Brazil Daily Briefing

Money Times reported the Ibovespa accompanied Wall Street's risk-off mood, closing in decline and losing the 167k psychological handle, as the BRL weakened 0.68% to R$5.48 post-Copom. The dollar strength reflects fiscal risk pricing, not rate risk: despite Selic at an elevated 10.75%, credibility concerns dominate the BRL narrative. Money Times also flagged that debate around André Lara Resende's proposals could open space for an inflation-target revision — a market-negative signal that pushed BRL further.

President Lula met with ministers and economic advisers Thursday, telling the market 'no one wants to invest in a disordered economy'. Money Times reported the meeting discussed Lula's economic agenda, but stopped short of announcing concrete fiscal measures — a pattern the market has grown weary of. For BRL to firm, investors need more than messaging; they need an arcabouço fiscal commitment that reduces the perception that Selic inertia is the only tool keeping Brazilian inflation expectations anchored.

Healthcare bellwether Fleury (FLRY3) reported 3T26 net income of R$264.3M, up 42.9% year-on-year — a standout performer in a weak earnings day. By contrast, Itaú BBA removed Vale (VALE3) and Copel (CPLE3) from its dividend portfolio, citing changed risk-reward dynamics. The Vale cut is significant: Brazil's largest miner faces both iron-ore China-demand uncertainty and Wall Street's commodity-sector transmission. Sabesp (SBSP3) net income fell 35.7% to R$1.39bn, adding to the negative earnings skew.