Investors are awaiting the reading of the US gross domestic product (GDP) for the first quarter, scheduled for this Thursday, at 9:30 am, Brasília time. Economists consulted by LSEG expect GDP to be 2.4%. On the corporate front, technology giants Microsoft, Alphabet and Intel release results after the closing bell.
In Brazil, Bernard Appy, Extraordinary Secretary for Tax Reform, will give an interview to detail the project that regulates tax reform. The text was delivered by the Minister of Finance, Fernando Haddad, to the presidents of the Chamber, Arthur Lira, and the Senate, Rodrigo Pacheco, on Wednesday (24).
The president of the Central Bank, Roberto Campos Neto, participates in the opening of the G20 TechSprint 2024, promoted by the BIS and the BC, in Brasília. On the corporate radar, in addition to the repercussions of Vale’s balance sheet, Petrobras decides at an Ordinary General Assembly whether to accept the proposal from the state-owned company’s Board of Directors, announced on Friday (19), to pay 50% of the extraordinary dividends that had been paid in full retained.
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1.World Exchanges
U.S
United States futures indices are trading lower this Thursday (25), after Meta Platforms and IBM released their latest quarterly results.
Meta’s stock plunged 15% in after-hours trading after the social media giant issued a weak revenue forecast for the second quarter. IBM fell 8% after reporting lower-than-expected first-quarter revenue.
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Dow Jones Future: -0.35%
S&P 500 Future: -0.51%
Nasdaq Futures: -0.82%
Asia
Asian markets closed with no direction on Thursday, with some taking profits after recent gains and in a cautious mood ahead of the Bank of Japan’s (BoJ) monetary policy announcement.
Leading losses in Asia, the Japanese Nikkei index fell 2.16% in Tokyo, to 37,628.48 points, as investors await the BoJ’s interest rate decision, which will be announced between today and Friday (26). Last month, the Japanese central bank raised interest rates for the first time in 17 years, but signaled that it was in no rush to tighten its monetary policy further. Since then, the yen has been renewing lows in more than three decades against the dollar.
Shanghai SE (China), +0.27%
Nikkei (Japan): -2.16%
Hang Seng Index (Hong Kong): +0.48%
Kospi (South Korea): -1.76%
ASX 200 (Australia): -0.01%
Europe
European markets operate mostly down, with investors reflecting corporate results. In terms of indicators, the German consumer sentiment survey and French business climate data are expected for April.
FTSE 100 (UK): +0.62%
DAX (Germany): -0.60%
CAC 40 (France): -0.56%
FTSE MIB (Italy): -0.03%
STOXX 600: -0.21%
Commodities
Oil prices are operating slightly lower, as concerns about a potential slowdown in the US economy, given the prospect of delays in interest rate cuts, outweighed concerns about the risk of expanding conflict in the Middle East.
Iron ore prices in China closed higher, supported by persistent hopes for demand in the main consumer, China.
WTI oil, -0.13%, at $82.70 a barrel
Brent crude, -0.10%, at $87.94 a barrel
Iron ore traded on the Dalian exchange rose 1.03% to 879.50 yuan, equivalent to US$121.36
Bitcoin
- Bitcoin, -0.43% at US$63,945.00 (compared to the price 24 hours ago)
2. Agenda
Today’s agenda highlights GDP for the 1st quarter of 2024 in the United States and exchange rate flow in Brazil.
Brazil
10am: Roberto Campos Neto, president of the BC, participates in the opening of the G20 TechSprint 2024, promoted by the Bank for International Settlements (BIS) and the Central Bank of Brazil, at the Central Bank Headquarters Building, in Brasília.
10am: Extraordinary Secretary for Tax Reform, Bernard Appy, details PLP that regulates Tax Reform
2:30 pm: Weekly exchange rate flow
CMN
USA
9:30 am: Weekly unemployment insurance claims; LSEG consensus predicts 215 thousand requests
9:30 am: GDP for the 1st quarter of 2024; LSEG consensus predicts 2.4% rise
11am: Pending houses
3. Economic news
Tax reform regulations provide for an average rate of 26.5%
The president’s government Luiz Inácio Lula da Silva (PT) delivered to the National Congress, on Wednesday afternoon (24), the first complementary bill (PLP) to regulate the tax reform of consumption taxes. The proposal foresees an average Value Added Tax (VAT) rate of 26.5%, which may vary between 25.7% and 27.3%, informed the extraordinary secretary for Tax Reform, Bernard Appy. Currently, Brazilian goods and services pay, on average, 34% in federal, state and municipal taxes.
Bernard Appy will give an interview to detail the project that regulates taxes
The extraordinary secretary of Tax Reform, Bernard Appy, will give an interview to detail the Complementary Law Project (PLP) that regulates Tax Reform, this Thursday, at 10 am.
4. Political news
Congress postpones session that would analyze Lula’s vetoes
The National Congress postponed a session that would analyze vetoes by President Luiz Inácio Lula da Silva (PT) on projects approved by the Legislature. The session was expected to take place on Wednesday night (24). The forecast now is that the veto analysis will take place between May 7th and 9th.
Zanin will be rapporteur for government action against tax exemption
The minister of the Federal Supreme Court (STF) Cristiano Zanin will be the rapporteur of the action in which the federal government intends to overturn the tax exemption on payroll in 17 sectors of the economy and certain municipalities. Earlier, the action was filed by the Attorney General’s Office (AGU).
In AGU’s understanding, the exemption was extended until 2027 by the National Congress, without establishing the financial impact of the tax exemption. The petition was signed by President Luiz Inácio Lula da Silva and the Union’s attorney general Jorge Messias.
5. Corporate Radar
Vale (VALUE3)
Vale (VALE3) recorded a net profit of US$1.679 billion (attributable to shareholders) in the first quarter of 2024 (4Q23). A year earlier, profit was US$1.837 billion, representing a drop of 9% on an annual basis. Other than that, the number was below the market consensus, which saw a profit of US$ 1.83 billion.
Assaí (ASAI3)
The supermarket chain Assaí (ASAI3) reported net profit of R$93 million in the first quarter of 2024 (1Q24), an amount 19.2% higher than that reported in the same period in 2023 and above the R$54.3 million predicted by consensus LSEG.
Petrobras (PETR4)
Petrobras decides, at the Ordinary General Meeting, whether to accept the proposal from the state-owned company’s Board of Directors, announced on Friday (19), to pay 50% of the extraordinary dividends that had been fully withheld.
In a note, the board states that it understood – by a majority – that the clarifications and updates presented by the Financial and Investor Relations Department regarding the “financiability of the company in the short, medium and long term and the preservation of governance” were satisfactory. Also according to the board, the distribution of dividends would not compromise the company’s financial sustainability.
(With Estadão, Reuters and Agência Brasil)
