The American bank Morgan Stanley reduced its projection for the Ibovespa in 2020 after the stock market crash caused by the advance of the coronavirus. The bank now estimates that the index will end the year at 85,000 points. In January, the projection for the end of 2020 was 125,000 points. In its new base scenario, Morgan Stanley considers that the country will face a sharp but temporary economic slowdown and a rapid recovery, without any further fiscal corrosion.
According to the government, R$ 147.3 billion ($28 billion) will be used in emergency actions to help the most vulnerable sectors of the economy and groups of citizens, in addition to preventing high unemployment. Companies will be able to postpone, in three months, the payment of Simples Nacional and the deposit of the Guarantee Fund for Length of Service (FGTS). Contributions to Sistema S will be cut in half, and it will be easier to renegotiate credit and receive external inputs.
Affected by travel cancellations resulting from the coronavirus, the Brazilian airline industry will receive relief measures in the coming days, the special secretary for Productivity, Employment and Competitiveness of the Ministry of Economy, Carlos da Costa, said recently. According to Costa, meetings are still being held with various sectors to assess the impact of the Covid-19 pandemic on the economy.
The main index of the Brazilian stock exchange, B3, plummeted again on Monday (16) and came to have business stopped right at the opening, amid doubts in global markets about the efficiency of the measures announced by the Federal Reserve (FED) banks and fears about the scale of the impacts of the coronavirus pandemic on the economy. The Ibovespa closed with a drop of 13.92%, to 71,168 points. During the trading session on Monday, the index dropped more than 14%, to 70,854 points, the lowest of the session.
Profits from the tourism and transportation sector fell 77.2% in the city of São Paulo due to the advance of the new coronavirus, according to data from Cielo released on Monday (16). The result is nominal, without considering the inflation for the period and compares the periods from 9 to 15 March 2020 against the same period in 2019. In the total, retail decrease 13.9%, according to Cielo data. While tourism fell, the drugstore and pharmacy segments and the supermarket segment rose 30.2% and 19.2%, respectively.