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Dollar closes $ 4.20 a week high and Ibiza does not escape 1% drop



SAO PAULO – The dollar rose 0.6% during the week, and Ibiza recorded a decline of 1% in the last five trading sessions, despite the high on Thursday (14).

The political tensions that rocked Latin America have added to US President Donald Trump's disappointing speech – in which he has threatened China with new tariffs if the trade deal is not broken – and the departure of PSL president Airayir Balsonaro to create a climate of uncertainty. markets.

But today has been a day of gains on the stock market, thanks to positive data from the Brazilian economy and denial of news that China does not accept fixed value imports of US agricultural products to end the trade war.

As a result, Ibvespa rose 0.47% to 106,556 points, with a trading volume of $ 18 billion.

Already, the commercial dollar rose 0.16% to $ 4,1927 for purchase and $ 4,1934 for sale. The US dollar futures maturing in December rose 0.61% to US $ 4.20.

The exchange rate was also affected by the devaluation of the Chilean Peso, which fell by more than 1% and led to losses between the new currencies and Latin American currencies, although the country's central bank announced intervention the previous day.

The weight of the performance is a consequence of the political tensions in the country. Although President Sebastian Pinera's government had already announced that it would hold a Constitutional Assembly to draft a new charter (still in force under Augusto Pinochet's dictatorship constitution), the protesters were not satisfied. The general strike was called by trade unions and social movements on November 23 and 24.

On the futures market, DI for January 2021 increased by 0.43% to 4.64%. Already DI for January 2023 had a high 0.17%, to 5.73%.

In the wake of the trade war, White House trade adviser Peter Navarro yesterday afternoon denied Dow Jones news that the Chinese would not be prepared to accept a fixed number of imports of American agricultural products. Navarro said "someone has to make a lot of money in the market" with what he said was a rumor.

On the other hand, international reserves closed shortly after China's industrial output rose 4.7% in October, well below market consensus, suggesting a 5.2% expansion. Retail sales were also disappointing, showing growth of 7.2% compared to growth projections of 7.8%.

Around here, the Central Bank's Economic Activity Index (IBC-Br) rose 0.44% in September, above expectations, which rose 0.3%. The indicator works as a survey of gross domestic product (GDP) and adds services and retail data released this week to show improvement in the Brazilian economy.

Back in Brazil, highlight talks with China on establishing a free trade zone that, according to Economy Minister Paulo Guedes, is in its early stages.

It is worth noting that today is ahead of the holidays and this usually causes a "zero" in the positions of some investors, as US stock markets will open on Friday and if there is a major market event it could affect there and affect stocks. Brazil only on Monday. Friday, late.

Corporate News

In the latest installment of the equilibrium season, several companies issued balance sheets between yesterday and this morning.

Varejo's accounting loss (VVAR3) more than quadrupled to $ 383 million. In the same period last year, the loss was $ 83 million. Gross margin increased by 0.5 percentage point to 30.7%.

Gross operating income of $ 1.7 billion in the quarter, with a gross margin of 30.7%, about 0.5% over 3Q18 and 2.7% higher than in the previous quarter.

Adjusted EBITDA reached US $ 242 million, a decrease of 42.5%, with a margin of 4.3% (-2.3 pp). Net income fell 10.7% to $ 5.688 billion, while same-store sales declined 2.2% in revenue.

Itachi BBA points out that the result came as poor as expected, but wonders if the worst is yet to come. According to the document, the retailer reported still poor results, such as operating online.

Also in the spotlight, JBS (JBSS3) posted a net loss of profit in this third quarter. The protein company completed the July-September 2019 period with net income of $ 356.7 million, compared to a loss of $ 133.5 million in the same period in 2018.

Natura (NATO3) earned $ 68.6 million in the third quarter of this year, up 48.4% from a year earlier. Qualicorp (QUAL3) earned $ 119.1 million in the third quarter of this year – up 9% from the year-ago rate ($ 109.8 million).

Shapvida (HAPV3), meanwhile, earned $ 215.9 million in the third quarter of this year, up 13.5% year-on-year.

In addition to the balance sheet season, the Board of Directors of CVC (CVCB3) has approved Maurizio Montilla for Finance Committee.

Higher

Active% ChangeAmount (R $)
VVAR38.262117.6
COGN36.4115810.29
LREN34.888351.7
YDUQ34.7036939.4
BRML34.5725615.78

The biggest casualties

Active% ChangeAmount (R $)
BRKM5-5.5128.81
MRVE3-3.6931816.95
USZ3-2.6301836.65
JBSS3-2.5631526.23
MRFG3-2.1555810.44

External script

"Everyone should stop listening to rumors," Navarro said last night during an interview with Fox Business on the Dow's report on the difficulties in trade negotiations with China.

Asked about China's ability to buy $ 50 billion in agricultural products as part of the deal, Navarro said the two sides are negotiating behind closed doors, not in the press.

"We are on the way to a Phase 1 trade deal, let's see" if it comes to fruition, the official said, in line with earlier statements by US President Donald Trump.

On Tuesday, US President Donald Trump said the trade deal with China was "closed" but did not provide details and warned it would raise tariffs "significantly" on Chinese products without that deal.

Still in the United States, the focus was on the impeachment probe against Trump, with the first televised hearing linking the US leader directly to efforts to pressure Ukraine to launch an investigation into her domestic political rival.

In Europe, the eurozone's seasonally adjusted GDP increased by 0.2% during the third quarter compared to the preceding three months, while it increased by 1.2% compared to the same period last year. Already, the number of employees increased by 0.1% in the quarterly quarter, with adjustment rising by 1% in a year.

In Germany, however, the country avoided a technical recession after its GDP grew by 0.1% in the third quarter, better than expected on market performance, which was down 0.1%. In annual comparison, the increase was 0.5%. German Economy Minister Peter Altmayer said, however, that the region's economic development is still fragile.

In the UK, retail sales fell 0.1% in October compared to September, frustrating the expectations of analysts surveyed by the Wall Street Journal, which forecast sales growth of 0.2%. Year-on-year sales surged 3.1% in October, well below expectations, by 3.7%.


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