☀ Domingo Brief — Argentina’s $1B Fire Sale

Welcome back to the Domingo Brief! This week, we’re keeping up with Brazil’s fiscal problem, Mexican retail growth, and more.

Trivia of the Week 🎯

Just 45% of you correctly guessed Ecuador as the Latin American country which uses popcorn as a garnish when making ceviche. While this may disgust our Mexican or Peruvian readers, Ecuador’s unique ceviche contributes to the dish’s status as a UNESCO Intangible Cultural Heritage of Humanity. Ecuadorians have also been known to top up their ceviche with fried plantains or tostones.

Each week, tune back in for the answer to the previous week’s trivia question. No cheating!

🇦🇷 Argentina held a $1B bond sale, its first in seven years, as the Javier Milei administration attempts to restore investor confidence in his country’s battered economy. The yield on the debt, nearly 30%, reflects lasting international apprehension about a country that remains $300B in debt, and which until recently had triple-digit inflation. Many financial analysts believe that greater direct investment inflows, as well as the boosting of Argentina’s historically low foreign reserves, could assist in bringing Argentina back from the financial brink.

🇧🇷 Moody’s has downgraded its outlook for Brazil from ‘positive’ to ‘stable’ due to the country’s fiscal difficulties and high interest payments. The ratings agency maintained its Ba1 rating (one level below investment grade) that it first reported for Brazil in October, in what had been seen at the time as a major victory for government of President Lula da Silva. This latest change reflects growing stress surrounding Brazil’s looming debt, expected to reach 88% of gross domestic product (GDP) by 2030, and the disagreements between Congress and the executive branch on how best to address the fiscal gap.

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