Espresso for April 22nd
QUOTE OF THE DAY
“Every step of the impeachment is in accordance with the constitution. How is this a coup?” Michel Temer in an interview to the WSJ.
WHAT MARKETS ARE TALKING ABOUT
ROUSSEFF SET TO GO
The Removal of Dilma Rousseff for a provisional 180-day period is almost a certainty after Senate´s Special Committee of 21 members has been formed with 14 members in favor of impeachment; next week they will vote if the process goes ahead and will kick off Rousseff´s trial. The final vote could be as early as May 12, then if 54 out of 81 senators vote against the president, Rousseff will be gone for good.
GOOD RESULTS IN MARCH FOR LATAM PENSION FUNDS
Mexico and Chile´s pension funds rose 8.0% YoY and 4.9% YoY respectively in March. Mexico´s AFORES AUM grew to $149.4 bn boosted by peso recovery as well as better domestic and international stock performance. AFORE´s foreign stocks to domestic stocks ratio decreased 14 bps to 2.02x. Chilean pension funds totaled $163.3 bn with aggressive funds benefiting the most during the month. Exposure to local equity increased 20bps to 7.8% of Chilean pension funds´AUM.
ARGENTINA TO PAY TO HOLDOUTS TODAY
Argentina´s Treasury undersecretary, Santiago Bausili, said the country will pay down today $9.3 bn to Holdout creditors, $6.2 bn will be wired directly to those creditors that reached an agreement before February 29 and $3.1 bn will be transferred to a trust in Bank of New York Mellon for those that reached an agreement after the date. From the recent bond issuance of $16.5 bn a remaining of $7.2 bn will be destined to strengthen foreign exchange reserves at the Central Bank.