August 19, 2022
Chances of a break in the US increase - Amauri Segalla

Chances of a break in the US increase – Amauri Segalla

Experts expect a significant drop in US corporate profits in the coming months (Photo: Pixabay)

Will the US economy go into recession? In a recent report, Manager Bridgewater said yes: “In the past 60 years, there have been only seven other situations where we were as pessimistic about the U.S. economy as we are today. At all other times, the economy weakened and operated below its potential, only one of which did not actually contract. The main difference today compared to other previous scenarios is that this time, the deterioration of financial conditions is significantly worse than in other cases. Outright disbelief. A Bloomberg poll of three dozen economists put the probability of a contraction in the coming months at 47.5%, up from 30% recorded in June and 20% in March. Experts expect a significant drop in corporate profits in the coming months.

40% of the global automotive industry is idle

The global automotive industry is facing a challenging situation. Currently, global production capacity is 135 million vehicles per year, but only 80 million are consumed. In other words, the idle rate is about 40%. Structural factors such as lack of components certainly contributed to worsening these numbers, but recent changes in society are of greater concern. The new generation, whether in Brazil or in the developed world, shows a lack of interest

by vehicles.

Cielo shares could rise 80% in 2022

Making money in the Brazilian stock market is difficult, but there are always good opportunities. After suffering in 2021, shares of payments company Cielo rose roughly 80% in 2022 – the highest increase of the year among members of B3’s main index Ibovespa. Cielo is, indeed, a good time. A report by investment analysis firm Empiricus estimates the company to grow profits by 15% in 2022 and 20% in 2023 on a year-over-year basis.

66 million

According to Cerasa Experian, people are in default in Brazil – the largest group since the start of the historic series in 2016.

Gold
Gold investment is declining (Photo: pixabay)

Gold yields lose ugly to inflation

Gold is always considered a safe asset to invest in during times of crisis, but this time it is different. Over the past twelve months, grams of the precious metal traded at B3 fell 1.8%. Inflation was 11.89% during the same period. In New York, the picture is even worse – there, gold has fallen 5%, while accumulated inflation has reached 9% over a one-year period. According to experts, this movement is due to high interest rates in the US, which made investments in fixed income more favorable.

M
Mrcio de Lima Leite, president of Anfavea (Photo: Anfavea/Publication)

“The desire to own a car seen in previous decades is less evident today”

Mirceo de Lima LitePresident of Anfavea, the association of vehicle manufacturers

Quick

  • Free shipping offered by e-commerce companies may be expired. With fuel prices rising, companies in the industry are already thinking of rethinking their pricing policies. On average, fuel accounts for 40% of a logistics operator’s costs, but the percentage has increased in recent months.
  • Via, formerly Via Varejo and the owner of the Casa Bahia and Ponto brands, launched a game that teaches retailers how to sell more. Called “Destino: Minhas Vendas,” the game is available on Via Academy, the company’s training platform for professionals. In the United States, it is common to use these types of resources to train employees.
  • The economic crisis and the pandemic have exhausted Brazilian experts. According to a study conducted by StartupPulse with workers from companies of different sizes, 81% of them feel tired after a day’s work. Additionally, 60% lost the will to face routine and 51% struggled to accomplish their tasks.
  • Autonomous cars continue to fail miserably. During a test run on the streets near Apple’s headquarters in Silicon Valley, the vehicles veered off the road in the middle of intersections and crashed into a curve. Tesla’s driverless cars have been involved in 200 accidents in the US in the past three years.