Ibovespa looks for mood and increases 1% after a sharp drop with "Vale effect"



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SÃO PAULO – The Ibovespa is trying to recover from the loss of the day under the influence mainly of the fall of 24.5% of Vale shares after the disaster of Brumadinho.

At 10:26, the Ibovespa rose 0.87% to 96,277 points. The dollar contract maturing in February 2019 decreased by 0.65% to R $ 3,737 and the commercial dollar decreased by 0.77% to R $ 3,736.

Regarding the evolution of IDs, contracts expiring in January 2021 went from 7.21% to 7.16% and future interest rates for January 2023 went from 8.37% to 8.31%.

The influence of foreign trade is neutral in the face of increasing tension between China and the United States with a new episode involving Huawei, Apple's financial balance sheet and the expectation of a new vote at Brexit (more details on this subject). below.)

The shadow of investor mistrust of Vale and companies that may be indirectly affected by the tragedy should continue to weigh heavily on the business community. This morning, five people suspected of having baderted the safety of the dam that broke on Friday were arrested.

Highlights of the Stock Exchange

The largest increases among the shares comprising the Ibovespa are as follows: [19659008] +4.78

+48.41
13.94M [19659011] ELETROBRAS PNB 38.58 9.46M
SBSP3 SABESP ON 45.43 [19659009]

BRAP4 BRADESPAR PN
VALE3 VALE ON 43.21 The most significant losses among the shares composing the Ibovespa are as follows:

Code Assets Cot R $ % Day

SMLS3 SMILES ON 40.93 19659016]
JBSS3 JBS ON 14.62 ] -1.22
+26.14 [1 9459026]68M
MRVE3 MRV ON 15.19 -0.85 +22.90 2.81M TAEE11 TAESA UNT N2 25.55 -0.78 +8.26 * – Lot of thousand shares
1 – In reais ( K ] – Thousand | M – Millions | B – Billion)

World Stock Exchanges

The future stock market indexes in the United States suggest an opening close to stability in the face of new tensions between the country and China. Donald Trump's government launched a series of lawsuits – including criminal prosecutions – against Chinese company Huawei Technologies, a few days before the resumption of trade talks with China.

In the cases revealed today, federal prosecutors have accused Huawei of violating US sanctions against Iran and stealing trade secrets from the United States. a US trading partner by presenting the company as a serial violator of US laws and global business practices

The lawsuit against Huawei displeases the Chinese government and the company denies having committed any of the abuses cited.

In the meantime, Liu He, Vice Premier of China, will arrive tomorrow in the United States to continue negotiations on trade between the two countries. There are still many differences, but Steven Mnuchin, US Treasury Secretary, said he expects "significant progress" this week.

European stock markets are optimistic about the expectation of a new vote on the Brexit after the presentation of plans Thérèse May, Prime Minister, announced that the UK's exit agreement United Kingdom of the European Union had been rejected on January 15 in Parliament. The Brexit date is March 29th.

The Asian stock markets also closed for the most part under the pressure of the new imbroglio between China and the United States.

Oil prices rose after the administration of Donald Trump imposed sanctions on the Venezuelan national oil company PDVSA in order to put pressure on it for it. recognize Juan Guaidó as president of the country.

Tragedy in Brumadinho

The tragedy of Brumadinho (MG) begins to have penal consequences. Five people, including two engineers, were temporarily arrested for claiming the safety of the Córrego do Feijão dam, which had broken out.

In an attempt to prevent further disasters and ensure effective punishment in the case of Brumadinho, Acting President General Hamilton Mourão, has an important mission this morning at a meeting ministerial devoted to tragedy. The meeting takes place on the fourth day of the victims' search. In the latest report, 65 people were confirmed dead, 279 missing and 135 homeless.

Yesterday (28), the crisis office of the presidency met in two stages: morning and afternoon. In the end, the government announced the publication today (29) of a recommendation to regulators to promote inspections in states, observing all dams and posing a threat to human life .

The measure also includes the requirement imposed by the companies to an immediate update. of their dam safety plans. A working group should be created to update the law establishing the national policy on dam safety.

Monitoring bodies must essentially evaluate the need to remove structures near dams in order to preserve their integrity.

Regarding the measures to be taken regarding Vale's board of directors, the spokesman for the presidency of the Republic, Otávio do Rêgo Barros, said yesterday that the government is studying changes in the council of 39, administration of the mining company. The federal government has an interest in the company and thinks it can convince the rest of the shareholders' representatives to approve the revocation of the directors. According to the newspaper Folha de S. Paulo

Economic Agenda

the Central Bank of Brazil and employees of the company would lead this movement, according to the newspaper Folha de S. Paulo. In the domestic market, the central bank releases credit data for December and the National Treasury to inform tax data.

In Europe, particular attention is given to the vote on Plan B on Brexit (leaving the United Kingdom of the European Union) in the British Parliament. The government is short of time to try to reach an agreement and prevent a "Brexit without agreement" from happening on March 29, which could lead to chaos in border services and relations with European bloc countries [19659004[19659067] Political News

The surgery that Jair Bolsonaro performed yesterday to remove the colostomy bag from the Albert Einstein Hospital was successful. the president should return to work after the first 48 hours of surgery, still at the hospital . A special office will be set up at the hospital so that the president can carry out his work during the estimated 10 days in hospital stay.

Invest better your money: open an investment account in XP Meanwhile, in Brasilia, members and senators are articulated in Congress to allow the creation of 39, a joint parliamentary inquiry commission (CPMI) to clarify the responsibility for the rupture of the Vale dam. For the establishment of a CPMI, it is necessary to support 171 deputies and 27 senators.

The dispute over the presidencies of the Senate and the Chamber of Deputies continues in the center of the market. The vote is scheduled for Friday (1) and Rodrigo Maia is the House favorite after an agreement with MDB and PP. However, he will lose the dispute, which would compromise the timing of the reform. In the Senate, Simone Tebet's eventual victory over Renan Calheiros is considered beneficial for the government.

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