Dollar rises more than 2% and is close to R $ 3.85 at the highest level since 2002

The dollar extended the high and rising more than 2% on Friday (4), coming close to R $ 3.85, amid persistent uncertainty surrounding the domestic political and economic situation and after data on the labor market of United States rein loan credit insurance force views that interest rates may rise this year in the world's largest economy.

At 15.20, the dollar rose 2.20%, to R $ 3.8433 on sale. The maximum of the session, the US currency rose to R $ 3.8478, the highest since October 29, 2002 (R $ 3.8550).

"He had new (to expand high). And we still fail to see any good news," said exchange director at Pioneer Corretora, John Medeiros.

Shortly after the opening of business, the US labor mar loan credit insurance ket data were released that showed slowing in employment growth last month. However, data for June and July were revised upward, which may influence the Federal Reserve, the US central bank to raise interest rates soon.

"Investors liked the review ... These numbers reinforce the interest of increased expectations later this month by the Fed," wrote the exchange operator Correparti Brokerage Jefferson Luiz Rugik in a note to clients.

Higher US interest rates may attract to that economy reso loan credit insurance urces currently invested in other countries, such as Brazil.

In Brazil, investors also kept an eye on the troubled political and economic scenario. The day before, the Vice President Michel Temer said in a meeting with businessmen, who finds it difficult to President Dilma Rousseff complete the current term if her popularity is still too low, fueling views that the current government is to base increasingly weak .

The day before, the government made concerted effort to demonstrate that the finance minister, Joaquim Levy, follows in the conduct of the country's economy, despite intense speculation wasted space and that he would step down.

Companies begin discussions with the government to revise the electricity sector model

Associations representing investors from various segments of the electricity industry in Brazil joined forces to convince the government to review the current regu loan credit insurance latory framework of the sector, implemented at the beginning of the Lula government by the then Minister of Mines and Energy, Dilma Rousseff.

The movement in the early stages, according to the Natio loan credit insurance nal Electric Energy Agency (Aneel), comes at a time when the country faces as a result of two years of drought, a supply crisis, with low levels in the hydroelectric reservoirs. In addition, there are several legal fights with businesses and consumers due to the sharp increase in costs resulting from the heavy use of expensive thermal power to avoid rationing.

The purpose of the associations that gather generation agents, distribution and sale of electricity, is that Aneel authorizes the use of resources that companies must aim to research and development projects to hire along with consultancies and universities a major study on possible advances in regulation.

"It is an adjustment in certain parts of the electricity sector model. The model, after all, already has more than ten years, and we feel that some points need to be reviewed, because the industry conditions have changed a lot," he told Reuters President of the Association of Self-producers of Energy (Abiape), Mario Menel.

According Menel chosen interlo loan credit insurance cutor of the companies with the government, issues such as the formation of energy prices in the spot market, the rules for dealing with any generation deficits in hydroelectric, the methodology for setting price caps at auctions and even issues environmental licensing could come under study.

Aneel confirmed to Reuters through the press office, that "the movement exists, but is in very early stage of discussion." The regulator said it therefore not comment on the matter at this time.

The Ministry of Mines and Energy, also in a statement, praised the current regulatory framework, but did not rule out changes.

"The electric sector model, introduced in 2004, was victorious in order to contribute to competitiveness and efficiency projects in power ... despite this, the model was always open to improvements."

JP Morgan estimated dollar at R $ 4.10 this year and R $ 4.35 in 2016

JP Morgan revised its estimate for the dollar at the end of this year to R $ 3.55 to R $ 4.10 in front of domestic and international factors that sho loan credit insurance uld continue feeding the rise in the US dollar against the real. For 2016, the dollar's outlook was revised from R $ 3.70 to R $ 4.35.

Internally, the bank points to the deter loan credit insurance iorating economic and political outlook as factors that increase exchange rate volatility. JP Morgan argues that the current fundamentals led to increased fair price estimate for the dollar from R $ 3.48 to R $ 3.56 in the medium term.

"The fiscal dimension is becoming more relevant to explain the fundamentals of a weaker real," according to analysts at JP Morgan who sign a report released on Friday (4).

The continued strong appreciation of the dollar has a good side. According to JP Morgan, the most expensive dollar should help reinforce the current trend of adjustment in the external accounts, stimulating exports of goods and services, to some extent, and also raising the cost of imports.

"We believe that the government will allow the devaluation of the real, since it seems a necessary adjustment to increase competitiveness, and should only intervene to prevent exce loan credit insurance ssive volatility," analysts say.

Inflation

The most expensive dollar increases the pressure on prices, although they are partially offset by the impact of the economic recession. The estimate for market prices increased from 5% to 5.6%. Thus, the JP Morgan also revised its estimate for inflation in 2016 from 5.4% to 5.5%.

Brazilian automakers expect trade agreement with Colombia in the coming days

The Brazilian industry of vehicles waiting for the next day a country's trade agreement with Colombia, the third largest market for the sector in South Ame loan credit insurance rica, said the president of Anfavea automakers association, on Friday (4).

"We will have a final round of negotiations with Colombia in the next 10 days. We hope to close a deal," said the president of Anfavea, Luiz Moan told reporters. He added that Brazil is also close to a trade agreement with Peru involving the vehicle sector, but gave no details.

