Read this Friday’s edition of the FolhaMercado newsletter (24) – 03/24/2023 – Market

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Stock market drops after Copom

The Stock Exchange fell and closed below the symbolic threshold of 100,000 points the day after the BC’s decision on the Selic was announced.

The reaction had nothing to do with maintaining the rate, which was already expected, but rather with the harsh tone of the Copom communiqué, which did not open even a crack for a drop in interest rates at the next meeting.

In numbers: the Ibovespa closed down by 2.28%, at 97,926 points, the worst mark since July 18 last year. the dollar rose 0.99%at BRL 5.28.

• When due in January 2024, the rate increased from 13.02% to 13.20%. For 2025, from 12.05% to 12.12%, and for 2027, from 12.31% to 12.36%.

Which explains: Interest at this level for a longer period means that the Stock Exchange will continue to be less attractive in relation to fixed income, which motivates a rebalancing of the portfolios of large investors.

• The Luiz Inácio Lula da Silva (PT) government’s (PT) government’s criticism of the monetary authority also contributed to the bitterness. This Thursday, the president returned to the charge and said that “history will judge” the BC’s decisions.

With interest rates high for longer, retail stocks, which were already under pressure, fell further. The sector depends on a lower Selic rate to increase sales and reduce the cost of debt.

• The biggest fall of the day was with the ordinary paper of Magazine Luiza, with a decrease of more than 13%.

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Automakers want to manufacture electric cars in Brazil

The number of fully electric vehicles registered in Brazil reached 8,458 in 2022, an increase of 195.7% before 2021.

Even so, the units represent only 0.4% of passenger car and light commercial vehicle licenses in the country. This is in contrast to the global proportion, where 10% of cars sold in 2022 do not burn fuel.

Understand what hinders the popularization of trams in Brazil:

• Price: Electrified models tend to be more expensive than those with combustion engines abroad, where they are manufactured. When the cost of imports and taxes are added to this account –although there are incentives–, the value ends up being quite salty.

• Infrastructure: it is still not possible to drive across the country with a vehicle that does not have a fuel tank. Today are about 3,000 charging stations available in Brazil, mainly in the Southeast and South.

This does not mean that the sector is oblivious to this movement.. To lower the cost, one idea is to bring manufacturing to Brazil, as planned by BYD.

• The Chinese company is Tesla’s main rival worldwide and is negotiating to install its first national passenger car factory here with the purchase of the complex that belonged to Ford in Camaçari (BA).
• One of the models quoted for domestic production is the Yuan EV Plus, which is already on sale for BRL 270,000, but the intention is to make it cheaper by making it domestically.

Regarding the expansion of charging stations, both Shell and Vibra (former BR Distribuidora) plan to expand their networks.

Out there, governments dare to set targets and subsidies for the sector. In Europe, Parliament last month approved a ban on the sale of new vehicles with gasoline or diesel engines from 2035.

• In the US, the plan is for half of the new cars to be sold by 2030 to have zero carbon emissions.

More about electrification

With its debut in Brazil this weekend, Formula E is a new laboratory for car development.

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take a break

• To watch: “Succession” – on HBO

With 13 Emmy Awards under its belt, the beloved family drama of audiences and critics reaches the beginning of the end this Sunday, when the first episode of the fourth season, the last of the series, will be shown.

Haven’t seen it yet? The series takes the viewer into the middle of an intrigue that involves a father and his four children in dispute for the command of a huge and traditional media conglomerate.

In addition to resolving the internal nitpicks, the family still has to face investors angry with the decay of the media empire, seen as an outdated company in the age of the internet and social networks.

• In “Succession”, the characters’ nonsensical attitudes, the billionaire intrigues disconnected from the spectator’s reality and the allusions to absurdities of the corporate world govern the saga of the Roy family, writes Leonardo Sanchez.

• It is true that the last three years brought great titles, but nothing on display managed to keep up with the same electricity and growing number of fans as the luxurious hell of the Roys, opines Luciana Coelho.

beyond the economy

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