Banks record high profits, quiz of the week and what matters in the market

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The week that ends was filled with news that moved the markets. Among the highlights, consumer inflation data in Brazil and the US and the drop in cryptocurrency quotes.

Around here, there was also the creation of a holding company involving two Latin airlines and institutions releasing crypto operations. Are you inside? Take the quiz:

More interest, more profit

The country’s four major banks listed on the Stock Exchange —Itaú Unibanco, Bradesco, Santander and BB (Banco do Brasil)—reported a combined net income of BRL 24.76 billion in the first quarter of 2022.

It was a growth of 13.57% compared to the same period last year.

What explains: banks tend to increase the profitability of their operations in periods of high interest rates. In the quarter, the result was driven by the credit portfolio, mainly in products such as credit cards, overdrafts and revolving credit.

• While they generate a higher return for banks, these lines are also considered riskier.

• Institutions have already noticed an increase in delinquency due to high interest rates and this is a sign that will attract the market’s attention in the coming balance sheets.

The results of banks in the 1st quarter came close to market expectations. See the highlights of each one:

In the purse: BB’s result pleased investors and boosted the actions of large banks, which sustained the rise of the Ibovespa on a warm day outside.

More about markets:

Pay only after being hired

In a scenario of high demand and little supply for technology professionals, startups have bet on a model that finances the course in the area for those who want to follow this career.

Payment comes only after the student is hired.

Understand: This is the shared success model, created in the US in the 1950s and adapted in Brazil to train future technology professionals.

• Driven, Trybe, Cubos Academy and Galena (aimed at former public school students aged 18 to 24) are examples of startups in this modality.

• In the students’ reports Sheetthe whole class usually has a job in the area in a few months.

why it matters: the lack of workers in the Brazilian technology sector is such that, if the current rate of trained professionals is maintained, the country will arrive in 2025 with 532 thousand vacancies in this area with no one to fill them.

• The projection is from Brasscom, an entity that represents companies in the sector. She also points out that low demand and dropout are two of the main problems to be faced by the undergraduate sector.

• The scenario forces startups and other companies from here to compete for professionals with each other and with foreign companies, who pay in dollars or euros. This dispute can cause a movement known as a brain drain.

Another examples: The Sheet has already shown how startups have “reinvented the wheel” to fill their vacancies.

• Some of them create courses or partner with programming schools to train their future employees.

More about startups

Investors are reducing the value of Latin American startups, says Creditas CEO.

Take a break: China’s turn?

• To read: “Principles for the changing world order”, by mega-investor Ray Dalio (Intrinsic, trans. Alexandre Raposo and Cláudia Mello Belhassof, 560 pages, R$ 129.90, R$ 89.90 (ebook).

Ray Dalio is considered one of the gurus of the market for his history of profitability as a manager and for recognized books in the field. In his new work, he sets up investment scenarios for what he considers “end-of-the-world scenarios.”

Understand: for him, the next financial apocalypse will be marked by the collapse of the dollar and the stabilization of China as the world’s largest economy.

To profit in this scenario, the investor needs to follow a strategy that Dalio has been repeating for some time: diversified portfolio, that is, with assets that have very little relationship with each other. Read the full review by reporter Clayton Castelani here.

• To see: “Ascension” – documentary available on Paramount+ and for rent on Now.

Still on the subject of the growth of the Chinese economy, the work “Ascensão”, which was nominated for this year’s Oscar, shows scenes of the country’s new daily life, full of contrasts.

Chinese-American documentary filmmaker Jessica Kingdon traveled to more than 50 locations across mainland China to create the production.