Big banks’ profits have the biggest drop in 21 years

The four big banks in the country had a combined profit of R$61.6 billion ($11.4 bn) in 2020, a drop of 24.4% compared to the previous year. The reduction in earnings is the biggest since 2000. The banks were coming from their best aggregate result in the entire historical series, measured since the introduction of the real in 1994. In 2019, the combined profit was R$81.5 billion ($15 bn)in nominal values. With monetary correction, the figure rises to R$85.1 billion ($15.8 bn) and extends the 2020 drop to 26.6%.

Source: G1 Economia

Central Bank Commodities Index drops 1.03%

The Central Bank Commodities Index (IC-Br) dropped 1.03%. For comparison purposes, the Central Bank also publishes in its document the international commodities indicator, the CRB, which fell 1.83% in the same monthly relation. The decline in the margin was a direct result of the drop in two of the three segments that comprise the IC-BR: Agriculture and Livestock (-1.22%) and Metal (-2.87%). In the case of Energy, there was an advance (+3.85%).

Source: Portal do Agronegocio

Central Bank’s Focus estimates IGP-M for 2021 to rise to 6.97%

The Market Report Focus, divulged by the Central Bank, showed that the median of the projections of the General Index of Prices – Market (IGP-M) of 2021 went from 6,65% to 6,97%. One month ago, it was at 4.94%. In the case of 2022, the projected IGP-M continued at a high of 4.00%, the same as four weeks earlier. Calculated by the Getúlio Vargas Foundation (FGV), the General Price Indexes (IGPs) are greatly affected by the performance of the exchange rate and by wholesale products, especially agricultural products.

Source: UOL Economia

Itaipu to invest $186 mn to revitalize Furnas transmission

The Furnas transmission system in Foz do Iguaçu (PR) will receive an investment of around R$ 1 billion ($186 mn) from Itaipu. The resources were announced in an operation to revitalize these assets that will last five years. The works will take place in the high voltage direct current system responsible for transmitting to the Brazilian market the energy that Paraguay does not consume.

Source: Canal Energia

Market projection for balance of trade surplus in 2021 rises to $57 bn

Financial market economists changed the projection for the trade balance in 2021 in the Focus survey conducted by the Central Bank, in trade surplus from $55 bn to $57 bn. For 2022, the surplus estimate was from $49.7 bn to $ 49.85 bn. A month ago, it was $50 bn. In the case of the current account of the balance of payments, the forecast contained in the Focus for 2021 went from a deficit of $19.00 bn to $16 bn.

Source: UOL Economia