Financial strain adds to Brazil’s economic slowdown

Long-term yields at home and abroad offset support from stocks, currency and other market indicators, reinforcing expectations of weaker growth

 

 

 

Alessandra Ribeiro

Brazil’s financial conditions have remained restrictive since March, driven mainly by fixed income, as the Selic rate declines only gradually from 13.75% and long-term borrowing costs stay under pressure both at home and abroad.

Higher external risk explains much of this year’s tightening. In Brazil, however, market interest rates also reflect worsening fiscal concerns and rising public debt, which have pushed investors to demand higher risk premiums.

The Financial Conditions Index, or FCI, compiled by Tendências Consultoria using the Central Bank’s model as a reference, has remained in contractionary territory since March, when local and global markets deteriorated sharply following the outbreak of the conflict involving the United States, Iran and Israel.

The index reached 1.23 point at the end of March and has since become more volatile, while remaining in restrictive territory.

The indicator combines price components, including commodity indexes, oil prices and the exchange rate, with market variables such as Brazilian and international stock indexes. It also incorporates risk measures including credit default swap (CDS) movements, volatility indexes and domestic and international interest rates, which carry the greatest weight.

A negative reading signals expansionary financial conditions that support economic activity. A reading above zero, as at present, points to tighter conditions and a less favorable environment for growth.

In practice, the sharp rise in long-term global interest rates has offset improvements in domestic factors that could otherwise ease financial conditions.

The surge in U.S. Treasury yields has prevented a stronger decline in Brazil’s long-term rates, even as the Selic falls and the stock market gains on expectations of a close election between Luiz Inácio Lula da Silva of the Workers’ Party (PT) and Flávio Bolsonaro of the Liberal Party (PL).

“Interest rates abroad are the main source of tightening, followed by oil and, to some extent, currency movements, with the dollar gaining a little more traction,” said Alessandra Ribeiro, partner and director of macroeconomics and sector analysis at Tendências. “But overall, interest rates account for much of the index’s movement, which has come under greater pressure again after a very volatile year.”

Ribeiro said the FCI is at its highest levels since April, showing that financial conditions have been tight for much of the year.

“And the level is not low. We are now seeing the effects on economic activity, with models showing that financial conditions begin to affect the economy after one quarter and that the impact lasts for as long as four quarters. In other words, this will affect activity,” she said.

Growth outlook

Tendências says market performance “only reinforces the scenario of a further slowdown in activity in the second half.”

The consultancy expects gross domestic product to grow by an average of just 0.1% in the second half of this year, leaving a carryover of only 0.3% for 2027.

Tendências forecasts GDP growth of 1.8% this year and just 1% in 2027, underscoring its view that the economy will lose momentum as domestic interest rates remain under pressure.

“If we look at local assets, interest rates are pushing financial conditions toward tightening, while other markets have contributed more positively,” Ribeiro said, referring to CDS and capital markets, which have helped limit the overall tightening.

Rafael Cardoso — Foto: Anna Carolina Negri/Valor
Rafael Cardoso — Photo: Anna Carolina Negri/Valor

Diverging signals

Daycoval chief economist, Rafael Cardoso, also sees domestic interest rates as a source of financial tightening, although the bank’s own FCI currently points to expansionary conditions.

One of the main differences from the Central Bank framework involves higher oil prices. Daycoval treats them as a source of financial easing because Brazil is an oil exporter.

“Some components, such as capital markets, the local exchange rate and the performance of emerging-market currencies, end up pushing the index into expansionary territory. But high domestic interest rates and credit delinquency are two factors pointing to very contractionary financial conditions,” Cardoso said.

Although Daycoval’s FCI currently signals expansion, Cardoso said the index is only one input in the bank’s GDP forecasts.

“We know that all indicators have their problems, and the FCI does not capture the duration of monetary tightening,” he said. “It may show a reading close to neutral, or slightly expansionary, but a prolonged period of tight conditions can produce weaker activity than expected.”

Cardoso said that appears to be the case now.

“An FCI close to neutral should point to GDP growth near its potential rate of 2%, but we forecast growth of 1.2% in 2027. Once we move away from the indicator itself, GDP appears likely to perform more weakly than current financial conditions would suggest,” he said.

André Lóes — Foto: Gabriel Reis/Valor
André Lóes — Photo: Gabriel Reis/Valor

Fiscal pressure

Vivest chief economist, André Lóes, takes a similar view, saying financial conditions are severely strained in fixed income, though less so in the foreign-exchange market.

“If public-debt holders receive bad news after the election about fiscal proposals, conditions will deteriorate because the yield curve will not come down and there is also a chance the exchange rate could weaken,” he said.

Lóes said investors naturally focus on the direction of monetary and fiscal policy, but private-sector decisions also create an underlying trend that feeds into financial conditions.

“They end up being extremely important. Ultimately, when we reach a situation in which people are worried, the impact of economic policy itself starts to become limited. In other words, fiscal expansion does not help if people respond by consuming less,” he said.

Financial conditions are therefore becoming increasingly important in assessing what comes next for Brazil, Lóes said.

“And because the major imbalance is fiscal, fiscal adjustment becomes very important. Otherwise, it will not be possible to untie the knot in financial conditions,” he said.

“We do not have a balance-of-payments problem, and we managed to bring inflation down to civilized levels, although the sacrifice ratio was very high precisely because of the other imbalances,” Lóes said.

“We have three problems today: fiscal, fiscal and fiscal. If we start addressing that, we can move beyond the very short-term issues and complete the work we began 30 years ago: stabilizing the Brazilian economy and focusing on productivity growth.”

*By Gabriel Roca and Victor Rezende, Valor — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Brazil betting ban triggers legal battle with industry

Industry groups seek suspension of sweeping measure as government sues 17 operators for at least R$1 billion over alleged social and health costs

 

 

 

 

Luiz Fux — Foto: Luiz Silveira/STF
Luiz Fux — Photo: Luiz Silveira/STF

Brazil’s online betting industry and the federal government opened competing legal fronts Monday over President Lula’s sweeping ban on online gambling, as industry groups asked the Supreme Court to suspend the measure. In contrast, the government sued 17 operators for at least R$1 billion in collective damages.

They are the first legal actions on the issue since President Lula issued the executive order on Friday, another major policy move made days before the first round of the presidential election.

