Interest and government bonds, Amazon x Nike and what matters in the market

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Direct Treasure more attractive

Brazil returned to being a country with double-digit interest rates in the last week, when the Copom took the Selic rate to 10.75% per year. As a result, fixed income has become even more attractive, especially public bonds, according to experts.

Traded at Treasury Direct, government-issued debt is divided into three main options, each of which must be analyzed according to the risk profile and investment horizon of each:

• Fixed-rate Treasury, which offers investors a pre-established nominal interest rate;
• Treasury IPCA, in which there is a pre-established rate, plus the variation of the official inflation index;
• Treasury Selic, which closely monitors the basic interest rate yield.

Fixed income? Due to the mark-to-market, which assesses the price of the asset on the day of sale, the rise in interest rates in 2021 made the Treasury IPCA 2045 paper have a negative return of 25.4% in the period. It should be noted that the loss only affects the investor if he redeems the security before the deadline.

Find out how much it makes BRL 1,000 in savings, CDB and Treasury with Selic at 10.75%.

Champion: after the increase in the Selic rate last week, Brazil became the country with the highest real interest rates (disregarding the inflation projection) in a list of 40 nations. With 6.41% per year, Brazil tops a ranking that has Argentina at the other end, with negative interest rates of 14.5% per year.

Record: savings withdrawals exceeded deposits in BRL 19.665 billion in January this year. The value is a record in the historical series, with data since 1995. The month usually registers a negative balance with the expenses foreseen at the beginning of the year, such as taxes and school enrollment.

More about investments:

MPF wants veto on the purchase of Oi by rivals

The representative of the MPF (Federal Public Ministry) at CADE (Administrative Council for Economic Defense) asked the antitrust agency to veto the purchase of Oi’s mobile networks by competitors TIM, Telefônica (Vivo) and Claro.

Understand: Attorney Waldir Alves states that the contract signed by the companies in July 2020 for the purchase of Oi Móvel should have been notified to Cade at the latest on the same date. The body was only notified on February 8, 2021.

• For him, the agreement would increase the concentration in the sector and the facts “show not only the formation of a consortium, but the market division itself”. The process was opened at the request of competitor Algar.
• The companies denied CADE “the constitution of any corporate vehicle to carry out the offer or enter into a consortium contract”.

Remember: the three operators won the auction for Oi’s assets in December 2020 with an offer of BRL 16.5 billion. The company declared bankruptcy in 2016 to deal with accumulated debts from BRL 64 billion.

Last week, Anatel approved, under conditions to mitigate competition risks, the sale of Oi Móvel’s assets to the trio of operators.

The next step is Cade’s approval. The body’s general superintendence recommended approval also with measures to avoid market concentration.

Other side: Oi stated that the attorney’s opinion does not consider the importance of the operation for the company’s economic recovery and that the sale process is being carried out transparently and within the law.

Vivo stated that all applicable legal procedures were followed. TIM and Claro had not commented until the conclusion of this text.

Nike and Amazon vie for exercise bike

Nike and Amazon are among the companies pointed out as possible buyers of Peloton, a maker of stationary bikes whose stock boomed at the beginning of the pandemic and then plummeted, even affected by the sequel to “Sex and the City”.

Understand: restrictions on the movement of people at the beginning of the pandemic boosted sales of Peloton’s bicycles, and the company reached a market value of $52 billion at the beginning of 2021.

• Demand was such that buyers had to wait up to two months for the product to arrive.
• But the reopening of gyms and competitors with cheaper options hit Peloton’s sales squarely. The fad has passed, and today the company’s market value is in $8 billion.

Even an episode of “And Just Like That,” the revamped version of “Sex and the City,” helped pull shares down, with Peloton shares falling 11% the day after the production premiered. Understand here (with spoilers) what one thing has to do with the other.

Nike vs Amazon: according to Reuters and the Financial Times, the two companies are considering making an offer for the company.

• On Friday, the Blackwells Capital fund convened Peloton’s board to remove chairman John Foley and further requested that the company be put up for sale to a buyer such as Disney, Apple, Sony or Nike, Reuters reported.
• The news sent Peloton stock soaring 30% in post-market negotiations.

NFT and art

NFTs may be a distant reality for most internet users, but they already move billions and commercializing them can be an opportunity for independent artists to sell their work digitally.

Understand: an art that becomes an NFT (non-fungible token) becomes a crypto asset and has a certificate of authenticity attached to it. The list of works marketed in this technology is extensive: it ranges from memes, GIFs, scripts, music and a work by Pablo Picasso.

Alert: after the rise in NFTs, the US Treasury Department issued a set of recommendations to combat illicit financing in the high-value art market. The body stressed that crypto-assets may present new risks in this regard.

What else do you need to know

What’s next

Central bank:

• Copom Minutes – Tuesday, 8.

IBGE:

• IPCA (January) – Wednesday, 9.