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São Paulo – Ibovespa futures opened the last session of the week at a moderately high after falling more than 2% the previous day, during the last hours of trading, when the market was already closed. The index responded to President Jair Bolsonaro’s speeches (there is no party) in He lives on social networks. In his speech, Bolsonaro criticized the way the company is adjusting prices.
“Petrobras is forced to increase the price because it has to follow the legislation and we are trying here to find a way to change the law in this regard,” he said. The president also said that the company must have a social role and cannot achieve such high profits. The letters not only brought down the future Ibovespa, but also led to the receipts of Petrobras’ stake traded abroad. The oil company’s ADRs (American Depository Receipts) are down more than 4%.
Performance only improved after Petrobras announced a 31.8 billion reais bonus to shareholders, after reporting net income of 31.142 billion reais for the third quarter of 2021, much higher than expected (see below at corporate radar).
Bolsonaro’s comments promise to resonate in the market even today, while the Brazilian stock exchange remains almost oblivious to moves abroad and still reflects internal financial risks. He told the International News Agency that the vote on the proposed amendment to the Prefecture constitution has been postponed again and will be next week. Reuters Head of Government in the Chamber, Ricardo Barros (PP-PR).
Barros attributed the postponement, the second of its kind this week, to the lack of a quorum due to the decision of Chamber President Arthur Lyra (PP-AL), to return to face-to-face sessions in the House of Representatives. Many parliamentarians would have stayed in their states, despite the decision, which would have obstructed a quorum and negotiations.
The government is seeking approval in Congress for the PEC dos Precatórios in order to open up financial space to pay Auxílio Brasil, a cash transfer program that President Jair Bolsonaro wants to implement in an election year in place of Bolsa Família, in the amount of R$400. But the vote met with resistance and delays in the House, and generated negative market reaction due to the possibility of circumventing the spending cap rule.
Should the PEC vote not proceed, the government will consider a way to expand emergency aid, news that gained momentum yesterday and led Ibovespa to its lowest shutdown of the year.
At 9:08 AM (ET), Ibovespa futures due in December 2021 were up 0.35% to 105,985 points.
The trading dollar opened higher and rose 0.4% to R$5.647 when buying and R$5.648 for selling. Dollar futures for December 2021 are running near stability with a slight increase of 0.04% to R$5.642.
In the interest futures market, the DI for January 2023 rose 24 basis points to 12.72%; January 2025 DI advanced 14 basis points at 12.76%; The DI for January 2027 is up 2 basis points, at 12.67%, and business activity is still in its infancy.
In New York, futures indexes point to a lower opening of the stock exchanges. Some quarterly budgets disappointed. The Amazon Impacted by the decline in online purchases and the return of on-site retail. The An appleHe suffered from semiconductor shortages and supply chain problems affecting production.
The results are also a prelude to investors taking profits after indices posted historic highs in recent weeks. Dow Jones futures traded slightly down 0.08%; Standard & Poor’s futures fell 0.44% and Nasdaq futures fell 0.83%.
Eurozone GDP increased by 2.2% in the third quarter compared to the second quarter. The region’s economy advanced 3.7% year-on-year. In both variations, performance exceeded average expectations Refinitiv, with a monthly growth rate of 2% and annual growth of 3.5%.
Eurozone inflation also exceeded expectations, rising by 4.1% in October, compared to expectations of 3.4% in the United States. Refinitiv. The reading is the highest since 2008. Yesterday, the European Central Bank (ECB), even aware of rising inflation, reported that for the time being, it would not change interest rates or withdraw stimulus measures.
In addition to the mixed data, European stock exchanges reflect the deterioration of the US balance sheet harvest. The Stoxx 600 Index, a benchmark for gathering companies from 17 major sectors on the European continent, fell 0.43%.
