SAO PAULO – Ibovespa Futuro operates high on Tuesday (23), recovering part of the losses recorded the day before due to the collapse of Petrobras. The ADRs (or receipt of shares, in practice, assets traded in the US) of the state-owned company rise up to 5% in the pre-market of the New York Stock Exchange.
Investors keep an eye on the company’s Board of Directors meeting today, which should analyze the indication of the name of General Joaquim Silva and Luna to replace Roberto Castello Branco in charge of the company.
Despite the theme, there will hardly be a decision this Tuesday, as there is a rite that must be obeyed before the Council votes on the nomination of the president. A new meeting must be scheduled within 30 days.
At 9:10 am (Brasília time), the Ibovespa futures contract due in April 2021 was up 1.18%, to 113,420 points.
Meanwhile, the commercial dollar operates in a fall of 0.21% to R $ 5.4413 in the purchase and to R $ 5.4423 in the sale. The futures dollar due in March decreased 0.52%, to R $ 5.441.
In the future interest market, the DI for January 2022 falls four basis points at 3.49%, the DI for January 2023 falls by four base points at 5.28%, the DI for January 2025 falls five basis points at 6.88% and the DI for January 2027 recorded a negative variation of four basis points at 7.53%.
Abroad, exchanges continue to fall on Tuesday. The day before, heavy losses in the technology sector affected the S&P 500 and Nasdaq index. The continued rise in US Treasury bond interest continues to fuel fears that fast-growing companies will find it difficult to finance themselves. There is also a fear of migration of stock market investors to these securities.
In the United States, the Democratic package continues to advance in House commissions. The House can approve it in plenary until the end of the week. Despite the lack of consensus among Democrats to advance the increase in the minimum wage, much of the $ 1.9 trillion continues with less resistance.
Ten-year bonds continued to appreciate, at 1.376% in the early hours. 30-year bonds rose to 2.198%.
On the analysts’ radar is the speech of the Fed chairman, Jerome Powell, in a Senate hearing earlier in the afternoon. He is expected to comment on the value of the bonds and the outlook for inflation.
European stock markets have declines too. The president of the European Central Bank, Christine Lagarde, said in a speech that the institution “continues to monitor the evolution of nominal interest on bonds”. European bond interest rates fell, in apparent response to his speech.
European markets continue in a cautious trend, observing the performance in Asia and the United States, where stocks in the technology sector had declines in overnight trading.
UK stocks accumulate smaller declines after the British government released proposals on Monday about how it plans to end the lockdown restrictions, implemented in response to the coronavirus. The reopening is expected to be gradual, but the government plans to end all restrictions by 2021.
Agenda of the day
At 7 am, the CPI (Consumer Price Index) in the Euro Zone was released, which dropped 0.9% in January in the annual comparison, in line with analysts’ expectations. The previous index had fallen by 0.3%. In the monthly comparison, the index increased by 0.2%, also in line with expectations. The previous indicator had increased 0.3%.
At 11 am, the purchase price index for real estate in the United States in the fourth quarter and the FHFa home price index for December are released. Also at 11 am the S&P CoreLogic index is released for 20 cities in December in the United States.
At 12 pm, Fed Chairman Jerome Powell presents the Semi-Annual Monetary Policy Report. Also at 12 noon, expectations and views on the current situation are released by the Conference Board for February in the United States. At the same time, the Richmond Fed releases its manufacturing index for February.
According to information from Valor, awaited by the political class to unlock another four months of payment of emergency aid, Senator Márcio Bittar’s (MDB-AC) opinion on the emergency constitutional amendment proposal (PEC) was postponed again, this time for today, in the face of deadlocks in the negotiations.
Since the end of last year, the proposal has already been dehydrated to exclude the tougher fiscal adjustment measures and, at the weekend, a new round of “downsizing” took place. The first round vote in the Senate plenary is scheduled for Thursday and the opinion would be formally presented yesterday, after being sent to the parties for a final analysis, but controversial issues such as the end of the floor for health and education spending led to further negotiations and postponed the protocol.
Still on the market radar, Fiocruz (Fundação Oswaldo Cruz) announced that another 2 million doses of the vaccine developed by the partnership between Oxford University and the pharmaceutical company AstraZeneca should arrive in Rio this Tuesday.
The Butantan Institute, in São Paulo, also announced that it will deliver 2.7 million doses of CoronaVac, produced in partnership with the Chinese laboratory Sinovac, this week.
The increase in the use of ICU beds in São Paulo should lead the state government to announce a new review in the fight against the pandemic and impose in the fourth limitation of mobility and functioning of establishments in some regions.
In the second, the state registered 6,410 patients admitted to ICUs with covid. The maximum had been 6,250, according to the executive coordinator of the Coronavirus Contingency Center of São Paulo, João Gabbardo, at a press conference at Palácio do Bandeirantes. For this reason, the multidisciplinary team at the helm presented extraordinary recommendations, which should be announced on Wednesday.
In addition, Senate President Rodrigo Pacheco (DEM-MG) stated, after meeting with the Minister of Health, General Eduardo Pazuello, that Congress should prepare a bill authorizing not only the Union, but states, municipalities and the private sector to assume the purchase of vaccines against Covid. The proposal would be a way to make an agreement possible for the purchase of immunizers developed by Janssen, which belongs to Johnson & Johnson, and by the partnership between Pfizer and BioNTech.