At the Supreme Court, the industry groups are seeking an injunction to suspend the measure until Congress either converts it into law or the court reviews it. No justice has been assigned yet, but the companies want the case assigned to Justice Luiz Fux, who is already handling other industry-related cases.

If the court rejects their main request, the betting companies are asking it to either exempt operators already authorized to do business in Brazil—currently, 85 companies operating 186 brands—or to delay enforcement of the ban for six months.

The National Association of Games and Lotteries, representing 32 authorized companies, filed the petition in cooperation with the Brazilian Institute for Responsible Gaming.

Among its arguments, the association says the executive order violates legal certainty, freedom of enterprise, the principle of proportionality, consumer protection, and Brazil’s federal system. It describes the measure’s timetable as “abusive.”

In a statement, the group argued that the government had overnight eliminated a market that had attracted investment, paid taxes and created jobs, while leaving millions of gamblers exposed to an illegal market with no protections.

The association also argues that no urgency justified the executive order; that such a measure cannot address criminal matters; that the government failed to estimate its budgetary or financial impact; and that it encroaches on the administrative powers of Brazil’s states.

The Attorney General’s Office acted preemptively, asking the judge handling the case to give the president’s office and the institution 72 hours to present their arguments before making a decision.

Government seeks compensation for health costs

On another front, the federal government filed a civil lawsuit in federal court in Pernambuco state because, according to the Attorney General’s Office, Brazil’s Northeast is among the regions most affected by problem and high-risk gambling because of its greater concentration of vulnerable groups.

According to the institution, the 17 companies named in the lawsuit account for about 80% of Brazil’s fixed-odds betting market.

The Attorney General’s Office also reports that 10.9 million of the 28 million Brazilians who currently gamble exhibit patterns of high-risk or problem gambling. According to the institution, between January 2018, when betting was legalized in Brazil, and December 2025, treatment for pathological and excessive gambling through Brazil’s public health system increased by 140%.

The government argues that the compensation betting companies must provide under current legislation does not cover the costs the public health system bears.

According to the Attorney General’s Office, the exact amount the companies would have to reimburse the public health system for material damages, should the government prevail, would be calculated at the end of the proceedings. The institution cites preliminary Health Ministry studies estimating losses of at least R$2.6 billion.

The government is also asking the court to order the companies to repay twice the amounts wagered by people diagnosed with gambling disorder.

Task force targets illegal platforms

Throughout the day, the government released details of actions taken by a task force created to cut off access to unauthorized platforms and prevent new online addresses from offering betting to Brazilians.

The task force identified 506 websites suspected of offering unauthorized betting and seven social media advertisements that began circulating on the day the measure was issued, despite the measure’s ban on new advertising.

The government said it would continue monitoring the platforms to ensure that advertisements are removed and proposed a technical meeting with representatives of major technology companies. A report prepared by the ministries involved recommends immediately removing advertisements first published after the provisional measure took effect.

The government also blocked messaging app channels that promoted online betting. Together, they had 212,000 members.

In an extraordinary edition of the official gazette, President Lula also issued a decree establishing a new interagency committee to police illegal fixed-odds betting and advertising.

The committee’s responsibilities include sharing information on individuals and companies involved in operating, offering, intermediating, or promoting fixed-odds betting; maintaining a unified database of internet domains, applications, and bank or payment accounts; and establishing joint protocols for blocking websites and apps.

The committee will also be able to propose standardized procedures for notifying platforms, service providers, and financial institutions, and for referring evidence of possible administrative, tax, or criminal violations to the appropriate authorities.

*By  Giullia Colombo and Sofia Aguiar— Brasília

(Jéssica Sant’Ana contributed to this report.)

Source: Valor International

https://valorinternational.globo.com/

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Central Bank weighs higher capital requirement for credit cards

Measure is among options discussed to curb household debt as interest costs take a record share of debt-service income

 

 

Lauro Gonzalez — Foto: Divulgação
Lauro Gonzalez — Photo: Divulgação

.Brazil’s Central Bank is at an advanced stage of studying measures to rein in household debt, which remains near record levels. One option under consideration is requiring banks to hold more capital against riskier types of lending, including credit cards, Valor has learned.

Economists, however, question how effective such a move would be in an environment of persistently high interest rates and as expensive forms of credit account for a growing share of household debt.

The Central Bank is expected to meet with banking industry representatives in the coming days, people familiar with the matter said. Financial institutions are still trying to understand what measures may be adopted and their potential impact.

“They [at the Central Bank] are designing the alternatives. We still don’t know what is coming,” one person said.

“We will have discussions with the Central Bank to understand what those measures could be,” another source said.

Central Bank Chair Gabriel Galípolo may address the issue this Thursday (Sept. 24) during the release of the Monetary Policy Report. He has repeatedly voiced concern about household debt, particularly the rapid expansion of credit-card lending.

Capital requirements

Industry sources see an increase in the risk weight applied to credit-card lending as one of the more likely options.

Under such a measure, banks would have to set aside more capital against credit-card exposure. That would raise the opportunity cost of extending this type of credit and could encourage lenders to redirect capital toward other products. The measure would be aimed at discouraging supply rather than curbing demand.

The Central Bank took a similar step 15 years ago, when auto lending was expanding rapidly. The measure helped slow growth in that segment.

Other ideas discussed in recent weeks, including higher reserve requirements or an increase in the tax on financial transactions, known as IOF, appear to have lost some momentum.

“That would only raise the cost of credit and would not discourage riskier lines, which seems to be what the Central Bank wants,” one source said.

Credit-card growth

The regulator has been paying particularly close attention to credit cards. The segment expanded sharply in recent years, driven by greater competition and broader access to banking services, and continues to grow at a fast pace.

While total outstanding credit rose 7% in the 12 months through July, the latest available data, credit-card balances for individuals climbed 14.7%. Within that category, revolving credit jumped 20.8%, installment balances rose 11.5%, and purchases paid in full increased 14.3%.

Central Bank Monetary Policy Director Nilton David said on Wednesday (Sept. 23) that the measures being studied to improve credit supply are intended to increase transparency, map risks, align incentives and reduce the potential for systemic risk.

Without providing details, David said the measures should not be confused with monetary policy.

“Everything is being designed and considered by looking at the experiences and existing legislation in other jurisdictions, in other countries. The objective is the mitigation of systemic risks, alignment of incentives and transparency,” he said at an event organized by Safra bank.

David added that the rules would not differentiate among types of financial institutions.

