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How analysts see market reaction to acts, Japan pays families to leave Tokyo and what matters in the economy


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Why was the next day so calm?

Why did financial indicators in Brazil, such as the stock exchange and the dollar, remain stable even after a day of coup acts that attacked national democracy?

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For analysts and economists interviewed by the Sheetthe institutions’ quick response to the attacks and the impression that it was a disorganized act, without an institutional force behind it, eased the tension among investors.

In numbers: the dollar rose more than 1% at the beginning of the day, but retreated and closed with a slight increase of 0.38%, at R$ 5.25. The Ibovespa ended the day in stability (up 0.15% to 109,129 points), influenced by the exterior.

  • The EWZ, an index fund (ETF) made up of Brazilian shares traded in New York, dropped 2.40% in the early morning, but recovered throughout the day.
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The market, as usual, looks to the next steps. For economists consulted by the Sheetthe solidarity between the Powers should strengthen the figure of President Luiz Inácio Lula da Silva (PT), reducing the opposition’s space to hinder the progress of the economic agenda.

  • They claim that, in order to maintain unity, the government will need to approach an agenda more to the center than to the left – which it has been aiming for until now.
  • With concerns about the invasion allayed, the new management’s flight plan for the economy is what focuses the attention and decision-making of market strategists for the short term.

Japan pays families to leave Tokyo

Japan will offer up to 1 million yen (R$ 41,000) per child for families who agree to move from Tokyo to municipalities in the interior.

Understand: the strategy designed to increase the occupation of rural regions and alleviate that of the largest metropolis in the world already exists, but now the government has decided to increase incentives to see if it has an effect.

  • The amount offered per child was 300,000 yen (R$12,300), and families who move receive up to 3 million yen in financial support and can receive even more if they start a business.
  • Those who benefit must embrace life in the countryside for at least five years, or reimburse the State.

Which explains: As Japan’s population shrinks and ages, younger people increasingly move to greater Tokyo, leaving inner cities empty and their businesses without customers or employees.

  • Preliminary forecasts for 2022 indicate that the number of births in Japan will be below 800,000 for the first time since records began in the late 19th century.

The government program had little effect in 2021: little less than 2,400 people (0.006% of Tokyo’s population) took advantage of the relocation payment in fiscal year 2021.

  • To bolster the strategy, NHK, Japan’s state broadcaster, is promoting the idea of ​​moving to the countryside in a program that follows the lives of families who have left Tokyo.

Bet365 executive earned BRL 1.6 billion in one year

Denise Coates, the UK’s richest woman and founder and CEO of bookmaker Bet365, has taken a pay cut for the second year in a row. Even so, she won more than 250 million pounds (R$ 1.6 billion) in 12 months until March 2022.

She remains one of the highest-paid executives in the world, behind only ten US executives, including Apple’s Tim Cook and Tesla’s Elon Musk.

In numbers: Coates’ salary for the last financial year was £213m (R$1.35bn), and she still received dividends. In 2019, she won 421 million pounds (R$ 2.718 billion, at the current exchange rate) just for salary.

  • Coates, 55, founded Bet365 more than 20 years ago and sees his compensation grow as the industry popularizes. His heritage revolves around 5 billion pounds (about R$ 32 billion).

The executive’s salary has fallen over the last year as Bet365’s pre-tax earnings have fallen by around 90% to £49m as the company has invested more in marketing and felt the effects of falling consumer spending.

In Brazilwhere Bet365 also operates, companies continue to operate without defined rules, after former president Jair Bolsonaro (PL) did not regulate the sector within the deadline, as shown by the Sheet.

  • The law that released the market was enacted in 2018 and provided for government regulation by the end of last year, which was not done.

How it is today: companies headquartered abroad can operate in Brazil without having to pay taxes or report to the government.

Jack Ma leaves fintech command

Chinese billionaire Jack Ma, founder of fintech Ant, will leave the helm of the company. The company owns the Alipay payment app, ubiquitous in China and the largest in the world, with more than 1 billion of users.

Understand: Ma owned more than 50% of the voting shares, but the change to put Ant’s board under independent leadership will leave him with 6.2%, according to Reuters calculations.

  • The departure takes place amidst regulatory pressure from the government that began in 2020 on fintech. At the time, the company planned to make an IPO of $37 billionwhich would be the largest in the world until then.
  • The process, however, was suspended days after the billionaire publicly criticized Chinese regulators in a speech.
  • Since then, his empire – Ma is also the founder of Alibaba – has come under heavy government scrutiny and undergoing restructuring.

Disappeared: since his criticism of the authorities, Jack Ma has dropped out of the picture. Once China’s richest business leader, his whereabouts are uncertain.

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