Businessmen’s reaction to coup acts, PT’s plan B for the sale of refineries and what matters in the market

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Entrepreneurs condemn coup acts

Entities and businessmen this Sunday expressed their concern with the coup acts promoted in Brasilia. They claim that the action could have strong implications for the economy and raise the country’s institutional risk.

See the repercussions:

• Investment analysts heard by Folha say that the acts give a new dimension to the ongoing political tension in the country and tend to scare away foreign capital. The result should already appear in the indicators of the Exchange and the Stock Exchange this Monday (9).

• Febraban (Brazilian Federation of Banks) said in a note that it “vehemently repudiates attacks on national public property and violence against institutions that represent the democratic rule of law”.
• The CNI (National Confederation of Industry) stated that “the will of the majority of the Brazilian people must be respected. Such violent acts are anti-democratic and illegitimate manifestations that attack the three Powers”.

• A note from Fiesp (Federation of Industries of the State of São Paulo) said that “society’s repudiation response has to be forceful, supporting the most severe application of the terms of the law to the aggressors of democracy and civilization. All, without exception, who took part in this absurd sedition must be punished”.

• For Fábio Barbosa, CEO of Natura&Co, the case is absolutely unacceptable. “May the invaders be punished rigorously, according to the law.”

• The owner of the Havan chain, Luciano Hang, one of Bolsonaro’s biggest supporters in the business community, said in a note that “demonstrations are legitimate when they occur peacefully. It is regrettable to see public assets being plundered in this way.”

Yellow sign: the FUP (Single Federation of Oil Workers) issued a note warning of possible attacks by extremist demonstrators on Petrobras refineries, which would represent a new escalation of the coup acts this Sunday (8).

• The goal boasted by Bolsonarists would be to interrupt the supply of fuel in the country.

• The MME (Ministry of Mines and Energy) said it is monitoring the situation and that supply is guaranteed.

PT studies alternative for refineries

The future president of Petrobras, Senator Jean Paul Prates (PT-RN), is evaluating an alternative to fulfill the agreement between the state-owned company and Cade for the sale of refineries and, at the same time, fulfill Lula’s campaign promise to expand local production of fuels to force the price drop.

Understand: in 2019, the state company and the municipality signed an agreement for the sale of eight of the 13 refineries, which would reduce the company’s market share to around 50%. Today it holds 98% of the market, according to Cade.

• The deadline for divestment was 2021, but so far Petrobras has only managed to sell two refineries, one in Amazonas and the other in Bahia.

• If it interrupts the process of selling its subsidiaries, the chances of the oil company being condemned by Cade for alleged abuse of economic power are great.

• The fine, the court technicians speculate, could be very high, and the damage to the company’s image immeasurable.

The alternative: one of the solutions analyzed is to sell the refineries and, with the money collected, build other units.

• In addition to complying with the agreement and increasing investments in the sector, as desired by the government, the measure would also increase competition in the sector.

Public companies lose BRL 15.4 billion in one week

Stock exchange companies with Union participation lost BRL 15.4 billion in market value in the first week of President Luiz Inácio Lula da Silva’s (PT) government.

in numbers: of the total, almost BRL 12.7 billion correspond to the devaluation of Petrobras.

• Since the maximum historical valuation of the state-owned company, BRL 520 billionon October 21, the company lost BRL 187 billionin the calculations of the TradeMap platform.

What explains: state-owned companies were more penalized by investors due to the expectation that the return to shareholders tends to be lower with a management that intends to intensify the participation of these companies in public policies.

• The feeling of political intervention in companies was reinforced after the approval of the change in the State-owned Law in the Chamber.

• The project that reduces to 30 days the quarantine of nominees to hold positions of president and director of public companies awaits consideration by the Senate.

More about financial market:

• Government makes ‘outlandish statements’ and pushes the private sector away, says manager Verde.

The resumption of Fies

The Fies, student financing program, should be resumed with the new government.

For businessman Daniel Castanho, chairman of Ânima’s board of directors, the program must be updated and consider a credit risk for colleges that is linked to student success.

Ânima is one of the largest private higher education groups in Brazil. The interview is one more in the series of Sheet Interviews with the Entrepreneur. Here are some excerpts (the full text is here):

“The problem was that 98% of people were eligible. It has to be for those who really need it and for these people to study in the best institutions. And even, who knows, for some specific courses, which are important for society as a whole “.

• Alternative for financing

” Students at an institution could have a lower rate if that institution graduated students who learned more and who paid earlier. It’s like the credit risk analysis in a bank. With that, those who graduate contribute to those who are entering pay a fee smaller ” .

” EAD, for me, is fashion. I think the future of education is hybrid. What I believe will happen now is the entry into the post-employment era. Works will now work on projects and to solve problems ” .

Other interviews in the Folha series:

Fabricio Bloisi, CEO of iFood; João Doria, former governor of São Paulo; João Camargo, president of the group of entrepreneurs Esfera Brasil; Abilio Diniz, board member of Carrefour Global and Brazil; Antonio Carlos Pipponzi, Chairman of the Board of RaiaDrogasil; Roberto Fulcherberguer, President of Via (Casas Bahia and Ponto).