Market Signals

Banco do Brasil reported a R$3.6 billion default from a wholesale segment company in Q4 2025, raising its 90-day default rate to 5.17%. This event highlights increasing credit quality concerns within the bank.

On February 10, 2026, an explosion occurred in a Pemex pipeline located in Loma Larga, Oaxaca, during routine maintenance and internal cleaning of the Nuevo Teapa-Salina Cruz pipeline. The incident resulted in three fatalities and at least six injuries, though Pemex later reported only four injuries. The explosion caused a fire at the pumping station, which was addressed by firefighters and security authorities. The area was cordoned off, and emergency protocols were activated. ([elpais.com](https://elpais.com/mexico/2026-02-10/una-explosion-en-un-ducto-de-pemex-en-oaxaca-deja-tres-fallecidos-y-seis-heridos.html?utm_source=openai))

The Warehouse Group is pausing the majority of its advertising spending for the next eight weeks, shortly after confirming the removal of 270 jobs from its head office. The discount retailer’s chief marketing officer, Frankie Coulter, said the strategy is a necessary one, as the company battles against high losses.

Magazine Luiza reported a 62.5% decline in adjusted net income to R$11.2 million in Q1 2025 compared to the same period in 2024. The company's Investor Relations director attributed the decrease to the high base interest rates (Selic), noting a 27% increase in interest rates during the quarter.

The Warehouse Group is looking to axe about 270 jobs in a restructure of its head office as it looks to cut costs and improve its finances. Some are represented by Workers First Union. Spokesperson Rudd Hughes said many of the jobs are going to a company offshore to do. They include roles in payroll, call centres and accounting.

China's Hong Kong and Macau Affairs Office criticized Panama's Supreme Court ruling that annulled CK Hutchison's contract to operate two ports at the Panama Canal, warning of 'heavy prices' if Panama persists. The ruling, citing constitutional violations, threatens CK Hutchison's proposed $23 billion sale of 43 ports to a BlackRock-led consortium. ([wtaq.com](https://wtaq.com/2026/02/03/china-warns-panama-of-heavy-prices-to-pay-after-ck-hutchison-contract-quashed/?utm_source=openai))

The State Securities Commission has revoked the public company status of FLC Group and several of its subsidiaries, leading to their delisting from the stock exchange. This decision follows violations of information disclosure obligations and other regulatory issues.

FLC Group and several companies within its ecosystem have had their public company status revoked, resulting in their delisting from the stock exchange. This follows violations of information disclosure obligations and other regulatory issues.

JBS USA announced the permanent closure of its Swift Beef Company facility in Riverside, California, effective February 2, 2026, resulting in 374 job losses. The decision is attributed to low U.S. cattle supplies, leading to increased costs for meatpackers nationwide.

Natura & Co reported a 13.1% decline in net revenue to BRL 5,194 million in Q3 2025, attributed to a slowdown in Brazil and integration challenges in Argentina and Mexico. The company also faced a 33.7% fall in underlying EBITDA.

Telenor Group argued it was required to hand over user data to Myanmar’s military government prior to selling its operations to a Lebanon-based investment company in 2022, as it faces a lawsuit for violating human rights. The company explained that not following directives from the junta would have been perceived as terrorism and sabotage, putting employees in danger.

A group of civil society organizations in Myanmar plans to take legal action against Norwegian telecoms firm Telenor, accusing it of passing customer data to the country’s military government for use in repression. The activists allege that the data shared by Telenor was used by the military following its 2021 coup to trace and target civilians. Telenor asserts it was trapped by the situation in Myanmar with “no good options”.

CK Hutchison Holdings announced potential legal action against A.P. Moller-Maersk after Panama's Supreme Court annulled its contract to operate two Panama Canal ports. The company disputes the ruling and has initiated arbitration proceedings against Panama. ([wsls.com](https://www.wsls.com/business/2026/02/12/hong-kongs-ck-hutchison-warns-of-legal-action-over-panama-canal-ports/?utm_source=openai))

Facing record-high beef prices and a shrinking cattle herd, JBS plans to close its Riverside, California facility, laying off 374 workers and shifting operations elsewhere. The closure is part of a strategic initiative to optimize operations across its network.

Brazilian steel producer Gerdau has suspended planned investments in the country worth 2.1 billion reais ($400 million), citing weak market prospects and a surge in cheap Chinese steel imports. Instead, the company will focus on expanding its Midlothian plant in Texas, USA, increasing its annual capacity by 150,000 tons starting in 2026. In Brazil, Gerdau will shift its focus to mineral extraction and scrap processing.

Banco do Brasil's non-performing loans are rising, primarily driven by the agribusiness sector, despite a significant profit in 2025. The bank reported a 5.17% delinquency rate in Q4 2025, up from 4.51% in the previous quarter, with agribusiness showing a 6.1% rate due to climate issues and increased debt. A single R$3.6 billion default by one company highlighted broader credit quality concerns, though the bank has initiated programs to renegotiate agricultural debts.

Heineken filed a new complaint to Brazil's Administrative Council for Economic Defense (CADE), alleging that Ambev exceeded exclusivity caps imposed under a 2023 agreement, particularly in high-value neighborhoods of São Paulo, Rio de Janeiro, and Brasília. Ambev denies any noncompliance and emphasizes that all contracts are within permitted limits.