Happy Tuesday! Let’s dive back into Latin America!
This week, we’re looking at the energy sector in Mexico where investment outflows are increasing as AMLO seeks to centralise control over the sector, favouring state companies at the expense of private enterprise. This has also impacted the growth of the Electric Vehicles (EV) market in the country, which should be thriving given Mexico’s huge automotive industry.
In financials, we’re watching closely as the Eastern Caribbean Central Bank is advancing in pilot programmes to launch a digital currency, DCash. The Eastern Caribbean Currency Union certainly struggles with the current system and has a strong reason to adopt – an interesting test bed.
Elsewhere, Bolsonaro should be happy as he now has friendly faces at the head of the Senate and Chamber of Deputies. It looks like he should see out the rest of his term without too much hostility.
Finally, ESG is never far from the minds of our clients and this week we take a look at the regulation of waste management across Latin America and the growing stringency of the application of environmental laws, particularly in Brazil.
Lots to consider.