Differences between Black Friday in Brazil and in the US, CEO of Nubank gives up remuneration agreement and what matters in the market

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The differences between Black Friday in Brazil and the USA

After Black Friday, which had the first drop in sales in history in Brazil, Cyber ​​Monday –the Monday that follows, used to boost online sales– also failed to impress.

• The opposite scenario to that observed in the US, where the two dates of promotions broke sales records, according to Adobe’s calculation.

In BrazilBlack Friday’s “Xepa” had the biggest rise in demand in relation to 2021, according to a survey by Mosaico (controls Price Comparison Sites Buscapé and Zoom).

• In the top 10 most searched categories in the second (28), cell phones and TV maintained their leadership compared to last year.

• Highlight for the advances of 36% in refrigerators, 47% in washing machines and 42% in electric fryers (air fryer).

In the USACyber ​​Monday sales reached a nominal record (not considering inflation) of $11.3 billion (R$ 60 billion), an increase of 5.8% compared to 2021, according to Adobe’s survey.

• Black Friday deals soared $9.1 billion (BRL 48.2 billion), another nominal record. In Brazil, the figure reached R$ 3.1 billion.

What explains the difference? Brazilian consumers reduced the impetus of purchases with more expensive credit, and retailers carried out fewer promotions in the face of a scenario of rising costs.

• Discounts on electronics reached 25% – up from 8% last year – off the Oct. 1 price, according to Adobe. Among toys, the drop in price reached 35%.

Nubank CEO gives up compensation in shares

Nubank said this Tuesday (29) that David Vélez, CEO and founder of fintech, has withdrawn from its share compensation plan. Announced in April, the extra payment based on the performance of roles was controversial and had a bad effect on the market at the time.

Remember: a document from the bank informed the estimated payment of up to BRL 816 million to directors and directors in 2022. More than 80% of the amount referred to the accounting effects of the Vélez agreement.

• Fintech later detailed the program and stressed that Vélez would only receive compensation if he stayed for five years in the company and reached ambitious goals.

• According to the agreement, he would earn 1% of the shares of the digital bank if they were, on average, $18.69 on the Stock Exchange for 60 consecutive days, and would be entitled to an additional 1% if the same occurs to $35.30🇧🇷

• Nubank shares, which were priced at US$ 9 in the IPO, closed this Tuesday at $4.26🇧🇷 That is, they would have to raise more than four and eight times, respectively, for payment activation.

Velez told Reuters agency that the program was “very misunderstood by the market” earlier in the year as it was “very, very ambitious”.

• The CEO stated that the decision was based on the current macroeconomic scenario of high interest rates.

Why did it generate controversy? The sum of BRL 816 million that Nubank expected to pay drew attention in comparison with other banks.

• Itaú, the largest in Latin America, last year paid R$444 million to 45 members of its directors and boards.

• The company’s equity compensation strategy is an instrument used by companies to insure and incentivize employees, who are paid according to the performance of their roles.

French way out

Little by little, the French group Casino, which in Brazil controls GPA and Assaí, is transforming the wholesale into a “corporation”, with no defined owner – the same model as Embraer, Eletrobras, Vale, etc.

One of the steps was taken this Tuesday, with the subsequent offer of shares of 140.8 million of papers from Assaí. The operation, which was in strong demand among investors, reduced Casino’s participation in the cash and carry segment of 41% for about 30%🇧🇷

more numbers🇧🇷 the amount collected from BRL 2.67 billion will help the indebted French group’s plan to divest 4.5 billion euros (R$ 24.7 billion) by the end of 2023.

• The offer, which started at R$19, did not include the additional lot chosen by Casino, which could raise another R$1 billion and reduce its stake in Assaí to 27%.

Last yearCasino had already separated the GPA brands [Grupo Pão de Açúcar] and Assaí, which were a single company, to unlock the value of the companies – the wholesale market had a higher market value.

French exit: According to analysts interviewed by Sheet, the Casino moves happen with the intention of, in the future, the French group leaving the country.

• In order not to generate noise and a fall in the shares, the strategy would be to sell their shares in the companies little by little, to take advantage of the appreciation of the shares during the process.

• Asked by SheetCasino denied the intention to leave the country.

Signals from China help Ibovespa

Signals that the Chinese government may ease its Covid-zero policy after a strong wave of protests in the country helped boost the Brazilian stock exchange and bring down the dollar this Tuesday (29).

In numbers: the Ibovespa rose 1.96%at 110,909 points, while the American currency gave way 1.39%at BRL 5.29.

Which explains: Signs of a possible reopening of China mainly benefit Brazilian companies that export commodities. These goods saw their prices rise in view of an expectation of greater consumption by the Chinese.

• With great weight in the Exchange’s reference index, Petrobras and Vale rose 4.19% and 3.86%🇧🇷 respectively.

• The American currency also tends to fall at these times, with the expectation of more dollars entering the country in the wake of high exports.

Analysts even reported optimism about the possibility of President-elect Lula’s (PT) team giving in on points considered more controversial in the Transition PEC, such as the volume of expenditures outside the ceiling (today of up to R$ 198 billion) and the duration (according to the text, for four years old).