BRAZIL POLITICS: Carwash, Govt Defeat, Add to Political Pressure

Police carry out new phase of Carwash probe just hours after govt lost vote in impeachment committee by wider-than-expected margin. * Target of new phase of operation is former Senator Gim Argello, who allegedly acted to prevent builders from being questioned in congressional probe into Petrobras in 2014 in exchange for campaign donations, police say * Committee voted for impeachment to proceed by 38 to 27 votes ** 11 vote difference was within range forecast earlier by Eurasia ** Govt expected to get as many as 32 votes, Wagner said: Globo ** Lawmakers from PP, PR and PTN, which had been negotiating with Rousseff, voted against impeachment: Folha ** Cunha allegedly correctly predicted the score on impeachment committee: Folha * Now focus shifts to lower house; govt considering appealing to Supreme Court to nullify process ** Report to be read in lower house Tuesday, and voting scheduled to start by Friday * Leaked Tape Shows VP Temer Practicing Unity Address ** Temer planning pro-impeachment campaign in social media: Folha ** Temer ally Moreira Franco initiated talks with lawmakers on agenda in possible new govt: Folha ** Govt thinks leak was deliberate show of strength to try to sway votes in Congress: Folha ** Leaked speech shows Temer is trying to turn the impeachment process into an indirect vote to make him president, according to a statement on the presidency’s website citing Govt Affairs Minister Ricardo Berzoini ** Govt wants Temer to resign if Rousseff halts impeachment: Folha ** Planalto defends resignation Temer case government survives impeachment: Link * Estado’s latest tally of impeachment votes has 299 for, 123 against ** Temer allies see 321 votes in favor of impeachment: Folha

OTHER HIGHLIGHTS: * Lula Said to Lead Brazil Govt If Rousseff Stays: Valor * Govt considering stimulus measures to push positive agenda: Estado ** Fiscal problem has worsened in recent weeks, economist Marcos Lisboa says: Folha * Police charges Minas Gerais Governor Fernando Pimentel on suspicion of corruption and 3 more crimes: Folha

NEWSPAPERS’ TOP STORIES: * O Estado de S. Paulo, Folha de S.Paulo, O Globo, Valor Economico ** All newspapers focus on impeachment developments, with the first 3 highlighting committee’s decision to move forward with proceedings to oust Rousseff; Valor leads with Temer’s leaked speech

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