The Brazilian industry of bitter vehicles in August the worst production for the month since 2005 to register a drop of 18% on the mounted volume in August last year. The decline occurred before sharp drop in the domestic market, something the industry is trying to mini loan credit insurance mize through growth of its exports.

According to Moan, the agreement that the industry is trying to get with Colombia involves increasing system of annual quotas, in a manner similar to that agreed with Mexico. Currently, most of the exports of Brazil's vehicles goes to Argentina.

The president of Anfavea said the Colombian market moves annually 300,000 vehicles, but in the last 12 months, the Brazilian industry in the country only mana loan credit insurance ged to sell 9000 units.

Brazilian exports in August totaled 39,591 assembled vehicles of 22% over July and 9.2% growth compared to August 2014. From January to last month, the industry had foreign sales of 259,983 vehicles, an increase of 10.5 % over a year earlier.

Bradesco Corretora: JBS remains favorite food sector

JBS remains the favorite bet on the stock market for the food sector in the opinion of Bradesco Corretora. According to José Cataldo analyst, the JBSS3 actions continue as the "top pick" and have an upside potential of 42.7% to the end of 2016. "We see fur loan credit insurance ther upside for the company, which has significantly improved its mix products and its balance sheet, "he said.

JBS has in its favor the increase in export data in August - which showed strong results for the beef and poultry industry - beyond the current devaluation of the Brazilian currency against the dollar.

"The actions of JBS are the most benefit from the depre loan credit insurance ciation of the real, since 80% of the company's revenues are denominated in dollars. In addition, the company is hedging transactions to protect 100% of its dollar balance sheet, "he analyzed Cataldo.

Additionally, JBS has several short-term drivers: it is gene loan credit insurance rating cash - which should reduce its net debt - and the IPO potential can JBS Foods can bring an increase of its target price, which is currently estimated at R $ 22 for the end of 2016.

Separation Ferrari should hold merger plan Fiat-GM Marchionne

Although the CEO of Fiat Automobiles NV Chrysler, Sergio Marchionne, not known for his patience, he probably will wait until next year to present a bid for General Motors Co. after months of talks about the possibility of an agreement.

The sepa loan credit insurance ration of Ferrari SpA, which is expected to occur in early 2016, may be the stimulus for Marchionne submit a bid for the US automaker. The sition Ferrari raise money for indebted company. The move is also key to the Agnelli family, the dominant shareholder of Fiat, who is willing to keep track of the Italian manufacturer of supercars.

Marchionne is on a crusade to consolidate the auto loan credit insurance motive industry, which includes the presentation "Confessions of an addict in the capital", April. He argues that vehicle manufacturers waste money by developing multiple versions of the same technology and therefore they should be combined.

He restricted largely, its focus to GM as a potential target because the two vehicle manufacturers share a multi-brand strategy and GM does not have family shareholders to defend it, as Ford Motor Co. GM and Fiat have also a common history and have combined almost a decade ago, but GM pulled away business. The Marchionne persistent talk is seen as part of the plan to urge GM to enter into a merger, while the position of GM is that the company is seeking national economies and not have to Fiat.

"As a true poker player, Marchionne will not settle for winning a hand and managed to Chrysler; he wants the jackpot merger with GM, "said Vincenzo Longo, strategist at IG Group in Milan." He is attracting investors from GM with this multi-billion dollar saving conversation before making a final attempt ".

Fiat is committed to separate Ferrari and has no plans to include it on a possible deal, said informed sources on the subject. The supercars drive does not help to cut the costs of a merger and the Agnelli family wants control of the sports car manu loan credit insurance facturer F12berlinetta of US $ 320,000, sources said. Fiat declined to comment.

By contrast, the family is ready to have its share from 29% in diluted Fiat in a potential deal to expand the company, told Bloomberg John Elkann, a descendant of the founder of Fiat, Giovanni Agnelli, and head of the family's business activities, joint interview with Marchionne in October.

Vehicle production fell 3.5% in August over July, says Anfavea

Brazil's car industry fell by 3.5% in August over July production and decrease of 18.2% over the volume produced in the same month last year, said on Friday (4) the association representing the sector, Anfavea.

The industry produced 216,500 cars, light com loan credit insurance mercial vehicles, trucks and buses in August, lower volume for the month since at least 2007. The accumulated production of the year was 1.73 million units, 16.9% below the first eight months of 2014.

Sales of new vehicles last month retreated 8.9% against July and fell by 23.9% over August 2014, also reaching the lowest level for the month since at least 2007.

"We remain in a moment rather difficult market, espe loan credit insurance cially in trucks, down 40% (in sales)," said Anfavea president Luiz Moan, commenting that the average daily vehicle sales in August was similar to July.

He added that the association also expects drop in production vehicles from Brazil in September and October.

The inventory of new vehicles in the country increased to 357,800 units, compared with 345,600 vehicles in July. Based on the month's sales pace, the stock equivalent to 52 days of sales.

Since the export of agricultural vehicles and machi loan credit insurance nery rose 12.3% in August against July.

The industry employment levels again decrease in the annual comparison. The decline was 9.8% in August over a year earlier to 134,312 occupied posts.