Day: March 26, 2020

Brazil’s GDP is to contract 1.6% in 2020, says Moody’s

The coronavirus shock in the activity should result in a contraction of the 20 largest economies in the world, including Brazil. Risk rating agency Moody’s has revised its projections and now sees a 0.5% drop in G-20 GDP this year. In the case of Brazil, the agency now projects a 1.6% contraction in 2020, followed by a 2.7% growth in 2021.

Ibovespa rises strongly with trillionaire package

The Ibovespa was booming on Wednesday (25), with the potential for the US Senate to pass a package of incentives of over $2 trillion. The measure represents one of the most widely awaited by the financial market. The main index of the Brazilian stock market climbed 9.68 percent and recorded 76,477.96 points, at the maximum of the day. The American bill should serve various sectors of society, such as small and large companies and state and municipal governments.

Via Varejo registers profit of $ 15.5 mn

Via Varejo reported net income of R$ 78 million ($15,5 million) in the fourth quarter of 2019, reversing a loss of R$ 282 million ($ 56 million) in the same period of 2018. In 2019, the retailer accumulated losses of R$ 479 million ($ 96 million), compared to losses of R$ 291million ($ 58 million) last year. The adjusted Ebitda margin went from 4.2% to 8% in the comparison between the same quarters. In 2019, this margin decreased from 7.6% to 6.8%.

JBS profit exceeds projections

JBS, the world’s largest meat processor, on Wednesday posted a net profit of R$ 2.43 billion ($480 million) for the fourth quarter of last year, a jump on the approximately R$ 560 million ($ 110 million) obtained a year earlier and higher than expected by analysts. The performance was supported by strong demand from China, which increased food imports after the African swine fever epidemic that hit its herd.

Funds have net funding of $2.4 bn

Investment funds are registering net inflows of funds, despite the crisis caused by the coronavirus. In the accumulated result for the month up to last Friday, the 20th, the fund industry recorded a net inflow of R$ 11.9 billion ($2,4 billion), according to data from the Brazilian Association of Financial and Capital Market Entities (Anbima). Among the modalities, the highlight was the equity funds, with funding exceeding redemptions by R$ 5.8 billion ($ 1,2 billion) in the period.