The Brazilian foreign exchange market suffered a turnaround in the final stretch of the trading session, culminating in a new record for the dollar, due to a new episode of the political turmoil that hit the federal government. The American currency closed up 0.86%, at R$ 5.8691, after touching R$ 5.8860 in the worst moment of tension in the market.
The Central Bank announced that it approved the release of R$ 17.5 billion ($ 3 billion) in loans to 27 financial institutions related to the first tranche of the Special Temporary Liquidity Line by issuing a Guaranteed Financial Bill, an initiative launched in March to support banks amidst to the coronavirus crisis. The following tranches will run until the end of 2020, reaching, in aggregate, 100% of the institutions’ reference assets.
Brazilian pork exports totalled 72,800 tonnes in April, up 19% over the same period last year, the Brazilian Animal Protein Association (ABPA) said. The volume of products shipped (fresh and processed) generated revenues of $ 165.2 million last month, an increase of almost 32% compared to April 2019, the entity added.
XP Inc.’s net income jumped 89% in the first quarter of 2020, compared to the same period last year, to R$ 398 million ($ 68 million). Over the previous quarter, the increase was 2%. The company’s adjusted net profit was R$ 415 million ($ 71 million) – an increase of 147% over the amount seen a year earlier, but a decrease of 1% in relation to the fourth quarter of 2019.
Federal tax revenue fell about 30% in April compared to the same period in 2019. The drop in revenues is caused by the lower activity of the economy, due to the closing of trade and industries, and also by the postponement in the collection of taxes promoted by the government to mitigate the effect suffered by companies. There will also be a reduction of R$ 7 billion ($ 1.2 billion) in IOF for credit operations.
Oil exports from Brazil reached around 308 thousand tons a day in the first week of May, an increase of 40.4% in comparison with the result of the same month of last year. As a result, Brazil has already exported 1.5 million tonnes in the first five business days of the month, versus 4.8 million in the entire month of May 2019. Shipments from the country remain strong with Petrobras counting on firm demand from China.
Itaúsa increased its shareholding in Alpargatas by 0.31% to 29.1%. According to the document sent to the market, the negotiations were carried out for an average price of R$ 22.72 ($ 4,13) per share. Therefore, in the purchase of 1.78,900 shares of the company, Itaúsa disbursed approximately R$ 40.7 million ($ 7.45 million).
The financial market revised for the 13th consecutive week the prediction of a fall in the economy this year. The estimate of retreat in GDP worsened from 3.76% to 4.11%. The estimate appears in the Focus bulletin, published weekly by the Central Bank (BC), with the projection for the main economic indicators. The forecast for GDP growth in 2021 remains at 3.2% and for 2022 and 2023 remains at 2.50%.
Brazilian chicken meat exports fell 4.7% in April compared to the same period in 2019, but in the accumulated of the first four months of the year, they registered an increase of 5.1% in the volume shipped. Last month, the country exported 343,300 tons of the protein, considered fresh and processed products, compared to 360,100 tons shipped in April of the previous year.
The ALSHOP (Brazilian Association of Shopping Tenants), points out that store owners in shopping centres have recorded losses of around R$ 27 billion ($ 4.9 billion) since the beginning of the new coronavirus pandemic. According to the association, only 81 of the country’s 577 shopping malls are open in more than 50 municipalities.