REGRESA

1. On the eve of COP, Petrobras begins oil exploration at the mouth of the Amazon

Petrobras announced that it has received an environmental license from IBAMA to drill the first deep-water oil well in the mouth of the Amazonas Basin. According to the state-owned company, work will begin immediately and is expected to last about five months. The project comes amid debates on energy transition and environmental preservation, reigniting discussions about the balance between economic development and sustainability in the Amazon region.

The authorization coincides with preparations for COP30. The geographical and temporal proximity between the conference and the start of drilling has sparked criticism from environmentalists and experts, who point to a contradiction between climate commitments and the expansion of fossil fuel exploration.

The Petrobras initiative is also the subject of legal actions. The Federal Public Prosecutor’s Office has requested that the courts postpone the license granted by IBAMA, arguing that more in-depth studies are needed on environmental impacts. In addition, NGOs and social movements have filed a lawsuit in the Federal Court of Pará against IBAMA, Petrobras, and the Federal Government, seeking to annul the licensing of Block FZA-M-59 and highlighting risks to biodiversity and local communities.

Folha de S. Paulo: Petrobras recebe licença para perfuração de poço na bacia da Foz do Amazonas
CNN: Perfuração na Foz do Amazonas entra na mira do MPF
Agência Brasil: ONGs acionam Justiça para barrar perfuração na Foz do Amazonas

2. Government needs to raise R$27 billion to meet this year’s fiscal target

President Luiz Inácio Lula da Silva’s (PT) government will need an additional R$27.1 billion in the last quarter of 2025 to meet the year’s fiscal target, according to a report released by the Independent Fiscal Institution (IFI). The body, which is linked to the Senate, warns that revenues remain below expectations and that strict spending control will be essential to avoid missing the target. The expiration of Provisional Measure 1.303 – which would have taxed investments, sports betting, and fintechs – reduced revenues by about R$10.6 billion, further increasing the fiscal challenge.

According to the IFI, the government has accumulated a primary deficit of R$100.9 billion up to September and faces rising mandatory expenses and growing deficits among state-owned companies. The report notes that without spending restraint and revenue recovery measures, the balance of public accounts will be jeopardized. The institution also warns of risks for 2026 if structural reforms and spending control fail to advance, which could undermine the credibility of economic policy and market confidence.

Exame: Governo Lula precisa de R$ 27 bilhões para cumprir meta fiscal, diz IFI
Agência Brasil: IFI: governo terá de economizar R$ 27,1 bi extras no último trimestre

3. Former state-owned Eletrobras undergoes rebranding and changes name to Axia

This week, Eletrobras announced that it will now be called Axia, marking a new phase following its privatization, completed in 2022. According to a statement to the market, the name has Greek origins and means “value,” also evoking the idea of an axis, something that connects, supports, and generates movement. The company stated that the change reinforces its identity as a private group and its commitment to efficiency and modernization in the energy sector.

According to the company, the new brand symbolizes the consolidation of a transformation process that began with privatization, focused on innovation and operational agility. Axia aims to strengthen its presence in an increasingly competitive and technologically adaptive environment while maintaining a focus on sustainability, governance, and business expansion. The rebranding also seeks to bring the company closer to investors and consumers, signaling a strategic repositioning in the energy market.

UOL Economia: Eletrobras muda nome para Axia para deixar passado estatal

4. Earnings results expected to be weak, analysts say

The third-quarter earnings season is expected to highlight a slowdown in the performance of publicly traded companies, both those focused on the domestic market and exporters. The outlook is being shaped by high interest rates, which weigh on consumption and credit, and by the impact of import tariffs imposed by the US government, which took effect in August.

Although the issue has lost momentum due to expanded exemptions proposed by the Donald Trump administration, some sectors continue to feel the effects of the measures. Analysts expect companies to present different strategies to mitigate losses, which could signal trends for the end of the year. The topic is expected to remain on the radar but with less intensity, according to experts consulted.

Valor Econômico: Analistas esperam 3º trimestre mais fraco

5. Brazilian automotive sector to be impacted by chip shortage

Low production of semiconductors used in automotive technology solutions is raising concerns among Brazilian automakers, according to ANFAVEA, the industry’s representative association. Factories could be affected within a few weeks, resembling a situation that occurred during the pandemic.

Geopolitical disputes, intensified after tensions between the Dutch government and a Chinese company, are among the reasons cited by ANFAVEA as possible causes. Following the conflict, China imposed restrictions on the export of electronic components, which has been influencing production in Brazil.

Infomoney: Falta de chips pode parar montadoras em questão de semanas, alerta Anfavea