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Donald Trump upended decades of American policy when he started a trade war with China. Many thought that President Biden would reverse those policies. Instead, he’s stepping them up. Jim Tankersley, who covers economic policy at the White House, explains.
Persons: Donald Trump, Biden, Jim Tankersley Organizations: White Locations: China
Argentine President-elect Javier Milei departs the Eisenhower Executive Office Building after meeting with Biden administration staff at the White House complex in Washington, U.S., November 28, 2023. His foreign policy, meanwhile, is unabashedly pro-United States and pro-Israel, with a cooler stance on top trade partners Brazil and China. 2 Gita Gopinath and other fund officials, the fund said separately. The IMF has said in the past that dollarization is not a substitute for sound macroeconomic policy. Milei and IMF officials had a first virtual meeting on Friday, which Georgieva called a "very constructive engagement".
Persons: Javier Milei, Kevin Lamarque, Milei, Jake Sullivan, Juan Gonzalez, Benjamin Gedan, Alberto Fernandez, Vladimir Putin, Kristalina Georgieva, Posse, Luis Caputo, Gita Gopinath, Georgieva, Jason Lange, Rodrigo Campos, Rosalba O'Brien, Christopher Cushing Organizations: Argentine, Biden, REUTERS, Rights, U.S, White, National Security, Western, United, Israel, America, Wilson, International Monetary Fund, IMF, Reuters, Thomson Locations: Washington , U.S, Washington, Argentina, United States, Brazil, China, U.S, Moscow, Ukraine, Beijing, Argentine, New York
Listen and follow The DailyApple Podcasts | Spotify | Amazon MusicA little over a year ago, at President Biden’s urging, congressional democrats passed a sweeping plan to supercharge the production and sale of electric vehicles. Jim Tankersley, who covers economic policy for The Times, explains whether the law is actually working.
Persons: Biden’s, Jim Tankersley Organizations: Spotify, The Times
The economy is likely already in recession and is expected to contract again next year. Shortly after being sworn in as economy minister, Massa in August 2022 pledged to stop printing money to fight inflation. "Markets will likely prefer a Milei victory simply because he is more credible on delivering the fiscal adjustment." "Every investor understands that the macroeconomic adjustments that Argentina needs will inevitably translate into short-term pain." For investors, Argentine stocks traded in New York (.MIAR00000PUS) have been a beacon of hope, up near 15% year to date.
Persons: Sergio Massa, Javier Milei, Luis Robayo, Pilar Tavella, Alejo Czerwonko, Massa, Carlos de Sousa, UBS's, JPMorgan's Diego Celedon, Celedon, Rodrigo Campos, Adam Jourdan, Lisa Shumaker Organizations: por la Patria, La Libertad, University of Buenos, Law School, Global, Peronist, Barclays, Reuters Graphics Reuters, Argentina, Monetary Fund, Itau, IMF, Emerging, UBS Global Wealth Management, Vontobel Asset Management, Argentine, UBS, Thomson Locations: Argentina, University of Buenos Aires, Buenos Aires Argentina, New York, Argentine, outperforming
Brazil's central bank Governor Roberto Campos Neto, speaks at the ReutersNEXT Newsmaker event in New York City, New York, U.S., November 9, 2023. REUTERS/Brendan McDermid Acquire Licensing RightsNEW YORK, Nov 9 (Reuters) - Brazil's central bank chief Roberto Campos Neto on Thursday said any change to the country's fiscal target would raise concerns, following comments by President Luiz Inacio Lula da Silva casting doubt on the government's vow to erase a budget deficit. Since then, Finance Minister Fernando Haddad has broadly reaffirmed Brazil's commitment to "fiscal balance," but lawmakers involved in next year's budget bill are hinting heavily that they aim to loosen the zero-deficit target. In Thursday's interview, Campos Neto highlighted that Brazil has approved important reforms since the COVID pandemic, including an overhaul on consumption taxes, which passed the Senate on Wednesday, but acknowledged the uncertainty on fiscal policy. "And that influences a lot of the variables that are important for us when you make decisions in monetary policy," he reinforced.
