In April, investment funds had the second month followed by net redemption – more withdrawals than deposits – with an outflow of R$ 91.1 billion ($ 16 billion), a record for the historical series of Anbima, which started in 2002. In March, R$ 24.2 billion ($ 4.3 billion) from the fund industry. In the year, sangria is R$ 69.6 billion ($12.5 billion). Most of the April withdrawal (64%) was from fixed income funds with net redemption to R$ 58.6 billion ($ 11 billion).
The IPCA, considered the country’s official inflation, fell 0.31% in April, amid falling fuel prices and falling economic activity, according to IBGE. It is also the first deflation recorded in the country since September last year, when the IPCA was -0.04%. In the year, the IPCA accumulated an increase of 0.22% and, in the last twelve months, of 2.40%, well below the 3.30% observed in the immediately preceding 12 months.
BRF reported on Sunday, 10, that it recorded a net loss of R$ 38 million ($ 7 million) in the first quarter of this year compared to a loss of R$ 113 million ($ 21 million) in the same period of 2019. A net sales revenue of the company in the first three months of 2020 about R$ 8.949 billion ($ 1.3 billion), an increase of 21.6% over the R$ 7.359 billion ($1.4 billion) in the first quarter of 2019.
Sales in the real estate market fell 65% in April compared to the estimate made before the pandemic for the month, according to Secovi. The number is important because it shows the performance of the first month totally impacted by the quarantine. The postponed launches in the metropolitan region of Sao Paulo add up to an overall sales value of R $ 1.5 billion ($ 273 million).
The president of Abiplast (Brazilian Association of the Plastic Industry), said that it was clear that the country is far from having an elaborate and consistent plan for the resumption of the economy after the new coronavirus pandemic. For Roriz Coelho, the timing of leaving the quarantine has to be defined by health experts based on technical criteria.
Copom cut the basic interest rate (Selic) by 0.75 percentage point, from 3.75% to 3% per year. It is the lowest level since the beginning of the historical series, in 1996. The committee argues that, at the moment, the economy requires an “extraordinarily high monetary stimulus”, but left open the possibility of further interest rate cuts.
BNDES will allocate R$ 4 billion ($ 728 million) to fund managers focused on small business financing. The BNDES informed that it will invest in up to 10 private credit funds, these funds seek to provide an alternative to bank loans for companies that are too small to finance themselves by issuing debt or offering shares
The exchange rate rally gained a new mark on Wednesday. With the market pressured by the interest rate cut, the Selic, the dollar climbed and registered a new nominal record against the real. In the session, the tourism dollar advanced 0.3%, ending the day quoted at R$ 5.93 ($ 1). In addition to lower interest rates, which make investments in Brazil less attractive and lead to currency flight, the market also increased tension with the worsening of the country’s risk assessment.
With sales affected by a weaker summer and feeling the first effects of the coronavirus pandemic on its business, Ambev recorded in the first quarter of 2020 a net profit attributed to the controllers of R$ 1.091 billion ($ 199 million), a result of 59% lower than the R$ 2.661 billion ($ 484 million) in the same period last year. Adjusted net income, on the other hand, was R$ 1.227 billion ($ 223 million), a decrease of 55.6% in the annual comparison.
CPFL Energia’s Board of Directors approved a R$ 3.47 billion ($ 631 million) financing agreement with BNDES for the group’s distributors, according to the minutes of the meeting published to the market. The distributors that should receive the funds are: CPFL Paulista, CPFL Piratininga, RGE Sul Distribuidora de Energia (RGE) and Companhia Jaguari de Energia (CPFL Santa Cruz).