Caixa Econômica Federal issued a statement stating that it will guarantee better credit conditions to help the country to overcome the current economic uncertainty due to the impact of the coronavirus and the oil turbulence in the markets. The statement said that the bank will guarantee the best conditions for personal and housing credit, financing for infrastructure, working capital for the construction sector and micro companies.
Moody’s reduced Brazil’s GDP projection from 2.0% to 1.8% due to the impact of the coronavirus. Moody’s said the coronavirus will hamper economic growth in many countries over the second quarter. According to the agency, the resumption of normal economic activities will depend on how long it will take to contain the global spread of the virus.
The advancement of coronavirus around the world can bring down the flow of Foreign Direct Investment (FDI) by up to 15% in 2020. This average reduction was more profound in companies from developing countries like Brazil: – 16%. It is estimated that foreigners have already taken $ 44.7 billion from the São Paulo Stock Exchange this year alone.
Itaú Unibanco reported a review of its projection for world GDP growth in 2020 from 3.1% to 2.7%. According to Itaú Unibanco economists, the bank also lowered its growth forecasts for China in the year, to 5.3% compared to 5.8%. It maintained the projection of US GDP growth at 2.0% for 2020.
Santander bank will consider climate risk in their credit ratings. Last year, the bank’s Brazilian operation allocated 4.5 billion Reais ($ 1 billion) to finance renewable energy and participated in the issue of 6.6 billion Reais ($ 1,5 billion) in green bonds, which are debt securities linked to projects with low environmental impact.
The growth remained despite the fact that the Brazilian Central Bank sold $ 3 billion in currency swap. The dollar hit a historic record again this Thursday, reaching R$ 4.67 at the peak of the day, with the Brazilian currency battered along with other risk assets worldwide due to obstinate fears related to the coronavirus. The high is the 12th consecutive. Only in March the currency jumps 3.79% and shoots 15.90% in the accumulated of 2020.
The main index of the Brazilian stock exchange, B3 closed in a sharp drop on Thursday (5). The index retreated 4.65%, to 102 233 points, following the negative atmosphere in foreign markets, amid the volatility generated by the uncertainties about the effect of the coronavirus outbreak on global economic activity.
Nestle SA is launching a reforestation project to plant at least 3 million trees in Mexico and Brazil in the next year and a half as the Swiss food group strives for carbon neutrality by 2050, executives told Reuters. Source: Financial Post
Congress in Brazil maintains sanctions over $6.7 billion of the budget. An agreement was signed that, in addition to the loss of Congress power over this amount, R$15 billion ($3 billion) will be returned to the government. The rest will remain under the command of the congressmen, but under more lenient rules.
The coronavirus outbreak has a negative impact of $104 million on Brazilian exports. In global terms, losses to different economies in the world would already be estimated at $50 billion, a demonstration of the dependence that has been created in relation to the supply of Chinese parts and items in several global production chains.