Persons: Roberto Campos Neto, Brendan McDermid, Luiz Inacio Lula da Silva, Campos Neto, Lula, Fernando Haddad, Rodrigo Campos, Dan Burns, Marcela Ayres, Mark Porter, Brad Haynes, Nick Macfie Organizations: REUTERS, Reuters NEXT, Finance, Thomson Locations: New York City , New York, U.S, New York, Brazil
She is one of thousands believed by rights activists to be in hiding in Pakistan to avoid deportation under a government push for undocumented migrants to leave the country. That includes over one million Afghans, many of whom the Pakistan government says have been involved in militant attacks and crime. 'WORSE THAN PRISON'Reuters spoke to a dozen undocumented migrants trying to stay under the radar of the nationwide sweep. "This is worse than prison," said a 22-year-old Afghan man who said he ensured the lights remained off at night. Some locals who are helping the Afghans arrange for food and water to be secretly smuggled into the shelter under the cover of night.
Persons: Saleh Zada, Akhtar Soomro, Sijal Shafiq, Shafiq, Wafa, I'm, Gibran Peshimam, Raju Gopalakrishnan Organizations: Reuters, REUTERS, Rights, Authorities, United Nations, Thomson Locations: Badakhshan province, Kabul, Karachi, Pakistan, Rights KARACHI, Afghanistan, United States, Hazara, Islamabad, France, Canada
Pakistan is home to over 4 million Afghan migrants and refugees, about 1.7 million of whom are undocumented, according to Islamabad. Cash-strapped Pakistan, navigating record inflation and a tough International Monetary Fund bailout program, also said undocumented migrants have drained its resources for decades. The information minister for Balochistan province, which borders Afghanistan, told Reuters it is opening three more border crossings. Pakistani citizens who help undocumented migrants obtain false identities or employment will face legal action, Bugti warned. There are more than 2.2 million Afghan migrants in Pakistan with some form of documentation recognized by the government that conveys temporary residence rights.
Persons: Akhtar Soomro, Muhammad Rahim, Abdul Mutaleb Haqqani, Azizullah, Sohrab Goth, Mumtaz Zahra Baloch, Cash, Samar Abbas, Sarfaraz Bugti, Bugti, Abbas, Uzair Ahmed, Majida, we've, Muhammad, Ariba Shahid, Charlotte, Mohammad Yunus Yawar, Saleem Shahid, Katerina Ang Organizations: REUTERS, Rights, Reuters, Pakistani Interior Ministry, Foreign, Monetary Fund, Sindh Human Rights Defenders Network, Islamabad, Federal, UNHCR, International Organization for Migration, Karachi East Police, Afghan Ministry, Refugees, World Bank, U.N, Thomson Locations: Pakistan, Karachi, Rights KARACHI, Pakistani, Afghanistan, Islamabad, Sindh, Balochistan, AFGHANISTAN, Charlotte Greenfield, Kabul, Quetta
[1/3] A state oil company PDVSA's logo is seen at a gas station in Caracas, Venezuela May 17, 2019. The restrictions were removed in response to a deal reached between the country's government and opposition parties for the 2024 election. JPMorgan's index team, which has made no statement as yet on the future treatment of the Venezuelan bonds, has reached out informally to investors to discuss the topic, the sources said. Venezuela and PDVSA have around $60 billion of international bonds outstanding, which are in default. The decision on index membership and weighting is taken by JPMorgan, though any changes usually follow consultations with investors.