Financial stability

His remarks reinforce the message from the latest meeting minutes of the Central Bank’s Financial Stability Committee, known as Comef, which highlighted the need to address household indebtedness.

The committee said the Central Bank planned to adopt measures to mitigate risks associated with more expensive forms of credit. Its guidelines call for “the timely recognition of risks, the gradual accumulation of capital and more sustainable conditions for extending credit to borrowers.”

In a recent report, Safra analysts said macroprudential measures are likely to take the form of higher capital requirements for riskier credit products.

They pointed to December 2010, when the Central Bank raised the risk weight on auto loans of up to two years to 150%, at a time when that type of lending was growing at an annual pace of nearly 20%.

“We consider this episode a reference point for the type of calibration the current environment may require, rather than a forecast of the exact action. […] A comparable increase in revolving credit-card balances, unsecured personal loans and overdrafts would be the natural target if the Central Bank opts to act.”

A sell-side analyst said a higher risk weight may have limited effectiveness because some of the financial institutions expanding fastest in unsecured lending in recent years are large fintechs that currently have excess capital.

That means that even if the Central Bank raises capital requirements, those companies may still find it attractive to continue extending this type of credit as they seek to gain market share.

“Another possibility would be to require additional provisioning for certain products for a period of time, which could be more effective,” the analyst said.

Household strain

Household indebtedness has remained near record levels in recent months. It stood at 49.75% in June, just below the historical peak of 49.92% reached in January. The indicator compares the stock of household debt with income accumulated over the previous 12 months.

The household debt-service ratio—the share of disposable income used to service debt—also reached an unprecedented 28.85%.

The composition of that burden is drawing additional attention. Of the total, 17.99 percentage points go toward principal repayments and 10.86 percentage points toward interest alone.

In other words, interest payments account for 37.6% of the income households devote to servicing debt, also a record.

Several factors help explain the growing weight of interest payments, including the Selic, Brazil’s benchmark interest rate, remaining high for an extended period; a shift in the credit mix toward products with wider spreads; and pressures on household budgets, including sports betting.

This has occurred even as incomes remain strong and unemployment sits near historical lows.

“Even the rise of [instant-payment system] Pix has played a role because it led banks to compete in the credit-card segment by offering larger credit limits. With a population lacking financial literacy and high interest rates, that led to a very bad combination,” said a researcher who studies the subject.

Credit supply

Lauro Gonzalez, coordinator of the Center for Studies in Microfinance and Financial Inclusion at Getulio Vargas Foundation (FGV), said debt crises typically stem from factors that can be grouped into three areas.

The first involves macroeconomic conditions, such as the benchmark interest rate. The second relates to microeconomic factors, including financial education. The third concerns credit supply, such as the widespread availability of credit cards.

Gonzalez said the financial industry has changed significantly with the arrival of new players and the inclusion of tens of millions of new users.

“Depending on regulation, the ecosystem that is built may have more or fewer models of predatory credit supply,” he said.

In an article published in April, Gonzalez proposed seven measures to address the issue. One was precisely the higher regulatory capital and provisioning requirements for riskier loans that the Central Bank is now considering.

Another proposal was to create a debt limit for unsecured credit, similar to the 30%-of-income limit used by the industry for mortgage lending.

Debt relief

On the government side, Finance Minister Dario Durigan recently said officials are studying a new version of Desenrola, the federal debt-renegotiation program.

Unlike previous versions, the government would hold a type of auction to buy older consumer debts, between two and five years past due, at a discount, possibly using the structure of federal asset management company Emgea. The debts would then be canceled.

Banks see the potential impact of the program as neutral. These are loans that have already been written off as losses and that financial institutions already sell to asset managers specializing in distressed assets.

Even if the debts are canceled and consumers have their negative credit records cleared, banks consider it unlikely that they would immediately regain a strong enough risk profile to qualify for new loans.

It is also unclear how the program could be implemented while the government is running a primary budget deficit.

The Central Bank declined to comment.

*ByÁlvaro Campos,Lais GodinhoandHamilton Ferrari— São Paulo and Brasília

Source: Valor International

https://valorinternational.globo.com/

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U.S. diesel export ban could hit Brazil hard, experts warn

U.S. supplied about 80% of Brazil’s diesel imports in September as disruptions in Russia and Middle East tighten global market

 

 

 

Felipe Perez: “Diesel prices in the U.S. keep rising and have begun to affect American farmers” — Foto: Leo Pinheiro/Valor
Felipe Perez: “Diesel prices in the U.S. keep rising and have begun to affect American farmers” — Photo: Leo Pinheiro/Valor

Brazil could face a sharp impact if the United States restricts diesel exports, energy-market experts say, as President Donald Trump weighs a measure to contain record domestic fuel prices ahead of the Nov. 3 midterm elections.

Brazil relies on imports for roughly 30% of its diesel market, making it particularly exposed to any U.S. restrictions. About 80% of the diesel Brazil imported in September came from the United States, according to a source familiar with the fuel market. India is also an important supplier, though its share is smaller.

Bloomberg reports that U.S. agricultural state lawmakers are urging the White House to halt diesel exports amid the harvest season, driven by increased demand from diesel trucks. Additionally, states like Alaska have requested restrictions as winter nears, when heating fuel consumption rises.

The oil industry, however, could be hurt by restrictions on overseas sales.

“It is as if the two biggest forces within the Republican Party were in conflict. Agriculture and the oil industry are pulling in opposite directions,” said a source familiar with the discussions.

“If exports are banned and refineries have to sell at domestic prices, we need to see who would absorb the difference compared with what they could earn by selling overseas,” the source said.

 

It remains unclear whether any restriction, if adopted, would be temporary or whether the U.S. government could instead limit overseas sales through export quotas.

Global supplies already under strain

After Russia’s invasion of Ukraine and the ensuing sanctions, discounted Russian diesel became a major source of Brazilian imports, competing with U.S. supplies for the top spot.

However, increased Ukrainian strikes on Russian refineries led Moscow to halt diesel exports in July, exacerbating an already tight market due to supply issues in the Middle East. Additionally, China has focused on its internal needs and limited exports since the U.S.-Iran conflict started on Feb. 28.

Felipe Perez, a director at S&P Global, said that even without an official decision, a potential U.S. export suspension would disrupt global diesel flows because the U.S. is such a major supplier.

