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Austria Expected to be First Country to Reject EU-Mercosur Agreement

Richard Mann
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Austria Expected to be First Country to Reject EU-Mercosur Agreement

RIO DE JANEIRO, BRAZIL - Austria intends to reject the planned and already controversial free trade agreement between the European Union and the South American confederation of states, Mercosur.

The EU subcommittee in the National Council voted against the agreement on Wednesday, September 18th, according to Austrian news . . .

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U.S. Dollar Sees Sharp Decline After Inflation Data Release

RT Staff Reporters
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U.S. Dollar Sees Sharp Decline After Inflation Data Release
The U.S. dollar experienced a notable decline against the Brazilian real on Friday, marking an end to its recent streak of weekly gains. This downturn was primarily driven by U.S. inflation data that aligned with market expectations, subsequently lowering Treasury yields.
On Friday, the U.S. dollar closed at a 0.94% decrease, valued at 5.1168 reais. This marked its most significant daily drop in a week and hit its lowest closing level since April 11th, which was 5.0908 reais.
Over the past week, the dollar decreased by 1.58%, halting a four-week run of strong gains during which it had surged by about 4%.
U.S. Dollar Sees Sharp Decline After Inflation Data Release
U.S. Dollar Sees Sharp Decline After Inflation Data Release. (Photo Internet reproduction)
The decline in the dollar came as Treasury rates fell following the release of U.S. inflation data. The Commerce Department reported that the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve closely monitors, rose by 0.3% in March. The annual inflation rate based on this index increased to 2.7% from 2.5% in February, matching the economic forecasts. Market reactions were tempered by these inflation figures. March PCE data showed a steady rise without exceeding market fears, especially after high inflation readings earlier in the quarter.
Despite initial expectations of a sooner easing by the Federal Reserve, market participants have now adjusted their forecasts. They now anticipate the beginning of interest rate cuts towards the end of the year.
In Brazil, earlier data showed that the IPCA-15 inflation index rose less than expected in April. A drop in transportation costs offset rising food prices, bringing the 12-month rate below 4%.
This adjustment in the dollar’s value reflects a broader reassessment of expectations regarding U.S. monetary policy. This reassessment continues to impact global currency markets significantly.

Ibovespa Rallies on Positive Inflation Signals

RT Staff Reporters
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Ibovespa Rallies on Positive Inflation Signals
On Friday, the Ibovespa, Brazil’s main stock index, soared, marking a significant upturn in its trajectory. It closed with a robust 1.51% increase, reaching 126,526.27 points—its largest single-day gain since a 1.63% rise on April 8. This uplift brought the weekly total to a 1.12% increase, snapping a three-week losing streak. The rally was significantly driven by key inflation data from both Brazil and the U.S., which also buoyed major indices in New York. The U.S. Personal Consumption Expenditures (PCE) index, a critical gauge for the Federal Reserve, reported a year-on-year increase of 2.7% for March, up from 2.5% in February.
Ibovespa Ekes Out Minor Gain, Halting Seven-Day Losing Streak
Ibovespa Ekes Out Minor Gain, Halting Seven-Day Losing Streak. (Photo Internet reproduction)
While annualized figures slightly exceeded expectations, quarterly data released with the U.S. GDP figures underperformed, preparing markets for potential downturns. Helena Veronese, chief economist at B. Side Investments, noted that these indicators rekindled expectations that the Fed might start reducing interest rates as early as September. Despite initial fears, a day earlier, unexpectedly high PCE data for Q1 had led market participants to postpone predictions for the Fed’s easing to November or December. Following these mixed signals, the commercial dollar fell sharply by 0.89% to R$5.11.

Brazil’s Inflation Trends and Stock Market Response

In Brazil, preliminary IPCA data for April showed inflation slowing, coming in below forecasts, which bolstered the Ibovespa’s strong finish. This trend prompted a drop in future interest rates (DI rates), although they stayed above 10%. Veronese highlighted the possibility of a 0.50% cut in the Selic rate due to cooling inflation but cautioned that fiscal and external factors needed close monitoring.
Amid uncertainties about the policies of the Federal Reserve and Brazil’s Central Bank (Copom), investors capitalized on the positive momentum. This resulted in gains for major stocks like Petrobras and Vale.
Only ten Ibovespa stocks fell on the day. With a public holiday midweek, the upcoming shorter trading week might not offer the same calm. This suggests that investors should relish this exceptional market performance while it lasts.

