1. Federal Police says Bolsonaro did not prevaricate in Covaxin purchase

The Brazilian Federal Police concluded that President Jair Bolsonaro did not commit the crime of prevarication when trying to buy the Indian COVID-19 vaccine Covaxin. The conclusion is part of a final report that was sent to the Federal Supreme Court acquitting Bolsonaro on the matter, which was investigated by the COVID CPI last year.

Estadão: Em relatório final sobre compra da vacina Covaxin, PF diz que Bolsonaro não prevaricou
CNN: PF diz que Bolsonaro não cometeu prevaricação no caso da vacina Covaxin
FSP: PF conclui que Bolsonaro não cometeu prevaricação no caso Covaxin

2. Fux tells Bolsonaro there is no space for actions against democracy

On Tuesday (2/1), during an opening meeting for the first session of the year of the Judiciary power, Federal Supreme Court President Luiz Fux gave a speech asking for more tolerance and saying that during an electoral year “there is no space for actions against the democratic regime or for violence against public institutions.” Fux’s statement was seen as a message aimed at President Jair Bolsonaro.

FSP: Fux dá recado a Bolsonaro e diz não mais haver espaço para ações contra a democracia
Correio Braziliense: Fux diz que não há mais espaço para ações contra a democracia e contra as instituições
O Globo: Supremo dá valioso recado ao país em ano eleitoral

3. Brazilian industrial production exceeded expectations in December, according to IBGE

The Brazilian industrial sector ended 2021 registering growth after two years of declining production. The Brazilian Institute of Geography and Statistics (IBGE) shared the results on Wednesday (2/2), noting that they were above expectations. Even though there were good numbers, levels of production remained below pre-pandemic levels. In December, Brazilian industrial production grew 2.9% compared to November. This was the first positive result since May, although levels are still lower than those seen in 2020. The sector ended 2021 with accumulated gains of 3.9%, compared to 1.1% in 2019 and 4.5% in 2020.

Valor Investe: Produção industrial sobre 2,9%, acima das expectativas, diz IBGE
Bloomberg Línea: Produção industrial brasileira supera expectativas em dezembro
UOL: Indústria do Brasil cresce em 2021, mas fica abaixo do patamar pré-pandemia

4. Interest rate once again reaches double digits after four and a half years

On Wednesday (2/2), the Central Bank’s Monetary Policy Committee (COPOM) unanimously decided to raise the annual Selic rate from 9.25% to 10.75%, an increase of 1.5 percentage points. This is the eighth consecutive raise for the rate. The Selic rate is now back in the double digits for the first time in four and a half years.

Valor Investe: Com a Selic de volta a dois dígitos, veja o que fazer com seus investimentos
G1: Copom eleva Selic para 10,75%; juro básico da economia volta a dois dígitos após quatro anos e meio
R7: Taxa de juros volta a dois dígitos, maior nível em quase cinco anos

5. With high rejection, Bolsonaro sees Centrão becoming increasingly pro-Lula

Amid a growing rejection rate for Jair Bolsonaro (PL), members of Centrão –the group of parties generally allied with the ongoing administration– have publicly shown their support to former President, Luiz Inácio Lula da Silva (PT). Lula is Bolsonaro’s main opponent and is leading in electoral polls. Leaders from parties that make up Centrão believe that Lula’s popularity and Bolsonaro’s denial of the pandemic will decide party alliances for the election in October.

O Globo: Com alta rejeição e atrás nas pesquisas, Bolsonaro enfrenta debandada pró-Lula no Centrão
FSP: Centrão e até donos do dinheiro dão sinais de que podem aderir a Lula
IG: Bolsonaro sofre com alta rejeição e vê debandada pró-Lula no Centrão