Upcoming events that will influence Brazil’s financial markets this Week 34

RIO DE JANEIRO, BRAZIL – The main international stock markets rise on Monday morning, 23, recovering some of last week’s losses, when the minutes of the Federal Reserve (Fed) increased investor caution about a reduction in monetary stimulus in the United States.

The topic is likely to be discussed on the negotiating tables, as Fed Chairman Jerome Powell is expected to provide more details on the so-called “tapering” in his speech at the Jackson Hole Symposium next Friday, August 27.

PMI

Investors continue to pay attention to several Purchasing Managers’ Indexes (PMI) released in Europe. Although above the 50-point mark that separates growth from contraction, PMIs in Europe fell short of expectations, particularly German industrial production, which came in at 62.7 points, compared to expectations of 65 points.

Although weaker than expected, the figures are seen by part of the market as a good sign of recovery. “Nevertheless, data on current activity remains exceptionally strong, and employment is increasing as the revival of the economy brings demand for labor,” ING analysts assessed in a report.

In the United States, this morning will be published the purchasing managers’ indexes for the industrial, trade, and services sectors, which are expected to be 62.8, 58.3, and 59.4 points, respectively. Also, data on sales of second-hand homes, one of the main indicators of the housing market in the country, will be released.

Planalto vs. STF

In Brazil, investors are assessing the political disagreements in Brasilia, especially the tensions between the government of Jair Bolsonaro and the Federal Supreme Court (STF). The tensions have increased investor caution in the market and put pressure on the exchange rate and the stock market. Over the weekend, Minister Gilmar Mendes even criticized social media for the “artificial creation of institutional crises.”

SMART FIT

In an interview with Exame, the CEO and founder of Smart Fit (SMFT3), Edgard Corona, gave details about the expansion plan of his fitness center network, already the largest in Brazil and Latin America.

According to Corona, the company has invested heavily in technology so that trainers have more time to help perform exercises and provide a better experience for clients.

“We’ve taken away all the non-core tasks from the instructor, so he has more time to correct the students’ posture during the exercises and motivate them, which makes all the difference. Instead of him setting up the workout at the same time he’s taking care of other students, we let the app determine the most appropriate workout, set up with the knowledge of physical education teachers,” Corona says.

MRV REAL ESTATE.

Leading Brazilian real estate developer MRV (MRVE3) is expanding its business to different types of clients to diversify its revenue in an environment marked by cost pressures and high inflation.

“We are stepping on the gas to explore the large housing deficit in the country. We want to operate in different segments of the population. Today, in the very high-income brackets, demand is equal to supply. But there is still room to go down,” said Eduardo Fischer, CEO of MRV, in an interview with Exame Invest published over the weekend.

BR PROPERTIES

BR Properties (BRPR3) reported completing its share repurchase plan after receiving 99.95% of the paper it planned to buy back by 2020. A total of 10,994,600 shares were acquired for R$94.888 million, with an average price per share of R$8.63.