SÃO PAULO – The session was a strong drop for the Ibovespa, with the shares of mining companies such as Vale (VALE3, BRL 74.85, -5.01%), CSN Mineração (CMIN3, BRL 5.91, -5.74%) and steel mills such as CSN (CSNA3, BRL 27.62, -7.84%), Gerdau (GGBR4, BRL 25.60, -3.02%) and Usiminas (USIM5, BRL 14.79, -7.27%) falling again in block in a low session for iron ore.
Cuts energy in China accelerate the reduction of production in steel plants and take power from iron ore, the which again raised doubts about demand for the raw material.
Singapore futures fell by 7.4%, eliminating Monday’s gains, as China’s energy crisis, which leads global steel production, restricts industrial activities. With the drop, iron ore halts a five-day rally that took prices back to $120 on Monday amid expectations of rising inventories ahead of the week-long National Day holiday. The steel input continues to face obstacles, as China intends to reduce annual production compared to last year’s record, and restrictions are expected to intensify until the end of the year.
On the companies’ radar, Usiminas also continues to be impacted by the accident in its blast furnace 2 at the Ipatinga plant (MG), which should increase costs for the company.
While Vale and steel companies fell with ore, Petrobras shares (PETR3, BRL 27.75, -0.86%; PETR4, BRL 26, 96, -0.66%) and other oil companies, such as PetroRio (PRIO3, R$ 21.93, -5.11%), came to advance more than 2% at the beginning of the day. However, throughout the session, the assets of the state-owned company zeroed in on a busy day for the company and closed slightly down, while PRIO3 closed at an even stronger low, around 5%.
The Brent oil barrel traded above US$ 80 a barrel, further evidence of global energy crisis and signs that demand outstrips supply and runs out of stocks. The international reference price extended the recent period of gains and reached the highest level since October 2018. The West Texas Intermediate oil barrel also rose, but closed slightly down. Brent for December closed down 0.55% at $79.09 a barrel, while WTI for November was down 0.21% at $75.29 a barrel.
The recent oil rally is accompanied by a series of bullish forecasts for prices from banks and operators, projections of increased demand in the northern hemisphere winter and signs that the sector is not investing in the enough to guarantee the offer.
It is worth mentioning that, in the final stretch of the previous day’s trading session, the president of Petrobras, Joaquim Silva e Luna, defended the company’s pricing policy amidst the rise in fuel prices during a “surprise” press conference, which pleased the market. Asked about the current gap between international prices and those practiced by the company, both Luna and directors did not rule out new readjustments in fuels.
The readjustment took place this Tuesday morning , with diesel being elevated by almost 9%, after 85 days of stability. However, also in this session, the president of the Chamber of Deputies, Arthur Lira (PP-AL), stated that the deputies they will seek legislative alternatives to avoid further increases in the prices of fuel and cooking gas. The topic will be discussed at the meeting of the College of Leaders scheduled for next Thursday. According to Lira, Brazil cannot tolerate gasoline at almost R$7 and gas at R$120.
Later, Lira stated that the National Congress will discuss a project on a fixed amount for the ICMS on fuels as a way of seek a reduction in the price of the input. At an event in Alagoas, Lira repeated the argument of President Jair Bolsonaro, who was also present, by stating that the state tax is responsible for the expensive price of fuel.
The action from Embraer (EMBR3, BRL 23.07, -1.95%), which was also on the rise, turned to fall, closing down around 2%. The company said in a statement that it forecasts that around 1,500 new aircraft with up to 150 seats will be needed in China by 2040, 77% of which to meet the market’s expansion and 23% as replacement.
Attention to Hapvida (HAPV3, BRL 13.63, -5.74%), down by almost 6 %, as well as the Notre Dame papers GNDI3, R$ 73.60, -5.88%), with the companies.
