Read this Friday’s edition of the FolhaMercado newsletter (10) – 02/10/2023 – Market

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Bankruptcy of Livraria Cultura

Livraria Cultura had its bankruptcy decreed this Thursday (9) by the Justice. The company had been in the process of judicial recovery since 2018, in the midst of a crisis in the Brazilian publishing market.

According to judge Ralpho Waldo De Barros Monteiro Filho, the court-supervised reorganization plan had been breached and the provision of information in the process had been incomplete.

• “It is with a certain sadness that it is recognized, in the legal field, that the group has not been successful in overcoming its crisis”, he said.

The sealing of the company’s stores is authorized immediately. Then, the company’s assets are collected and sold to pay off creditors.

Remember: at the time it went into judicial recovery, Cultura declared it had BRL 285.4 million in debt.

• High production costs, drop in demand for books, lack of interest in reading and the country’s deep economic crisis since 2014 were pointed out by the bookshop’s management as the main reasons for the financial collapse.

• Before the crisis that hit the book sector, the chain had been investing in an expansion policy. In 2009, an investment fund bought a stake in the business, but left Cultura in 2016.

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Market reacts to possible change of goal

The dollar closed this Thursday at a strong high while the Stock Exchange registered low with the market reacting to news that the government intends to revise the inflation targets.

In numbers: the Ibovespa fell 1.77%at 108,008 points, while the US currency rose 1.44%The BRL 5.27.

Which explains: according to the Bloomberg agency, the government’s economic team has been talking about the possibility of raising the inflation targets. The president of the Central Bank, Roberto Campos Neto, would also be in favor of the change.

• The idea, according to Bloomberg, was to change even the targets already defined, as in the case of 2024 and 2025, in which the target is 3%.

• For 2023, changing the 3.25% target would not make much sense because of the monetary policy lag. This means that the actions taken today by the Central Bank, for example, will only have a greater effect on the 2024 inflation.

The goal decision inflation is up to the CMN (National Monetary Council), composed of ministers Fernando Haddad (Finance), Simone Tebet (Planning) and Roberto Campos Neto himself.

More about stock companies

As did Santander and Itaú, Bradesco also anticipated in its balance sheet for last year any loss due to being a creditor of Americanas.

In results released this Thursday, the institution allocated BRL 4.9 billion in expenses with provisions (reserve to cover defaults), which caused its profit to collapse to R$ 1.595 billion, a drop of 75.9% before 2022.

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take a break

• To watch: Industry – on HBO Max

With two seasons, the series takes the viewer into the competitive environment of an investment bank by following the trajectory of young trainees who have six months to prove their worth and stay with the company permanently.

The newbies are from Pierpont & Co., a fictitious investment bank in London’s financial district. They are placed in different areas of the bank and struggle to adapt to a culture defined as much by sex, drugs and ego as by business and profit.

The series was created by Mickey Down and Konrad Kay, who worked in the finance business before being excluded from lawsuits similar to the ones the series depicts.

In addition to economics:

• Promotion in cinemas in SP with tickets at R$10 includes Oscar films; see how to buy.