Persons: Ivan Alvarado, Rodrigo Campos, Jorgelina, Rosario, Karin Strohecker, Christina Fincher, Nick Zieminski Organizations: REUTERS, JPMorgan, Reuters, Thomson Locations: Caracas, Venezuela, United States, PDVSA, Washington
The Problem With a $2 Trillion Deficit
  + stars: | 2023-10-23 | by ( Michael Barbaro | Alex Stern | Eric Krupke | ) www.nytimes.com   time to read: 1 min
Listen and follow The DailyApple Podcasts | Spotify | Amazon MusicOver a year, the federal deficit — the gap between what the U.S. government spends and what it earns — has doubled, to nearly $2 trillion. That figure seems to validate the worries of congressional Republicans about government spending, which have been at the center of the messy fight over who should be House speaker. Jim Tankersley, who covers economic policy at the White House for The Times, explains the Republicans’ concerns — and why their plans would not come close to solving the problem.
Persons: , Jim Tankersley Organizations: Spotify, White, The Times
Investors arrive to the election looking at an economy in recession as a crippling drought hit the key agricultural sector. The gap to the official rate is above 150%. On the line is the survival of the country's $43 billion program with the International Monetary Fund and the possibility that Argentina defaults on its debt for a 10th time. "Dollarization would not cure the main issue in Argentina, which is a really large fiscal problem." "Debt does not need to be an immediate priority," said Khan, who doesn't expect dollarization to top the near-term list either.
Persons: Patricia Bullrich, Martin Cossarini, Javier Milei, Sergio Massa, Alejandro di Bernardo, Bernardo, Milei, Massa, Gabriel Rubinstein, Elijah Oliveros, Rosen, Zulfi Ali, Shamaila Khan, Khan, Hans Humes, Humes, Rodrigo Campos, Karin Strohecker, Susan Fenton Organizations: el Cambio, REUTERS, NEW, International Monetary Fund, Jupiter Asset, Bullrich, WE, JPMorgan, China, Institute of International Finance, IMF, America, PGIM, Oxford Economics, Reuters, Emerging Markets, Asia Pacific, UBS Asset Management, Massa, Greylock Capital Management, Thomson Locations: Buenos Aires, Argentina, Washington
REUTERS/Leonardo Fernandez Viloria/File Photo Acquire Licensing RightsNEW YORK/CARACAS, Oct 19 (Reuters) - Venezuela's sovereign bonds rallied on Thursday, a day after the United States lifted its ban on secondary market trading of some of the country's eurobonds, with investors eyeing a debt restructuring on some $60 billion of defaulted debt. "Prices have almost doubled in the past 24 hours but are still well below the pre-sanctioned levels," said Edward Cowen, CEO of Winterbrook Capital, who has co-invested in a fund to buy Venezuelan debt. Cowen added that a return to Venezuela's regular weighting on global indexes like JPMorgan's would give the prices further support. "I think the market was caught by surprise as the ban on secondary trading of bonds was not expected to be removed this early in the negotiation," said Armando Armenta, senior economist for global economic research at AllianceBernstein. Small funds and investors outside the United States had looked to increase their exposure to Venezuelan bonds on the expectation of debt renegotiations.
Persons: Leonardo Fernandez Viloria, PDVSA, Edward Cowen, Cowen, Armando Armenta, Maria Corina Machado, Rodrigo Campos, Mayela, Marc Jones, Corina Rodriguez, Christina Fincher, Will Dunham Organizations: REUTERS, South, Winterbrook, U.S . Treasury Department, Petroleum, Venezuelan, U.S . State Department, Mayela Armas, Thomson Locations: Bolivar, Caracas, Venezuela, CARACAS, United States, South American, U.S, Venezuela's, Venezuelan, New York, London, Madrid
While most traders are waiting on the sidelines, anxious about the election and unsure of libertarian frontrunner Javier Milei, some daring bond investors are moving in. "There has been a lot of pain from being invested in Argentina over the past decade," Reed said. Rob Citrone, founder of U.S.-based hedge fund Discovery Capital Management, said Argentina presented one of the best opportunities in emerging markets. The depressed values offer another reason to be bullish on Argentina's debt, said Thomas Haugaard, a portfolio manager on the emerging markets debt hard currency team at Janus Henderson Investments in Copenhagen. Armando Armenta, an analyst for Latin American fixed-income and currency markets at AllianceBernstein in New York, said it was a mixed picture.