Oil Prices Rise Amid U.S. Inflation Data and Tensions in Rafah

RT Staff Reporters
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Oil Prices Rise Amid U.S. Inflation Data and Tensions in Rafah
This week, oil markets showed resilience as futures closed higher despite a strong dollar, buoyed by the latest U.S. inflation data and geopolitical developments. The release of the U.S. Personal Consumption Expenditures (PCE) Price Index for March influenced trading behaviors, highlighting the interplay between economic indicators and commodity prices. West Texas Intermediate (WTI) crude for June delivery rose by 0.34% to $83.85 a barrel on the New York Mercantile Exchange. Meanwhile, Brent crude for July advanced by 0.50% to $88.21 a barrel on the Intercontinental Exchange. Over the week, WTI saw an increase of 1.98%, while Brent recorded a gain of 1.05%.
Brent Crude Stabilizes Near $90 Despite Market Fluctuations
Brent Crude Stabilizes Near $90 Despite Market Fluctuations. (Photo Internet reproduction)
Market analysts from Rittersbuch have observed a division among traders regarding the PCE data’s implications, with some suggesting that robust economic figures might suppress future oil demand. Capital Economics predicts that a medium-term decline in oil prices could help alleviate global inflationary pressures, potentially reducing economic strain. Amidst these financial analyses, geopolitical tensions also played a critical role in shaping market sentiments. The possibility of an Israeli ground invasion in Rafah drew significant attention from investors, adding a layer of complexity to market dynamics. Israel has indicated that it might proceed with military action if negotiations over hostages with Hamas do not advance.
Moreover, developments in military cooperation between Iran and Russia have introduced additional factors for market participants to consider. These developments could potentially impact oil supply dynamics. Overall, the intertwining of economic data and geopolitical events continues to dictate the pace and direction of oil markets.
This underscores the complex and multifaceted nature of global energy trading.
Investors remain vigilant, monitoring a range of indicators and developments that could influence future market movements and pricing strategies.

Mexico Records Remarkable Trade Surplus in March

Richard Mann
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Mexico Records Remarkable Trade Surplus in March
In March, Mexico showcased a notable turnaround in its economic performance, registering a significant trade surplus of $2.098 billion. This marked a dramatic shift from the $585 million deficit seen in February, highlighting the resilience of the Mexican economy. The increase was largely fueled by a robust $3.248 billion surplus in non-oil products, despite a $1.150 billion deficit in oil-related trade. Data from the National Institute of Statistics and Geography (Inegi) revealed that the total exports for March amounted to $50.752 billion. This included a substantial contribution of $48.654 billion from non-oil exports and $2.028 billion from oil exports.
Mexico Records Remarkable Trade Surplus in March
Mexico Records Remarkable Trade Surplus in March. (Photo Internet reproduction)
However, overall exports saw a decrease of 5.3% compared to the previous year, with non-oil exports dropping by 4.5% and oil exports falling by 21.4%. The most significant losses were in the mining and metallurgical sectors, where exports plummeted by 22.6%. Domestic metal products also faced a sharp decline of 20.6%. Furthermore, the export of electrical and electronic equipment decreased by 6.8%, and automotive products saw a 2.4% reduction.

Agricultural Exports and Import Trends

Contrastingly, certain agricultural exports performed exceptionally well. Fresh strawberries surged by 47%, cattle by 29.3%, avocados by 24.2%, and fresh legumes and vegetables by 14.8%. Additionally, pepper exports grew by 9%. On the import side, there was a 7.1% reduction in total imports, which amounted to $48.654 billion. Specifically, consumer goods imports dropped to $7.133 billion, a 3.9% decrease from the previous year. This included a significant 43.6% decline in oil consumer goods like gasoline and butane/propane gas, although non-oil consumer goods imports rose by 8.3%.
This data underscores emerging trends that suggest a slowdown in Mexico’s internal economic activity and domestic demand. This slowdown comes particularly after a period of robust growth.
Notably, capital goods imports decreased for the first time since January 2021, pointing to a potential cooling off in investment growth.  

