Market shows earnings day amid lull abroad, which compensates for the turbulent internal environment.

SAO PAULO - The Ibovespa operates high this Friday (8) amid the resumption of dialogue between the United States and China after the American president, Donald Trump, said earlier this week that he would end the trade agreement signed with the Chinese in case the country did not buy US goods and services as promised.

Still on the international radar, the United States economy lost 20.5 million jobs in April 2020, according to an employment report (known as Payroll). The result was below the market estimate, which destroyed 22 million jobs last month, according to the median of financial market economists' projections compiled in a Bloomberg survey.

The unemployment rate rose from 4.4% to 14.7%, the highest rate since the 1940s. The Bloomberg consensus was that unemployment would rise to 16%.

There is also a general feeling among international investors that the worst of the coronavirus crisis is over in developed countries, something that does not extend to Brazil.

Here, in addition to concerns about the pandemic, the market also reflects the first deflation ever recorded for April, according to the Brazilian Institute of Geography and Statistics (IBGE). The Extended National Consumer Price Index (IPCA) fell to 0.31% last month. The deflation was greater than the median expectation of financial market economists compiled by the Bloomberg survey, which pointed to a 0.24% drop in the general level of prices in the economy in the period.

At 12:45 pm (Brasília time) the Ibovespa rose 2.40% to 79,995 points. The future dollar for June, on the other hand, dropped 1.47% to R $ 5.759. The commercial dollar, in turn, fell 0.63%, to R $ 5.8014 in the purchase and R $ 5.8034 in the sale.

In the future interest market, the DI for January 2022 falls two basis points at 3.31%, the DI for January 2023 falls by four basis points at 4.53% and the DI for January 2025 falls five basis points at 6.49%.

Interest rates are low in the short segment after the IPCA with more acute deflation and the General Price Index - Internal Availability (IGP-DI) below expectations corroborate price dynamics without pressure in the context of the coronavirus pandemic and with no sign of potential limitation for the degree of additional monetary policy adjustment.

Core inflation and service data show that the Central Bank has room to act on monetary policy. As Alberto Ramos, an economist at Goldman Sachs, points out, the significant expected impact of the economy on commodity prices, the tighter financial conditions of consumers and measures to stimulate central banks around the world should allow the Monetary Policy Committee (Copom) to carry out a new Selic cut at the next meeting after the surprise of the last meeting, in which it cut 0.75 percentage points to 3%.

PUBLICITY

Estevão Garcia, a professor at Fipecafi, points out that, in spite of the IPCA having registered the lowest value since August 1998, the item food and beverages was the biggest villain when it rose 1.79% and is the main item of families that are confined. "This data is very worrying because it is an essential item", which particularly affects the population with less purchasing power.

Policy
In an attitude seen as pressure for the resumption of economic activity in Brazil, President Jair Bolsonaro and Economy Minister Paulo Guedes led a group of businessmen from the Planalto Palace to the Federal Supreme Court (STF) in Brasília (DF). The president of the STF, Dias Toffoli, received the retinue.

Toffoli recalled, however, that the end of quarantines and social isolation measures does not depend on the judiciary, but on governors and mayors. He recommended that the group have a better dialogue with the federal entities. An industrialist compared the economic situation with the Covid-19 epidemic, saying that there will be “deaths from CNPJs” in the country.

After receiving criticism for the sudden visit to the Supreme Court and for his stance in the face of the pandemic, Bolsonaro says he wants to barbecue for 30 people, in challenge to the isolation recommended by governors and WHO, highlights Estadão.

Yesterday, Brazil had 610 more deaths from the coronavirus, which increased the total number of deaths by Covid-19 to 9,146.

Bolsonaro said he will veto the stretch of the bailout bill to states and municipalities that leaves a gap for salary increases for civil servants. The veto was publicly announced by the Minister of Economy, Paulo Guedes, when he publicly asked for “the contribution of civil servants”.

The president said yesterday that Paulo Guedes owns 99% of the economic agenda and the idea of ​​"making money does not exist", because it would be "the end of Brazil" due to inflation. "I am doing my best to return trade to normal," said the president.

Corporate news
Lojas Americanas ended the first quarter with a net loss of R $ 49.2 million, with a small improvement compared to the negative R $ 53.5 million a year earlier. B2W closed the first quarter of this year with a consolidated net loss of R $ 108 million, an improvement over the R $ 139.2 million registered a year earlier. Wiz Soluções published its first quarter results and reported a net profit of R $ 51 million in the period, a 9.9% decrease over the same period last year.

The health plan manager Qualicorp closed the first quarter with a net profit of R $ 70.7 million, a 27.1% decrease compared to the same period last year, while Sanepar had a net profit of R $ 256 million in the first quarter, an increase of 17.7% in the annual comparison.

Ânima Educação announced last night that it closed the acquisition of the Faculty of Health and Human Ecology (Faseh), in Vespasiano, in the Metropolitan Region of Belo Horizonte (MG) for R $ 108.9 million. Faseh has six higher education courses, including medicine, and 1,034 students.