Persons: Javier Milei, Cristina Sille, Milei, Patricia Bullrich, Sergio Massa, Christine Reed, Reed, Bullrich, Mauricio Macri's, Massa, Rob Citrone, Cristina Fernandez de Kirchner, Fernandez de Kirchner, Thomas Haugaard, Janus Henderson, Haugaard, Morgan Stanley, Armando Armenta, Milei's, Rodrigo Campos, Carolina Mandl, Adam Jourdan, Paul Simao Organizations: Argentine, REUTERS, Peronist, International Monetary Fund, U.S, Discovery Capital Management, Reuters Graphics Reuters, BancTrust, Reuters, Janus, Janus Henderson Investments, Thomson Locations: Buenos Aires, Argentina, New York, Ghana, Sri Lanka, Copenhagen, Congress, AllianceBernstein
KARACHI, Pakistan, Oct 5 (Reuters) - Pakistani ecommerce logistics startup Rider, backed by YCombinator, is looking into acquiring BlueEx (UNIV.PSX) the only listed Express Courier Logistics Company in Pakistan, it told Reuters on Thursday. "We are carving out and acquiring the e-commerce logistics business which currently operates under the brand name BlueEx. This is not an acquisition of Universal Network System Limited as a whole," said Salman Allana, founder and CEO of Rider. If the transaction goes through, this will be the first acquisition of a listed company by a startup, and the first major acquisition of a company listed on Pakistan's Growth Enterprise Market (GEM) board at the Pakistan Stock Exchange (PAKS.PSX). While Rider has not disclosed the transaction value, it claims the acquisition will make Rider the third largest player in the ecommerce logistics space.
Persons: Salman Allana, Rider, Allana, Ariba Shahid, Michael Perry Organizations: Express Courier Logistics Company, Reuters, Venture, Universal Network System, Pakistan Stock Exchange, GEM, YCombinator, Global Founders Capital, Flexport, i2i Ventures, Fatima, Ventures, Soma, Rebel Fund, Thomson Locations: KARACHI, Pakistan, Karachi
"It demonstrates the company's capabilities and readiness to refine different types and complexities of crude oil." Cnergyico conducted due diligence and consulted with external sanctions counsel to ensure the import of Russian oil did not violate sanctions, he said. Last year, Pakistan's total crude imports registered at 154,000 bpd. The government paid in Chinese yuan for its first import of discounted Russian crude, which went to state-owned Pakistan Refinery Ltd (PKRF.PSX). Cnergyico said it expects to make the Russian imports viable through the export of furnace oil to generate foreign exchange.
Persons: Alexander Manzyuk, Cnergyico, Ariba Shahid, William Mallard, Tom Hogue Organizations: REUTERS, Rights, Reuters, Pakistan Refinery Ltd, Bank, United Arab, Thomson Locations: Republic of Tatarstan, Russia, Rights KARACHI, Pakistan, Ukraine, Saudi Arabia, United Arab Emirates, Karachi
KARACHI, Pakistan, Sept 28 (Reuters) - Pakistan's rupee has gained 6.1% against the dollar so far in September, following an official clampdown on illegal foreign exchange trade in grey and black markets by security agencies. September's gains have almost made up for all of the rupee's losses in August and technically make it the best-perfoming currency in the world this month. The Pakistani rupee closed 0.3% up in the interbank market at 287.8 per dollar on Thursday. The crackdown on black market operators against the informal market resulted in tens of millions of dollars pouring back into Pakistan's interbank and open markets, dealers said. "The rupee has indeed performed well but this data does not reflect the sharp depreciation preceding this performance.
