Until then Cup it comes out after Tuesday’s holiday and may arouse greater attention than usual, after the succinct statement of the decision, seen as dovish, generate a negative reaction in the market, aggravated by fiscal fears and uncertainties about the prices of the Petrobras (PETR3;PETR4)
In the afternoon of the same day, decision of the Fomc and talks about Jerome Powell move global markets. In Brazil, an investor still monitors the attempt to approve the PEC of precatório or other solutions for the government’s social program.
Schedule still brings payroll in USA, BOE decision, PMIs in China and industrial production here. auction of 5G, bank balance sheets and the threat of strike by truck drivers are also on the radar. See the main themes:
Copom Minutes
The market will seek more details in the minutes on the points of the Copom statement seen as dovish, including the division of the focus of monetary policy between 2022 and 2033. Some analysts also considered the BC’s tone on inflationary risks less emphatic than expected. tax.
Exceptionally, the minutes will be released at 7:00, before BC president Roberto Campos Neto takes part in a COP-26 event. Focus on Monday may bring higher projections for the Selic and inflation, also reflecting the IPCA-15, which surpassed estimates. Next week still reserves the industrial production of September and the numbers of October of the scale, Fenabrave, PMI manufactures, IPC-Fipe and IPC-S.
Fomc, BOE, payroll
While the Copom minutes may move the local market on Wednesday morning, in the afternoon all eyes turn to the Fomc decision, followed by Powell’s speech. Fed is expected to announce that it will begin ending the bond-buying program implemented since last year.
The next day, it will be the British BC’s turn to hold its meeting. Possible signs of monetary tightening can still be checked in speeches by ECB officials throughout the week. The US will also release important data, such as the October payroll, which comes out on Friday and is estimated at +400,000 seats. China will release industry and services PMIs with the potential to affect markets on Monday.
PEC and social program
Due to the lack of a secure quorum for the governing base, the vote on the PEC of the precatório in the Chamber was postponed from this week to November 3rd.
The government’s difficulty in approving the amendment, which would make the new social program viable Brazil Aid, generated in the market the fear of abandoning the PEC and adopting measures potentially even more negative for the public accounts.
Among the options would be the extension of emergency aid, through extraordinary credit, or even the decree of a state of calamity, according to the newspapers. Truck drivers kept the strike call for Monday, but without closing roads, says Uol.
Petrobras
President of the Senate, Rodrigo Pacheco, said he will meet with the president of Petrobras and governors next week to discuss fuel prices. Equalizing fund and price policy linked to the exchange rate will be discussed, he said.
President Jair Bolsonaro said the government is trying to find a way to change the legislation on price increases at the state-owned company. He criticized the fact that the price of fuel is pegged to the dollar and said that “Petrobras has to be a company that makes a profit that is not as high as it has been”.
President of BNDES, Gustavo Montezano placeholder image, said that the discussion about the privatization of Petrobras is “very productive” and “healthy”, but, for now, nothing more than that. The bank, which coordinated several privatization processes during the presidency of Jair Bolsonaro, was not officially notified by the government to initiate any action in this regard, he said.
5G and banks
A National Telecommunications Agency on November 4th, it promotes the largest spectrum offer in history by bidding for radio frequencies in the 700 MHz, 2.3 GHz, 3.5 GHz and 26 GHz bands for mobile access. Auction will move around R$ 50 billion, of which R$ 3 billion will go to the Treasury coffers, if all the lots are auctioned, according to the agency.
Fifteen bidders submitted documentation to participate in the auction.
Source From: Moneytimes
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