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Chamber shortens deadline for Spending PEC
The Chamber approved in the first round this Tuesday (20) the basic text of the Spending PEC. The score was 331 votes to 168 – 308 were needed.
The text approved by the deputies was dehydrated in relation to the proposal that passed in the Senate. The duration of the pull BRL 145 billion in the spending ceiling to pay for Bolsa Família will be valid only for the next year – and not for two years, as the senators approved.
Positive day on the market: the dehydration of the proposal, anticipated by the press during the afternoon, pleased investors. the dollar fell 1.75%at R$5.20, the biggest drop since October 31, the day after the election results.
- The Ibovespa rose from 2.02%, at 106,864 points. Retailers had the second consecutive day of highlight, with gains of 10.8% for Via, high of 8.6% for Natura and 8.05% for Magazine Luiza.
More numbers: the PEC also authorizes other BRL 23 billion in investments outside the cap, with no expiry date. The total space opened by the proposal, then, comes to BRL 168 billion🇧🇷
- The project also redistributes the R$ 19.5 billion of the rapporteur’s amendments, which were overturned by the STF. Half of these amendments remain under the auspices of Congress, and the other half go back to government control. This section needs a new approval from the Senate.
- The redistribution of this amount and the reduction in the term of the ceiling pull were decisive for the agreement in the Chamber.
The space opened in the 2023 Budget (which provided for a value of R$ 405 for the Brazil Aid) could be used to recompose programs such as Popular Pharmacy, Minha Casa Minha Vida and readjust the minimum wage above inflation.
Other PEC points:
- The text provides that the Executive will submit a new proposal for a fiscal rule by August 31, 2023. When it is approved (by complementary bill), the current ceiling will be revoked from the Constitution.
Aegea takes Corsan for R$4.15 billion
The consortium led by the company Aegea won this Tuesday the Rio Grande do Sul sanitation company Corsan in an auction held at B3, in São Paulo.
In numbers: the winning bid was the only one submitted in the dispute, with a bid of around BRL 4.15 billionwhich represents a premium of 1.15% on the minimum amount (R$ 4.1 billion).
- The consortium that involves Aegea, the private leader in basic sanitation in Brazil, and financial companies Kinea and Perfin, expects to invest around BRL 13 billion in the next ten years.
- Corsan serves 317 of the 497 municipalities in Rio Grande do Sul, providing water supply and sanitation services to approximately 6 million people.
The privatization process was turbulent and was interrupted twice by injunctions obtained by the sector’s workers’ union.
- The organization claims that the targets set out in the new sanitation framework could be achieved without privatizing the company.
The legislation passed in 2020 determines that, by 2033, 99% of the population should have access to safe drinking water and 90%, sewage collection and treatment. In Rio Grande do Sul, only 20% of the residences have sewage collection and treatment.
California may have 4th highest GDP in the world
If it were a country, California would be the fifth largest economy in the world. And it could soon overtake Germany, trailing only the US, China and Japan.
The analysis is by Bloomberg News, which examined the balance sheets of 379 companies in the state with capital above US$ 1 billion and compared them with 155 German companies of similar size.
In numbers: over the past three years, the market value of Californian companies has grown 117%while those of Germany, 34%.
- Projections suggest that California’s GDP next year may be $72 billion larger than that of Germany.
Which explains: It is in California that big techs such as Apple, Alphabet (owner of Google) and Meta (owner of Facebook) are headquartered. There is also Silicon Valley, where these companies were born and new startups emerge.
- The state still houses universities that provide very specialized labor for these companies, closing a kind of innovation ecosystem that supplies the region.
- As if that were not enough, Los Angeles has the busiest port in the Western Hemisphere, through which most of the trade with China passes.
The state also has its problems. Two are most cited in opinion polls: crime and the housing crisis.
- homicides have increased 7.2% between 2020 and 2021, reaching a rate of 6 murders per 100,000 inhabitants.
- The state still has 161.5 thousand homeless people, 28% of the total number of homeless people in the country.
How did the Argentines invade Qatar?
Once again millions of Argentines filled the streets of Buenos Aires to celebrate the third world football championship. Around 40,000 “hermanos” had an even greater privilege: they accompanied the title that ended a 36-year drought in Qatar.
With a lot of planning and based on the principle that a good part of the population keeps dollars “in their mattress”, tourists and specialists told BBC News Brasil.
Understand: the local Central Bank has, on paper, $40 billion (R$ 212.6 billion) of reserves.
- But Argentines have more than US$ 300 billion (R$ 1.5 trillion) abroad and in the ‘mattress’ – outside the financial system.
- When an opportunity arises, such as traveling to watch the national team led by Messi, savings in dollars are used.
But there are difficulties. The government no longer allows purchases of international tickets and payments for hotels abroad to be made in installments.
- There is also the “Qatar Dollar”, an additional fee of 45% to use your credit card abroad. Named after the World Cup, it was created to encourage Argentines to use dollar bills they keep at home.
Not only does this explain the strong presence in Qatar. Argentines living abroad and packages given by companies to customers and suppliers also influenced temporary migration to the country.
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