The Argentine crisis affects even alfajor, the next steps in the fight between Musk and Twitter and what is important in the market – 14.09.2022. – Mercado

ANDStand is an edition bulletinr FolhaMercado this Wednesday (14). you want to receive it from Monday to Friday at 7 am In your email? Sign up below:

Argentina’s crisis has reached alfajor

Buying a brand new car, computer or cell phone of top brands, and even ordering alfajores. All this has become more difficult to do in Argentina – not to mention the price – with government restrictions on imports.

understand: the country has placed a limit on what companies can buy from abroad, to try to soften the local exchange rate. The goal is to avoid greater demand for the dollar.

• Import to Argentina is carried out according to the official exchange rate (145 pesos), in which companies have import quotas based on previous years’ purchases.
• With this mechanism and the increase in international product prices, importers have to reduce their purchase quantities.
• Another problem is that the Argentine most adopted the parallel quote, “blue” (295 pesos), which in the end makes everything more expensive.

And so that there are not only luxury imported items such as salmon, whiskey and expensive computers on the market. The Alfajor manufacturer had to postpone production because it did not have the wrapping papers and material to send them to other places.

• Even the stocks of coffee in Argentine pastry shops are at risk, since it is a commodity (prices in dollars) that command high prices on the foreign market.

Argentina in crisis: with a currency without the confidence of the population and a debt that does not stop growing, Argentina’s inflation is projected to 90% for this year.

• This is the biggest challenge for Sergio Massa, the “super minister” of the economy, who, when he took office last month, suspended the issuance of paper money.
• Last week, he secured another US$900 million loan from the World Bank, and was praised by Kristalina Georgieva, head of the IMF, the organization to which the country owes 44 billion US dollars.

Twitter approves sale to Musk, but…

As expected, Twitter shareholders approved this Tuesday (13) the purchase of billionaire Elon Musk’s social network for 44 billion dollars (R$227.8 billion), or USD 54.20 per share.

Following the news, the company’s shares closed slightly higher by 0.80%, 41.74 US dollars, against a very bad day in the market. The main obstacle to the settlement will be resolved in court, at a trial scheduled for next month.

understand: About two months ago, the entrepreneur backed out of the deal, arguing that Twitter had failed to live up to its end of the bargain by providing “false and misleading” information.

• The biggest criticism is the percentage of fake accounts online. It is claimed to be much higher than the 5% reported by the platform.
• Twitter has called the attempt to back out of the deal “invalid and unfair” and says the businessman backed out as the tide of a market beneficial to tech companies has turned.

And now? Law firms on both sides are preparing for a noisy trial.

• There is a $1 billion clause that Musk would have to pay if he couldn’t get financing for the purchase, an alternative the billionaire’s team is considering resorting to, blaming the banks.
• Other possible solutions are an agreement for the Tesla owner to settle the purchase for an amount below the initial offer, or an agreement to pay a fine to bury the matter forever.
• In the worst-case scenario for Musk, he could be forced to honor his commitment and buy Twitter at a price that has become excessive.

About that…Peiter Zatko, Twitter’s former security chief, testified before the US Senate on Tuesday and repeated his accusations that the platform does not prioritize the security of user data.

• Now considered a key member of Musk’s defense, he was fired from Twitter in January and said in a document sent to authorities that the network was lying about the number of fake accounts.
• The social network states that Zatko was fired due to ineffective leadership and poor work, and that his accusations seem to have harmed her.

Stocks fall with US inflation

US inflation in August surprised the market and crashed stock markets around the world. In the US, the S&P 500 (-4.33%), Nasdaq (-5.16%) and Dow Jones (-3.94%) had their worst day since June 2020.

In numbers: The CPI (Consumer Price Index) has risen 0.1% in August, compared to market analysts’ estimate of 0.1% deflation (falling prices). In the 12-month period, the index reached 8.3%a slowdown compared to 8.5% in July.

• Core inflation, which excludes volatile items such as food and energy and is the gauge most closely followed by the Fed, also surprised.
• he went upstairs 0.6% per month, with an emphasis on housing price growth, which indicates inflationary resistance.

Why inflation destroyed the stock market: The data reinforced the signal to markets that the Fed will continue to raise interest rates at a rapid pace. A new peak is expected for the next meeting, next week 0.75 pointsbut there are people predicting an improvement of 1 point.

• Higher interest rates increase the value of US bonds, which are considered a safe haven for investments, and reduce the advantage of riskier stocks. Technology companies, which need loans to grow, are penalized more.
• Shares of Meta, which owns Facebook, fell 9.37%. Netflix lost 7.78%. Apple, the largest American company, has fallen 5.87%.

More numbers: the dollar rose globally, and in Brazil it jumped 1.80%quoted on 5189 BRL. Here Ibovespa felt the blow and retreated 2.30%to 110,793 points.

E-commerce is slowing down

After the pandemic-induced boom, e-commerce continues to see revenue growth in Brazil, but at a slower pace.

In numbers: reached online sales in the country 118.6 billion BRL in the first half vis 6% compared to the same period last year, in nominal values. Until 2021, the growth was 47% in that comparison.

The data is from consultancy NielsenIQ|Ebit, in partnership with payment intermediary Bexs Pay and does not take into account purchases at addresses considered foreign (cross-border): Shopee, Alibaba, Amazon USA, among others.

• A total of 49.8 million Brazilians shopped online in the first half of the year, an increase of 18% year-on-year. However, the average ticket fell 8% to R$412.
• The explanation for this may be the growth of food and beverage orders in e-commerce, which accounted for 12% of online orders, while electronics fell (-6%).

Another pollby Dunnhumby, showed that Brazilians are buying more and more food and household products through digital channels, but most of their monthly spending on these products was done in person, in supermarkets.

Shopee leads among gringos: when considering only cross-border locations, NielsenIQ|Ebit pointed out that 54% Brazilians shopped at these addresses in the first half of the year, which is down from 68% in the same period in 2021.

• In this clip, the most searched site is Shopee, s 42% indication of the respondent. Followed by Aliexpress (34%), Amazon USA (31%), Shein (16%) and desire (7%).