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Global stock markets have risen this morning as investors await definitions of new stimulus for the US economy. The move comes after the Dow Jones index had the best performance since July 14, closing at a high of 1.9%, after President Donald Trump declared he was in favor of aid to airlines and other stimulus measures.
In Brazil, the market follows the information that the dispute over the command of the Chamber of Deputies from 2021 is hampering the installation of the Mixed Budget Commission (CMO). As a result, there are fears that the government will have no legal basis to pay its expenses starting in January. According to Estadão, the commission has yet to vote on the Budgetary Guidelines Law (LDO) for 2021, one step before examining the budget itself.
Another highlight is President Bolsonaro’s statement on Operation Car Wash. He said he ended the operation because, according to him, “there is no more corruption in the government.” The statement was a response to criticism from lavajatistas for approaching the Federal Supreme Court (STF) ministers who oppose the operation carried out by former judge Sérgio Moro, according to Estadão.
In corporate news, investors are following the price of the Mateus Group’s initial share offering, which takes place today. In addition, Copel reported that it will make a layoff incentive plan, while TIM will distribute the profits to shareholders. Furthermore, BNDES intends to sell R $ 2 billion in Vale debentures early next year.
1. Global exchanges
Global exchanges show a positive trend this morning as investors await definitions of new stimulus for the US economy. Yesterday, Donald Trump declared himself in favor of aid to airlines and other stimulus measures.
As early as Tuesday, Trump had put off investors by saying talks about a new package should end after the election. Yesterday, members of the Federal Reserve expressed their concern that the recovery of the US economy will not occur if the fiscal stimulus is not approved, according to minutes released to the market.
In Europe, the exchanges are predominantly in the positive field. The Euro Stoxx index advanced 0.52%. At the same time, the CAC, in Paris, rose 0.33% and the FTSE MIB, in Italy, registered an increase of 0.56%, while the DAX, in Germany, rose 0.56%. London’s FTSE 100, on the other hand, gains 0.31%.
In New York, future rates are increasing. S&P 500 futures were up 0.36%, while Dow Jones futures were up 0.29%. Nasdaq futures are up 0.67%.
Investors are awaiting data on unemployment insurance claims in the country, which will be released today. Economists surveyed by Bloomberg expect orders to total 820,000, down from 837,000 the previous week.
Also, pay attention to the debate over the US Vice President candidates last night. Democratic Sen. Kamala Harris, vice presidential candidate on Joe Biden’s ballot, did better in the debate against Republican Mike Pence. The meeting, which was more civilized than last week between Trump and Biden, was very focused on the impacts of the coronavirus pandemic and the Democrat managed to take advantage of it, highlighting the moment in which she said that the current government hid from the population that knew about the disease as early as January.
Kamala Harris’s weakness was exposed in the question of whether Democrats intend to increase the number of Supreme Court justices or not. Pence also seized the opportunity to carry out harsh attacks against China, blaming the country for the damage caused by Covid-19. He said Trump stopped all flights originating from China as a way to stop the pandemic and accused Biden of being against the initiative. See more by clicking here.
In Asia, markets also showed a positive trend, with the exception of the Hong Kong Hang Seng index, which fell 0.20%. In Japan, the Nikkei rose 0.96%, while the Kospi of South Korea rose 0.21%. In China, markets are closed due to a local holiday.
* See the performance of the markets, at 7:02 am (Brasilia time):
New York
* S&P 500 Futures (US), + 0.36%
* Nasdaq Futures (US), + 0.67%
* Dow Jones Futures (US), + 0.29%
Europe
* Dax (Germany), + 0.55%
* FTSE 100 (UK), + 0.34%
* CAC 40 (France), + 0.32%
* FTSE MIB (Italy), + 0.56%
Asia
* Nikkei (Japan), + 0.96% (closed)
* Hang Seng Index (Hong Kong), -0.20% (closed)
* Kospi (South Korea), + 0.21%
* WTI oil, + 1.23%, at $ 40.44 a barrel
* Brent oil, + 1.41%, at $ 42.58 a barrel
* Bitcoin, US $ 10,572.12, -0.39%
2. Agenda
Today, investors follow the August retail sales data, by IBGE, at 9 am. The expectation, according to the Bloomberg consensus, is 3% more in the monthly comparison and 6% in the annual basis. At 9:30 am, the meeting of the Governing Council will take place in the Planalto Palace.
