Financial institutions will be able to take out loans with the Central Bank. The estimate is for the release of R$650 (US$125) billion into the economy. In an extraordinary meeting, the National Monetary Council (CMN) authorized the Central Bank (BC) to grant loans to banks taking as collateral the credit portfolios of these institutions. The operations will have a minimum of 30 days and a maximum of 359 calendar days maturity.
The federal government created an emergency credit line of R$ 34 billion ($ 6.8 billion) to finance the payment of salaries for small and medium-sized companies for two months. In return, employees cannot be dismissed in the period. The program was signed by President Jair Bolsonaro by provisional measure published on Friday, 3, and republished on Saturday, 4, with a correction in the text.
Braskem recorded a net loss attributable to shareholders of R$ 2.922 billion ($ 584 million) in the fourth quarter of 2019 against losses of R$ 78 million ($15.6 million) in the same period of 2018. In the consolidated for 2019, the loss was R$ 2.798 billion ($ 559 million), against a profit of R$ 2.867 billion ($573 million) in the previous year.
The Brazilian retail sector suffered a negative impact of 22.4% with the coronavirus outbreak in the country, according to a survey carried out by Cielo. Between March 1 and April 2, total nominal revenue fell in all weeks, with a greater worsening at the end of the third month, -52.3%. Analysing by sectors, Services – which comprises Tourism and Transport and Bars and Restaurants – was the one that presented the most fall, of 47.8%.
The dollar closed higher for the sixth consecutive day on Friday (3), hitting the seventh consecutive week of gains amid widespread caution after coronavirus cases in the world exceeded 1 million, with data on employment in the United States highlighting the economic impact of the pandemic.
Brazil’s industrial production went against expectations and rose in February for the second month in a row, although some segments may already show the first signs of the consequences of the coronavirus pandemic. In February, Brazilian industrial production increased 0.5% in relation to the previous month, according to data released this Wednesday by the Brazilian Institute of Geography and Statistics (IBGE).
Despite the drop in exports, the trade balance closed March with the lowest positive balance in three years. Last month, Brazil exported $ 4.713 billion more than it imported. The result is 9.7% higher than the $ 4.296 billion surplus registered in March last year. Last month, the country exported $ 19.239 billion, a decrease of 4.7% in relation to March of last year by the criterion of the daily average. Imports totalled $ 14.525 billion, with a 4.5% decrease also by the daily average.
The Ultrapar group cut its investment projection in 2020 by 30% and cancelled earnings estimates for this year in view of the uncertainties generated by the coronavirus pandemic. The company also said that it reinforced its liquidity position by R$ 1.5 billion ($300 million), according to a relevant fact material published on Wednesday.
The Ibovespa closed down on Wednesday, with no signs of relief in concerns about the reflexes of Covid-19, which brought down the shares in March, with shares of airline companies again among the negative highlights of the session. The reference index of the Brazilian stock market, Ibovespa fell 2.81%, to 70,966.70 points, having reached 69,568.56 points at the worst moment. The financial volume totalled R$ 21.8 billion ($ 4.2 billion).
Even will repurchase up to 4.139 million shares outstanding on the market, according to a statement sent to the market on Wednesday. The amount corresponds to 2% of the total on the Exchange. The company believes that the operations will maximize the generation of value for shareholders, since, in the view of management, the current value of its shares does not reflect the real value of its assets and the prospect of profitability and generation of results.