Itaú x Nubank, Exchange and cryptos, electric cars and what matters in the market

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Investors’ bad mood with techs in the face of high interest rates in the US took Nubank’s brand of the most valuable bank in Latin America away from Nubank, which returns to Itaú.

What matters most: B3 plans to offer new cryptocurrency products, France, the “startup nation”, hits Macron’s target of 25 unicorns, and electric vehicle sales surpass diesel models in Europe, in a milestone towards decarbonisation.

It was, but not anymore

Last Friday (14th), Nubank lost its position as the most valuable financial institution in Latin America to Itaú Unibanco.

On the day, fintech shares closed down by 6,37%, at US$ 8.12 (R$ 44.93). The American market was closed on Monday (17), a holiday in the USA in honor of the black activist Martin Luther King.

In numbers:

• With Friday’s devaluation, Nubank added a market value of US$ 37.422 billion (R$207.1 billion), while Itaú is valued at US$ 39.147 billion (R$ 216.65 billion).
• Since its IPO, the shares of the digital bank have depreciated almost 10%, while those of the largest Brazilian private bank followed the opposite path, with an increase of approximately 9,5% not period.

What explains: Nubank listed its shares on the New York Stock Exchange (NYSE) at a time when the market is not so excited about technology companies, especially those that have difficulty generating profits, such as Brazilian fintech.

This is explained by the anticipation of the cycle of interest rate hikes in the US. This movement, in addition to making US bonds more attractive, also makes credit more expensive, affecting companies that need constant cash injections to grow.

B3 advances in cryptos

B3 should accelerate the offer of products and services for cryptocurrencies this year. The Brazilian stock exchange, however, has no intentions of becoming an exchange -broker of digital currencies.

Understand: B3’s idea is to launch new products, such as options and futures contracts, and also expand the offer of ETFs (index funds) related to cryptos, B3’s director of information technology, Jochen Mielke de Lima, told Reuters.

The Brazilian stock exchange already has five cryptocurrency ETFs, which invest mainly in bitcoin and ethereum, the two best-known digital assets in this universe. These funds move, on average, BRL 80 million per day, and reached 164,000 investors at the end of 2021.

Why it matters: The year 2021 was characterized by strong growth in the prices of cryptos, which became part of the portfolio of large funds and even became the official currency of a country – as is the case with bitcoin in El Salvador.

• According to leaf showed, the first signs of 2022, however, show that this year could be more turbulent for these assets. The main risk factor ahead is the monetary tightening in the US, which scares investors away from riskier investments.
• The drop in quotes could take away some of the appeal for cryptos. In December last year, when bitcoin dropped 17%, the value of contracts in custody on B3 of these assets dropped to BRL 2.9 billion, compared to R$ 3.5 billion in November.

‘Startup nation’ hits unicorn goal

Transform France into a “startup nation”. That was the promise made by President Emmanuel Macron when he took office in 2017.

At the beginning of this year, at least one goal was met: the country reached the mark of 25 unicorns (startups valued at US$ 1 billion or more), a level that was expected to be reached by 2025.

This Monday, Exotec was the latest French startup to reach that level.

Is here? As a comparison, 24 Brazilian startups have become unicorns since 2017. Some surveys fail to consider companies that list their capital on the Stock Exchange as belonging to this category, which would limit the number to 17.

New target: Macron has already set another goal, this time at the regional level. The plan is for the European Union to arrive in 2030 with ten giants with a market value above $100 billion (R$ 550.5 billion). France will assume the rotating presidency of the bloc this year.

Electrics enter the taste of Europeans

Electric car sales in Europe surpassed those of diesel models in December for the first time, according to estimates.

In numbers: considering a universe of 18 European markets, 20% of new cars sold were battery-powered, while diesel cars did not reach 19% of sales.

What explains: the pressure for decarbonization has also reached automakers, and countries like Germany have started to grant generous subsidies for electric vehicles.

In the case of diesel, manufacturers started to put aside these models mainly after the dieselgate, a scheme revealed in 2015 (understand the case here). Before that, cars powered by this fuel were more than half of new cars sold in these 18 European markets.

Everyone wants to participate: the last few months have been filled with new announcements involving electric cars – and not just from automakers.

Is here? Despite obstacles such as high cost and lack of infrastructure delaying the popularization of these vehicles in Brazil, Volvo is preparing to sell only 100% electric cars in the country.

What else do you need to know