What blocks 5G in Brazil, new interest rate hikes in the US and what matters in the market

ANDsta is the edition of newsletterr FolhaMercado this Thursday (28). want to receive it from monday to Friday at 7 am In your email? Sign up below:

Lack of devices locks ‘pure’ 5G

5G officially arrived in the country in Brasília, in early July, but the service remains unstable and often with speeds close to that of 4G.

The explanation for this may be the shortage in the country of models and chips that work with “pure 5G” technology, the standalone.

Understand: Anatel realized that many devices that display the 5G signal on the screen actually use the DSS network —which simulates the speed of 5G—or non-standalone 5G, which operates in the same frequency band as 4G.

• In the “pure” network, the latency time (the delay for the cell phone to receive the data) is less than 1 millisecond. In “impure”, this time is longer.

• Even devices operating on “pure” 5G demand new fifth-generation chips, which are lacking in the market. Therefore, the telecoms, with the exception of TIM, have not launched plans that actually operate with 5G.

Devices with “pure” 5G: at Apple, only iPhone 13 versions allow standalone 5G. Some Samsung and Motorola models operate on this network without the need to change chips:

• S21, S21Plus, S21Ultra, A52s, S21FE, A535G, A335G – all from Samsung’s Galaxy series; Edge20, MotoG200, Edge300Pro, Edge30, MotoG82, by Motorola.

On the calendar: the idea of ​​the Minister of Communications, Fábio Faria, is that the manufacturers offer updates for the devices until the end of September, the deadline for the 5G antennas to be working in all the capitals of the country.

• The next ones to receive the technology, next Friday (29), are Belo Horizonte (MG), João Pessoa (PB) and Porto Alegre (RS). Salvador (BA), Curitiba (PR), Goiânia (GO) and Rio de Janeiro (RJ) should follow.

Fed Raises Rates, Powell Sees No Recession

In the announcement by the Federal Reserve, the US central bank, of a 0.75 percentage point increase in interest rates in the country, the market was more attentive to the messages of the communiqué and the president, Jerome Powell.

And they came: the Fed is very committed to bringing inflation to the 2% target (that is, it will keep raising rates), and Powell cited the buoyant labor market to argue that he sees no signs of a recession in the US economy. .​

He also said that at some point the pace of interest rate hikes should be reduced, but that it is too early to say whether this can happen in September.

In numbers: the benchmark interest rate in the US is now in the range between 2.25% and 2.5% per year, the highest since 2019. All this to try to stop an annual inflation that is in the range of 9.1%the highest in four decades.

why it matters: while it is concerned about accelerating prices, the market is also monitoring the risk of a recession caused by rising interest rates in the US.

• Powell’s speech brought at least a momentary relief to the markets. Nasdaq jumped 4.06%, S&P 500 advanced 2.62% and Dow Jones rose 1.37%.

Why does interest there matter here? Investors fleeing risky assets (such as stock exchanges), inflationary pressure in emerging economies, risk of a global slowdown in activity.

• Rising interest rates in the US added to Brazilian fiscal and electoral uncertainties should alienate foreign investors, says Roberto Dumas, chief strategist at Voiter bank and professor at Insper.

And in Brazil, is it time to end the cycle of high interest rates? See columnist Solange Srour’s opinion.

Empiricus denies relationship with video about CT

Empiricus said in a statement on Wednesday that it has nothing to do with the anonymous video that imputes crimes to the TC. The statement comes a day after the president of the TC, Pedro Albuquerque, told the Sheet that the competitor was responsible for the production.

Understand the case: the video began to circulate in WhatsApp groups in the market on June 28. It shows a woman in clown makeup saying that the TC handles stocks traded on the Stock Exchange.

• Without presenting evidence, she talks about 17 alleged cases of harassment and asks if it’s true that there was a gang rape of a former employee at the company’s headquarters. According to the TC, the insinuations are lies.

• On Tuesday (26), Albuquerque had reinforced at a press conference that the competitor manipulates the capital market with the aim of destroying its company and making profits.

• He presented alleged snippets of WhatsApp conversations that he attributes to Felipe Miranda and Caio Mesquita, directors of Empiricus.

Reply: Empiricus said in a note this Wednesday that “the conversations presented, which allegedly had been forwarded to the TC by a hacker, are not true and do not represent a dialogue between Messrs. Caio Mesquita and Felipe Miranda, and between them and third parties.”

• Read the full Empiricus note here.

the TCafter being contacted on Wednesday, said he “reaffirms with vehemence and assurance all the statements made yesterday [terça] by its CEO, Pedro Albuquerque, in a press conference, based on solid evidence and in the defense of the company’s interests”.

Price per m2 cools in SP

After a boom observed in the pandemic, the price of apartments in the city of São Paulo fell on average 5.5% in 2022.

The analysis was performed from 176 thousand sales registered by the city hall between January 2019 and May this year. The data were collected by Loft Data.

In numbers: the average price paid per square meter in the first five months of 2022 was BRL 4,598. In the same period last year, the São Paulo square meter cost R$ 4,865 (adjusted for inflation).

What explains: the cooling is a reflection of an expected normalization of prices after the high demand in the pandemic, but it is also influenced by structural factors.

The price variation by neighborhood: the decline in the average price per square meter was observed in 80 of the 92 districts with sales, but it was more pronounced in less valued regions, such as Jaraguá (-15.2%), Capão Redondo (– 12.9%) and Cachoeirinha (-12.2%).

• In more expensive districts, such as Moema (-4.4%), Jardim Paulista (-2.6%) and Pinheiros (-2.3%), the fall was smaller. See the variation by district here.