Ibovespa closes after Bolsonaro's medical bulletin and US-Chinese tension



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  Jair Bolsonaro

SÃO PAULO – After a sharp fall in the trade war between the United States and China, Ibovespa ended its losses Thursday afternoon (7). The movement did not last long, however, and the stock market again became weak after President Jair Bolsonaro's medical bulletin reported a image of pneumonia .

Ibovespa closed down 0.24 percent to 94,405 points after falling 0.8 percent after the announcement of Bolsonaro's health.

The futures contract maturing in March rose by 0.57% to R $ 3,724, while the commercial dollar closed with a maximum of 0. 12%, cited in the sale to R $ 3,10108.

Julio Fernandes, manager of the XP Macro Fund, said the fall was beginning to intensify with the announcement of the fall of Bolsonaro's departure from the hospital, which could

According to him, the market was already closely related to the issues of deadlines and had dropped well the day before with the announcement of the new CEP that could extend the processing period and the news of today are another ingredient of Market risk aversion amid fears over the approval of the reform.

Previously, Ibovespa had also fallen sharply after the economic adviser of the House. White, Larry Kudlow, says that the United States China is far from concluding a trade agreement that has soured its markets and led to a fall of more than 1% of US stock markets.

In addition, CNBC reported, citing sources, that it is unlikely that one between Donald Trump and Chinese President Xi Jinping intervenes before the end of the truce in the trade war between countries that is ending this month.

On national news, it should be noted that S & P reaffirmed Brazil's BB rating, with a stable outlook. In the badessment of the agency, the Bolsonaro government faces the challenge of maintaining broad political capital and ensuring an effective congressional alliance to approve projects that correct the "structural fiscal slippage" and "l & # 39; Growing debt, "while stimulating the growth trend. 19659004] According to S & P, the outlook has remained stable, reflecting the agency's expectations of a "gradual strengthening of the country's fiscal profile" as the new government "progresses slowly in the implementation of measures to reduce Brazil's large budget deficit and promote stronger growth. "

Still on the radar of investors lies the defense of the Monetary Policy Committee (" Monetary Policy Committee ") of" caution, Serenity and perseverance "for future decisions, which weakens the chances of a fall in interest rates in the coming months. Yesterday, the Selic is held at 6.50%, as expected.

In this context, the contract maturing in January 2021 increased by 13 basis points to 7.15%, while that of January 2023 increased by 9 points to 8.26%.

Highlights Regarding the companies, it is possible to review Petrobras' quarterly dividends (PETR3, PETR4) and the information that Vale (VALE3) was aware of the dam siren's problems. Brumadinho, which could have contributed to the evacuation and lives that save lives. In addition, the activities of the miner at the Laranjeiras Dam at the Brucutu mine were suspended following a public civil action. Check the impacts for Vale here.

The largest losses among the stocks making up the Bovespa index are as follows:

Code [LOGG3 LOG WITH PROPON 18.40 -4.42 % % % Year Vol 1
+2.11 9.58M
BRFS3 BRF SA ON 23.21 -4.01 + 5.84 436.34M
B3SA3 B3 ON 31.00 -3.73 +15.63 904.87M
MRFG3 MARFRIG ON 6.03 [1965] 19659025] -3.67 +10.44 31.57M
SBSP3 SABESP ON 39.77 -3.26 +26.25 % Year % Year % Year % Year % Year % Year % Year First recorded 1
ABEV3 AMBEV ON 18, 81 +3.98 +22.30 723.97M
CIEL3 [1 9659024] CIELO ON 10.70 +3.38 +20.36 239.93M
VVAR3 VIAVAREJO ON 5.45 +3.02 + 24.15 [19659027]
CSN3 SID NACIONALON 9.52 +2.26 +7.69 143.85M
ENBR3 ENERGIAS BR ON [19659015] 17.33 +2.24 +23.56 70.92M

The most traded shares, including the Bovespa index, were:

Code ] Active PETROBRAS PN N2 25.09 -1.57 1.40B 1.48B 53.174 VALE3 VALE ON 41.59 -2.05 ] 1.31B 1.56B 55.729
ITUB4 ITAUUNIBANCOPN ED 36.53 +0.36 [19659086] 1.12B 879.63M 55.245
B3SA3 B3 ON 31.00 [19659100] -3.73 [1] 366.67M 42.524
BBDC4 BRADESCO PN EJ 44.20
BBAS3 BRAZIL ON 51.36 +0.08 746.39M [196592] ABEV3 AMBEV S / A ON ] 18.81 +3.98 723.97M 446.29M
LOCATION ON POSITION ON LOCATION ON LOCATION ON [19659101] +1.28 [19459099] 440.48M 195.50M 31 1965] BRF SA ON 23.21 [196590100] -401 436.34M 173.78M 36.526
LREN3 LOJAS RENNERON 43.35 +0.32 283.45M 169, (19459005) K – A thousand | – A thousand actions
M – Millions | B – Billion) IBOVESPA

Pension Reform
Mayor Rodrigo Maia (DEM) reiterated to GloboNews last night that the pension reform will be dealt with in priority when of the plenary sitting of the House.

According to the parliamentarian, the crime prevention project presented by the Minister of Justice, Sérgio Moro, could deal with the chamber committees with the reform, but considers that the debate on the security project is "longer" .

The mayor also reaffirmed that the social security reform should follow the traditional rite of the PEC (proposal to amend the Constitution) and "contaminate" the plenary to decide on the new pension rules. noting that the deadline is sufficient for the government to organize its base and to gather enough votes for the approval of the text as well as for the restoration of the health of the president Jair Bolsonaro, hospitalized after a surgical operation for the removal of the bag colostomy. The conclusion of the text of the reform depends on the release of the president and there is still no estimate on this subject.

Do not wait for social security. Invest your money better today: open an investment account in XP.

The referral of a new PEC proposal is precisely what worries the financial market because it does not take advantage of Michel Temer's government text, which is ready to go to the polls, should postpone the a few months project.

The proposed reform proposed by the government will include a new manpower regime. According to the Minister of Economy, Paulo Guedes, if the draft constitutional amendment is approved, the two systems will coexist on the labor market: the new, unconstitutional, deregulated and with a greater number of jobs;

According to the minister, "young people will have the opportunity to choose" the old regime with "many rights and few jobs" or the new one, which would have fewer rights.

Economic Agenda

At the heart of one of the most important social movements in the world, the Congress was able to approve the reform of social security without undermining the rights of the population. Exhausted indicators of the program, the fourth quarter earnings season of 2018 remains strong. Lojas Renner (LREN3) is also called Thursday (7) after the close of trading, in addition to Klabin (KLBN11), which presents the same day its financial result, but this time before the start of activities in B3.

Click here Click here to see the full program of indicators.

Political News

The Ministry of Infrastructure will send Congress a bill creating ANT, a species of super-infrastructure, according to the newspaper Folha de S. Paulo. It will be formed by the junction of the ANTT (land transport regulation) and Antaq (port terminals), both directors involved in corruption projects and favoring businesses. In an interview with Folha, the Minister of Infrastructure, Tarcisio Freitas, said that there would be only five directors.

The government economic team is studying the possibility of creating a new business contribution to the financing of the INSS. current payroll recovery of 20%, considered too high. This would be a way to lighten the corporate tax burden, promised by the Minister of Economy, Paulo Guedes, in his possession.

The government also plans to reduce wage cuts for low-income workers and study the reduction. the minimum rate required in the INSS, from 8% to 7.5% and move on to those who earn more, from 11% currently to 14% maximum.

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