S&P Global predicts negative Brazilian GDP at 0.7%

S&P Global Ratings predicts that Brazil’s Gross Domestic Product (GDP) should contract by 0.7% in 2020, with a downside risk, due to the economic impacts of the new coronavirus pandemic. “Brazil’s economic growth in 2020 will be seriously affected by the impact of covid-19 locally and globally,” says the risk rating agency in a note.

National automobile production fell by 21.8% in March

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.

Corn’s VBP should grow 14.52% to $ 2.7 bn

The Gross Production Value (VBP) of maize from Mato Grosso is expected to reach R$ 13.48 billion ($ 2.7 billion) in 2020. The value, if confirmed, will represent an increase of 14.52% in relation to the previous year. “This increase in the estimate is mainly due to the better price levels and expectations of an increase in the area cultivated with cereal,” Imea said in a bulletin.

Embraer proposes 25% salary reduction

Embraer presented proposals to reduce work hours and wages, in addition to the adoption of layoffs for part of the workers. The measures are to face the crisis of the new coronavirus. According to the Metalworkers Union, the proposal presented by Embraer, employees working at home will have their working hours and salary reduced by 25%. The reduction will be for three months, with proportional stability.

Ibovespa rises 6.5% and dollar falls to R$ 5.29

The Ibovespa closed higher on Monday (6) following the performance of the United States stock exchanges. The Ibovespa recorded gains of 6.52%, at 74,072 points, with a financial volume of R$ 21.6 billion ($4.2 billion) after rising more than 8% before the news of the minister’s resignation.

Central Bank Announces $130 bn into Brazil’s Economy

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.

Federal MP allocates $ 6.8 bn to finance company salaries

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 record loss of $ 584 million

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.

Brazilian retail falls 22.4% since the coronavirus outbreak began

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%.

Dollar has a new record and closes at R $ 5.32

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.