Petrobras in the sights of CVM and Congress, credit for home ownership becomes more expensive and what matters in the market

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Rollercoaster in Petrobras shares

Petrobras shares went through a roller coaster movement this Monday (20), with the announcement of the resignation of the president of the state-owned company followed by the announcement that Fernando Borges takes the chair on an interim basis.

Meanwhile, the market was aware of the practical implications of the retaliations promised by members of Planalto and Centrão over the weekend. For analysts, this volatility should continue, but the company remains attractive for those who invest for the long term.

In numbers: In the end, the state-owned company’s common shares ended up rising by 0.87%, at R$ 30.19. At the beginning of the trading session, negotiations were paralyzed by the two communiqués and the shares even fell. 4%. The Ibovespa fluctuated 0.03%, at 99,852 points, and the dollar rose 0.81%, BRL 5.19.

reactions to the resignation of José Mauro Coelho from the leadership of Petrobras:

• Streamlined exchange: with a vacant position of director and president, the government and other directors of the company assess that Caio Paes de Andrade, appointed by Planalto to assume the post, may do so this week, without having to wait for the shareholders’ meeting.

Milky cow: in the midst of all this confusion, the state-owned company paid the first installment of the BRL 48.5 billion in dividends to its shareholders, who received BRL 1.857745 by paper. The Union was left with approx. BRL 7 billion.

More on the change at the helm of Petrobras

Financing your own home just got more expensive

A proof of how the Selic fluctuations promoted by the Central Bank affect other important rates for the Brazilian is in the real estate financing, whose value was around 20% more expensive since the country left the interest rate at 2% per year.

In numbers: financing a property worth R$ 650 thousand today is costing more than BRL 1.5 millionwhile the average income required to buy an apartment worth R$450,000 went from R$13,000 last year to BRL 16 thousand.

• The simulations are carried out by Anefac (National Association of Executives), which emphasizes that the most recent increase in the Selic rate should only reach the financing charged by banks in the second half of the year.

What to do? For those who were planning to finance a property based on the old rates, the recommendation is to redo the accounts so as not to run the risk of defaulting.

More on interest and consumption effects:

Revlon’s Downfall

The American Revlon, one of the most relevant brands in the cosmetics sector until the 1990s, asked last Thursday (16) in the US for the equivalent of what would be a judicial recovery here in Brazil.

The goal is to get a breather with creditors to avoid bankruptcy.

Who is Revlon? founded in 1932, it began selling nail polish a short time later, and by the mid-1950s it had already become an international brand.

• Despite today being present in more than 150 countries, it is no longer among the largest cosmetics brands in the world, occupying the 22nd place.

How Revlon came to the brink of bankruptcy:

• Market loss: without capturing the change in consumer tastes very well, the brand was left behind and saw its rivals and famous brands gain market share.

• Supply bottlenecks: the brand was not the only one to feel the impact of the logistical nodes generated by the pandemic, but it was more affected because it was in a worse financial situation to compete for inputs.

• drop in billing: Revlon sales fell 21% in 2020 and 2021 they failed to recoup losses.

in numbers: at the end of March, Revlon’s long-term debt was $3.3 billion (BRL 17 billion)

• On June 10, when rumors of a possible bankruptcy surfaced, the company’s shares fell by half. Since then, however, they have recovered and are down 15% from their June 9 level.

Producer suffers from rising costs

The records of imports and exports of Brazilian agriculture this year show the impacts of the War in Ukraine and other bottlenecks for the high costs of domestic producers.

Even with the prices of some commodities at record levels, which tends to favor Brazil, imports aimed at agriculture and livestock totaled 30% of the revenues obtained with exports from January to May. In the same period last year, this ratio was 24%.

what explains: the national sector imports products with higher added value, such as agrochemicals, fertilizers and agricultural machinery, highlights columnist Mauro Zafalon.

• While the prices of the first two were already pressured and soared with the war – which reduced the supply of these items –, the last one still feels the thud of the lack of parts and high freight caused by the impacts of the pandemic.

More numbers: spending on fertilizer reached US$ 9.6 billion from January to May, 178% above the same period last year. Imports of pesticides reached US$ 1.74 billion in the period, with an increase of 94%.

• Total agribusiness exports in this range add up to US$ 63.98 billion, with an increase of 29% compared to 2021, but imports soared 63%to US$ 19.5 billion on the same basis of comparison.