In Asia, stock exchanges followed the negative performance of the New York index futures and closed lower. In Tokyo, the Nikkei was up 0.25%. Hong Kong’s Hang Seng fell 0.7%. Korea’s Kospi Index is down 1.29%.
corporate radar
The highlight of the corporate news is the fallout from the Petrobras and Vale numbers, which were released the day before, while Usiminas revealed its results this morning. Check out the highlights in corporate radar:
Petrobras (PETR3, PETR4) It recorded a net income of 31.142 billion Brazilian Real in the third quarter of 2021, Reversing a net loss of R$1.546 billion recorded between July and September 2020.
Regarding the second quarter of this year, when the company generated R$42,855 billion, there was a 27.3% drop in profits, the company reported on Thursday (28).
The forecast, according to the median of analyst estimates compiled by Refinitiv, was to make a profit of about R$20 billion in the third quarter of this year.
Petrobras also reported that the Federal Supreme Court (STF) has ruled unconstitutional the imposition of Income Tax (IRPJ) and Social Contribution (CSLL) on amounts corresponding to the Selic rate applicable to unpaid tax payments.
In this context, the company recognized in its financial statements for the third quarter of 2021 income from IRPJ and CSLL in the amount of R$4.8 billion.
The board of directors of the state-owned company agreed to pay New expectation to reward shareholders for 2021, for a total amount of 31.8 billion Brazilian reals (about 6 billion US dollars).
The amount is equivalent to a total of R$2,437,865 for each preferred share and outstanding subscriber.
This distribution is in addition to the 31.6 billion R$ announced on August 4, 2021, totaling R$63.4 billion (approximately US$12 billion) pending shareholders for 2021.
The additional amount will be paid in December, with the installment already approved on August 4, 2021.
The amount to be paid in December will be R$ 42.4 billion, equivalent to a total R$ 3,250,487 for each existing preferred and subscriber share, which is: R$ 10.6 billion, which is equivalent to R$ 0.812622 total per existing preferred and subscriber share, approved on 4 August 2021 and R$31.8 billion, equivalent to a total of R$2,437,865 per outstanding common and preferred share, approved on October 28, 2021.
Vale Mining Corporation (VALE3) Reported a profit of $3.886 billion in the third quarter of 2021, The company reported on Thursday (28).
This amount represents a 33.6% increase compared to the $2.908 billion profit recorded in the same period last year, while there was a 48% decrease compared to the $7.586 billion profit recorded in the second quarter of 2021.
The average analyst polled by Refinitiv estimated a profit of $6.293 billion for the quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) were $6.938 billion, compared to Refinitiv’s forecast of $9.187 billion.
Vale distributed a dividend of $13.5 billion to shareholders in the first nine months of 2021.
In addition, the miner announced the approval of a new share buyback program due to the imminent conclusion of the existing program, which had about 268 million of the 270 million shares repurchased as of Thursday (28).
The new buyback program will be limited to 200 million common shares and related ADRs, equivalent to 4.1% of the total number of shares outstanding, and will be implemented over a period of up to 18 months.
Usiminas (USIM5)
Usiminas (USIM5) Net income 1.824 billion Brazilian riyals In the third quarter of 2021 (the third quarter of the year 21). The result represents a growth of 821% compared to the same period in 2020.
In the first nine months of 2021 (9 months out of 21), net income was R$7.572 billion, reflecting a loss of R$621 million at the same point last year.
Total net revenue was R$9.026 billion in the first quarter, up 106% over the same period last year.
Year-to-date total revenue was R$25.688 billion, an increase of 142% year-over-year.
Susano (SUZB3) recorded a Net loss of R$ 959 million in the third quarter of 2021 (3TRI21). A year ago, the company recorded a loss of 1.15 billion R$.
According to the company, the score primarily reflects the positive variance in operating score and higher IR/CS credit, partially offset by the negative variance in financial score.
The Board of Directors of Susanoo (SUZB3) has approved investments related to the Cerrado project in the amount of R$14.7 billion.
The project consists of the construction of a new pulp production plant in the municipality of Ribas do Rio Pardo (MS).
Susanoo reported that the plant will have a nominal capacity of 2.55 million tons of eucalyptus pulp production per year.
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