Read this Wednesday’s edition of the FolhaMercado newsletter (5) – 05/04/2023 – Market

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New richest Brazilian

The Forbes list of billionaires has a new leader among the most fortunate Brazilians.

Vicky Safra, 70, and her four children assumed the top of the magazine’s ranking for the first time, displacing Jorge Paulo Lemann.

In numbers: according to the magazine’s calculations, the assets of the heirs of banker Joseph Safra, who died in 2020, reached $16.7 billion (BRL 84.8 billion) on March 10, more than twice as much as in 2022 –$7.4 billion (BRL 37.6 billion).

Lemann, who through his 3G Capital fund is one of the largest shareholders in AB Inbev, food giant Kraft Heinz and Americanas, has seen his fortune practically remain stable, at US$ 15.4 billion (R$ 78.2 billion ) for $15.8 billion (BRL 80.2 billion).

Yes but… The Forbes list cannot be considered as an absolute truth because it only considers assets that are public, such as shareholdings in companies listed on the Stock Exchange, whose shares vary daily.

• In addition to the curiosity factor, the magazine’s ranking can serve to illustrate a moment in the financial market and in certain sectors and companies.

In 2022, when interest rates began to rise in the main economies of the world and stock markets plummeted, the billionaires on the list lost $500 billion in equity.

• This factor also explains why the global ranking has Frenchman Bernard Arnault at the top.
• The owner of the luxury empire LVMH (Louis Vitton, Tiffany, Moët & Chandon…) surpassed Elon Musk, whose fortune fell following the retreat of Tesla shares, hampered by the monetary tightening of central banks.

Look here are the names and fortunes of the 10 biggest billionaires in the country and here is a list of the richest in the world.

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New popular car appears as a solution

The 16.3% growth in sales of light and heavy vehicles in the first quarter did not excite Fenabrave (resellers association), which cited the weak comparison base of 2022.

Understand: reporter and columnist Sheet Eduardo Sodré showed how the idea of ​​the return of cheaper models mobilizes both manufacturers and resellers and is being analyzed by the federal government.

• The plan is to launch models powered only by ethanol, which will cost between BRL 50 thousand It is BRL 60 thousand.
• The engines should be the same 1.0 as today, but with gains in performance and consumption.

Is R$50,000 popular? The value may scare anyone who compares it with car prices a few years ago, but the dynamics of the sector were transformed by the pandemic, which made parts more expensive and accelerated the transition to greener vehicles.

• The Fiat Mobi Like, for example, cost BRL 43,700 in January 2020. Today, it is announced by BRL 69 thousandan increase of 57.9%.
• The Renault Kwid is the most affordable zero-kilometer model on the domestic market, with prices starting from BRL 68,200.

Why ethanol? This is the alternative studied to combine the energy transition with the characteristics of the Brazilian market, which still lacks infrastructure for electric vehicles.

• If cars are flex-fuel, consumers are more likely to prioritize gasoline in most parts of the country.
• Brazil also offers alternatives for ethanol production, such as hybrid corn.
• Models that only run on this fuel would also work as an incentive for sugarcane mills, which have to choose between producing sugar and alcohol.

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Easter inflation

Easter will be less sweet for Brazilians this year.

The prices of the main products consumed on that date rose more than double the inflation of a year ago. In 2023, they are still under pressure even with the retraction of the dollar, which should ease production costs.

• Fish is one of the items that accumulate indigestible highs for the consumer this year. The price of chocolate also rose.

In numbers:

• Cod: accumulated increase of 5.31% from January to March, according to Fipe. Compared to 2022, it rises 10.91%, according to FGV. See here options for cuts and other fish for Easter.
• Olive oil: up 3.7% from January until now, and 7.78% in one year.
• Egg: shoots 17% this year (we explain the reason here) and 27.31% compared to 2022.
• bonbons and chocolates rise 9.65% compared to last Easter.

The cost relief at the beginning of this year it comes from potatoes and onions. The kilo of potatoes accumulates a drop of 11% – but rises 2.23% over 2022; and the onion decreases 42% in 2023, but still shoots 22.67% compared to last Easter.

More about Easter

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Branson satellite launcher calls for RJ

Virgin Orbit Holdings, Richard Branson’s satellite launch company, filed for bankruptcy on Tuesday.

• The company launched rockets from a Boeing 747 plane modified to put satellites into orbit. Do not confuse with the one that makes space travel – Virgin Galactic– and with the airline – Virgin Atlantic.

From $3 billion to $50 million: Virgin Orbit opened capital on the Stock Exchange in 2021, when stock indices hit the maximum.

• Valued at US$ 3 billion, it was considered as a competitor to Starlink, by Elon Musk, and Blue Origin, by Jeff Bezos.
• After being hit by the general slump in tech stocks, Virgin Orbit hit bottom in January when the company launched its sixth mission.
• The rocket failed to reach orbit and the payload of US and UK intelligence satellites ended up falling into the ocean.
• The glitch turned away those interested in continuing to finance Virgin, which had to halt operations and lay off almost all of its employees on March 15 to save money.
• This Tuesday, it was valued at US$ 50 million, less than 2% of what its shares were worth when they were listed on the Exchange.