The first point Of note is that the Administrative Council for Economic Defense (Cade) classified the merger agreement between the companies as “complex”. The Board stressed that it fears that the deal will generate regional concentration in the sector, requesting additional information to deepen the analysis of the agreement, according to an order in the Official Gazette and in the technical note on the regulatory agency’s website.
Still highlighted, in the midst of allegations of alleged illegalities by Prevent Senior, the National Health Agency (ANS) is also investigating the conduct of Hapvida and Grupo São Francisco, purchased by the publicly-held company in 2019. The company allegedly pressured doctors to prescribe hydroxychloroquine in suspected or confirmed cases of Covid-19. Hapvida denies pressure and claims that it respects medical autonomy.
Among the strong falls, once again, are shares of companies linked to technology or e-commerce in the middle to the low of the Nasdaq and in a scenario of rising US bond yields, which also impacted the papers here. The increase in interest tends to specifically affect the technology sector as these companies have longer cash flows and are more impacted by the increase in long-term rates.
US Treasuries extended their sell-off to a fourth day, with the ten-year rate reaching a high last seen in mid-June. The prospect of higher spot interest rates and the risk of inflation proving less transitory than expected led two-year yields to peaks in 18 months.
Some Federal Reserve officials indicated last week that they are ready to raise interest rates in 2022 and that the bank is likely to begin reducing its monthly bond purchases as early as November.
Interbank (BIDI11, R $ 51.85, -11.68%), Inter Bank (BIDI4, BRL 17.29, -11.70%) fell by more than 11%, while Méliuz ( CASH3, R$ 6.02, -8.65%) recorded a strong drop of more than 8%. Also in the news of Banco Inter, the institution denied an article published earlier by Broadcast that it would be preparing a greater provision for losses on the balance sheet.
Locaweb (LWSA3, BRL 21.93, – 4.65%), American ( AMER3, BRL 31.33, -6.20%), Totvs (TOTS3, BRL 35.60, -3.44%) and Magazine Luiza (MGLU3, BRL 14.18, -5.53% ) also had among the strongest lows of the day.
Of the 90 shares on the Ibovespa, only 4 registered gains, with Minerva standing out ( BEEF3, BRL 10.48 , 1.75%), followed by BRF (BRFS3, BRL 26.54, 0.99%). Next are Marfrig’s papers (MRFG3 , BRL 24.34, 0.25%) and Taesa’s (TAEE11, R$36.73, 0.14%). In the Minerva news, Santander released a report pointing to Minerva as the “top pick” in the meatpacking sector, for consolidating good results.
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Embraer highlighted in a statement that it presents this Tuesday during the Zhuhai Airshow, the 13th International Aviation Exhibition China Aerospace, his latest study of prospects for this market in the country. The report forecasts new aircraft deliveries over the next 20 years based on passenger demand for air travel in the post-pandemic era. Embraer forecasts that almost 1,500 new aircraft, in the 150-seat category, will be needed in the region by 2040. Among these deliveries, 77% will meet the market expansion and 23% will replace aircraft.
“During the pandemic, small and medium-sized aircraft, as well as regional flights, were instrumental in the rapid recovery of connectivity in China. Our E-Jets were one of the first aircraft models to restore frequencies to companies’ air networks. In the post-pandemic era, building a more efficient air transport system is of vital importance. The market demands a more balanced fleet profile and a route structure to serve more secondary markets. Therefore, we believe that, over the next 20 years, aircraft with up to 150 seats will unleash their full potential,” said Guo Qing, Executive Director and Vice President of Commercial Aviation at Embraer China.
The Chinese government has recently announced a series of infrastructure development actions that include around 200 new airports to encourage and promote industrial relocation. The importance of regional aircraft continues to increase after Covid-19, playing a key role in launching new services to these airports and in growing demand.
Currently, there are 91 E-Jets operating in China, flying 550 routes, connecting 150 cities at home and abroad. These aircraft carry around 20 million passengers a year, connecting regional and major routes across different regions of China.
