RHETORIC RISK RISING FROM BRAZIL TO MEXICO

Investors looking at Mexico and Brazil are feeling the effects of rhetoric, whether from right or left. Andres Manuel Lopez Obrador, aka AMLO, and Jair Bolsonaro are two sides of the same coin. AMLO’s challenge is the ambition and scope of his proposals, as he tries to change Mexico’s entire economic model with increased state intervention, a review of contracts and centralized administration. Bolsonaro could be stymied by his weak political skills, hindering efforts to approve a new pension regime that many economists see as necessary for Brazilian prosperity.

Several Mexican corporates are suffering the effects of the Mexican instability. What will happen with CFE contracts? Will the government help Pemex and dodge a downgrade to junk? And if a downgrade materializes, what kind of sell-off can investors expect?

In Brazil, the honeymoon between the Congress and the government is over. How much patience do investors have for Bolsonaro? How will a delay in pension reform affect investors? And what happens if it never gets approved?

SPEAKERS INCLUDE