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.
The Ibovespa was booming on Wednesday (25), with the potential for the US Senate to pass a package of incentives of over $2 trillion. The measure represents one of the most widely awaited by the financial market. The main index of the Brazilian stock market climbed 9.68 percent and recorded 76,477.96 points, at the maximum of the day. The American bill should serve various sectors of society, such as small and large companies and state and municipal governments.
Via Varejo reported net income of R$ 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, 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.
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.
The National Confederation of Trade in Goods, Services and Tourism (CNC) estimates that retailers in São Paulo, Rio de Janeiro, Minas Gerais and Brasília suffered losses totaling R $ 25.3 billion ($ 5 bn) due to the coronavirus. The regions account for about 52% of the annual revenue of the sector. In São Paulo, for example, the loss in sales volume will reach R $ 15.67 billion ($ 3 billion) for the period from March 20 to April 5, which would represent a decrease of 29.9% in relation to the usual revenue of the sector.
Itaú BBA cut its projection for the Ibovespa at the end of 2020 from 132 thousand points to 94 thousand points following the path of other financial institutions such as Morgan Stanley, which in the last week reduced its forecast for the main B3 index of 125 thousand points to 85 thousand points. If the scenario were to materialize, the revised value would correspond to an appreciation of 35.27% over the current benchmark level.
With the announcement of emergency measures in Brazil and abroad, the financial market had a day of truce. The stock exchange rose almost 10% and the dollar closed below R $ 5.10. The Ibovespa index, of B3, the Brazilian Stock Exchange, closed this Tuesday at 69,729 points, with an increase of 9.66%. The index, which reached its highest level in a week, operated at an increase of over 10% during almost the entire session, following exchanges abroad.
Tesouro Direto, a program for the purchase and sale of public securities over the internet aimed at individual investors, recorded a net redemption (sales less withdrawn) of R $ 960.6 million ($190 million) in February, the worst result since May 2019, when the result had negative by R $ 4.2 billion ($ 840 million). At that time, however, the sales volume resulted from a maturity of the 2019 IPCA + Treasury paper.
Gol announced that due to the pandemic of the new coronavirus (covid-19) in Brazil and worldwide, that between March 28 and May 3, it will keep in operation only the essential network of 50 daily flights, connecting all the capitals of the Brazilian states from the international airport of São Paulo, in Guarulhos (GRU).