Brazil’s landmark labor reform bill, intended to relax the country’s restrictive labor laws and a main plank of embattled President Michel Temer’s efforts to bolster investment and pull the economy out of its worst recession ever and widely seen as the country’s second most important reform agenda after the Pension bill, was unexpectedly rejected by a special committee in Brazil’s senate, with 10 votes against it, 9 in favor and 1 abstention.
In immediate kneejerk reaction, stocks dropped as much as 1.4%, while the BRL is leading declines among major currencies, down 1.6%, from drop of ~0.8% before vote. The committee was 2nd of the 3 bill had to clear before going to Senate floor vote. The failure to pass, strikes a major blow to Temer’s reform policy and puts into question whether Brazil will be able to “sell” its economic improvement to potential investors.
via http://ift.tt/2rRnwRR Tyler Durden