Read this Monday’s edition of the FolhaMercado newsletter (10) – 07/10/2023 – Market

ANDsta is the edition of newsletterr Monday’s Market Sheet (10). want to receive it from monday to Friday at 7 am In your email? Sign up below:

---

The impact of the Reformation on the market

The approval of the Tax Reform in the Chamber, which attracted the attention of the political and economic world, was also closely monitored by financial agents.

The assessment is that the progress of the proposal that was blocked for 30 years should be analyzed in two ways:

↳ In the short term, it means an improvement in the economic environment and falls like an eye candy for foreign investors. The first impact appeared in the drop in future interest rates, which is good news for stock exchange assets.

↳ When it comes to the effect of changing taxes on companies, something that should start in 2026 and end only in 2033, houses seek to predict the sectors that should gain and those that should lose with the Reform.

• Goldman Sachs analysts identify service companies as possibly pressured to raise prices to compensate for higher taxes, with a consequent reduction in demand.

• The most taxed segments of the industrial sector, on the other hand, should see a drop in the tax burden.

• Also part of this category are companies producing items that will have a zero rate in the basic basket and services that will have a reduced rate, such as health and education, for example.

For later: with the possible approval of the current proposal that changes taxes on consumption, the government intends to vote this year on the second phase of the Reform, related to Income Tax (IR).

• This should attract more attention from the financial market, as it can change taxation on items such as dividends, interest on equity (JCP) etc.

More about investments

Understand why the Japan Stock Exchange rose 27.2% in the first half and learn about the options for Brazilians to expose themselves to this market.

---

The devil lives in exceptions

After the vote on the Tax Reform, which lasted until the early hours of Friday (7) in the Chamber, the specialists studied the text of the rapporteur, deputy Aguinaldo Ribeiro (PP-PB), and identified new exceptions in the text to comply with agreements in search of wishes.

The concessions benefited segments such as agribusiness, hotel services, amusement parks and theme parks, restaurants, regional aviation, sports activities —which includes football clubs.

• For the rapporteur, last minute agreements do not compromise the spirit of the Reform.

Yes but… The Extraordinary Secretary for Tax Reform at the Ministry of Finance, Bernard Appy, told the Sheet that the greater the number of exceptions, the greater the rate of the new IVA (Value Added Tax, central tax of the model).

• The concern is shared by economists interviewed by the Sheetwho stated that it will be up to the Senate to make adjustments to the text in relation to the exceptions.

Even among the specialists who question the pull-outs, there are those who argue that the approval is a historic milestone, and the advances in the unification of taxes and simplification of the system should have a positive effect on the country’s productivity.

Among the businessmenthe climate is one of greater optimism, although the impact of the Reform should appear more strongly in the medium and long term, said executives of large companies.

Next step: the ball is now in the Senate’s court. The idea is to have a discussion at a different pace in the House than in the Chamber.

• Among the first measures on the proposal, senators intend to ask for impact estimates and analyze the balance for states and municipalities.

More on the Reformation:

---

Startup of the Week: Turbi

On Mondays, the chart shows an x-ray of a startup that recently announced a fundraising.

The startup: Founded in 2016, Turbi works with automatic car rental in a 100% digital way. The vehicles are located in parking lots in greater São Paulo and are unlocked by the consumer using the mobile app.

In numbers: the startup announced it had raised a debt round of BRL 80 million to expand your car fleet.

Who invested: the contribution was made through an FDIC (credit right fund, understand here) designed by EXT Capital (a manager created within DOMO Invest).

• Solis, Jive, Daycoval, TMF and Oliveira Trust also contributed to the fund.

What problem does it solve: Turbi cars can be rented month by month and also by the hour, day or week. The value gets smaller as the loan period increases.

• After analyzing the registration, which can take up to seven business days, the driver can find the car closest to his location and schedule a pick-up or use it right away.

• The vehicle must be returned with at least a quarter of the tank full, but the startup guarantees the value of the fuel supply.

Why it stands out: in addition to being one of the biggest investments announced last week, it is proof that debt rounds continue to be an alternative for startups to seek funding in a time of lean cows in the market.

• Turbi says it will use 90% of the money raised to buy cars, and increase the current fleet of 3,700 vehicles to 5,000.

market numbers

In a reversal of the last months of decline, June was the second best period of the year for investments in startups in Latin America.

They were $441 million (R$ 2.1 billion) raised in 84 rounds, below only January (US$ 740 million), and an increase of 68% compared to May. The advance in Brazil, however, was smaller (18% compared to May), and the country was behind Colombia in volume raised in the month.

---

Brady and Gisele’s loss with FTX

The collapse of crypto exchange FTX, which at its peak was the second largest in the world by trading volume, not only affected the credibility of the celebrities who lent their image to the brand during the boom.

In the voluminous sponsorship deals, these stars received a share of the value in FTX stock, which would eventually turn to dust with the downfall.

That’s what happened to the former couple Tom Brady and Gisele Bündchen, according to the New York Times. The former American football player and the model suffered a loss of $48 million (R$ 232 million) with the brokerage papers, according to the newspaper.

Remember: the cryptocurrency bonanza period came in 2021. It was in that year that Brady and Bündchen closed a deal with the then CEO of FTX, Sam Bankman-Fried – who is now in prison.

• They also starred in a $20 million advertising campaign for FTX in the world’s busiest business hour, the Super Bowl.
• It was this public support that prompted lawsuits from a group of FTX clients seeking compensation from the former couple and other celebrities who endorsed the brokerage.

It all started to come crashing down in 2022, when a liquidity crisis exposed what American authorities call the billionaire frauds devised by Bankman-Fried.

It wasn’t just the former couple. In the boom times, Paris Hilton, Snoop Dogg, Reese Witherspoon and Matt Damon were excited or invested in crypto projects, bringing a mainstream audience into the volatile world of digital currencies.

Singer Taylor Swift, who is on tour, reached a deal worth $ 100 million with FTX after months of negotiations. The arrangement, however, was undone by Bankman-Fried at the last minute, reports the New York Times.

Sought by the American newspaper, the representatives of the mentioned celebrities refused to comment on the matter.

---