The fate of the United States is falling, after weak guidance from Microsoft and waiting for results from Tesla;  Lula goes to Uruguay with more important things

The fate of the United States is falling, after weak guidance from Microsoft and waiting for results from Tesla; Lula goes to Uruguay with more important things


U.S. stock futures traded lower on Wednesday (25), as investors braced for corporate results amid fears of a recession.

In the premarket, Microsoft shares fell around 1.8%, recovering the gains registered shortly after the release of the results. Earlier, last night, the stock rose after Tech giant reports cloud revenue above estimates. However, the stock fell after the company posted less-than-encouraging estimates.

Today is the time for Tesla’s results. Expectations are growth for Elon Musk’s electric car maker’s profits over the period. Boeing, IBM and AT&T are also among the companies that will report numbers on Wednesday.

Ibovespa today: live market movements this Wednesday

So far, more than 70 companies in the S&P 500 have reported fourth-quarter results, and 65% of them have posted stronger-than-expected results, according to Refinitiv.

Around here, despite São Paulo’s birthday municipal holiday, B3 is working as usual. Considering the absence of important indicators, attention should be focused on the meeting between President Lula and the President of Uruguay, Lacalle Pou.

Lula will try to find a diplomatic solution to save Mercosur, which is threatened by Uruguay’s decision to negotiate a free trade agreement without the support of the bloc, especially China.

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In the corporate field, American (AMER3) was able to undo the court’s 1.2 billion BRL restriction made by BTG Pactual (BPAC11).

1. World Scholarship

US

In a day of weak agenda, US futures indices are trading lower this Wednesday morning, affected by weak estimates issued by Microsoft and waiting for further corporate results.

The company forecast revenue of $50.5 billion to $51.5 billion in the fiscal third quarter, while analysts polled by Refinitiv expected $52.43 billion.

Earnings season continues to ramp up, with AT&T, Boeing, IBM and Tesla forecast today.

In currency exchange, the dollar fell against the euro on Tuesday after data showed that eurozone business activity surprisingly returned to growth in January, while US business activity fell for a seventh straight month.

See how futures markets performed:

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  • Dow Jones Futures (US), -0.28%
  • S&P 500 Futures (US), -0.43%
  • Nasdaq Futures (US), -0.66%

Asia

Asia-Pacific markets closed mixed, following Wall Street’s efforts to find direction, while markets in China and Hong Kong remained closed for the Lunar New Year holiday.

Japan’s Nikkei index rose 0.35% to 27,395 points, while Australia’s S&P/ASX 200 fell 0.3% to 7,468 points, with inflation rising to 7.8% in the final quarter of fiscal 2022, signaling the pace of the fastest since March 1990.

New Zealand’s fourth quarter inflation reading rose 1.4% from the previous quarter.

  • Shanghai SE (China), Closed on public holidays
  • Nikkei (Japan), +0.35%
  • Hang Seng Index (Hong Kong), Closed for holidays
  • Kospi (South Korea), Closed for public holidays

Europe

Most European markets are trading lower, extending losses from the previous session, despite data from the eurozone showing increased business activity in the region’s service and manufacturing sectors.

German business sentiment improved this month, according to Munich-based Ifo’s German business climate survey.

The group’s Business Climate Index rose to 90.2 points from 88.6 points due to “bleak prospects”, the statement said, although below the level of 2021 and early 2022. It also reported little satisfaction with their current situation. .

However, manufacturing companies indicated an improvement in current satisfaction and future optimism, and there was an improvement in business sentiment.

  • FTSE 100 (UK), +0.16%
  • DAX (Germany), -0.02%
  • CAC 40 (France), +0.01%
  • FTSE MIB (Italy), -0.05%

Product

Oil prices rose on Wednesday as hopes of increased demand in China following the lifting of Covid-19 restrictions provided support after prices fell in the previous session on concerns about global economic growth.

  • WTI crude oil, +0.22% , at $80.31 a barrel
  • Brent Oil, +0.44%, at $86.51 a barrel

Bitcoin

  • Bitcoin, -1.49% to $22,634.45 (last 24 hours)

2. Schedule

This Wednesday’s index agenda is highlighted by the absence of relevant indices here in Brazil and abroad.

