US futures down, after weak guidance from Microsoft and awaiting results from Tesla; Lula goes to Uruguay and other highlights

US futures indices traded lower on Wednesday (25), as investors prepare for corporate results amid fears of a recession.

In pre-market trading, Microsoft shares fell about 1.8%, reversing gains it posted shortly after the results were released. Shares initially rose late last night after the tech giant reported higher-than-expected cloud revenue. However, shares fell after the company released lackluster projections.

Today is the time for Tesla’s achievements. The expectation is that Elon Musk’s electric car maker’s profits will grow over the period. Boeing, IBM and AT&T are also among the companies reporting numbers on Wednesday.

Ibovespa today: live market movement this Wednesday

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

In these parts, despite the municipal celebration of the birthday of San Paolo, the B3 works regularly. Given the absence of relevant indicators, attention should be paid to the meeting between President Lula and the President of Uruguay, Lacalle Pou.

Lula will try to find a diplomatic solution to preserve Mercosur, threatened by Uruguay’s decision to negotiate free trade agreements without the support of the bloc, especially with China.

In the corporate field, Americanas (AMER3) managed to overturn in court a block of BRL 1.2 billion made by BTG Pactual (BPAC11).

1. World Scholarships

WE

On a day with a weak agenda, US futures indices are trading at their lowest on Wednesday morning, influenced by the weak projections released by Microsoft and awaiting further corporate results.

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

Earnings season continues strong, with AT&T, Boeing, IBM and Tesla results expected today.

In foreign exchange trading, the dollar fell against the euro on Tuesday after data showed euro-zone business activity surprisingly returned to growth in January, while US business activity eased for the seventh straight month .

See how the futures markets performed:

• 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 search for direction, while markets in China and Hong Kong remain 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 index fell 0.3% to 7,468 points, with inflation rising to 7.8% in the last quarter of the year. fiscal year 2022, marking the fastest pace since March 1990.

The fourth quarter inflation reading for New Zealand increased 1.4% from the previous quarter.

• Shanghai SE (China), Closed for 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 bearish, extending losses from the previous session, despite euro-zone data showing increased business activity in the region’s manufacturing and services sectors.

German business sentiment has improved this month, according to the Munich, Germany-based business climate survey Ifo.

The group’s business climate index rose to 90.2 points from 88.6 points on “significantly less pessimistic expectations,” the statement said, although it is below its 2021 and early 2022 level. It also reported fewer satisfaction with their current situation.

However, manufacturing companies reported an improvement in present satisfaction and future optimism, and there was an improvement in trade sentiment.

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

Goods

Oil prices rebounded on Wednesday as hopes of a recovery in demand in China following its exit from Covid-19 restrictions provided support after prices fell in the previous session on concerns about global economic growth.

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

bitcoins

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

2. Schedule

This Wednesday’s indicators agenda is marked by the absence of relevant indices both here in Brazil and abroad.

With that, attention should be turned to President Luiz Inácio Lula da Silva’s trip to Uruguay, after spending two days in Argentina.

Brazil

8am: Consumer survey

2.30pm: Weekly FX stream

United States of America

12.30pm: Weekly Oil Inventories (IEA)

3. Economic news

Gleisi exempts government from high petrol prices and speaks of “end of dollarization”

The national president of the PT, Gleisi Hoffmann, criticized the increase in the price of petrol announced the day before by Petrobras and exempted the federal government from responsibility for the readjustment.

“The readjustment of gasoline occurs before Jean Paul takes over Petrobras. The news is that it was shareholder pressure,” said the federal deputy for Paraná, noting that the increase comes before Prates, appointed by President Luiz Inácio Lula da Silva (PT), takes command of the state-owned company .

She also says the government will work to change the company’s current pricing policy, which links readjustments to internationally practiced values, to dollars.

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

The new FGTS withdrawal requests will end in March, the minister says

Labor Minister Luiz Marinho said on Tuesday that new requests for birthday withdrawals from the Severance Allowance Fund (FGTS) would no longer be allowed starting in March.

According to him, there are complaints from workers about the withholding of value for two years in case of dismissal, as well as the undermining of government investment funds, in which the FGTS is used.

4. Political news

Lula goes to Uruguay to strengthen trade relations

President Luiz Inacio Lula da Silva travels to Montevideo to find a diplomatic way out to preserve Mercosur, threatened by Uruguay’s decision to negotiate free trade agreements in absentia with the bloc, especially with China.

After Lacalle Pou defined Mercosur as protectionist and maintained his decision to negotiate a trade agreement with China, the special adviser to the Presidency of the Republic for international affairs, Celso Amorim, reaffirmed the government’s willingness to defend Mercosur in the bilateral meeting this Wednesday. ).

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

covid

This Tuesday, Brazil recorded 177 deaths from covid-19 in the last 24 hours, for a total of 696,553 since the start of the pandemic.

With this, the moving average of deaths over the last 7 days is 137. Compared to the average of 14 days ago, the change was +40%.

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

American (AMER3)

Americanas (AMER3) yesterday managed to reverse in court a block of BRL 1.2 billion that BTG Pactual (BPAC11) had obtained on dealer funds that were in the bank’s custody.

According to Judge Flávio Horta Fernandes, with Americanas’ judicial recovery request granted, it no longer makes sense for BTG to withhold assets.

BR Properties (BRPR3)

BR Properties (BRPR3) approved this Tuesday (24) the reduction of the share capital of the company for a total amount of R$ 2.511 billion, subject to the repayment to the shareholders of a share in cash for a total amount of R$ 1.276 billion and a share in shares of BRPR Corporate Offices Fundo de Investimento Imobiliário, for a total amount of R$ 1.235 billion.

The company also approved the reverse reverse split of all shares issued by the company at a 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 force after the 60-day deadline for creditors to object to it after the AGE.

Petrobras (PETR4;PETR3)

Petrobras (PETR4) has approved the closure of the competitive procedure, which was in the binding phase, for the full sale of the Nitrogen Fertilizer Unit III (UFN-III).

The state-owned company says it will evaluate its next steps related to the divestment of the asset in question, in line with the current 2023-2027 Strategic Plan, and reinforces its commitment to broad transparency of its divestment projects and portfolio management .

(With Estadão, Reuters and Agência Brasil)

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