EM LATAM CREDIT: Argentina: Milei Pension Bill Veto Stands - Positive
(ARGENT; Caa1/CCC/CCC+)
From MNI EM Markets Analyst:
{AR}ARGENTINA: Lower House Fails To Overturn Pension Bill Veto, Milei, Caputo Speak Today
• There were mixed results for the government last night, when the lower house voted on key spending bills that had been vetoed by President Milei last month. While the lower house failed to reach the 2/3 majority needed to overturn Milei’s veto of the key pension bill, it did pass that threshold in a separate vote on a bill to expand public spending on disability aid, sending that bill back to the Senate.
• The lower house voted 160-83 to overturn the veto on the pension bill, crucially just short of the 2/3 threshold needed there, while the vote on disability aid passed 172-73. That latter bill will now be voted on in the Senate, where a separate 2/3 majority is needed to overturn Milei’s veto.
• However, even if overturned, disability spending won’t have a significant impact on the fiscal position, and markets should give the government some breathing space for now, given the failure to overturn the veto on the more important pension bill. This bill would have given a one-time 7.2% boost to pension payments to compensate for past inflation.
• Today, Economy Minister Caputo is due to speak at a business confidence at 1330BST(0830ET), followed by President Milei, who will also speak there at 1600BST(1100ET). Milei is also due to meet with Ecuador’s President Daniel Noboa at the presidential palace today.
• On the data front, August consumer confidence figures are expected later.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
MNI: US JUL PHILADELPHIA FED NONMFG INDEX -10.3
- MNI: US JUL PHILADELPHIA FED NONMFG INDEX -10.3
PIPELINE: Corporate Bond Roundup: Wells Fargo on Tap
- Date $MM Issuer (Priced *, Launch #)
- 07/22 $Benchmark JFM (Japan Finance Org for Munis) 5Y SOFR+68a
- 07/22 $Benchmark Wells Fargo 2031-tap +95a
- $14.4B Priced Monday
US: MNI POLITICAL RISK - Senate Faces Key FY26 Funding Vote Today
Download Full Report Here
- President Donald Trump will meet with Philippine President Ferdinand Marcos Jr. at the White House for a bilateral meeting and working lunch. In the evening, Trump will meet with Republican members of Congress.
- Treasury Secretary Scott Bessent said the White House is “about to announce a rash of trade deals in coming days.”
- Commerce Secretary Howard Lutnick had “frank" discussions yesterday with Japan’s chief trade negotiator Ryosei Akazawa. Bessent said he will not be “surprised if we can iron out something [with Japan] quickly.”
- A bipartisan delegation of US Senators met with Canadian Prime Minister Mark Carney yesterday to discuss lumber, metals, and a digital services tax.
- The White House claims that data on business equipment production signals a surge in business investment.
- The CBO published its final score for the GOP’s One Big Beautiful Bill.
- A procedural vote in the Senate today will provide a temperature check on whether the government is likely to shut down on October 1.
- Bessent called for a “exhaustive internal review” of the Fed's “non-monetary policy operations.”
- A group of European countries, Australia, Canada, New Zealand, and Japan, issued a joint statement saying the war in Gaza “must end now”.
- Ukraine and Russia will hold another round of peace talks in Istanbul on Wednesday. The Kremlin cautioned against expecting "miraculous breakthroughs".
- Poll of the Day: Consumer sentiment is increasing amongst high earners, but stagnating at lower levels.
Full Article: US DAILY BRIEF