“Diesel prices in the United States continue to rise and are beginning to affect American farmers,” Perez said. “If exports are indeed suspended, refineries could reduce production because the domestic market cannot absorb all the volume and storing it is less profitable. That reduction in refinery output could also affect U.S. gasoline production.”

Perez said buyers that currently rely on U.S. diesel would have difficulty finding the same volumes elsewhere. In that case, consumers worldwide would compete for scarcer, more expensive supplies at a time when diesel refining margins have hovered near record levels in recent months.

“Diesel consumers have very little flexibility,” he said. “They cannot simply switch to another fuel. They will have to pay more.”

Reuters reported Tuesday that Trump said he supported banning U.S. diesel exports.

“I’ve already said we shouldn’t export diesel. We produce a lot of diesel. I’ve advocated that. I’ve advocated it with my team,” Trump told reporters before a meeting with Ukrainian President Volodymyr Zelensky.

Treasury Secretary Scott Bessent said the administration is examining whether a ban would be feasible and whether a full or partial restriction could work, Reuters reported. Trump also said he discussed Ukrainian attacks on Russian refineries with Zelensky.

*By Kariny Leal— Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/

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Central Bank flags slowdown, keeps November cut in play

Minutes focus on weaker activity and credit conditions as markets keep odds of another 25-basis-point reduction alive despite election uncertainty

 

 

 

 

Ariane Benedito — Foto: Rogerio Vieira/Valor
Ariane Benedito — Photo: Rogerio Vieira/Valor

Despite few changes from its previous communication, the minutes of last week’s meeting of the Central Bank’s Monetary Policy Committee (Copom) reinforced the market’s view that policymakers are closely watching the slowdown in economic activity and developments in credit.

The document also kept alive expectations that the benchmark Selic rate could be cut at least once more in November, although market pricing stops short of fully factoring in another reduction amid uncertainty surrounding the presidential election.

Compared with the August minutes, Copom made no significant changes to its discussion of how monetary policy should be conducted. Investors, however, saw meaningful shifts in its assessment of the economic outlook and balance of risks.

The Central Bank placed greater emphasis on slowing activity, a view reinforced by second-quarter gross domestic product data, which “confirmed the slowdown” and “revealed that the movement was more intense in economic activities and demand components that are more sensitive to the economic cycle.”

Credit conditions also returned to the minutes after being absent from the previous document. Copom said developments in bank lending have been “consistent with a slowdown in growth,” while longer-term credit categories have declined.

Short-term and emergency credit lines, which tend to be more expensive, “continued to grow, although at a slower pace at the margin,” the minutes said.

Although investors read the document as more dovish, given Copom’s assessment of the economy, interest-rate futures were volatile and ended the Tuesday (Sept. 22) session little changed. The January 2028 DI (Interbank Deposit) futures rate fell to 13.48% from a previous settlement of 13.53%.

In the options market, the implied probability of another 25-basis-point Selic cut in November remained at 67%.

Signs of restraint

PicPay has long expected the Selic rate to fall to 13.5%. The bank’s chief economist, Ariane Benedito, said the minutes reinforced the impression that the Central Bank is “very comfortable” with the rate cut already delivered and consolidated the view that the monetary easing process is “advanced and effective.”

Benedito said Copom also appeared more at ease with signs that the economy is losing momentum.

“In the more cyclical segments, it made clear that the latest indicators point to a slowdown and that GDP confirmed this trend. It also mentions longer-term credit and makes clear that it is already seeing the effects of tight monetary policy in the composition of longer-term lending,” she said.

“Despite that, there is no stronger signal,” Benedito said. She added that the Central Bank appears concerned about the risk premiums demanded by investors, particularly as anxiety builds ahead of the presidential election.

“We expect normal volatility. Of course, the market will move a lot and issues such as confidence and candidates’ proposals will come into play… But given external and liquidity conditions, as long as there is no major disruption in financial markets, investors tend over time to return their focus to the current data.”

Monte Bravo chief economist, Raí Chicoli, said the credit discussion added to the minutes did not point to an extreme scenario as the most likely outcome, but he is increasingly concerned about high household delinquency rates.

Chicoli said the Monetary Policy Report, due Thursday (Sept. 24), should provide more detail on households’ debt-service burden and overall indebtedness.

External risks

As a counterweight to a domestic backdrop that could support further Selic cuts, the minutes described the global environment as uncertain and highlighted risks stemming from higher oil prices and monetary policy in advanced economies.

Chicoli, however, does not see the external backdrop as the main driver of Copom’s next moves unless the war in the Middle East either ends or escalates significantly over the coming months.

He said economic activity and investors’ assessment of fiscal policy after the election are likely to shape the Selic’s near-term path. Chicoli does not rule out a faster pace of easing if the post-election environment becomes significantly more favorable, but for now expects two more 25-basis-point cuts this year.

Election uncertainty

Bank of America economists led by David Beker, head of Brazil economics and Latin America strategy, said the election adds uncertainty to the November meeting.

“By the next Copom meeting, Brazil’s new president will already have been elected. Regardless of the election outcome, we believe there is room for interest-rate cuts to continue. Still, if there is a significant currency depreciation after the election, the cutting cycle could be shallower than we currently expect,” the team said.

J.P. Morgan’s Brazil economists, led by Vinicius Moreira, said the minutes reinforced the Central Bank’s emphasis on a data-dependent approach. Based on the bank’s inflation and activity forecasts, they continue to expect the Selic to remain at 13.75% as their base case.

“Furthermore, consensus inflation expectations are further from the target than when the Central Bank began the calibration cycle and, according to the Central Bank’s own model, inflation does not converge to the target at least until the first quarter of 2028 in a scenario in which the Selic remains unchanged through the end of the year.”

However, the J.P. Morgan economists acknowledged downside risks to their interest-rate forecast.

“Recent activity data have generally come in below expectations, and the medium-term growth outlook has deteriorated, partly because of the high cost of debt service across much of the economy. In addition, although inflation remains persistently above target, it has been surprising to the downside.”

*By  Gabriel Caldeira,Victor Rezende and Hamilton Ferrari— São Paulo and Brasília

Source: Valor International

https://valorinternational.globo.com/

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Tariff refunds lift earnings ahead of next U.S. phase

Embraer and Taurus book hundreds of millions of reais in tariff refunds, while WEG could receive up to R$230m; Suzano seeks reimbursement through U.S. courts

 

 

 

Embraer booked R$358.6 million in tariff refunds in the second quarter — Foto: Divulgação
Embraer booked R$358.6 million in tariff refunds in the second quarter — Photo: Divulgação

Tariff refunds boosted second-quarter results at companies with operations in the United States, but the next phase of the reimbursement process has been delayed by the U.S. Customs and Border Protection (CBP) and is now set to begin in early October. Billions of dollars are at stake.