Therefore, attention should be directed to the trip of President Luiz Inácio Lula da Silva to Uruguay, after spending two days in Argentina.

Brazil

8 am: Consumer research

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2:30 pm: Weekly FX stream

United States

12:30 am: Weekly Fuel Payment (AIE)

3. Economic news

Gleisi rids the government of high petrol prices and talks about the ‘end of the dollar’

PT’s national president, Gleisi Hoffmann, criticized the petrol price increase announced the day before by Petrobras and released the federal government from responsibility for the adjustment.

“The petrol reform takes place before Jean Paul took over Petrobras. The news is that it was pressure from the shareholders”, said the deputy of the Paraná federation, insisting that the increase takes place before Prates, appointed by President Luiz Inácio Lula da Silva (PT), to take the leadership of a government-owned company.

Yet according to him, the government will work to change the company’s current pricing policy, which integrates adjustments and values ​​implemented internationally, in dollars.

The Petrobras Board of Directors will meet next Thursday, the 26th, to vote on the approval of Senator Jean Paul Prates as president of the state-owned company.

New applications for FGTS withdrawals will be completed in March, says the minister

The Minister of Labor, Luiz Marinho, said on Tuesday, the 24th, that new requests for birthday withdrawals from the Termination Payment Fund (FGTS) will no longer be allowed until March.

According to him, there are complaints from employees due to the withholding of that value for a period of two years if they are fired, as well as the weakening of government investment funds, which FGTS uses.

4. Political news

Lula is going to Uruguay to strengthen business relations

President Luiz Inacio Lula da Silva is going to Montevideo to find a diplomatic way to save Mercosur, which is threatened by Uruguay’s decision to negotiate a free trade agreement against the union, especially with China.

After Lacalle Pou called the protector of Mercosur and maintained the decision to negotiate a trade agreement with China, the special adviser of the Presidency of the Republic of International Affairs, Celso Amorim, emphasized the government’s intention to defend Mercosur in the bilateral meeting of this Wednesday. )

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Lula already had a series of bilateral meetings throughout the week to try to strengthen Brazil’s foreign trade relations. He went to Argentina and met with the presidents of Argentina, Alberto Fernandez, and of Cuba, Miguel Díaz-Canel.

Covid

This Tuesday, Brazil recorded 177 deaths from Covid-19 in the last 24 hours, a total of 696,553 since the beginning of the epidemic.

With that, the moving average of deaths in the last 7 days is 137. Compared to the average of the last 14 days, the difference was + 40%.

In total, the country recorded 16,472 new cases of Covid-19 in 24 hours, completing 36,768,416 known cases since the beginning of the epidemic.

5. Corporate Radar

USA (AMERICAN3)

The Americans (AMER3) managed to return to court yesterday a block of R$ 1.2 billion which BTG Pactual (BPAC11) had acquired with funds from retailers under bank protection.

According to judge Flávio Horta Fernandes, with the acceptance of the Americans’ request to revive the court, it is no longer useful for BTG to keep the money.

Features of BR (BRPR3)

BR Properties (BRPR3) approved this Tuesday (the 24th) the reduction of the company’s capital in the total amount of R$ 2.511 billion, after the return to shareholders of part of the money in the total of R$ 1.276 billion and part in shares. of Business Offices of BRPR Fundo de Investimento Imobiliário, in the total amount of R$ 1.235 billion.

The company also approved a reverse split of all shares issued by the company in the ratio of 40 shares to 1 share.

Once the capital reduction takes effect, the company’s share capital will increase from R$3.244 billion to R$733.3 million. The 2023 capital reduction will only come into effect after the 60-day deadline for objections by creditors after AGE.

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Petrobras (PETR4;PETR3)

Petrobras (PETR4) approved the closure of the competitive processwhich was in the legal phase, for the full sale of Category III Nitrogen Fertilizer (UFN-III).

The state-owned company says it will evaluate its next steps related to the divestment of the assets in question, according to the current Strategic Plan 2023-2027, and will strengthen its commitment to greater transparency of its divestment projects and portfolio management.

(By Estadão, Reuters and Agência Brasil)

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