The Ibovespa, Bovespa’s main stock index (B3SA3), recorded a drop of 0.80% at the opening, at 110,818 points at 10:10 on Monday (26).
At 10:08, the dollar appreciated 1.63%, quoted at R$ 5.334.
Week of September 26 to 30
The week moves the IPCA-15 deflation for September and the Monetary Policy Committee (Copom) minutes, both tomorrow (27), besides the publication of the Central Bank’s inflation reports and the IGP-M for September on Thursday (29).
In the US, Jerome Powell speaks on Wednesday (28) and out come the PCE (Friday) and the second reading of the US GDP (Thursday), with global markets in rescue from the stress of a more aggressive Fed to induce the US economy into recession.
In Europe, inflation is also on the radar, with the preliminary September reading of the eurozone CPI.
In the political context, here, the election enters the decisive stage, with the debate on Globo (Thursday) decisive to define the chances of a runoff or not, in the practically stabilized scenario of the polls, without significant oscillations of Lula and Jair Bolsonaro.
Nikkei 225 (Japan): -2,66%
Shanghai Composite (China): -1,20%
DAX 30 (Germany): +0,20%
FTSE 100 (England): -0,81%
CAC 40 (France): +0.13%
United States: (at 10:11 am, the future indexes were operating in negative territory, between 0.11% and 0.36%)
Banco Modal (MODL11) – Banco Modal (MODL11) bought a stake in SPX Gestão de Recursos.
BB Seguridade (BBSE3) – BB Seguridade (BBSE3) registered a growth of 46.5% in total premiums issued in August, at R$1.793 billion.
The highlight was the 69.3% growth in premiums issued in the rural segment
According to the company, the positive trend continues to be explained mainly by the good performance of agricultural insurance (+71.5%), driven by the release of credit with controlled resources for funding the 2022-2023 crop.
BTG Pactual (BPAC11) – BTG Pactual (BPAC11) approved the merger of the spun-off part of Banco Sistema, as provided for in the Protocol and Justification of the institution’s partial spin-off. (I Want to Invest)
CCR (CCRO3) – Azul has 26 new domestic routes that will compose its network in nine airports administered by the company in GO, PE, PR, SC and RS, to meet the demand of the high summer season between December and January.
Cogna (COGN3) – BlackRock reduced its stake in the company, which now holds 9.926% of the total shares issued, a total of 186,272,247 ON shares.
Compass – The company approved the payment of R$ 53,393,626.64 in interest on equity (IOE), in gross amounts, which performs R$ 0.07476108534 per share.
The base date was September 27 and the proceeds will be deposited on the following day, September 28.
Energisa (ENGI11) – Energy consumption in the company’s concession area increased 4.1% in August, year-on-year, to 3,139 GWh.
Equatorial (EQTL3) – Eleven reiterated its buy recommendation for the company’s shares, with a target price of R$31.00. The analysis house considered that the acquisition of Celg-D by the company was positive.
Espaçolaser (ESPA3) – The company carries out the optional early redemption of all the outstanding debentures issued in the 1st issue of simple debentures, distributed in two series.
Gafisa (GFSA3) – In a statement, Gafisa informed that it is evaluating a restricted primary offering.
At the moment, there is no definition and or formal approval to the effective realization.
“The potential restricted offering is subject to macroeconomic and capital market conditions, as well as to the necessary corporate approvals,” it said.
SBF Group (SBFG3) – Retailers and resellers of sporting goods have contacted the SBF Group (SBFG3), owner of Centauro, responsible for Nike’s operation in the country, because of delays in the delivery of the yellow jersey of the Brazilian men’s soccer team, according to the newspaper Valor.
The company claims lack of merchandise, with the possibility of normalization along October.
Hypera (HYPE3) – Hypera approved the distribution of R$ 194.774 million in interest on equity (IoC), equivalent to R$ 0.3076 share.
The shares will start trading ex-rights as of September 29.
Payments will be made until the end of fiscal year 2023, on a date to be announced by the company.
IGB (IGBR3) – The company has called an extraordinary general meeting for October 17, to analyze the Public Offering for Acquisition of Shares (OPA) proposed by HAG Holding, which holds 51% of the total capital of the company, which aims to cancel the registration as a publicly-held company.
The initiative was a request from a group of shareholders representing 10% of the company’s capital stock.
Irani (RANI3) – Irani (RANI3) is stopping the Paper Machine II for 30 days, as of this week, due to the execution of the Gaia III Project, foreseen in its schedule and previously informed to the market.
The project increases the production of this machine by 30%, equivalent to 600 tons of paper for flexible packaging per month.
Kepler Weber (KEPL3) – Morgan Stanley increased its shareholding in the company, which now holds 5% of the common shares (ON).