In Brazil, traditional exporters to the U.S. have largely avoided commenting on the issue, but the sums involved are also significant, reaching hundreds of millions of reais.

Jet maker Embraer booked R$358.6 million in second-quarter results related to the recovery of import duties. Combined with the exemption of aircraft and parts from the latest round of U.S. tariffs, the refunds prompted the company to raise its expected profit margin for the year, XP said in a report to clients. Contacted by Valor, Embraer declined to comment.

Taurus recognized R$91.1 million in refunds during the period, nearly the full amount it had requested.

“From the outset, we believed there could be a Supreme Court victory over the tariff’s unconstitutionality,” said Salesio Nuhs, CEO of the firearms manufacturer. “So we began gathering the documentation so we would have it ready when the time came.”

The process was easier for Taurus because it exports to a U.S. subsidiary, which filed for the refund, Nuhs said. The United States is the company’s main market, accounting for more than 80% of its firearms sales.

Taurus products were not included in the exemptions from the tariff package and were subject to a 50% rate — consisting of the 10% “reciprocal” tariff imposed in April 2025 and an additional 40% surcharge introduced in August — until the U.S. Supreme Court struck down the tariffs in February. The court ruled on Feb. 20 that the International Emergency Economic Powers Act did not authorize the president to impose the tariffs.

J.P. Morgan recently highlighted the potential upside from refunds for another Brazilian company, WEG. The bank estimates the company could receive between R$170 million and R$230 million, equivalent to as much as 9% of its projected third-quarter EBITDA.

The Santa Catarina-based electric motor manufacturer was initially subject to the 10% tariff and later to the additional 40% surcharge. Some products were subsequently exempted, while others remained subject to the maximum rate.

Billion-dollar refunds

In the U.S., tariff reimbursements have generated multibillion-dollar gains for some companies.

Walmart, one of the country’s largest importers, received $2.9 billion in refunds during the quarter, boosting the retailer’s earnings and gross margin. The giant retailer said the amount represented substantially all the refunds it had requested.

Apple did not disclose a figure, but analysts estimated its reimbursement at about $2.2 billion.

Valor obtained a filing submitted in February by pulp and paper producer Suzano and two subsidiaries, just days after the Supreme Court ruling. The companies asked the U.S. Court of International Trade to order CBP to “reliquidate” imports that had been subject to the tariffs and process the corresponding refunds.

Reliquidation process

Reliquidation involves reopening an import entry that has already been finalized, or liquidated, so the duties assessed on it can be recalculated.

The U.S. Court of International Trade ordered CBP to reliquidate imports subject to the tariffs, including entries whose liquidation had already become final. The government appealed that broader order, and the case remains pending before the U.S. Court of Appeals for the Federal Circuit.

The Donald Trump administration argues that CBP lacks the legal authority to reopen a finally liquidated entry on its own and must instead act under a court order, such as the one sought by Suzano.

A CBP representative told the Court of International Trade that the next phase of the refund process will cover imports whose reliquidation has been ordered by a court.

Originally expected to begin in August, the phase was postponed while CBP adapted its refund-processing system. The agency now plans to launch it on Oct. 6 for eligible importers covered by court-ordered reliquidation.

“There are some people in Washington who are apprehensive about the possibility that CBP may be changing its mind about this phase. I don’t think that’s true. I believe CBP is acting in good faith, and I say that because this entire process is being conducted through the courts [the Court of International Trade],” said Matthew McConkey, a partner at U.S. law firm Mayer Brown, which is associated with Brazil’s Tauil & Chequer.

Brazilian claims

Suzano’s filing does not specify an amount. Brazilian pulp exports were subject to the 10% tariff before the product was exempted in September.

Neither Suzano nor WEG has publicly said it filed for reimbursement with U.S. customs authorities. Contacted by Valor, both companies declined to comment.

William Roberto Crestani, a tax partner at law firm Pinheiro Neto Advogados, said that, without naming companies, he has heard of other Brazilian businesses that have already secured refunds and others that are still pursuing reimbursement. He cited the machinery, steel and pulp and paper industries.

In addition to CBP’s postponement of the next phase, Crestani said some refunds have been held up by practical issues such as missing bank information.

Although few companies have publicly discussed the matter, Brazilian machinery industry association Abimaq Chair José Velloso said he believes several of its members are exercising their right to seek reimbursement in the U.S.

Valor contacted companies in those industries, but none commented. The Brazil Steel Institute also declined to comment.

Brazil’s National Confederation of Industry said it did not have enough information to address the issue, while the Brazilian Association of Publicly Held Companies (Abrasca) said it does not compile data on individual overseas transactions by its members. The Ministry of Development, Industry, Trade and Services did not respond.

*By Adriana Peraita— São Paulo

Source: Valaor International

https://valorinternational.globo.com/

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Real stands out as Brazil’s election race stays tight

Prospect of change in government fuels demand for Brazilian stocks and currency, while strategists warn fiscal risks remain under either candidate

 

 

 

Brazil’s real outperformed most major currencies as election uncertainty remained in focus — Foto: Daniel Dan/Unsplash

Brazil’s real outperformed most major currencies as election uncertainty remained in focus — Photo: Daniel Dan/Unsplash

Renewed expectations of a change in government after Brazil’s October presidential election boosted risk appetite in local markets, helping some assets outperform emerging-market peers. The real was among the five strongest currencies tracked by Valor on Monday (21).

In fixed income, expectations of an opposition victory also drove a decline in risk premiums across most of the interest-rate curve, with the exception of the very short end. The local risk-on mood received further support from global markets, as oil prices fell for a fourth straight session and government bond yields declined broadly across developed economies.

The stronger appetite for risk also lifted the benchmark Ibovespa stock index back above 186,000 points. Gains were held back by declines in mining company Vale and oil giant Petrobras shares.

The move came alongside a surge in major U.S. stock indexes, led by the Nasdaq, which closed at a record 27,122.094 points, surpassing its previous closing high of 27,093.901 reached in June.

