The Effects of US Interest, Amazon’s Bug and What Matters in the Market – 01/27/2022 – Market

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First high for March

The Fed signaled on Wednesday (26) that it intends to raise short-term interest rates in March, when it will also make the last reduction of its special bond purchase program.

In the interview after the announcement, Jerome Powell, the governor of the US central bank, refused to rule out a more aggressive sequence of rate hikes.

Understand: the advance of inflation has led the Fed to reduce its stimulus measures to the economy adopted at the beginning of the pandemic.

The interest rate, now close to zero, should have three or four increases this year, according to analysts, while the monthly program to buy $120 billion (R$ 664 billion) in assets is expected to end in March.

why it matters: monetary tightening moves by the Fed often make investors uneasy. They are often accompanied by capital flight from risky assets and emerging markets.

  • For the time being, the Brazilian stock market, which dropped a lot last year, has been evaluated as cheap and registered high, in the opposite direction from abroad.
  • But there are analysts who see this move as temporary, and they do not rule out further turmoil in the coming months.

Market reaction: the Ibovespa rose by 2.2% on the day, but lost steam and closed at a high of 0.98%, at 111,289 points, after the Fed’s pronouncement. Outside, the indices even advanced shortly after the announcement, but returned gains at the end of the day and closed close to stability.

More about the Scholarship:

in the midst of US turmoil, the flow of foreign capital to the Chinese market increased earlier this year.

Are your BDRs going down? See on the blog De Grão em Grão how many times the American stock market has fallen like this month.

Results: the Tesla revenue exceeded expectations with the record delivery of vehicles, but the automaker warned of the lack of inputs. Microsoft’s profit, released on Tuesday (25), also came above the projection.


Drought should make food more expensive

Food and beverage prices rose in January by the 18th month consecutive year in Brazil and pulled the high of 0.58% of the IPCA-15 (inflation preview) for the month.

In numbers: the preview of inflation for the food and beverage group registered a high of 0.97% in January, accumulating an advance of 19.05% from August 2020 to January 2022. The IPCA-15 rose 14.99% in the period.

Will it get worse? The drought in the southern states of the country should put even more inflationary pressure on these items.

What explains: the lack of rain has already caused losses in crops such as corn, soy, fruits and vegetables. The first two are used in animal feed, and the loss should also impact meat prices.

Last year, the crops also suffered from adverse weather conditions, such as lack of rain and occurrences of frost. These factors, together with the rally in commodity prices and the exchange rate of the real against the dollar, contributed to the continuation of the increase in food prices.

More on inflation:

Cost pressure: a combination of threats is gaining strength and should make it difficult to fight inflation this election year, according to economists.

Petroleum: amid tensions between Russia and Ukraine, the Brent-type barrel reached the mark of $90 (R$489), but ended the day at US$89.65 (R$487), up 1.65%.

In Brazil, the governors extended the ICMS freeze on fuels for another 60 days, but the market still sees a lag in prices and expects new adjustments.


It has Brazil in the name, but it’s not Brazilian

It has a Brazilian face, it has the name of the country, but it is not from here. There are thousands of such products being marketed in Chinese e-commerce.

Understand: the majority of 10 thousand Items that carry the Brazil brand in Chinese online stores are actually produced and sold by local companies or companies from other countries.

Examples are “Brazilian pine nuts”, sold by American and Chinese companies, and açaí, which has a Belgian brand as the most popular of the product. The survey was carried out by Renata Thiébaut for the Brazil-China Business Council.

why it matters: although China is the main destination for Brazilian exports, many things that go from here to there are commodities, such as iron ore, soy and meat. Products with higher added value, such as those sold on e-commerce, still have little share of genuinely Brazilian brands.

Biggest in the world: Chinese e-commerce accounts for nearly half of the world’s e-commerce. There, online sales account for about 50% of total retail. As a comparison, this relationship borders on the 10% in Brazil.


Amazon bug

Amazon promotional coupons that circulated on social networks this Wednesday morning made many Brazilians happy. But because the discounts came from a glitch on the company’s website, the company is not required to confirm the purchase.

Understand: because of a “bug”, the coupons offered to new users were cumulative, which generated generous discounts. The highest value confirmed by the leaf it was from BRL 435 in books —​29 coupons of R$15.

Bought, took? Asked, Amazon did not confirm whether the purchases will be confirmed or not. In cases of serious errors on the purchasing platform, the company can cancel purchases, says lawyer Marco Antonio de Araújo Jr. to BBC Brasil.

Even if customers have received confirmation of purchase, the order can be canceled and the amount refunded.


What else do you need to know

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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