Lavvi (LAVV3) – Tarpon Capital increased its stake in the company to more than 15% of the total common stock, and now holds 30,170,200 shares.
Localiza (RENT3) – The company will distribute interest on own capital (IE) in the gross amount of R$ 346.2 million. The amount is equivalent to R$ 0.354889509 per share.
Payments will be made on November 9, 2022, in proportion to each shareholder’s interest.
Shareholders in the company’s shareholding position as of next Wednesday, September 28 will be entitled to the credits.
The company also approved a capital stock increase of at least R$33 million and at most R$150.7 million, through the issuance of common shares, for private subscription, within the limit of authorized capital.
A minimum of 600 thousand and a maximum of 2.74 million shares will be issued. The issue price will be R$ 55.00. (InfoMoney)
Natura (NTCO3) – Natura (NTCO3) informed the issue of commercial notes worth R$ 500 million.
Nubank (NUBR33) – Nubank has reached the mark of 70 million customers in Latin America, of which 66.4 million are in Brazil, up from 62.3 million in the country at the end of the second quarter of this year.
The digital bank also informed that it has 3.2 million clients in Mexico and more than 400 thousand in Colombia (Investing.com Brazil)
Petrobras (PETR3)(PETR4) – Petrobras terminated the contract with SPE Kerui-Método, responsible for the works of the Natural Gas Processing Units (UPGN) of Polo Gaslub of Itaboraí.
It also announced the signing of an oil supply contract with the Indian Oil Corporation (IOC), the biggest oil and gas state-owned company in India.
The agreement, of the “frame agreement” type, establishes the supply option of up to 12 million barrels of oil and lasts for six months, renewable for another year.
On the same occasion, a memorandum of understanding was also signed with Bharat Petroleum Corp, another Indian refiner, to establish cooperative guidelines for possible future crude supply. (InfoMoney)
PetroRio (PRIO3) – PetroRio announced the signing of a contract with TotalEnergies E&P Brasil to buy a 40% stake in the Itaipu Field.
The acquisition adds to the 60% stake in the field that the company had acquired last year from BP Energy, so that the company will own 100% of the asset when the new transaction is completed.
PRIO will pay Total Energies $75,000 at the closing of the purchase and an additional $26.925 million after the fate of the field is defined, it said in a statement.
Itaipu was a discovery made in 2009 in Block BM-C-32, in the pre-salt of Campos Basin.
Vale (VALE3) – The mining company will pay the semi-annual remuneration of its debentures on September 30, with a gross value of 1.841096662 Brazilian real per debenture.
Zamp (BKBR3) – Zamp informed that it received the notice of revocation of the Voluntary Public Offering for the acquisition of ON shares for control of the company by MC Brazil F&B Participações, of the Mubadala fund.
Yduqs (YDUQ3) – The company concluded the 8th issue of simple debentures, with the total value of the issue of R$ 500 million, at the cost of CDI + 1.50% and maturity in five years.
Ibovespa and the dollar in the previous session
The commercial dollar closed this Friday (23) sold at R$ 5.249, with a strong increase of R$ 0.134 (2.62%).
The Central Bank intervened in the market and sold US$ 2 billion of the international reserves combined with repurchase auctions in the interbank market. This type of operation had not been done since the end of 2021.
The B3 Ibovespa index closed at 111,716 points, down 2.06%. Despite the drop, the indicator rose 2.23% in the week, stimulated by the end of the cycle of high rates in the Selic (basic interest rate of the economy).
The global financial market recorded a day of instability after the release of economic data indicating that Europe is entering into recession.
In addition to the escalating tensions between Russia and Ukraine, the announcement that the purchase intentions by managers (index used to measure where the economy is heading) fell on the continent worsened the climate.
In parallel, the British pound fell to its lowest level in thirty-seven years following the announcement of tax-cutting measures by the new UK government.
Announced by the new Prime Minister, Liz Truss, the measures have been poorly received by the market because they will increase the country’s public debt.
Fears of global recession have impacted international oil prices. The price of a barrel of Brent crude oil, used in international negotiations, fell more than 4%, closing at US$ 86.57.
Polls – Former President Luiz Inácio Lula da Silva (PT) grew one percentage point to 48% of valid votes, in a new BTG Pactual and FSB survey, released on Monday (26).
President Jair Bolsonaro (PL) did not oscillate and appeared with 35%, the same level as in the last four weekly polls published by the companies.
In the previous week, Lula had jumped from 44% to 47%.
Former minister Ciro Gomes (PDT) was at 8%, with no variation from the previous survey. Senator Simone Tebet (MDB) showed a negative oscillation of one percentage point, and came in at 5%. The other candidates totaled 3% of voting intentions.
