Brazilian President Jair Bolsonaro's speech on national network scares investors

According to the Folha de S.Paulo newspaper, President Jair Bolsonaro's speech distorted the global scenario about Covid-19. According to the newspaper, the president "criticized the closure of schools and commerce, contradicted guidelines from health agencies and attacked governors".

For Alexandre Almeida, from CM Capital, the statement by President Jair Bolsonaro may scare investors because of his lack of connection with reality.

These statements immediately provoked repudiation by congressmen, governors, in the Judiciary and in different sectors of society. A few minutes later, the president of the Brazilian Senate, Davi Alcolumbre, released an official note stating that "Brazil needs serious leadership, responsible and committed to the life and health of the population".

The president's speech is the main subject of Brazilian newspapers today: O Estado de S. Paulo states that Bolsonaro criticizes confinement and wants stores and schools open; O Globo publishes that Bolsonaro ignores the world orientation and criticizes isolation and closed schools; Correio Braziliense reports that speech caused perplexity.

After public pressure government gives up to tax solar energy in Brazil

Aneel (National Electric Energy Agency), the body that regulates the electric power sector in Brazil, wanted to change the current rule, which allows solar energy produced by those who have solar panels at home or in the company to be returned to the grid. Those who do this get discounts on their electric bills.

Therefore, according to the current rules for solar energy generation for own consumption in Brazil, the operation is simple: who produces more energy than it spends throws this surplus in the distribution network and gets the credits. Those who produce less than spend pay the difference to the distributor.

Aneel's proposal, defended by Economy Minister Paulo Guedes, has been the target of numerous criticisms. The public pressure was so great that President Jair Bolsonaro, Mayor Rodrigo Maia and Senate President Davi Alcolumbre publicly made a commitment not to change the rules on solar energy production in Brazil.

Aneel argues that those who receive this benefit are receiving subsidies, but, according to journalist Elio Gaspari, there would be subsidy "if the citizen consumed R$100 of kilowatts and only paid R$ 90. In this case, who has solar energy panels paid to distributors to the last penny for the energy it consumes".

The change in rules advocated by Aneel could increase the taxation of those who have solar panels by up to 60%, which for most experts could represent a huge setback for the area.

Meeting of the leaders of the three powers (executive, legislative and judicial) please the Brazilian financial market and helps to slow the dollar's rise

Today was a good day for the Brazilian financial market. Some facts pushed the Ibovespa positively.

Rodrigo Maia, the president of the Chamber of Deputies, asked Samuel Moreira, the rapporteur for the Pension Reform in Congress, to present the text of the Pension Reform proposal until June 15.
Maia wants the MPs to vote for the approval or not of the Pension Reform in the first half of 2019.

In addition, the meeting between representatives of the three Brazilian powers that took place today encouraged Brazilian investors. The representatives of the three powers have signed a pact with targets and actions for the resumption of growth in the country. The meeting was attended by President Jair Bolsonaro and the presidents of the Chamber of Deputies, Rodrigo Maia, the Senate, Davi Alcolumbre, and the Supreme Court, Dias Toffoli.

I already wrote here in this blog that the "Brazilian Financial Markets (analysts and economists) and the Brazilian businessmen bet very high on a government that was not able to respond to the height to that bet".

Now the leaders of the three powers have begun to present a beginning of political negotiation. But some political analysts believe it may already be too late for that. There are many MPs uncomfortable with the constant attacks made by Bolsonaro, his political sons and his followers on social networks.