Seven major European investment firms told Reuters they will divest from beef producers, grains traders and even government bonds in Brazil if they do not see progress in resolving the surging destruction of the Amazon rainforest. The rising threats from investors with more than $2 trillion in assets under management, including Finland-based Nordea and the UK’s Legal & General Investment Management (LGIM), show how the private sector is taking global action to protect the world’s largest rainforest.
The government will allocate an additional R$ 220 million ($ 41.5 mm) in purchases to serve family farmers with marketing problems caused by the pandemic. As a result, public acquisitions are expected to reach R$ 850 million ($ 160mm) in 2020. Recently, a provisional measure released an extra R$ 500 million ($ 94 mm) for the Food Acquisition Program after requests from the productive sector and articulation by the Minister of Agriculture.
The Ibovespa closed higher for the third trading session followed on Thursday, with Itaú Unibanco’s shares among the biggest positive contributions, in addition to a further reduction in the basic interest rate, signalling yet another ‘residual’ cut ahead. The financial volume of the session totalled R$ 27.77 billion ($ 5.2 billion).
The statement from the Central Bank’s Monetary Policy Committee (Copom) indicates less concern about Brazil’s “effective lower limit”. With that, there would be more room to reduce interest rates given the very low inflation projections. This is the assessment of BNP Paribas analysts, who now see the Selic rate falling to 1.5% this year.
The crisis generated by the covid-19 in the economy led to a sharp drop in the opening of companies in April, according to the Ministry of Economy, which released the Business Map Bulletin. In April this year, 189,878 companies were opened, down 29.5% compared to the same month in 2019. On the other hand, company closings reached 58,623, down 41.1% compared to April 2019 (99,468).
The 2019/20 second crop corn harvest in Brazil is expected to reach 72.9 million tonnes, up from the May forecast, but down 4.5% versus a record obtained last season. Thus, the average yield for the second crop was 91.7 bags per hectare compared to 101 bags per hectare recorded in the 2018/19 cycle.