In comparison to March, these deaths dropped 4%. Over the year, an average of 5 citizens were killed every day in Rio. https://t.co/31YDFxryzx
Former Senator and chairman of Brazilian Social Democracy Party (PSDB) Eduardo Azeredo has left the party. He was likely going to be expelled or asked to leave by the party’s top brass. Azeredo was sentenced to 20 years in prison for corruption and money laundering https://t.co/aAWDpJiKs6