Argentina Slashes Tariffs to Propel Auto Industry Forward

Juan Martinez
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Argentina Slashes Tariffs to Propel Auto Industry Forward
Argentina has made a significant strategic move to enhance its automotive industry’s global competitiveness. Under the leadership of Economy Minister Luis Caputo and President Javier Milei, the country has substantially reduced tariffs and taxes. This reduction specifically targets the automotive sector, with the goal of boosting exports and streamlining processes. The automotive industry, integral to Argentina’s industrial output and a key employment sector, is set for transformation. Key reforms include drastic cuts in tariffs for automotive molds, essential for manufacturing.
Argentina Slashes Tariffs to Propel Auto Industry Forward
Argentina Slashes Tariffs to Propel Auto Industry Forward. (Photo Internet reproduction)
Tariffs on metal molds have been slashed from 35% to 12.6%, and for plastic injection molds, from 24% to 12.6%.
These changes aim to reduce production costs and foster growth within the sector.
Moreover, Argentina has introduced “Repostock,” a systematized and digital framework to continue the exemption from export sales duties for incremental exports initiated in 2021. This move will facilitate smoother and more efficient export processes, further enhancing the sector’s export potential. In a noteworthy development, Argentina has agreed with Brazil to mutually recognize automotive model tests. This collaboration will simplify regulatory processes and eliminate the need for duplicate testing, saving time and resources for manufacturers operating across both countries. These reforms go beyond immediate economic gains, aligning with global trends in the automotive industry toward sustainability and advanced technology.
The shift towards electric and autonomous vehicles offers both opportunities and challenges. It necessitates new skills and adaptations in business models, particularly for repair shops.
Argentina’s proactive reforms reflect a strategic adaptation to global economic shifts and market demands. In short, this sets a potential benchmark for other nations looking to modernize their industrial sectors and boost economic growth.

Pemex Profits Plummet 92% in Early 2024

Richard Mann
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Pemex Profits Plummet 92% in Early 2024
In the first quarter of 2024, Petróleos Mexicanos (Pemex) experienced a significant financial downturn. Profits plummeted by 91.7%, falling from MXN 56.735 billion ($3.40 billion) in early 2023 to just MXN 4.682 billion ($280.69 million) in the same period this year. A recent submission to the Mexican Stock Exchange noted that rising sales costs, administrative expenses, financing, and taxes drove this sharp decline. During this challenging period, Pemex’s revenues decreased by 3%, amounting to MXN 405.898 billion ($24.34 billion). This reduction stemmed mainly from diminished domestic and export sales, influenced by the falling prices of crude oil and fuels.
Pemex Profits Plummet 92% in Early 2024 - Pemex building in Mexico City. (Photo Internet reproduction)
Pemex Profits Plummet 92% in Early 2024 – Pemex building in Mexico City. (Photo Internet reproduction)
Nevertheless, the company effectively reduced its total financial debt by 5.7%, aiming to maintain net debt near zero. By March 2024, Pemex’s financial debt reached MXN 1.69 trillion ($101.35 billion), with an exchange rate of MXN 16.67 per dollar. In production, the company saw a 3% drop in crude oil and condensate output to 1.83 million barrels per day year-over-year. Conversely, refining operations saw an improvement, with an 18% increase to 985,000 barrels per day. These operational and financial shifts align with the broader energy policy of President Andrés Manuel López Obrador’s administration. The government has rolled out robust support measures for Pemex, totaling MXN 869.000 billion ($52.10 billion). These initiatives include capital injections, debt repayments, and substantial investments in refining and fertilizer sectors, alongside tax reductions. These strategic efforts aim to strengthen Pemex as it contends with financial turbulence and market volatility. They ensure the sustainability and profitability of Mexico’s oil giant in a challenging economic environment.

