Read this Wednesday’s edition of the FolhaMercado newsletter (6) – 12/06/2023 – Market

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Microsoft chooses Brazilian Mombak

Microsoft will buy up to 1.5 million credits of carbon removal that will be generated by the Brazilian startup Mombak.

This is the largest deal of its kind ever negotiated by big tech and involved two years of discussion and advice before being closed. The transaction values ​​were not disclosed.

Understand: The purchase made by Microsoft is part of the voluntary carbon market, one in which companies choose to join not to comply with a certain law, but to be accountable to their shareholders and society.

To Mombak: Founded in 2021 by Gabriel Silva, former financial director of Nubank, and Peter Fernandez, former CEO of 99, the startup generates carbon credits from its reforestation projects in the Amazon.

• It buys degraded land from farmers and ranchers or partners with them to replant native species in the Amazon.

• The practice was one of the reasons that motivated Microsoft to choose the Brazilian startup, instead of offset project companies, which generate credits by keeping the trees standing.

In August, Mombak announced that it had agreed US$49 million in financing with the French insurance company Axa to finance the reforestation of more than 10 thousand hectares of degraded pastures, which should generate up to 6 million carbon credits.

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GDP slows down

Brazil’s GDP lost strength in the third quarter, with a positive variation of 0.1% compared to the previous three months.

The result, however, again came above the projections of market analysts, who expected a contraction of 0.3% for the period.

• See here the performance of the economy of different countries in the 3rd quarter of this year.

Four points to understand the GDP of the 3rd quarter:

↳ 1 – Household consumption: is the main indicator on the demand side and rose 1.1% even after an increase of 0.9% in the previous quarter.

• Which explains: The positive result was driven by the strength of the job market and transfers from government social programs.

↳ 2 – Investments: measured by GFCF (Gross Fixed Capital Formation), fell 2.5% in the third trimester. It was the fourth consecutive drop in the component, which serves to measure the appetite of the Brazilian productive industry.

• Which explains: high interest rates remain an investment inhibitor. Uncertainties regarding Tax Reform and other projects being processed in Congress also weigh heavily.

↳ 3 – On the supply sideservices and industry grew 0.6% each one, while agriculture retreated 3.3% after two good quarters marked by the soybean harvest. From January to September, rural GDP jumps 18.1%.

• Which explains: In services, the increase was spread across components, while in industry it was concentrated in sectors linked to growth in energy consumption.

↳ 4 – Repercussion:

• Analysts expect the economy’s performance to decline slightly or remain stable in the last quarter, which should make the country grow close to 3% in this year.

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STF again denies driver’s relationship with app

The First Panel of the STF unanimously denied recognizing the employment relationship between a driver and a transport app.

The case: the Supreme Court judged an appeal by the company Cabify to a decision by the TRT-3 (Regional Labor Court of the 3rd Region), of Minas Gerais, which had determined that the driver’s work card be signed, as per the rules set out in the CLT.

• The company no longer operates in Brazil, having left the country in 2021, due to the effects of the pandemic.

The decision: the rapporteur, Minister Alexandre de Moraes, stated that the app’s drivers are free to accept the ride they wish and work according to their working hours, in addition to being able to perform other functions.

• The vote was followed by ministers Cristiano Zanin, Luiz Fux and Cármen Lúcia. The decision may be appealed.

The message: Moraes said that, with the judgment of these cases, the ministers “returned to the discussion of the Labor Court’s repeated disobedience and non-compliance with the STF’s decisions.”

• The ministers sent another similar case, involving a driver and Rappi, to the plenary.

• The objective is to establish an understanding on the matter and prevent more complaints of this type from reaching the Supreme Court.

About that… The Minister of Labor and Employment, Luiz Marinho, stated that there are “difficulties” in completing the drafting of the bill that regulates the activities of app drivers and delivery people.

• He said that there is no agreement regarding delivery people, because the government considers the values ​​proposed by the companies to be unacceptable.

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Santander joins the global account race

Santander Brasil is the newest bank to enter the international customer account segment.

Called Select Global, it offers the purchase of commercial dollars and the issuance of a Mastercard debit card that can be used abroad.

Who is it for: mainly for Brazilians who want to make purchases abroad or transfer money from here to there.

• The main benefit is the IOF reduced from 5.38% to 1.1%, as the transfer involves accounts with the same ownership.

• Another attraction is the purchase of foreign currency here in Brazil. Exchange houses sell tourism currency at a higher price than commercial currency – the conversion used in global accounts.

Who’s in the game: banks such as Banco do Brasil, Bradesco and Itaú –through Avenue–, brokers such as XP and BTG Pactual, and fintechs –C6, Inter, Nomad, Wise, Braza, etc.

Some of these institutions also offer the possibility of investing abroad, in assets such as the stock market and fixed income.

In numbers:

• US$3.64 billion (R$ 17.7 billion) was the amount spent by Brazilians on card purchases abroad in the third quarter of this year;

• 36.5% there was an increase in this type of expense compared to the same period in 2022, according to data from Abecs, which represents electronic payment companies.