In the United States, unemployment insurance claims are expected at 9:30 am. In Europe, the European Central Bank (ECB) publishes the minutes of the most recent monetary policy meeting, at 8:30 am.
3. Public accounts
Today, the market follows the information that the dispute for the control of the Chamber of Deputies from 2021 is hampering the installation of the Joint Budget Commission (CMO). As a result, there are fears that the government will have no legal basis to pay its expenses as of January. According to Estadão, the commission has yet to vote on the Budgetary Guidelines Law (LDO) for 2021, one step before examining the budget itself.
In addition, attention is drawn to the statement by President Jair Bolsonaro that the last word on Economy rests with him and Minister Paulo Guedes. Yesterday, he praised other ministers and highlighted Paulo Guedes, from Economy, whom he said to have “mutual loyalty.” Yesterday afternoon, Guedes calmed the market saying that there are no plans to extend the state of calamity beyond December this year.
Another prominent issue is the country’s international relations. After the European Parliament yesterday refuted an agreement between the European Union and Mercosur due to concerns about Brazil’s environmental policy, the Brazilian government said that the demonstration had a “political nature”, with no real effects on the legal process of evaluating the treaty. , according to Estadão. .
In a note released by the Ministry of Economy, the government said it was “closely following” the demonstration of members of the European Parliament during the approval of the 2018 report on the implementation of the common trade policy between the two blocs. The agreement between the European Union and Mercosur was closed in June 2019 after twenty years of negotiations marked by comings and goings.
4. Corruption
In Brazil, another highlight is President Bolsonaro’s statement on Operation Car Wash. He said he ended the operation because, according to him, “there is no more corruption in the government.” The statement was a response to criticism from lavajatistas for having approached the ministers of the Federal Supreme Court (STF) who oppose the operation carried out by former judge Sérgio Moro, according to Estadão.
Still on Lava Jato, the Supreme Federal Court ruled yesterday that the criminal actions in progress in the court will be tried again by the full court. Thus, the analysis of the Lava Jato processes will come from the Second Panel, which has imposed successive defeats on the operation, according to Folha. Minister Luiz Fux is a defender of the operation and this was his first victory in the presidency of the Supreme Court against the wing of the court that criticizes the methods of Lava Jato.
Furthermore, Folha reported that President Bolsonaro made an irregular cash donation for this year’s campaign to re-elect his son Carlos Bolsonaro to the Rio de Janeiro City Council. According to data provided by the candidate for the Superior Electoral Court, the president made a deposit of R $ 10,000 in cash in the councilman’s campaign account. The practice, as described, runs counter to last year’s TSE resolution on rules for electoral donations.
The newspaper also noted that the Federal Court of Accounts opened an investigation to investigate the hiring of a law firm linked to federal judge Kassio Nunes to provide services to the former Companhia Energética do Piauí, now Equatorial Piauí. The Court’s auditors indicated irregularities due to the lack of bidding. Nunes is nominated by President Jair Bolsonaro for Celso de Mello’s vacancy on the Supreme Court.
Still on Kassio Nunes, Estadão reported that his master’s thesis presented in 2015 to the Autonomous University of Lisbon, in Portugal, brings identical extracts to the publications made by another author, the lawyer Saul Tourinho Leal.
5. Corporate radar
In corporate news, investors are following the price of the Mateus Group’s initial share offering, which takes place today. In addition, Copel informed that it will make an incentive dismissal plan that can reach 930 employees, generating annual savings of R $ 168.7 million from 2021.
TIM will distribute R $ 500 million in interest on capital, while PetroRio released the production data for September. Total daily production was 32,938 barrels of oil equivalent per day (boed), the highest monthly volume registered in 2020. Furthermore, it is worth noting that BNDES intends to sell R $ 2 billion in Vale debentures at the beginning of next year. .
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