What can change in FIIs yield, Tesla recall and what matters in the market

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Decision may affect the income of FIIs

An understanding by the CVM, the body that regulates the market, may affect the FIIs (Real Estate Investment Funds) industry and its surrounding areas. 1.5 million of quota holders.

Understand: a decision by the December collegiate, which was temporarily suspended this Tuesday (1st), may affect the distribution of income from FIIs. As they are exempt from the collection of IR (Income Tax), they are one of the biggest attractions of real estate funds.

The decision involves the largest FII in number of shareholders in Brazil, Maxi Renda, which is managed by BTG Pactual.

Cash profit x accounting profit. The imbroglio revolves around these two different FII accounting systems:

• The first is composed of the income generated by the funds’ assets (basically real estate rentals or income from mortgage bonds).
• The second also considers the depreciation of the fund’s assets, taking into account its current market valuation. In the case of real estate, the value of the annual revaluation of the properties.
• The law obliges FIIs to distribute 95% of the profits earned. In this case, the roll is in which accounting system to consider for this transfer.

Maxi Income case: in the assessment of the CVM, the FII distributed to its shareholders in 2021 higher yields in relation to the calculated accounting profit.

why does it matter: if this understanding is maintained, the amounts in excess of those calculated in the accounting profit could still be distributed, but as a capital gain, which is subject to taxation of 20% of IR.

Red January for Nubank

Following the sharp drop in US technology stocks earlier this year, Nubank’s shares plummeted 20.8% in January on the New York Stock Exchange (NYSE).

In numbers: when it made its IPO, the fintech was valued at US$ 41.5 billion (R$ 222.3 billion), making it the most valuable bank in Latin America at the time.

With the current drop, Nubank has a market value of $34.2 billion (R$ 183.2 billion) and was surpassed by Itaú ($43.5 billionR$ 233.02 billion) and Bradesco (US$ 38.1 billionR$ 204.1 billion).

What explains: the trend towards monetary tightening by central banks makes credit more expensive and drives away risk capital. These factors harm technology companies that still need a lot of investments to gain scale and market share, as is the case with Nubank.

Nasdaq, the American stock exchange that concentrates most of the techs, fell -8.98% in January, its worst month since March 2020.

More about the Scholarship:

Pulled by Vale’s papers (5.5%) and Petrobras (two%), the Ibovespa closed this Tuesday at a high of 0,97%, at 113,228 points. The dollar fell 0.62%, the BRL 5,27​, at the lowest price in four months.

The president in Brazil of BlackRock, the largest asset manager in the world, told leaf that the company will maintain its investment and expansion plans in the country regardless of the outcome of this year’s elections.

Alphabet, which owns Google, posted a profit of US$ 20.64 billion (R$ 109 billion) in the last quarter of 2021, up 36% over the same period in 2020. The company’s shares rose almost 10% in post-market trading on Nasdaq.

India rate cryptos

The government of India announced on Tuesday that it will tax in 30% profits on cryptocurrencies and also foresees the release of its “digital rupee” by March next year.

Understand: The country is one of the fastest growing markets in crypto trading, but it is not new that the government faces a battle against these assets. In 2018, the local central bank even banned transactions with digital currencies, but the decision was reversed by the court.

digital rupee: The initiative to develop a digital currency of its own is not unique to India. For now, China is the most advanced on this front, but the Central Bank of Brazil is also in the game and plans to test Real Digital with real customers by 2023.

The novelty is one of the reasons countries have tightened their grip on crypto recently. In September 2021, China made all activities involving these assets illegal. Last month, it was the turn of the Russian central bank to propose a similar measure.

More about crypto:

Opinion: Bitcoin plays on the fantasy of self-sufficient individualism, of protecting the family with its gun and treating Covid with its dewormer, says Paul Krugman, columnist for The New York Times.

Tesla will recall 53,000 cars

Tesla will have to recall 53,822 vehicles in the US to disable an update that allows cars not to come to a complete stop before crossing intersections.

Understand: the feature was added to some of the automaker’s vehicles in October. It is only activated if the car is traveling below 9 kilometers per hour and no other vehicles, pedestrians or cyclists are detected near the intersection.

Tesla accepted the US traffic safety agency’s recall requirement, but said it has not received warranty claims or accidents related to the feature.

It is not the first time: at the end of December last year, Elon Musk’s company had already announced a recall of almost 500 thousand cars to resolve security issues.

why it matters: the automaker is already being investigated by the same agency because of its Autopilot system, which steers, accelerates and brakes a car by itself. According to American authorities, there are at least 12 traffic deaths since 2016 in Tesla cars that operated in this mode.

Unlike other brands, Elon Musk’s company does not have an effective mechanism to prohibit drivers from taking their hands off the wheel for too long.

Negative reaction: Tesla last week released its results for 2021, when the automaker delivered 936 thousand vehicles, a record. Despite revenue exceeding market expectations, its shares plummeted 11% the next day with the alert for the lack of supplies.

What else do you need to know