Espresso for April 19th
QUOTE OF THE DAY
“It’s not the beginning of the end. We’re at the beginning of a fight, a long, drawn-out fight.” Dilma Rousseff after losing impeachment voting at Congress.
WHAT MARKETS ARE TALKING ABOUT
ROUSSEFF FIGHT MODE ON
After losing the impeachment voting at Congress, Dilma Rousseff committed to fight the process as she sees it as a threat to democracy and personal affront, she also compares it with fighting the 1964 to 1985 military dictatorship. The Senate is taking the process from here and could remove Rousseff from its charge as early as 2 weeks from now, after that the Senate will have a 6-month´s period for Rousseff´s trial and final impeachment decision.
DON´T CRY FOR ME ARGENTINA
Argentina is returning to debt capital markets after 15 years of absence. The bond sale could be the biggest emerging market issue since 1988. The country seeks $15 bn with different notes, Argentina is building a curve with several maturities of 3,5,10 and 30 years. Great demand for the notes is expected, word on the street is that the bond sale is highly oversubscribed. Among other factors the low leverage of the country relative to its size plays a positive role. As a reference Argentina´s 10-year note is trading around 7.48% yield.
MEXICO´S STATE OIL COMPANY DECLINING PRODUCTION
Mexico´s PEMEX accelerated its decline pace of production on its largest oilfield of Cantarell during 2015. Production declined to 228,000 daily barrels vs 322,00 in 2014, a decrease of 29.1% on a yearly basis.