Fiscal caution

Although the latest polls continue to show President Luiz Inácio Lula da Silva of the Workers’ Party (PT) and Senator Flávio Bolsonaro of the Liberal Party (PL) statistically tied in a potential runoff, Deutsche Bank’s Latin America economics and strategy team sees reason for caution.

The bank’s analysts said either candidate would face difficulty delivering substantial fiscal adjustment early in the next administration because of a “highly fragmented political landscape.”

In a report, the team said only a “modest” political and fiscal risk premium is currently priced into fixed income.

“We see lower rates under most fiscal regimes, but remain cautious given a tight election and fiscal uncertainty.”

The strategists are therefore maintaining only a curve-steepening position, designed to benefit from a wider gap between January 2029 and January 2031 DI (Interbank Deposit) futures rates.

On Monday, the January 2029 rate fell to 13.71% from 13.83%, while the January 2031 rate dropped sharply to 13.91% from 14.03%.

Equity gains

The decline in futures rates helped bolster the Ibovespa, which closed 0.74% higher at 186,596 points. Gains were limited by a 1.12% drop in Vale and a 1.03% decline in Petrobras preferred shares.

Beyond supporting the broader market, expectations of a possible change in government have recently increased demand for somewhat riskier stocks, Bank of America said.

BofA analysts said in a report that local investors have become more constructive on Brazilian equities, while foreign investors remain reluctant to increase risk exposure.

Defensive positioning remains concentrated in names such as electrical equipment maker WEG and infrastructure operator Motiva, while a higher-beta basket led by car rental company Localiza, toll-road operator EcoRodovias and truck and machinery rental company Vamos has attracted more interest, mainly as a tactical adjustment to the macroeconomic outlook.

Real outlook

Some foreign banks are also taking a more cautious view of the real. Deutsche Bank has reduced its position in the currency and now holds a neutral view, warning that “risks remain two-sided and positioning looks stretched” ahead of the election.

“Near-term risks are rising as fiscal and political concerns related to the elections intensify and seasonality turns less favorable in the second half. All of this is happening against an external backdrop that is less supportive for emerging-market currencies,” economists and strategists Francisco Campos, Beatriz Nunes, Christian Rojas and Carlos Muñoz-Carcamo said in a report.

The Deutsche Bank team nevertheless said Brazil’s favorable external accounts and high carry continue to support the real.

The exchange rate per U.S. dollar closed 0.7% lower at R$5.10 in the local market on Monday.

Hawkish comments from Federal Reserve officials during the day may have supported the U.S. currency, even as Treasury yields fell at the intermediate and long end of the curve. Short-term yields edged higher.

Late in the session, the two-year Treasury yield was at 4.75%, up from 4.75% in the previous session, while the 10-year yield fell to 4.97% from 4.99%.

*By Bruna Furlani,Maria Fernanda Salinet,Arthur Cagliari,Luana ReisandGabriel Caldeira— São Paulo

Source: Valor International

https://valorinternational.globo.com/

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JBS shifts Brazilian debt issuance to Dutch parent

Meat giant will keep its BDRs trading locally, while JBS S.A. remains able to issue debt to professional investors

 

 

 

Wesley Batista Filho and Gilberto Tomazoni — Foto: Divulgação/JBS
Wesley Batista Filho and Gilberto Tomazoni — Photo: Divulgação/JBS

Nearly 20 years after going public in Brazil and just over a year after moving its primary share listing to New York, JBS is changing how it issues securities in the Brazilian market.

Debt offerings will no longer be issued by JBS S.A. and will instead come from Netherlands-based JBS N.V.

The company said in a filing with the Securities and Exchange Commission of Brazil (CVM) on Monday (Sept. 21) that shareholders approved keeping JBS S.A. registered solely under category B, which allows companies to issue securities such as debt but not publicly traded shares in Brazil.

Local issuance

JBS S.A. will still be able to issue securities such as debentures in Brazil, but those offerings will be restricted to professional investors rather than the broader investing public.

Brazilian Depositary Receipts, or BDRs, will continue to trade in the local market.

JBS N.V. currently has two classes of shares. Class A shares, equivalent to common stock, trade on the New York Stock Exchange and serve as the underlying shares for the company’s BDRs.

Class B shares are held exclusively by J&F, the holding company controlled by the Batista brothers. Each Class B share carries the voting power of 10 Class A shares.

J&F move

The change comes two days after J&F said it had applied to register as a publicly held company in Brazil under category B.

J&F also controls companies including Âmbar Energia, Eldorado and Flora. The registration would allow the group to issue debt securities in Brazil, something it does not currently do.

The move reflects J&F’s transformation from a holding company into an operating company, as Valor reported Monday.

Leadership change

The restructuring of JBS’s Brazilian issuance comes as the company prepares for a leadership transition that will put a member of the Batista family back at the helm.

Wesley Batista Filho is set to take over as CEO in January 2027, replacing Gilberto Tomazoni.

In Monday’s filing, JBS said that “completion of the registration cancellation is subject to the satisfactory conclusion of the CVM’s review of the request, which is expected to take place in accordance with the terms and deadlines established under CVM Resolution 80.”

*By  Nayara Figueiredo and Camila Souza Ramos— São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Foreign retailers outperform Brazilian peers as consumer market slows

International retail groups gain market share as Brazilian chains face weaker sales, higher debt, court-supervised restructurings

 

 

 

Alexandre Bompard, of Carrefour — Foto: Nathan Laine/Bloomberg
Alexandre Bompard, of Carrefour — Photo: Nathan Laine/Bloomberg

Large international retail groups are weathering the current retail slowdown better than their Brazilian counterparts, while domestic chains are growing more slowly and increasingly turning to court-supervised restructurings. This is likely to further widen the gap in market share, strengthening the position of foreign operators in the revenue generated by Brazil’s retail sector.

The conclusion is part of a Valor analysis comparing the performance of Brazilian and foreign companies operating in the same segments based on their results so far this year. The differences are emerging at a time when Brazil has increased protection for sales of low-value imported goods.

President Luiz Inácio Lula da Silva signed into law on September 10 a measure that eliminates import duties on international purchases of up to $50, a tax that became known in Brazil as the “blusinha tax.” The measure is expected to reduce federal tax revenue by R$5 billion to R$6 billion in 2026, according to the Independent Fiscal Institution (IFI), a Senate-affiliated fiscal policy watchdog. Given that the previous tax rate was 20%, Valor estimates that at least R$25 billion worth of foreign goods priced at up to $50 will enter Brazil this year. That is equivalent to twice Renner’s net apparel revenue in 2025, making it the country’s largest fashion retailer.