Persons: Fahad Rauf, Ismail Iqbal, Rauf, Ariba Shahid, Jane Merriman, Sharon Singleton, Hugh Lawson Organizations: Finance Ministry, Research, Ismail, Ismail Iqbal Securities, International Monetary Fund, Thomson Locations: KARACHI, Pakistan, Karachi
The financial services trade group said in a report that global debt in dollar terms had risen by $10 trillion in the first half of 2023 and by $100 trillion over the past decade. It said the latest increase has lifted the global debt-to-GDP ratio for a second straight quarter to 336%. Prior to 2023, the debt ratio had been declining for seven quarters. Slower growth, alongside a deceleration in price increases, were behind the debt ratio rise, the report said. "As higher rates and higher debt levels push government interest expenses higher, domestic debt strains are set to increase," the IIF said.
Persons: Florence Lo, Rodrigo Campos, Karin Strohecker, Alexander Smith Organizations: U.S, REUTERS, Institute of International Finance, Reuters, Federal, Thomson Locations: United States, Japan, Britain, France, China, India, Brazil, Korea, Thailand, U.S
Tens of millions of dollars have poured back into Pakistan's interbank and openmarkets, dealers say, since raids on black market operators began on Sept. 6. Ninety percent were going to black market dealers, cutting our supply of foreign exchange," Bostan explained. While a crackdown on the black market was needed to stabilise the rupee, it "is a temporary fix," said Fahad Rauf, Head of Research at Ismail Iqbal Securities. High inflation and chronic external deficits lie at the heart of the currency's problem, and closing off people's access to black market dollars risks storing up pent-up demand. "There is an unprecedented demand for the dollar," Hanifullah Mohmand, a trader in the Peshawar market, said.
Persons: Akhtar Soomro, Asim Munir, Malik Bostan, Bostan, General Munir, Haji Luqman Khan, Sheikh Allauddin, ECAP, Fahad Rauf, Ismail Iqbal, Ariba Shahid, Mushtaq Ali, Gibran Peshimam, Simon Cameron, Moore Organizations: REUTERS, Pakistan, Exchange Companies Association of Pakistan, Reuters, Federal Investigation Agency, FIA, Inter, Services Intelligence, ISI, Locals, International Monetary Fund, IMF, Research, Ismail, Ismail Iqbal Securities, Thomson Locations: Karachi, Pakistan, KARACHI, PESHAWAR, Peshawar, Islamabad, Lahore, Quetta, Afghanistan
An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China July 6, 2018. A monthly report from the Institute of International Finance showed non-residents funneled $14.9 billion out of China stocks, the largest monthly outflow on records back to 2015, while Chinese debt saw $5.1 billion in outflows. The broad MSCI stock and currency emerging market indexes posted in August their largest monthly drops since February. Equities fell across all geographical regions while debt posted inflows in Asia, Latam and emerging Europe. Year-to-date numbers through August show a $13.1 billion outflow from China while emerging markets ex-China has seen $139.5 billion in non-resident portfolio inflows.
Persons: Aly, Jonathan Fortun, Fortun, Rodrigo Campos, Chizu Organizations: REUTERS, China, EMs, Institute of International Finance, China's, Reuters Graphics Equity, Emerging, Thomson Locations: Shanghai, China, outflows, Emerging Asia, Latin, Africa, Middle East, Asia, Europe
A Reuters poll of 17 analysts show that 15 are forecasting a rate hike. An easing of import restrictions and the removal of subsidies - both conditions of the bailout - have fueled spikes in energy prices. Although overall inflation fell slightly to 27.4% in August, food inflation remain elevated at 38.5%. Pakistan's central bank said in July that it expects inflation to be on a downward path over the next 12 months. Analysts also noted that rises in cut-off yields in treasury bill auctions - the highest yield at which a bid is accepted - indicate that market participants expect a rate hike.
