Bovespa has accumulated high contrasts with global tension for fear of the global crisis | Internationale

Wall Street is restless and investors worried about doubts about the global crisis. The US stock market has accumulated losses of 20% in the last quarter. Oil has also dropped, political tensions in Washington are not helping the economy, and Chinese growth is slowing down without recording the effects of the trade war. US Federal Reserve Chairman Jerome Powell on Friday called for "patience" in the markets and was willing to change his policy of raising interest rates if the weather worsened. Meanwhile, in Brazil, the euphoria with the arrival of Jair Bolsonaro and his liberal program was still the tonic of the week at the São Paulo Stock Exchange, which hit consecutive records. Friday, however, there were already signs of the first noises. Investors began the day in a bad mood, reacting to the new president's claims, that he advocated a social security reform lighter than the one his economic team wants. The doubts expressed by the new Plbadto occupant about the agreement between the Brazilian companies Embraer and Boeing also resulted in the collapse of the shares of the Brazilian company. Powell's statement on US interest rates has only improved the situation – the fact is important for Bovespa, as higher rates in the US market can leverage resources invested in other economies, such as that of Brazil.

Soothing mood by stating that it will be "patient" in the risk badessment due to the worries of the markets for a global slowdown. At the same time, he was optimistic that growth remains above potential in 2019 despite anticipated moderation. Wall Street has many elements to take into account in determining the direction of the US economy, especially after Apple has warned investors of its activities in China.

Investors are nervous and doubts are growing in the face of the global crisis. Markets have expressed concern over the direction of US monetary policy, the economic slowdown in China, the impact of trade tensions and the political chaos that dominates Washington. However, Powell believes that investor sentiment is ahead of the data and that these conflicting signals complicate his work. "We will be patient in badessing the performance of the economy," he said, citing the progress of the strategy. In this sense, he said, he will be sensitive and open to change, if necessary. "We are always ready to radically change the direction of our much-needed monetary policy," he said, adding that economic data remains strong. Powell said the Fed was ready "to adjust its (monetary) policy quickly and flexibly."

The Wall Street Recap

Powell spoke at a round table organized by Yellen and Bernanke in Atlanta on US. Association of Economics . His comments were greeted with relief by Wall Street, which rose more than 2.5% after dropping nearly 3% the day before. On the stock market, they badume that the next increase in interest will not be imminent. The last increase was decided in December to be reduced from 2.25% to 2.5%.

President Donald Trump does not hesitate for a second to proclaim that the recovery of stock markets is the opportunity of plans that must take the growth rate above 3%. But now that the markets are moving in the opposite direction, he is blaming others. The first objective of his attack was to criticize the Federal Reserve for raising interest rates. He went on to say that it was the biggest problem of the economy.

But this week he began to admit that other factors were a source of concern for investors. "Our country is far better than other countries in the world," he said at a Cabinet meeting on Wednesday. "Everyone is talking about us". He added that despite the difficulties encountered in December, the markets had increased by 30% compared to the date of his election to the presidency.

He then predicted that Wall Street would increase again when "business problems are solved." The Republican has so far denied that the US-China tariff war was a risk factor for economic growth.

The fear of the economic slowdown in China

The alert launched by Apple to its investors perfectly reflects the fears that dominate the stock market. Tim Cook, the managing director, specifically cited the slowdown in growth in China as the main factor that led him to reduce the profit forecast for the Christmas shopping district. And he warned that commercial litigation only made the situation worse.

Despite the tensions that dominate Wall Street, December's employment data show that the economy is progressing steadily. Federal Reserve members who spoke at the beginning of the week said they listen carefully to the market and therefore try to incorporate these risks into their strategy. They also say that no one expects a growth of 3% as in the last exercise in the United States

. This moderation, it is said, does not mean a recession. Larry Kudlow, Donald Trump's chief economic adviser, said the same thing when evaluating job data and said market fears were exaggerated. He also says that companies "invest heavily". He thinks Apple's problem with China is that its technology has reached a limit and has more competitors.

Kevin Hbadett, chief economist of the White House, does not rule out that other big multinationals are following Apple's lead and show in the results the effect of the slowdown in the Economy in China. "It will be bad for the profits of American companies," he said. This, in his opinion, puts at the same time "a lot of pressure in China to conclude a trade pact" with the United States

Jerome Powell hinted that there was no problem in China. urgency to raise interest rates faster, because inflation gives and because the current interest rates are already very close to a neutral position. And while the data remains broadly solid, he admits that many channels are at play, some fueling uncertainties. He reiterated that the challenge was to find a balance.

Powell, just like Cook, hopes that an agreement will be reached on the trade front to end the uncertainty. And he made it clear that the Fed's culture was strong and would not be motivated by political pressure. He also said that he would not resign if Trump asked for it. Yellen said he expects criticisms of the central bank to end without the work of the institution being questioned.