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Domestic Focus Remains Announcement of Fiscal Measures

BRAZIL
  • Local asset prices are likely to open in line with Wednesday’s close as market participants await US CPI data. The focus domestically will be on any announcement regarding fiscal measures.
    • Globo reported that finance minister Haddad’s package will be revealed today and the total impact may reach between 100 and 150 billion reais.
    • Measures are likely to focus on increasing government revenue through the removal of tax exemptions, not by cutting expenses.
  • In separate local news, Americanas SA, one of its biggest retailers, said its CEO departed after less than two weeks on the job amid “accounting inconsistencies”, estimated at around 20 billion reais in its suppliers’ account.
    • The company estimates that the cash effect of these inconsistencies “is not material”, but it cannot yet determine the full impact. The current market cap of the company is about 11 billion reais.

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