The results of recent stress tests carried out by Brazil’s Central Bank on small and medium-sized enterprises were “not very good”, Central Bank president Roberto Campos Neto said, adding that some sectors will need support.
Brazil’s Health Minister Luis Henrique Mandetta said that the country’s attempts to purchase medical supplies from China to fight the coronavirus epidemic were failing and the government is turning to Brazilian companies to make ventilators.
Services activity in Brazil shrank 1% in February, official figures showed on Wednesday, the biggest monthly fall in over 18 months and another sign Latin America’s largest economy was already in go-slow mode before the coronavirus crisis erupted. Services accounts for around two-thirds of Brazilian economic activity, and much of it has now been virtually shut down due to the Coronavirus outbreak.
Brazilian agribusiness exports in the first quarter of 2020 totalled $21.4 billion and were virtually stable compared with the same period last year, CNA said. China was the main destination for Brazil’s agricultural commodities exports like soy, beef and chicken, with shipments to the Asian country totalling $7.2 billion in the period.
Only in the first days of April, Petrobras recovered part of the market lost since the beginning of the year, passing R$ 183.6 billion ($ 36.6 bn) in the last trading day of March for R$ 220.6 billion ($44 billion). A statute managed to recover R$ 37 billion ($ 7.4 bn) in market value.
Aneel (National Electric Energy Agency) authorized the transfer of R $ 2,022 billion ($ 404 million)to guarantee liquidity to companies in the electricity sector during the crisis generated by the coronavirus pandemic. The funds will come from a reserve fund composed of charges charged to the electricity bill.
Cement manufacturers in Brazil canceled the projection for sales growth this year, due to the impact by the coronavirus, according to an entity that represents the sector. Cement sales by business day in March fell 10.4% compared to the same month of 2019 and decreased 15% over February.
The National Association of Motor Vehicle Manufacturers (Anfavea) reported that the national production of automobiles in March fell by 21.1%, compared to March 2019. Already the level of licenses dropped 21.8% in the period. According to the organization, the results were a consequence of the covid-19 pandemic, which caused a fall of almost 90% of the activities in the segment.
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%.
A pause in Brazilian diesel import negotiations is likely to extend into April as domestic demand wanes and the market braces for a wave of shipments contracted before coronavirus-related movement restrictions were put in place. As of 1 April, 23 ships were scheduled to deliver around 1.1bn l of diesel by the end of the month. There are currently no additional Brazil-bound import vessels scheduled for departure in April and May.