“Revenue measured in number of passengers per kilometer (RPK) in Chinese civil aviation is expected to grow at an average rate of 4.7% over the next decade, signaling the country’s leadership in aviation recovery. We believe that in the future the Chinese aviation market will be the largest in the world. Embraer has built a strong and positive presence in this region, providing a solid foundation for our most advanced jet, the E2,” said Arjan Meijer, President and CEO of Embraer Commercial Aviation.
The Brazilian petrochemical company Braskem reported on Tuesday that its subsidiary Idesa signed a contractual addendum with the Mexican Pemex to settle contractual pending issues.
The addendum also provides support for the project to build an ethane import terminal in Mexico and amends the commitment to supply for a minimum volume of 30,000 barrels per day.
“The terminal project aims to complement the supply of ethane in Mexico and enable Braskem Idesa to operate at full capacity capacity, with access to the er sources of raw materials,” said Braskem.
The agreed volume will be valid until the ethane import terminal starts operating, scheduled for the second half of 2024 or the deadline of February 2025 (which can be extended if there are delays with licenses), whichever comes first, explained the Brazilian. The additive defines a preemptive right for Braskem Idesa to purchase all the ethane that Pemex has available and not consume in its own production process until 2045, at prices according to international references.
XP started to coverage for Natura&Co shares, with Buy recommendation and a target price of R $65 per share.
“Our positive outlook is based on (i) strong market positioning through four global brands with complementary pricing and portfolios; (ii) a robust R&D framework , which leads to innovative and differentiated products; (iii) our positive view of the Avon acquisition; (iv) interesting positive risks, such as NTCO’s (China and USA) internationalization plans, M&A and the development of a beauty ecosystem; (v) its strong focus on ESG; and (vi) an attractive valuation”, evaluate the analysts.
Itaú BBA started the coverage for the shares of Boa Safra with an outperform recommendation (performance above the market average) with a target price of R$19 for 2022.
BBA states that the soybean harvest has been increasing exponentially in recent decades, and is expected to continue in the coming years. The bank points out that the Ministry of Agriculture projects a compound annual growth rate of 3% for the soybean harvest in Brazil until 2030. For that, producers must need more sophisticated seeds, which brings an opportunity for the Boa Safra.
Valley (VALE3)Vale issued communication to the market with details about the incident that left 39 employees trapped in the underground of Mina Totten in Sudbury, Ontario (Canada).
“On Sunday afternoon, at the Totten mine, an excavator shovel that was being transported into the underground mine access broke free, blocking the shaft (openings for the passage of pipes) and, therefore, making the means of transport for employees unavailable”, points out the company ia.
According to the mining company, employees were at the mine at the time of the incident and immediately went to the refuge stations as part of standard procedure.
The mining company also said that most of the workers who were trapped in an underground mine in Canada returned to the surface this Tuesday morning, and the rest are on their way, according to a statement.
The rescued workers are in good health and “are eager to return home,” said the mining company.
Petrobras (PETR3;PETR4) In the final stretch of the trading session of eve, the president of Petrobras, Joaquim Silva e Luna, defended the company’s pricing policy during a “surprise” press conference, which pleased the market. Asked about the current gap between international prices and those practiced by the company, both Luna and directors did not rule out new readjustments in fuels.
Executive Director of Marketing and Logistics, Cláudio Mastella pointed out that, in recent months, there have been significant changes in the international market, but that most of them were offset by exchange rate fluctuations in the opposite direction. However, a reduction in the supply of oil, especially in the United States, and a perspective of increased international demand for energy sources has pushed up values.
According to Reuters , who quotes sources, Silva e Luna was in Brasília on Sunday and Monday to seek alternatives to “buffer” the price of fuel in Brazilians’ pockets, and one of the alternatives is the use of a fund with pre-salt resources for a subsidy program.
The talks, before he returned to Rio this Monday, were also aimed at seeking alternatives within the government that would alleviate pressure on Petrobras, a since the solution to the problem of high prices, without disrespecting the rules of the fuel market, is not in the company, added sources, on the condition of anonymity.