Congressional approval of the measure was one of Lula’s priorities ahead of the October elections, and industry associations at the time described it as an electoral move.

An analysis of the major groups whose revenues can be compared shows that macroeconomic conditions and company-specific management decisions have hurt Brazilian retailers’ sales in recent years. These factors have weighed more heavily on their results than any significant positive factors benefiting foreign retail chains, widening the gap between the two groups.

Adding to the pressure, some Brazilian chains are heavily dependent on sales in the North and Northeast, regions hit harder by the broader slowdown in retail activity. Even after the federal government’s decision to increase cash-transfer program Bolsa Família payments by 15%, providing an additional boost to consumer spending in those regions, bank analysts on Friday (18) questioned whether the extra income would initially go toward reducing household debt and delinquencies.

The Monthly Survey of Trade, released by Brazil’s statistics agency IBGE on Tuesday (15), showed that retail sales increased 1.8% in volume from January through July. Consumer spending is slowing, however, as growth had reached 2.4% through March.

At the same time, the data show that foreign groups are also feeling the effects of weaker household consumption as household debt rises. So far, however, they appear to have withstood the pressure better.

According to the analysis, France’s Carrefour has been outperforming Grupo Mateus, a Maranhão-based retailer with a strong presence in the North and Northeast and a similarly diversified store portfolio, in same-store sales. Both companies operate in cash-and-carry and food retail.

Same-store sales are used as a gauge of underlying performance because they strip out the effect of new store openings, which typically boost revenue.

From January through June, Carrefour’s sales in Brazil were virtually flat in local-currency terms, declining 0.1% from a year earlier, while Mateus’ sales fell 7.7%. A year earlier, the Brazilian chain had posted 5.7% growth.

Carrefour’s operating profit in Brazil rose 0.9% from January through June, while Mateus’s fell 22.3% to R$888.5 million. “In Brazil, still a complex market, our adaptation plans and cost-reduction initiatives allowed us to further improve profitability and resume sales growth in the second quarter,” Carrefour CEO Alexandre Bompard wrote in his message accompanying the earnings report.

Likewise, Chile-based food retailer Cencosud, despite difficulties stabilizing some of its regional chains, posted results that were less pressured than Mateus’s. The Brazilian company has deliberately prioritized profitability over market share, abandoning an aggressive commercial strategy adopted in recent years.

Cencosud, which owns chains including Giga Atacado, Prezunic, and Perini, has seen sales affected by store remodeling and closures. Even so, its same-store sales decline was smaller than Mateus’s.

From January through March, the foreign group’s sales fell 1.4%, and the decline widened to 8% in the second quarter. Those figures were still less severe than Mateus’s, whose sales fell 7.3% and 8%, respectively. Bank analysts had projected a smaller decline of 5% to 7% for Mateus from April through June.

Ana Paula Tozzi, CEO of AGR Consultores, says large international groups give their Brazilian operations access to data, systems and management expertise, as well as funding from abroad—advantages that can make a difference in more challenging periods. “These businesses are operating in a perfect environment, but they operate with a long-term plan and a culture focused on the long term, and that is essential in more turbulent times,” she said. “It’s reassuring to know there is somewhere to turn—the parent company—when things get difficult,” she said.

While Carrefour delisted its Brazilian subsidiary in 2025 and Cencosud has no shares publicly traded in Brazil, Mateus went public on B3, Brazil’s stock exchange, in 2020.

The Brazilian group said its sales have reflected “a consumer environment that remains under pressure, marked by high household debt and changes in the composition of consumers’ shopping baskets,” according to its earnings report for April through June.

The company also said it has remained focused on profitability and that the strategy has delivered results. Gross margin was 23.2% from January through June, up 0.1 percentage point.

For João Soares, a Citi analyst, Mateus has been hurt by its heavy exposure to the North and Northeast, where it is a leading food retailer and consumer spending has weakened more sharply than in other parts of Brazil. The chain has also continued to prioritize profitability over sales, a strategy that has weighed on revenue. One-third of the nine states where the company operates are growing below the national retail average, according to IBGE data through June: Piauí, Alagoas, and Pará.

The chain has also been affected by its decision to reduce sales over the counter at its cash-and-carry stores. Mateus discontinued that activity this year for strategic reasons, affecting comparisons with the same period a year earlier.

“Management believes most of this adjustment [prioritizing profitability over sales] has been completed,” Soares said in an August report. “But management’s comments reinforced the cautious view on same-store sales in the short term,” he wrote. Grupo Mateus did not comment beyond its statements in the earnings report.

In the comparison between the companies, Cencosud’s sales across all stores fell 18% in the first half. Mateus, however, posted 12.5% growth, mainly due to the consolidation of a new business acquired in 2025—Novo Atacarejo—, the opening of 25 stores over the past 12 months, and higher sales at its wholesale and electronics businesses.

In convenience-store retail, another segment of the food market, Oxxo is growing faster than direct competitor GPA. Oxxo is owned by Mexico’s Femsa, which took full ownership of its Brazilian operations this year after previously holding a 50% stake. GPA, meanwhile, is undergoing an out-of-court restructuring and owns the Mini Extra and Minuto Pão de Açúcar chains.

In February, Brazilian company Raízen, part of Cosan Group, exited the business amid rising leverage by selling its stake in Grupo Nós, the joint venture that operated Oxxo stores in Brazil. The business has continued to post above-market growth.

In the first quarter after the partnership was dissolved, Oxxo Brazil grew 6.9%, followed by 11.6% growth in the second quarter. GPA’s convenience business grew 0.3% from January through March and fell 2.3% from April through June.

With R$4.5 billion in debt, the retail group that owns Pão de Açúcar filed for an out-of-court restructuring in March, and the plan has yet to receive court approval.

In its second-quarter earnings report, GPA said the decline in sales reflected the effects of the out-of-court restructuring, which caused supply problems at stores and ultimately affected revenue. “This effect peaked in May and has since begun to improve gradually. Sales returned to growth in June, in line with the gradual recovery in inventory availability and the normalization of operations,” the company said in its report.

The chain also cited the execution of a “strategy to prioritize more profitable channels,” which led to the end in 2026 of the “Aliados” project, aimed at transforming neighborhood stores under the CompreBem banner. It also cited moderate demand and a consumer environment under pressure. Oxxo and GPA did not comment.