Bolsonaro Family Properties – Appointed by Jair Bolsonaro to the Supreme Court (STF), Minister André Mendonça surprised on Friday night (23), by overturning the decision that censored reports from the portal UOL on the purchase of real estate in cash by the Bolsonaro family.
The magistrate said that full freedom of the press means “a legal category prohibiting any kind of censorship.
But Mendonça denied the request of Senator Randolfe Rodrigues (Rede-AP) to investigate the president and his children and investigate possible money laundering in the purchase of real estate with cash.
Ciro Gomes – Ciro Gomes (PDT) announced for today “an important speech to the Nation”, at 10:00 a.m.
Speculation ranges from his resignation, not in favor of Lula, but of Bolsonaro, to a bluff to denounce the PT’s useful vote movement. The president of PDT, Carlos Lupi, denied any possibility of Ciro giving up.
Spending cap – Luiz Inácio Lula da Silva (PT) said on Sunday, one week before the election, that he will repeal the spending cap if elected.
“The spending cap is over when I am president of the Republic,” he said, days after receiving the support of one of the supporters of the cap, former minister Henrique Meirelles (União Brasil).
The statement was made during an event at Portela square, in the northern zone of Rio, organized by Mayor Eduardo Paes (PSD).
TSE – Minister Benedito Gonçalves of the Superior Electoral Court (TSE) has banned President Jair Bolsonaro, who is running for re-election for the PL, from making “livestreams” at the Alvorada Palace or the Planalto Palace with electoral content pronouncements.
The Federal Senate session scheduled for this Monday, to analyze the MP of the electric sector that would raise the electricity bill, has a chance to be canceled.
The government leader, Carlos Portinho, confirmed the chance of the text to expire.
The floor of nursing
The vote on the bill that allows the transfer to cover the new nursing floor of the resources destined by states and municipalities to the fight against covid will probably take place after the first round of voting.
This is an attempt to point the source of the resources and convince the STF to accept the floor. The bill still goes to the House of Representatives.
A new proposal under analysis in Congress provides that the salary floor for nurses will have as a source of funds a figure of R$ 9.9 billion that, by decision of the Bolsonaro government, was included in the secret budget 2023.
The president of the Senate, Rodrigo Pacheco, said he received the proposal with good eyes.
The projections of the Focus Bulletin for the Selic rate this year remained at 13.75. 2023, 11,25%; 2024, 8,00%.
IPCA: 2022 – 5.88%; 2023 – 5.00%; 2024 – 3.50%.
GDP: 2022 – 2.67% (13th week of high projection); 2023 – 0.50%; 2024 – 1.75% (from 1.70% previously).
Dollar: 2022 – R$ 5.20; 2023 – R$ 5.20; 2024 – R$ 5.10 (from R$ 5.11 previously).
Focus: exchange rate projection remains at R$ 5.20 for 2022 and 2023
For 2024, the expectation for the dollar is R$ 5.10 (against R$ 5.11 in the previous week).
Current transactions of the balance of payments registered a deficit of US$ 4.1 billion in July. In the same month in 2021, there was a US$ 1.2 billion deficit.
Net inflows of Direct Investments (NDI) totaled US$ 7.7 billion in July. In the same month of 2021, DDI totaled US$ 6.6 billion in July 2021.
International Reserves totaled US$ 346.4 billion in July, while Portfolio Investment totaled net outflows of US$ 60 million in the period.
Real Estate Contracts
The good performance of the real estate market in 2022 hides a risk. Although they are at the lowest level in almost ten years, contracts to be rescinded continue to represent a danger for those who buy a property in the planning stage.
High interest rates and inflation may result in a headache during times of economic change.
The average price of gasoline fell for the 13th consecutive week at service stations, the ANP said.
With the fiscal anchor demoralized by reelection claims, O Globo newspaper reported on Friday that the government wants to start paying still in October the extra R$ 200 to beneficiaries of Auxílio Brasil who get a job.
Fed – On Sunday, Raphael Bostic said it is necessary to do “everything possible” to reduce inflationary pressures. Still, he does not expect substantial job losses.
Today (26), three Fed directors speak: Susan Collins (11:00), Raphael Bostic (13:00) and Loretta Mester (17:00).
Japan – The preliminary reading of the composite PMI came back above 50. It rose from 49.4 to 50.9 in September. Overnight, the government repeated it is ready to respond to speculative movements in the exchange rate.
Italy – Polls on Sunday night pointed to a victory of the extreme right in the legislative elections. Giorgia Meloni may become the first woman in history to head Italy’s government.
Data – September’s consumer price index (CPI) comes out in the euro zone (Friday) and in Germany (Thursday).
War Between Russia and Ukraine
U.S. national security adviser Jake Sullivan said the U.S. has warned Russia that it will face “catastrophic consequences” if it uses nuclear weapons against Ukraine.