Politics
Bankers Call for Reforms in New Political Cycle
These are the wishes of the bankers for the coming new political cycle. Legislative elections are scheduled for January 30. The heads of the largest banks in Portugal are calling not only for “vitality”, but also for the possibility of reform.
The topic of the new policy cycle was part of the first debate at the 5th Money Conference Banking 2022 – Testing, Customizing and Growing, organized by DV / DN / / TSF in partnership with EY, Sage and Iberinform, which took place yesterday. … Miguel Maia, Executive Chairman of Millennium BCP, Paulo Macedo, CEO of Caixa Geral de Depósitos (CGD), António Ramallo, CEO of Novo Banco and Francisco Barbeira, Member of the BPI Executive Committee, moderated. supervised by Rosalia Amorim, director of Diário de Notícias.
Paulo Macedo believes that Portugal needs “the potential for transformation” and that there is “the opportunity to carry out reforms.” For a manager, “what matters is that the new staff can make decisions.” Paulo Macedo said he hoped to speed up the implementation of the proposed measures. “The country cannot stand still.”
Francisco Barbeira, a member of the BPI Executive Committee, believes that this moment “was necessary for the promise of political stability” and that “it was necessary for us to create a new framework for political stability.”
On the other hand, Antonio Ramalho, executive chairman of Novo Banco, said that democracy has its own rejuvenation mechanisms. Miguel Maia, CEO of Millennium BCP, followed suit: “I really appreciate stability. But I value vitality even more, ”he said. And he supported the decision of the President of the Republic, Marcelo Rebelo de Sousa, to schedule early elections for January 30 next year. “In my opinion, the theme of sustainability resonates with stability,” he said.
The important role of defaults in the crisis
During the discussion, bankers emphasized the role of the moratorium in the crisis caused by the measures taken to combat the pandemic. The main message was that there has been relative calm regarding the evolution of moratorium management. This was demonstrated in the presentation by Paulo Macedo, who noted that banks need at least six months to obtain specific data, namely on companies, but so far the signs are positive, with a low default rate. And this is possible, added the CEO of CGD, because the companies prepared in advance, and the bank itself did all the work to attract customers (legal entities and individuals), even restructuring several loans. “There are several solutions that make it relatively easy for us to view the default values,” he concluded.
Miguel Maya, in turn, highlighted the difference between the interest rates applied to Portuguese companies and families, and the interest rates applied in other European countries. And he added that it is very important to ensure the conditions so that companies can operate “not on a local, but on a global scale,” with risk differentiation. The CEO of Millennium BCP took the opportunity to warn that Portuguese banks cannot travel abroad to minimize risk. And in the question of whether they are based in Portugal or not, the only question is one: there are conditions, “and today they have no conditions.”
Risks and challenges for the banking sector
The topic of profitability in the banking sector was also touched upon. This is one of the challenges facing the sector as profitability is at historically low levels.
According to Francisco Barbeira, current levels of profitability “are not adequate levels for capital reward that banks should have.” “If we want to keep a strong bank, we must look at profitability,” the banker said. On the public finance front, the BPI administrator defended that “fiscal austerity and deficit control will be on the agenda again” after the 2020 crisis, stressing that “this is absolutely important.”
Miguel Maia, on the other hand, defended the rate hike. He stressed that negative interest rates “do not reach companies.” “I would be happy, in terms of interest rates, if there was an increase approaching zero. This would be beneficial for the Portuguese economy and the economy, ”he said.
For his part, the executive chairman of Novo Banco warned that the changes in consumption patterns caused by the pandemic pose a risk to some companies that are still vulnerable to the crisis, which is a risk. António Ramalho recalled that the pandemic has led to “acceleration of realities” such as digitization and climate problems. But “the pandemic has accelerated changes in consumption patterns” and “demand patterns” that “could lead to serious disruptions for companies,” the Novo Banco CEO warned. The banker warned that the changes could affect companies still struggling to recover from the 2020 crisis.
Ramalho also warned that “there are signs of accelerating cyclical risks” such as rising inflation, rising transportation costs, disruption to the supply chain and “some changes in the cost of raw materials.”
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Yesterday, financial agents evaluated the opposite decision of the Federal Supreme Court (STF) regarding the so-called secret budget. In addition, a decision was made by STF Minister Gilmar Méndez to issue an injunction that would exclude the Bolsa Família from the spending cap rule, with investors trying to understand how this measure would affect the processing of the transitional PEC in the Chamber of Deputies. Oh this PEC!!!!
Since he is an exchange investor, any reading that the budget will be exceeded or become more flexible will negatively affect the exchange market, whether through the PEC or in any other way. We will continue with volatility today.
Looking beyond, the US Central Bank (Fed), although slowing down the pace of monetary tightening at its December meeting, issued a tougher-than-expected statement warning that its fight against inflation was not yet over, raising fears that rising US interest rates will push the world’s largest economy into recession.
The currency market continues to react to political news. The voting on the PEC is saved for today. It is expected that it will indeed be reviewed to open the way tomorrow for discussions on the 2023 budget.
For today on the calendar we will have an index of consumer confidence in the eurozone. Good luck and good luck in business!!
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The former president of the Corinthians dreams of working for the CBF as a national team coordinator. He was consulted shortly after Lula’s election.
Former Corinthians president Andrés Sánchez was advised to take a position in the Ministry of Sports under the administration of Lula (PT). However, he ruled out a return to politics. dreams of taking over the coordination of CBF selectionHow do you know PURPOSE.
No formal invitation was made to the former Corinthian representative, only a consultation on a portfolio opportunity with the new federal government, which will be sworn in on January 1, 2023.
Andrés was the Federal MP for São Paulo from 2015 to 2019. At that time he was elected by the Workers’ Party. However, the football manager begs to stay in the sport, ruling out the possibility of getting involved in politics again.
Andrés Sanchez’s desire is to fill the position of CBF tackle coordinator, which should become vacant after the 2022 World Cup. Juninho Paulista fulfills this function in Brazil’s top football institution.
The former president of Corinthians was in Qatar to follow the World Cup along with other figures in Brazilian football. During his time in the country, he strengthened his ties with the top leadership of the CBF.
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The agreement was approved by a supermajority at a ministerial meeting of member states in Brussels, Belgium, after months of discussions about the best way to contain the rise in natural gas prices in the bloc caused by Russia’s invasion of Ukraine. .
The value set by the countries is well below the proposal made by the European Commission, the EU’s executive body, in November: 275 EUR/MWh. However, the countries leading the cap campaign were in favor of an even lower limit, around 100 EUR/MWh.
Germany, always wary of price controls, voted in favor of 180 euros, while Austria and the Netherlands, also skeptical of the cap, abstained. Hungary, the most pro-Russian country in the EU, voted against.
The instrument will enter into force on 15 February, but only if natural gas prices on the Amsterdam Stock Exchange exceed 180 euros/MWh for three consecutive days. In addition, the difference compared to a number of global benchmarks should be more than 35 euros.
Italy, the EU’s biggest supporter of the ceiling, has claimed responsibility for the measure. “This is a victory for Italy, which believed and worked for us to reach this agreement,” Environment and Energy Minister Gilberto Picetto tweeted.
“This is a victory for Italian and European citizens who demand energy security,” he added.
Currently, the gas price in Amsterdam is around 110 EUR/MWh, which is already a reflection of the agreement in Brussels – in August the figure even broke the barrier of 340 EUR/MWh.
However, Russia has already threatened to stop exports to countries that adhere to the ceiling. (ANSA).
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