In practice, weaker consumer spending affects all retailers exposed to the broader economic environment, including foreign groups. But some chains may also be more vulnerable because management decisions have failed to deliver the expected results.

“Changing management and strategy every three to four years sends a bad signal to the team and the market. GPA has frequently changed its leadership recently. Meanwhile, some chains grew too fast and opened too many stores in a short period, as was the case with Mateus, so eventually you have to pay the price,” Tozzi said.

Analysts say foreign groups still have the option of raising financing through their parent companies abroad, where interest rates are lower. Carrefour, for example, operates through a local bank that turns to its headquarters for capital.

In the home-improvement retail market, the outlook points to a challenging environment for both Brazilian and foreign chains.

“Several local chains have closed stores recently across all three states where we operate [Rio Grande do Sul, Santa Catarina and Paraná]. We often joke that the business that has grown the most in the region is real estate for rent,” said Peter Furukawa, CEO of Rio Grande do Sul-based Quero-Quero, which has about 580 stores nationwide.

Furukawa said the closures have created opportunities for the retailer to expand in some cities. At the same time, the chain has taken steps to respond to the slowdown in demand.

Among those measures, the company expanded this year its offering of cash purchases and products aimed at higher-income consumers, seeking to offset the decline in credit available to lower-income customers. The chain operates its own financial-services arm, Verdecard.

“We made a slight move toward more sophisticated assortments. The measures we have been taking in this tougher environment began in the middle of last year, when we realized that the deterioration in the economic backdrop was not going to change, and we are starting to see the results,” the CEO said. Quero-Quero’s same-store sales fell 2.5% from January through March and rose 6.7% from April through June.

French retailer Leroy Merlin reported flat same-store sales in Brazil in the first half of this year compared with 2025, according to management, putting it ahead of the market average. The sector declined 0.8% through June, according to IBGE.

Ricardo Dinelli, CEO of Leroy Merlin Brazil, said the company had to make choices and scale back some investments in a tougher market environment, selecting which projects to move forward with and being more transparent with employees about the approach. The retailer is Brazil’s largest home-improvement chain, with annual sales estimated by the market at R$9 billion to R$10 billion.

“We have had to make some course corrections recently and look inward to see whether what we were offering was really enough,” he said. “For example, we had projects involving made-to-measure products, such as curtains, that we started in some stores, but we decided not to expand them to more stores because it wasn’t the right time and we have other priorities,” he said. “We are putting more emphasis on our services offering. We have more than 160 types of services, and that business is not flat—it is growing faster [than the chain as a whole],” he said.

According to Dinelli, 2025 was also a difficult year, with sales stable compared with 2024, but he expects demand to increase as El Niño arrives and temperatures rise in the coming months. “Hot weather has a positive impact on our sales,” he said. The chain has not opened any stores this year; its latest opening was in Bauru, São Paulo state, in 2025. It has 53 stores nationwide.

*By Adriana Mattos— São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Biomethane offers opportunity for emerging economies

Study says agribusiness could supply the industry with ample feedstock

 

 

 

 

 

 

 

Biomethane production remains concentrated in developed countries. Emerging economies, however, also have opportunities because of their available feedstock, particularly agricultural and livestock waste, according to a study by Brazilian researchers supported by the Low Carbon Mobility Institute (MBCBrasil).

The study found that gas produced by biodigesting waste could provide emerging economies with a renewable transportation fuel that supports their climate goals, energy-diversification strategies, circular economies, and rural development.

The study, “From Waste to Wheels—Turning Organic Waste into Renewable Fuel for Transport,” was written by researchers Glaucia Mendes Souza of the University of São Paulo (USP), Clayton Barcelos Zabeu of the Mauá Institute of Technology (IMT), Heitor Cantarella of the Campinas Agronomic Institute, and Luiz A. Horta Nogueira of the Federal University of Itajubá. They compiled research to highlight the potential for biomethane adoption worldwide.

According to the document, today’s most mature biomethane markets are all in developed economies, including Sweden, Germany, Italy, France, the Netherlands, Denmark, Finland, Switzerland, the United Kingdom, Norway, and California. Other markets are expanding, including Brazil, the United States, China, India, Spain, Ireland, Austria, and Belgium. Biomethane is produced in approximately 40 countries and used as a fuel in about 30 markets.

The researchers said data from the International Energy Agency (IEA) show that the largest untapped opportunities for biomethane production are precisely in regions with substantial agricultural production, livestock farming, and urban growth, including Latin America, Sub-Saharan Africa, and South and Southeast Asia. Global production potential for biogas and biomethane is 1 trillion cubic meters a year, equivalent to about one-quarter of worldwide gas demand.

The availability of feedstock for biomethane production “is linked to economic development and population growth. As emerging economies expand their agricultural production and urban populations, the volume of organic waste they generate also increases,” the study said.

The researchers listed the main feedstock types and the countries with the greatest potential to use them. Animal manure is abundant in Brazil, India, China, and Argentina. Brazil, India, Thailand, and Indonesia have large volumes of agricultural residues. In contrast, Latin America and Southeast Asia have abundant agro-industrial waste.

Among nonagricultural sources, China, India, and Indonesia have the potential to use municipal organic waste, while landfill gas and wastewater sludge offer significant potential in large urban centers in emerging economies.

The researchers emphasized that countries such as Brazil, India, and China “already have experience adapting biomethane technologies to conditions in developing countries and can provide valuable lessons for other emerging markets.”

To encourage the biomethane market, the study cited countries that have adopted individual policies or combinations of measures, including fuel-blending mandates, sector-specific renewable-energy targets, physical infrastructure development, and financial or tax incentives.

The researchers also cited a study by the IEA, the Food and Agriculture Organization of the United Nations (FAO), the Global Bioenergy Partnership (GBEP), and the European Biogas Association. It found that many biomethane projects succeed by making their other products—such as biofertilizers—and environmental services—such as carbon credits—economically viable. Additional revenue streams for a biomethane project may include waste-management services, biofertilizer, renewable carbon dioxide, carbon credits, and guarantees-of-origin certificates. According to the study, these additional sources can account for between 20% and 60% of a biomethane project’s total revenue.

*By Camila Souza Ramos— São Paulo

Source: Valor International

https://valorinternational.globo.com/

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