Persons: Shivaan Tandon, Ariba Shahid, Swati Bhat, Edwina Gibbs Organizations: State Bank of Pakistan, Capital Economics, Thomson Locations: KARACHI, Karachi
El Salvador's President Nayib Bukele speaks during a ceremony to lay the first stone of a new public hospital, in San Salvador, El Salvador June 15, 2023. El Salvador's debt repurchases last year and a still-light payments calendar were behind a rally that shrank the premium to hold Salvadoran government debt (.JPMEGDELSR) from above 3,200 basis points in July last year to about 1,000 a year later. Katrina Butt, a senior economist at AllianceBernstein, said that even as the size of the investment is yet to be made public, "Google Cloud's announcement could significantly improve macro fundamentals in El Salvador over time". "Though outperformance of El Salvador has been impressive we think the carry is still attractive given the low default risk." BNP's Marshik said the next leg of the rally could come from good news on El Salvador's relationship with the International Monetary Fund - where the United States is the largest shareholder.
Persons: Nayib Bukele, Jose Cabezas, Nathalie Marshik, Katrina Butt, Shamaila Khan, BNP's Marshik, Siobhan Morden, Rodrigo Campos, Nelson Renteria, Angus MacSwn Organizations: El, San Salvador , El, REUTERS, SALVADOR, Reuters, BNP Paribas, Google, United States, U.S . Embassy, Peace Corps, Central American, U.S, Asia Pacific, UBS Asset Management, International Monetary, IMF, Santander US Capital Markets, Thomson Locations: San Salvador ,, San Salvador , El Salvador, El Salvador, America, Peace, El Salvador's, Asia, United States
Below are five charts showing what's been moved and/or shaken:1/SHOCK FOR THE STOCKSMSCI's 24-country emerging markets (EM) stocks index (.MSCIEF) is down 6% this month. It is still up for the year, though well below the 13.5% gain this year for MSCI's main global index, which has benefited from a boom in U.S. "mega-cap" stocks. "The markets that have underperformed are the lower-yielding markets like Asia," Mike Arno, a portfolio manager at Brandywine Global, said. "The market doesn't seem to think that China is a major threat," said Aegon Asset Management's head of EM debt, Jeff Grills. Reuters Graphics5/OUT OF AFRICAThe other big trouble spot has been Africa, where debt markets have seen a sharp pullback.
Persons: Jason Lee, what's, Tayyip Erdogan's, Katherine Marney, Mike Arno, Jeff, Erdogan, Van Eck's, Eric Fine, Viktor Szabo, Szabo, Marc Jones, Rodrigo Campos, Alex Richardson Organizations: REUTERS, Reuters, JPMorgan, Brandywine, FX, HK, EMBI, abrdn, Thomson Locations: Beijing, China, Africa, MIWD00000PUS, Hungary, America, Brazil, Argentina, Asia, TURKEY, Gabon, Niger, JPMorgan's Africa, London, New York
A currency trader counts Pakistani Rupee notes as he prepares an exchange of U.S dollars in Islamabad, Pakistan December 11, 2017. REUTERS/Caren Firouz/File Photo Acquire Licensing RightsKARACHI, Pakistan, Aug 22 (Reuters) - Pakistan's rupee closed at a record low of 299 rupees against the dollar in the interbank market on Tuesday following an easing in import restrictions that has lifted demand for the dollar, central bank data showed. Pakistan imposed import restrictions from 2022 to stem outflows from its shrinking foreign reserves. Traders said the rupee fell 0.6% to an intraday low of 299 against the dollar. "The declining trend is mainly attributable to the ease off in the import restrictions coupled with clearance of backlog for goods and services," he said.
