Day: May 7, 2020

BC reduces interest to 3%

Copom cut the basic interest rate (Selic) by 0.75 percentage point, from 3.75% to 3% per year. It is the lowest level since the beginning of the historical series, in 1996. The committee argues that, at the moment, the economy requires an “extraordinarily high monetary stimulus”, but left open the possibility of further interest rate cuts.

BNDES will allocate $ 728 mm to finance small companies 

BNDES will allocate R$ 4 billion ($ 728 million) to fund managers focused on small business financing. The BNDES informed that it will invest in up to 10 private credit funds, these funds seek to provide an alternative to bank loans for companies that are too small to finance themselves by issuing debt or offering shares

Dollar hits R $ 5.70 with tension by Selic

The exchange rate rally gained a new mark on Wednesday. With the market pressured by the interest rate cut, the Selic, the dollar climbed and registered a new nominal record against the real. In the session, the tourism dollar advanced 0.3%, ending the day quoted at R$ 5.93 ($ 1). In addition to lower interest rates, which make investments in Brazil less attractive and lead to currency flight, the market also increased tension with the worsening of the country’s risk assessment.

AMBEV: Net income attributed to the controller adds up to $ 199 mm and decreases 59%

With sales affected by a weaker summer and feeling the first effects of the coronavirus pandemic on its business, Ambev recorded in the first quarter of 2020 a net profit attributed to the controllers of R$ 1.091 billion ($ 199 million), a result of 59% lower than the R$ 2.661 billion ($ 484 million) in the same period last year. Adjusted net income, on the other hand, was R$ 1.227 billion ($ 223 million), a decrease of 55.6% in the annual comparison.

CPFL approves loan of $ 631 mm to distributors

CPFL Energia’s Board of Directors approved a R$ 3.47 billion ($ 631 million) financing agreement with BNDES for the group’s distributors, according to the minutes of the meeting published to the market. The distributors that should receive the funds are: CPFL Paulista, CPFL Piratininga, RGE Sul Distribuidora de Energia (RGE) and Companhia Jaguari de Energia (CPFL Santa Cruz).