Peso Selloff Pauses As Mexican President Addresses US, Canada Relations, Targets Ambassadors Over 'Respect For Our Country'
Mexican Peso Performance: The Mexican peso gained 0.5% against the U.S. dollar after President AMLO clarified that the pause in diplomatic relations with the U.S. and Canada only affects their ambassadors, while investor concerns about proposed judicial reforms continue to impact market sentiment.
Judicial Reform Concerns: AMLO plans to present a controversial judicial reform to Congress that would allow popular elections for judges, which critics argue could politicize the judiciary and threaten democracy, contributing to an uncertain investment outlook in Mexico.
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After China, Mexico To Hit Back Against Trump's Tariffs, Raising Trade War Risks
Tariff Imposition and Economic Concerns: President Trump plans to impose a 25% tariff on imports from Mexico and Canada, and double tariffs on Chinese goods to 20%, raising fears of a trade war and potential economic slowdown as inflation exceeds expectations.
International Responses: Mexican President Claudia Sheinbaum criticized the tariffs as unjustified and announced retaliatory measures, while China responded with its own tariffs on U.S. goods, escalating tensions between the countries.
Trump floats 25% duty on EU—says it was formed to screw U.S., confusion over Canada, Mexico tariffs
Tariff Confusion: President Trump has created uncertainty regarding the implementation of tariffs on goods from Canada, Mexico, and the European Union, with conflicting statements about effective dates and rates.
EU Relations: Trump criticized the EU for taking advantage of the U.S. in trade, citing a significant trade deficit and restrictions on American products, while indicating that tariffs on EU goods could be set at 25%.
JPMorgan warns about tariffs: ‘We do not think that we are out of the woods on this front’
Market Response to Tariff Concerns: JPMorgan's global market strategy team noted that equity markets have largely ignored tariff issues, but ongoing trade policy uncertainty is expected to persist, potentially impacting business confidence, particularly if the trade war escalates.
Investment Focus on ETFs: Investors are encouraged to monitor exchange-traded funds (ETFs) that target specific regions affected by trade policies, including China, Canada, Mexico, Europe, and emerging markets, as a way to navigate the evolving trade landscape.
Mexico And El Salvador Ponder Different Mining Stances
Mexico's Mining Bill Review: President Claudia Sheinbaum has announced a review of a controversial bill banning open-pit mining, which is crucial for the economy and employs over 370,000 workers. The mining sector contributes significantly to Mexico's GDP and exports, raising concerns about job losses and economic impact if the ban is enforced.
Contrasting Approaches in El Salvador: In contrast, El Salvador's President Nayib Bukele is advocating for lifting a total mining ban to exploit untapped mineral reserves, claiming it could greatly boost the economy despite potential environmental risks associated with water pollution.
Mexico's Increased Mining Royalties Could Deter $7 Billion In Foreign Investments
Proposed Tax Increases: The Mexican Ministry of Finance has proposed raising mining royalties in the 2025 federal budget, increasing the special tax on mining profits from 7.5% to 8.5% and the extraordinary tax on precious metal sales from 0.5% to 1%, citing rising global metal prices.
Impact on Mining Sector: While the increased taxes aim to generate more revenue for government programs, industry experts warn that they could deter nearly $7 billion in investments by 2025, potentially making Mexico less competitive compared to other mining-friendly countries like Chile, Peru, and Canada.
The most overbought and oversold equities around the world (NASDAQ:MCHI)
Chinese Equities Performance: Chinese equities are currently the most overbought globally, showing an increase of 19.9% from their 200-day moving average in U.S. dollar terms.
Research Source: This information is derived from a global research note by BofA Securities.
After China, Mexico To Hit Back Against Trump's Tariffs, Raising Trade War Risks
Tariff Imposition and Economic Concerns: President Trump plans to impose a 25% tariff on imports from Mexico and Canada, and double tariffs on Chinese goods to 20%, raising fears of a trade war and potential economic slowdown as inflation exceeds expectations.
International Responses: Mexican President Claudia Sheinbaum criticized the tariffs as unjustified and announced retaliatory measures, while China responded with its own tariffs on U.S. goods, escalating tensions between the countries.
Trump floats 25% duty on EU—says it was formed to screw U.S., confusion over Canada, Mexico tariffs
Tariff Confusion: President Trump has created uncertainty regarding the implementation of tariffs on goods from Canada, Mexico, and the European Union, with conflicting statements about effective dates and rates.
EU Relations: Trump criticized the EU for taking advantage of the U.S. in trade, citing a significant trade deficit and restrictions on American products, while indicating that tariffs on EU goods could be set at 25%.
JPMorgan warns about tariffs: ‘We do not think that we are out of the woods on this front’
Market Response to Tariff Concerns: JPMorgan's global market strategy team noted that equity markets have largely ignored tariff issues, but ongoing trade policy uncertainty is expected to persist, potentially impacting business confidence, particularly if the trade war escalates.
Investment Focus on ETFs: Investors are encouraged to monitor exchange-traded funds (ETFs) that target specific regions affected by trade policies, including China, Canada, Mexico, Europe, and emerging markets, as a way to navigate the evolving trade landscape.
Mexico And El Salvador Ponder Different Mining Stances
Mexico's Mining Bill Review: President Claudia Sheinbaum has announced a review of a controversial bill banning open-pit mining, which is crucial for the economy and employs over 370,000 workers. The mining sector contributes significantly to Mexico's GDP and exports, raising concerns about job losses and economic impact if the ban is enforced.
Contrasting Approaches in El Salvador: In contrast, El Salvador's President Nayib Bukele is advocating for lifting a total mining ban to exploit untapped mineral reserves, claiming it could greatly boost the economy despite potential environmental risks associated with water pollution.
Mexico's Increased Mining Royalties Could Deter $7 Billion In Foreign Investments
Proposed Tax Increases: The Mexican Ministry of Finance has proposed raising mining royalties in the 2025 federal budget, increasing the special tax on mining profits from 7.5% to 8.5% and the extraordinary tax on precious metal sales from 0.5% to 1%, citing rising global metal prices.
Impact on Mining Sector: While the increased taxes aim to generate more revenue for government programs, industry experts warn that they could deter nearly $7 billion in investments by 2025, potentially making Mexico less competitive compared to other mining-friendly countries like Chile, Peru, and Canada.
The most overbought and oversold equities around the world (NASDAQ:MCHI)
Chinese Equities Performance: Chinese equities are currently the most overbought globally, showing an increase of 19.9% from their 200-day moving average in U.S. dollar terms.
Research Source: This information is derived from a global research note by BofA Securities.