Camil (
CAML3
)The Administrative Council for Economic Defense (Cade) approved without restrictions the acquisition of pasta company Santa Amália by Camil, informed the buyer on Monday.
The operation, which marked Camil’s entry into the pasta sector, was announced to the market last month, in a R$ 260 million deal. With the purchase, Camil will also assume Santa Amália’s indebtedness of around R$ 150 million.
CAML3
Enauta announced that the production of the Manati Field was preventively interrupted on September 27, due to a small gas leak in the onshore part of the pipeline between the compression station and the gas treatment plant. “The operator is evaluating the causes of the incident and there is still no expected return”, he highlighted.
Enauta Energia, a wholly owned subsidiary of the company, has a 45% stake in the Campo de Manati, located in the Camamu Basin, off the coast of Bahia. On August 16, 2020, the company announced an agreement to sell to Gas Bridge its entire interest in the Field, effective December 31, 2020. The transaction is subject to a series of conditions precedent and the acts necessary for the Contract completion must be carried out by December 31, 2021.
Eneva inaugurated the Azulão Gas Treatment Unit (UTG) on Monday, in the field of the same name in Silves (AM ), which will send the product by truck for the generation of the thermal power plant Jaguatirica II, in Roraima, informed the company.
The Azulão-Jaguatirica integrated project, whose total investment only At 1.8 billion reais, it makes it possible to sell gas from the Azulão field, in the Amazon Basin, purchased three years ago by Eneva from Petrobras, which discovered it in the 1990s and declared it commercial in 2004.
JSL ( JSLG3)JSL approved the merger of all shares issued by Fadel, purchased by the company in 2020.
Irani (RANI3)
Irani Papel e Embalagem announced that it has approved the buyback program of up to 8.2 million common shares, equivalent to 7.76% of the total of outstanding papers issued by the company. The operation starts on October 1st.
Bemobi (
BMOB3) Bemobi announced a repurchase program of up to 3 million shares, with a twelve-month term and starting yesterday.
TIM (
Bemobi announced a repurchase program of up to 3 million shares, with a twelve-month term and starting yesterday.
TIM (TIMS3)
The telecommunications operator TIM informed this Tuesday that its board of directors approved the payment of R$137.5 million in interest on equity on October 27th.
Santander Brasil (
SANB11)Bradesco BBI commented on the main conclusions of the meeting on the spin-off (split) of Getnet. Getnet must pay a fee to Santander Brasil on generated customers. And the bank must pay a fee for the credit generated by the acquired company. The bank also points out that these fees will have to be settled under an agreement.
BBI says it recognizes the efforts of Santander and Getnet to establish a fair relationship and preserve the interests of minority shareholders. But he says he sees potential conflicts of interest around customer monetization, despite potentially expanding credit origination channels for Santander Brasil.
(with Reuters, Bloomberg and Estadão Content)
TOP 3 analyst in short-term profitability shares his exclusive method in the Stock Exchange
Note: This article has been indexed to our site. We do not claim ownership or copyright of any of the content above. To see the article at the original source Click Here
SANB11)
Bradesco BBI commented on the main conclusions of the meeting on the spin-off (split) of Getnet. Getnet must pay a fee to Santander Brasil on generated customers. And the bank must pay a fee for the credit generated by the acquired company. The bank also points out that these fees will have to be settled under an agreement.
BBI says it recognizes the efforts of Santander and Getnet to establish a fair relationship and preserve the interests of minority shareholders. But he says he sees potential conflicts of interest around customer monetization, despite potentially expanding credit origination channels for Santander Brasil.
(with Reuters, Bloomberg and Estadão Content)
TOP 3 analyst in short-term profitability shares his exclusive method in the Stock Exchange
Note: This article has been indexed to our site. We do not claim ownership or copyright of any of the content above. To see the article at the original source Click Here
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