đź”” The dashboard: Brazil’s benchmark stock index Ibovespa went up by 4.3 percent this week. Meanwhile, the Brazilian Real gained 6 percent against the U.S. Dollar this week.Â
- Biggest gains: Petrobras (oil and gas), +16.4 percent.
- Biggest drops:Â Americanas (retail), -12.1 percent.
“Just a formality,” says Petrobras on new pricing policy governance
In a conference with analysts to discuss its second-highest quarterly results ever, officers of state-controlled oil giant Petrobras insisted that the slight change made to its pricing policy guidelines is “just a formality.”
State of play. On Wednesday, the Brazilian government sent a proposal to transfer the responsibility over price decisions from C-level officers to the company’s board of directors. However, the Brazilian government is the firm’s controlling shareholder and holds the majority of board seats.
- Given Petrobras’ significant market share in refining fuels, any move concerning prices has a massive impact on Brazilians’ pockets and, therefore, on the popularity of President Jair Bolsonaro, who faces an uphill battle for re-election.
- The latest presidential poll suggests former President Luiz Inácio Lula da Silva — who promises to intervene in Petrobras’ pricing policies to keep fuel less expensive — would win the election in a first-round landslide.
Yes, but … The state-controlled company decided to add an extra oversight layer to pricing policy governance, meaning that officers’ decisions on prices will be assessed by the board every quarter.
What they are saying. While investors relations officer Rodrigo Alves called the change “an improvement” of the current pricing guidelines, sales...
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