The General Price Index-10 (IGP-10) had a positive change of 0.01% in February, after increasing 1.07% in January, according to data released today by Fundação Getulio Vargas (FGV). With this result, the index accumulated an increase of 1.08% in the year and 7.39% in 12 months. In February 2019, the index had registered an increase of 0.40% in the month and an increase of 6.98% in 12 months. The IGP-10 measures the evolution of product prices and comprises 60% of the Wholesale Price Index (IPA); 30% of the consumer price index (CPI); and 10% of the National Index of Construction Costs (INCC).
Opposition lawmakers called on Brazil’s Congress to reject a proposal by President Jair Bolsonaro to open indigenous reservations to commercial mining, saying it will endanger 200 tribes protected over decades by indigenous rights. Brazil has the largest number of isolated and uncontacted indigenous groups, 114 of the 185 known to exist in South America, said expert Antenor Vaz, who warned of the risk of ethnocide.
Banco do Brasil expects to post a return on equity above 18% this year and a net income between R$18.5bn and R$20.5bn after reporting Q4 profit rose by a fifth to R$4.62bn ($1.06bn). CEO Rubem Novaes, who has pushed unsuccessfully to privatise the entire bank, said that the lender will likely raise “billions of reais” from the sale of at least 51% of the lender asset management unit. The bank has already sold some non-core assets and formed joint-ventures to expand some businesses, such as an investment banking deal announced in November with UBS Group AG.
The Brazilian Senate has chosen to keep the veto on bill 8322/14 that grants a tax exemption for solar equipment imports. The government argued that the exemption could decrease the Federal revenue as it did not present compensation measures which is mandatory under the Fiscal Responsibility Law. The rejected bill originally proposed the tax exemption to apply only to solar module models that Brazilian companies do not manufacture.
Banco Santander Brasil SA reported a 9.4% rise in fourth-quarter net income from a year earlier, mainly due to consumer lending and fees. Recurring net income, which excludes one-off items, came in at 3.726 billion reais ($890.83 million), roughly in line with the 3.859 billion reais analysts were expecting, according to Refinitiv data. ($1 = 4.1975 reais).