Post by account_disabled on Feb 20, 2024 5:42:03 GMT -5
After last Friday the Minister of Economy, Luis Caputo, announced the elimination of the fiscal package from parliamentary discussion, the market will operate with extreme caution. The economists consulted by Clarín agreed that this is a " bad sign" in the short term, which can impact the price of stocks and bonds, although it may not have a direct impact on the exchange rate gap.
Wait and see (wait and see) This With Asia Mobile Number List our eyes focused on Congress and the tense negotiations that Javier Milei is carrying out with the governors to achieve the approval of the Omnibus Law, the market will operate again this Monday. In the City they expect an initial negative reaction , although it could be moderated by some positive signs on the exchange front and if the president finally manages to advance the Law this week.
After last Friday the Minister of Economy, Luis Caputo, announced the elimination of the fiscal package from parliamentary discussion, the market will operate with extreme caution. The economists consulted by Clarín agreed that this is a " bad sign" in the short term, which can impact the price of stocks and bonds, although it may not have a direct impact on the exchange rate gap.
Wait and see (wait and see) This is what investors think they will do this week as the political fight takes center stage and decisions are awaited. Although Milei "lost" by having to execute the fiscal package for the treatment of the Base Law, Caputo assured on Friday that the goal of zero deficit remains intact. And that is good news for the market.
Fernando Marengo, chief economist at Black Toro, stated: "It is clear that what happened on Friday is not good news, however, since November 20, Javier Milei was elected president." His legislative weakness was always known. Now that despite the reduction of the fiscal chapter, the commitment to eliminate the financial sector is vindicated, it is great news, surely the market will want to see the new measures to achieve it.
Unlike other adjustment programs in which the Minister of Economy had to convince the President of the need to do things, and when it was abandoned due to political "needs", which caused good plans like Austral to fail, this time The one convinced of the need for the program is the President, something unprecedented in the history of the country, " Marengo added.