Persons: Caren, Imran Khan, Tahir Abbas, Arif Habib, Ariba Shahid, Edwina Gibbs, Conor Humphries Organizations: REUTERS, Rights, Monetary Fund, Traders, Thomson Locations: Islamabad, Pakistan, Rights KARACHI, Karachi
Pakistan's Foreign Minister Shah Mehmood Qureshi gestures as he speaks during an interview with Reuters at the Ministry of Foreign Affairs (MOFA) office in Islamabad, Pakistan June 25, 2020. REUTERS/Salahuddin/File photo Acquire Licensing RightsKARACHI, Pakistan, Aug 19 (Reuters) - Pakistani opposition leader Shah Mehmood Qureshi was detained on Saturday, his Pakistan Tehreek-e-Insaf party said, just hours after he said it would challenge any delay to the country's election in the courts. Party spokesman Zulfi Bukhari told Reuters the specific reason for the detention of Qureshi, twice Pakistan's foreign minister, was not immediately clear. The outgoing government approved a new census in its final days, meaning new electoral boundaries must be drawn up by the Election Commission. IMF BAILOUTThe election commission said on Thursday that new constituencies would be finalised by Dec. 14, state television reported.
Persons: Shah Mehmood Qureshi, Salahuddin, Zulfi Bukhari, Qureshi, Bukhari, Imran Khan, Khan, Haq Kakar, Ariba Shahid, Toby Chopra, Alison Williams Organizations: Pakistan's, Reuters, Ministry of Foreign Affairs, REUTERS, Rights, PTI, IMF, Supreme, Monetary Fund, Thomson Locations: Islamabad, Pakistan, Rights KARACHI, Karachi
REUTERS/Agustin Marcarian/Illustration/File PhotoNEW YORK, Aug 15 (Reuters) - Investors in Argentina's financial markets, where bonds and the peso slid on Monday after central bank moves following a surprise primary election result, said the vote had a silver lining: it would likely hasten long-called-for economic reforms. The result initially introduced uncertainty into asset pricing, with traders selling stocks and dollar bonds - but prices later stabilized and the local stock market closed over 3% higher. Investors said this would outweigh any worries about Milei, despite some of his heterodox pledges, including to axe the central bank and dollarize the economy. Milei faces a significant challenge still to turn the primary election win into a successful run to the presidency. The central bank also increased the benchmark interest rate to 118% from 97%.
Persons: Agustin Marcarian, Javier Milei, Patricia Bullrich, Milei, Kimberley Sperrfechter, Sergio Massa, Cristina Fernandez de Kirchner, Milei's, Walter Stoeppelwerth, Shamaila Khan, Rowe Price, Samy Muaddi, Rodrigo Campos, Adam Jourdan, Rosalba O'Brien Organizations: Argentine, REUTERS, Economics, Kimberley, Peronist, Investors, Gletir SA, Emerging Markets, Asia Pacific, UBS Asset Management, Jorgelina, Thomson Locations: Argentina, Argentine, MERV, Rosario
REUTERS/Agustin Marcarian/Illustration/File PhotoNEW YORK, Aug 15 (Reuters) - Investors in Argentina's financial markets, where bonds and the peso slid on Monday after central bank moves following a surprise primary election result, said the vote had a silver lining: it would likely hasten long-called-for economic reforms. The result initially introduced uncertainty into asset pricing, with traders selling stocks and dollar bonds - but prices later stabilized and the local stock market closed over 3% higher. Investors said this would outweigh any worries about Milei, despite some of his heterodox pledges, including to axe the central bank and dollarize the economy. Milei faces a significant challenge still to turn the primary election win into a successful run to the presidency. The central bank also increased the benchmark interest rate to 118% from 97%.
Persons: Agustin Marcarian, Javier Milei, Patricia Bullrich, Milei, Kimberley Sperrfechter, Sergio Massa, Cristina Fernandez de Kirchner, Milei's, Walter Stoeppelwerth, Shamaila Khan, Rowe Price, Samy Muaddi, Rodrigo Campos, Adam Jourdan, Rosalba O'Brien Organizations: Argentine, REUTERS, Economics, Kimberley, Peronist, Investors, Gletir SA, Emerging Markets, Asia Pacific, UBS Asset Management, Jorgelina, Thomson Locations: Argentina, Argentine, MERV, Rosario
Total: 25