“We have identified an intelligent path, which I consider to be safe, which is a legislative alternative. A project that will be conceived, I believe, even today within the scope of the Federal Senate so that we can find a path that authorizes the Union, but also states and municipalities to assume the risks of purchasing vaccines ”, said Pacheco.
On Sunday, the Ministry of Health released a note stating that it had asked for support from Planalto to unlock negotiations with pharmaceutical companies. Pfizer said the clauses are in line with what was requested in other countries. Janssen stated that it maintains a frequent dialogue with the portfolio and with Anvisa, and that the contractual terms are in line with the order in other countries.
Petrobras Board Meeting
Petrobras’ Board of Directors (PETR3; PETR4) meets this Tuesday to examine the government’s request for an Extraordinary General Meeting to discuss the company’s next steps, after President Jair Bolsonaro nominated Reserve General Joaquim Silva e Luna , general director of Itaipu Binacional, to occupy the position of president of the state-owned company. The day before, the shares fell about 20%, the worst drop since March 9, 2020, amid signs of greater state intervention in the company.
It is worth mentioning that, the night before, the rapporteur of the Law of Responsibility of State-owned companies in the Senate, Senator Tasso Jereissati sent a letter to the advisers of Petrobras and to the president of the Brazilian Securities and Exchange Commission (CVM), Marcelo Barbosa, to warn that the exchange commander of the company made by President Jair Bolsonaro is at odds with the legislation passed in 2016. In the letter, the toucan senator expresses concern about the president’s decision and says that Bolsonaro’s decision is not aimed at the company’s interest. See more by clicking here.
On Monday, the markets reacted negatively to the exchange of Petrobras’ command of Roberto Castello Branco by General Joaquim Silva e Luna, announced at the end of the previous week by President Jair Bolsonaro (without party). The state’s preferred shares fell 21.5%, while common shares plunged 20.5%. The Ibovespa fell 4.9%.
The devaluation of Petrobras exceeded the mark of R $ 100 billion. As Bolsonaro had indicated changes in other state-owned companies, Banco do Brasil also had falls of R $ 12.6 billion. The dollar rate reached R $ 5.45, and the country risk rose 11%.
After the interference, Bolsonaro told supporters in front of the Palácio da Alvorada that “no one will interfere in Petrobras’ pricing policy”, in a statement transmitted by a channel sympathetic to the president. “I do not ask, I demand transparency from those who are subordinate to me,” he said.
“They spoke of my interference. Lowered the price of fuel? 15% have been announced [de aumento] in diesel, 10% in gasoline. Lowered the percentage? Is it worth the same percentage? How did it interfere? What I want from Petrobras and I demand is transparency and predictability, nothing more than that, ”he said.
Deputy Hamilton Mourão said the change is within the president’s remit, and said he sees no interference. He stated that he sees as a solution the creation of a sovereign fund based on oil royalties, which could be used to compensate for moments of price fluctuation.
When analyzing a popular action, the Federal Court of Minas Gerais ruled that the president and Petrobras have 72 hours to explain the reasons that led to the announcement of the change.]
In the lawsuit, two lawyers ask the court to give an injunction to bar the exchange in the direction of Petrobras. Federal judge André Prado de Vasconcelos decided that, before judging the request, he wants to hear the parties involved.
“At the appropriate time, I would like to point out that, as widely publicized by the media, the approval of the nominee for the presidency of Petrobras depends on the decision of the respective Board of Directors, which has not yet occurred,” he said.
“Thus, the defendants are only intimidated for manifesting, within 72 (seventy-two) hours, on the injunction request, articulating, in a concise and objective manner, the reasons and arguments that they consider pertinent and relevant to the discussion. the cause, ”said the magistrate.
The Attorney General’s Office, which represents the president in court, said that it does not comment on cases pending in court. Petrobras did not immediately respond to a request for comment.
The earnings season continues and highlights CSN, which earned R $ 3.897 billion in the fourth quarter of 2020, an increase of almost 3.5 times compared to the profit of R $ 1.134 billion in the same period in 2019. Net revenue totaled R $ 9.794 billion from October to December last year, 50.1% higher compared to the R $ 6.524 billion in the same period in 2019.
Itaúsa had a net profit of R $ 3.66 billion in the fourth quarter, an increase of 6.2% compared to the same stage in 2019. Transmissão Paulista saw the net profit of the fourth quarter of 2020 rise 8.4%, to R $ 374.4 million, against the R $ 345.4 million recorded in the last three months of 2019. The company also approved interim dividends of R $ 531.2 million. After closing, the GPA and Unidas balance sheets will be released.
Banco do Brasil said on Monday it had received no indication of a change in the composition of its governing body. The relevant fact disclosed by the institution is due to the recent newscast involving the company and the atypical oscillation of the papers. The bank’s shares plunged 11.65% on Monday, amid fears that BB would be the next target of government interference. In terms of market value, the company lost R $ 10.9 billion just in today’s trading session.
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