Politics
Ibovespa falls by 2% under pressure from the political-fiscal scenario
On the next game day of the Brazilian national team at the World Cup. Ibovespa o closed down 2.25% to 109,401.41 points, with more than 90% of listed shares ending the trading session with losses. Trading volume was 22.3 billion reais, below the average of 30 billion reais.
Political-Fiscal Scenario with Transitional PEC and the lack of information about the next treasury secretary continue to put pressure on the stock index, in addition to the negative climate in New York, which also pulled Ibovespa down this Monday (5).
In Brasilia, Senate President Rodrigo Pacheco put the transitional PEC on the agenda next Wednesday (7) for discussion in the plenary session of the House of Representatives. Investors are attentive to the results of negotiations on the amount and duration of exemption from spending restrictions.
Senator Marcelo Castro, rapporteur on the budget, said the PEC should maintain the impact of the BRL 175 billion and BRL 23 billion emergency revenues. However, the term should be reduced from four to two years.
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As commodity-oriented stocks were the only ones that closed in blue. Paper and pulp shares of Suzano (SUZB3) and Klabin (KLBN11) rose 2.20% and 2.22%, while steel and mining stocks gained 0.14% and 1% in CSN (CSNA3) and Usiminas (USIM5) shares. .07%.
Ibovespa’s biggest losses were in tech, retail and healthcare – stocks that are under pressure when interest rates and the dollar rise, as they do today. Positivo (POSI3), Qualicorp (QUAL3) and Lojas Renner (LREN3) were hit the hardest with losses of 11.50%, 9.74% and 8.01%.
O dollar rose overseas (the DXY rose 0.75% to 105.36 points) and domestic negotiations followed. Around here, the US currency rose 1.30% to R$5.2829. With fiscal issues on the radar, interest rates also rose today.
In New York, investors reacted to data from the services and industry sectors, which showed that the US economy remains resilient to the increase in interest rates by the Federal Reserve. The higher-than-expected rise in the ISM Services PMI and Industrial Orders – higher than expected – reinforces expectations for an aggressive Fed stance at next week’s monetary policy meeting.
As a result, Wall Street stocks plummeted. O Dow Jones lost 1.40% to 33,946.51 points, S&P 500 fell by 1.79% to 3998 points, while Nasdaq fell 1.93% to 11,239.94 points.
(Com Reuters)
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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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