Brazil Senate committee shuns labor reform draft, markets drop


UPDATE 1-Brazil Senate committee shuns labor reform draft, markets drop

(Recasts, adds lawmaker comments and context)
    BRASILIA, June 20 (Reuters) - A Brazilian Senate committee
on Tuesday rejected a preliminary draft text on President Michel
Temer's plan to revamp labor laws, in an unexpected blow to his
administration that does not kill the proposal but shows
weakening support for his reform agenda.
    The proposal, rejected in the social affairs committee by 10
to 9 votes, now moves to the constitutional and justice
committee before its heads to the floor for a full vote, said
Ricardo Ferraco, the senator drafting the bill. Ferraco has said
he expected the bill to be approved by late June.
    The surprise setback comes as Temer fights off allegations
that he took millions of dollars in bribes from the world's
largest meatpacking company JBS SA <JBSS3.SA>.
    Brazil's benchmark Bovespa stock index <.BVSP> accelerated
losses on the news, shedding 1.77 percent at 1:29 p.m. l (1629
GMT). The country's currency, the real <BRBY>, weakened to a
one-month low of 3.33 reais to the dollar.

 (Reporting by Maria Carolina Marcello; Writing by Alonso Soto;
Editing by W Simon)
 ((; +55 61 34267027; Reuters


This article appears in: World Markets , Stocks , Economy , 401k , Politics , Retirement
Referenced Symbols: JBSS3

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