1. Moody’s upgrades Brazil’s credit rating

The rating agency Moody’s has upgraded Brazil’s credit rating, reflecting its confidence in the fiscal initiatives that have been implemented, such as the pension and tax reforms. The new rating improves the country’s outlook internationally and could pave the way for better financing conditions for both the government and the private sector.

The Ministry of Finance welcomed the decision, highlighting that the move strengthens the credibility of the economic policy, especially in the face of global challenges such as climate events and geopolitical conflicts.

The rating upgrade comes in a context of economic recovery, with a reduction in the fiscal deficit and stabilization of public debt. The decision is now being closely monitored by the domestic financial market, which was surprised by the new rating.

G1: Agência Moody’s eleva nota de crédito do Brasil de Ba2 para Ba1, com perspectiva positiva

2. Electricity prices raised due to hydrological risk

The National Electric Energy Agency (Aneel), the regulatory body for Brazil’s electric system, announced the adoption of the level 2 red tariff flag for October, which means an increase in electricity bills. This measure was taken due to the reduction in the water levels of hydroelectric reservoirs, which raises energy generation costs.

With the level 2 red flag, consumers will pay an extra fee of R$ 6.50 for every 100 kWh consumed, adding more pressure to the budgets of families and the production sector, the largest energy consumer in the country.

The unfavorable hydrological scenario requires the activation of thermoelectric plants, which have higher costs, justifying the rate increase.

G1: Aneel aciona bandeira tarifária vermelha 2 para outubro; conta de luz fica mais cara
ANEEL: Outubro terá bandeira tarifária vermelha patamar 2

3. Two days before the elections, São Paulo faces a three-way tie

Two days before the first round of the municipal elections, polls indicate a three-way tie in the race for the mayor’s office in São Paulo. A Quaest poll shows a technical tie between Ricardo Nunes (24%), supported by former president Jair Bolsonaro; Guilherme Boulos (23%), supported by President Lula; and the right-wing outsider Pablo Marçal (21%).

The poll reflects the volatile nature of São Paulo’s election, with candidates competing for votes across different sectors of the electorate. Other candidates remain far behind, with lower voter intention.

G1: Quaest em São Paulo: Nunes tem 24%, Boulos, 23%, e Marçal, 21%, e seguem em empate técnico triplo

4. Industrial production grows by 0.1% in August

Brazilian industrial production registered a slight increase of 0.1% in August, according to data released by the IBGE. This modest growth reflects a stabilization of the sector after significant fluctuations in previous months.

Among the categories assessed by IBGE, the standout was capital goods production, which rose by 1.3%, indicating an increase in investments. On the other hand, the intermediate and consumer goods sectors experienced declines of 0.4% and 0.3%, respectively.

The result maintains the gradual recovery pace of the industry, though it remains below pre-pandemic levels. 

IBGE: Produção industrial varia 0,1% em agosto

5. Ministry of Finance releases a list of betting platforms authorized to operate in Brazil

The Ministry of Finance has released a list of betting platforms authorized to operate in Brazil, following the sector’s regulatory process. The listed companies meet the requirements set by the new legislation, which aims to regularize the activity and increase tax revenue.

The government expects the sports betting market to grow in an organized manner under the new regulations. In recent weeks, sectors such as banking and retail have been pushing for progress in this regulation, due to the impact that online gaming and betting have had on wage earners’ incomes.

Poder360: Ministério da Fazenda divulga lista de bets liberadas para atuar no Brasil; veja quais