Espresso for May 9th
QUOTE OF THE DAY
“Lower taxes for business, lower taxes for the middle class, lower taxes for everybody and then we’re going to start negotiating,” the presumptive Republican presidential nominee, Donald Trump, said in an ABC interview that aired Sunday.
WHAT MARKETS ARE TALKING ABOUT
Oil prices remain volatile as Canada wildfires rage. Fires spreading across the Canadian province of Alberta have prompted oil companies to halt production, reducing the country’s daily output by about a fifth. Markets also weighing implications of change at the top in Saudi oil ministry.
Greece passed austerity laws. The government hopes the approval of pension changes and tax increases will unlock rescue funds, but its key creditors remain deadlocked over the terms of the country’s bailout. Thousands of protesters demonstrated against the measures outside parliament on Sunday.
China is intensifying lobbying to gain “market economy status” under the World Trade Organisation (WTO) despite growing opposition in Europe and the US to a move that would make it harder for other major economies to bring anti-dumping cases against Beijing.
WHAT #LATAM IS TALKING ABOUT
A Senate committee recommended on Friday that Brazil’s President Dilma Rousseff be put on trial by the full chamber for breaking budget laws, moving a step closer to the likely suspension of the leftist leader from office next week. The full Senate is expected to vote to put her on trial on Wednesday, which would immediately suspend Rousseff for the duration of a trial that could last six months. During that period, Vice President Michel Temer would replace her as acting president. The upper house committee voted 15-5 to accept the charges against Rousseff, which involve budget irregularities that critics say masked budget problems while she ran for re-election in 2014, and her opponents are certain to muster the simple majority needed to begin a trial.
In Mexico, America Movil’s ADR (AMX) plunged 9.0% and now accumulated a 13.6% one-month decline mainly explained by week 1Q16 figures. Carlos Slim should be nervous. ICA fell a rough 14.6% last week. The ADR has fallen 79.2% in one year. Check why (here). Besides these two underperformers, GAP increased 3.0% in the week and was the only ADR on the green. GAP continued to deliver the strongest traffic growth within Mexico’s airport sample, as Tijuana’s cross-border bridge kept displaying an impressive performance, contributing with around one third of the company’s incremental traffic. On the other hand, ASUR and OMA continued to slow down.