The fiscal situation of the country remains in focus after yesterday’s Proclamation of the Republic holiday. It is expected that the Proposal of Amendment to the Constitution (PEC) of Transition will be presented, which aims to make room in the 2023 Budget by removing the Brazil Aid – or again Bolsa Família – from the spending cap. The projection is that at least R$ 175 billion in expenses will be left out of the fiscal anchor.
On the international scene, inflation in the UK reached its highest level in 41 years. Still this morning, retail sales and industrial production indicators will be released in the USA.
At 8:32 am, the EWZ ETF was up 1.29% in the New York pre-market.
In the US, Nasdaq 100 futures were down 0.08%, while S&P 500 and Dow Jones futures were up 0.14% and 0.11%, respectively.
News of the day
Pix – According to the Brazilian Federation of Banks (Febraban), Pix, with instantaneous money transfers, has become the most used means of payment by Brazilians.
COP27 – Lula announced that he will ask the United Nations for Brazil to host the climate conference in 2025, reported Folha.
USA – Former President Donald Trump announced that he will be a candidate for the presidency of the United States in 2024.
5G – The National Telecommunications Agency (Anatel) anticipated to the month of January the entry of 420 more cities in the 5G, as pointed out by O Globo.
Day’s agenda
Jair Bolsonaro – Meeting with Marcelo Queiroga, Minister of Health.
Paulo Guedes – Currently there are no official appointments scheduled.
Campos Neto – Internal dispatches in São Paulo.
Luiz Inácio Lula da Silva – United Nations Climate Conference COP27, in Egypt.
Corporate News
Nubank (BVMF:NUBR33) (NYSE:NU)- The fintech company reported first positive result in history, with net income of $7.8 million in Q3 2022, reversing a loss of $33 million from the same period in 2021.
Embraer (BVMF:EMBR3) – The aircraft manufacturing company, which aims to expand sales in all segments in the fourth quarter and next year, will face challenges with parts shortages due to the supply chain crisis.
Banrisul (BVMF:BRSR6) – Reported a 54.1% pullback in its Q3 2022 net income.
Hapvida (BVMF:HAPV3) – The company approved the issue of up to R$1.2 billion in debentures, which are to be securitized for the issuance of real estate receivables certificates (CRI).
Localiza (BVMF:RENT3) – The car rental company reported an adjusted net profit of R$682.1 million in the third quarter, down 27.6% year-on-year.
Petrobras (BVMF:PETR4) – It was among the world’s biggest dividend payers in the third quarter of this year, with $9.7 billion in the period, according to the Janus Henderson Global Dividend Index, published by Infomoney. It came in behind China Construction and mining company BHP. Moreover, the elected senator Wellington Dias (PT-PI), said that the elected government will need to discuss the revision of the ICMS ceiling for fuels and the pricing policy practiced by Petrobras.
Agrogalaxy (BVMF:AGXY3) – The company reported net income of R$19.4 million in the third quarter, a drop of 66% year-on-year.