General Motors Shifts Strategy in South America

Richard Mann
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General Motors Shifts Strategy in South America
General Motors (GM) officially declared that it will shut down its assembly operations in both Colombia and Ecuador. This decision shifts focus to national vehicle marketing and after-sales services. Today, GM starts winding down Colombia’s Colmotores plant, operational since 1956. The OBB plant in Ecuador will follow, ending activities by August 2024. Despite these closures, GM reaffirms its commitment to South America. The company will sustain its Chevrolet brand presence, supported by a widespread dealership and Onstar services network. This approach addresses evolving customer needs in these regions. The change reflects GM’s strategy to tackle market fragmentation and plant underutilization.
General Motors Shifts Strategy in South America. (Photo Internet reproduction)
General Motors Shifts Strategy in South America. (Photo Internet reproduction)
Currently, Colmotores and OBB operate at only 9% and 13% capacity, necessitating a strategic shift. Shilpan Amin, President of GM International, stresses these adjustments are crucial for offering advanced vehicles and pursuing a zero-emissions future. Santiago Chamorro, GM South America’s CEO, supports focusing on customer-centric strategies for future competitiveness. GM acknowledges the closures’ impact on employees, promising a supportive and respectful transition. This commitment includes legal compliance and comprehensive career counseling. In this transition, GM boasts strong financial health, with last year’s earnings before interest and taxes (EBIT) reaching $12.4 billion. This year, projections rise to $14.5 billion. Driven by a 15% annual growth rate, GM plans a $35 billion investment to transition to fully electric vehicles, paving a sustainable path forward.

The Messi Experience: A Journey of Resilience and Glory

Oliver Mason
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The Messi Experience: A Journey of Resilience and Glory

In Miami, "The Messi Experience: A Dream Come True" vividly brings Lionel Messi's storied career to life.

This immersive exhibition traces his journey from Rosario, Argentina, to becoming a 2022 World Cup champion and his recent move to MLS club Inter Miami.

Staged in a hangar in Coconut Grove, the exhibit is set to tour up to 80 cities worldwide, including Buenos Aires.

Created by David Rosenfeld of Primo Entertainment and Studio Moment Factory, the exhibit starts with Messi’s childhood aspirations.

Nine thematic installations feature crucial chapters . . .

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Tragedy Strikes Porto Alegre: Fatal Hostel Blaze

RT Staff Reporters
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Tragedy Strikes Porto Alegre: Fatal Hostel Blaze
In the early hours of Friday, a devastating fire erupted at the Garoa Hostel on Farrapos Avenue in downtown Porto Alegre, claiming ten lives. The Rio Grande do Sul Military Fire Brigade responded swiftly with five trucks to combat the blaze in the three-story building, ultimately extinguishing the flames. Lieutenant Colonel Lúcio Junes da Silva, leader of the 1st Battalion, reported that the hostel was operating without legal authorization. Forensic teams are currently on-site to ascertain the fire’s origins and to identify the deceased. The injured were quickly transported to Porto Alegre Emergency Hospital (HPS). City officials report that two of the victims are in critical condition, whereas six others face less severe injuries. Mayor Sebastião Melo expressed his deep sorrow regarding the tragedy, focusing on supporting the rescued victims and facilitating the ongoing investigation.
Tragedy Strikes Porto Alegre: Fatal Hostel Blaze. (Photo Internet reproduction)
Tragedy Strikes Porto Alegre: Fatal Hostel Blaze. (Photo Internet reproduction)
“Our immediate priority is the recovery of those affected,” stated Melo, echoing the city’s collective distress. Governor Eduardo Leite shared his condolences online, stressing continued efforts to determine the fire’s causes. He remarked that the tragedy deeply affected everyone and that they extended their deepest sympathies to the families. The Public Transport and Circulation Company manages traffic around the incident site to maintain order. Detective Daniel Ordahi of the 17th precinct leads the investigation, working with fire officials and forensic experts on a full report. President Luiz Inácio Lula da Silva commented on the disaster, highlighting the hostel’s support for the city’s most vulnerable. “I offer my condolences to the friends and families of those who perished,” he said, reflecting the nation’s grief.

Weekend Extravaganza: São Paulo’s Diverse Cultural Festivities

Adele Cardin
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Weekend Extravaganza: São Paulo’s Diverse Cultural Festivities

São Paulo prepares for a weekend of art and music, readying its streets for a burst of rhythm and color.

A Cor do Som kicks off the weekend on Friday with "Beleza Pura" and "Zanzibar" at a local spot.

Metal fans will converge outdoors for Summer Breeze Open Air Brasil, enjoying global heavy riffs.

Mel Lisboa stars as Rita Lee in "Rita Lee - An Autobiographical Musical."

The show, drawn from Lee's memoirs, explores her and Roberto de Carvalho's lives, offering insights into their creativity.

Vanessa da Mata . . .

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