Preview

Milei's popularity rebounds as Argentina's markets hit record highs

Please log in to download this media. Not registered? Register now!
Metadata
  • Milei's popularity rebounds as Argentina's markets hit record highs
  • October 28, 2024
  • Article Body Text BUENOS AIRES — <p>Argentina's President Javier Milei saw his popularity ratings rebound sharply in October, a poll on Monday showed, bolstering the libertarian whose pro-market reforms have driven markets to record highs since winning a shock election last year.</p> <p>A closely watched poll from the local Torcuato Di Tella University showed Milei's approval rating jump 12% after it slid in September because of tensions around pension reforms.</p> <p>The South American grains producer is battling triple-digit inflation and a recession, but former pundit Milei has managed to boost confidence in markets with tough spending cuts while largely keeping voters onside with his straight-talking style.</p> <p>Inflation, still in triple digits on an annual basis, has come down sharply each month, foreign currency reserve levels are being rebuilt and his government has turned around a deep fiscal deficit. Poverty levels, however, have risen sharply.</p> <p>A separate survey from consultancy Aresco showed the approval rating of Milei's government bouncing to 52.5% in October from 49.6% a month before, which it attributed to improving economic indicators.</p> <p>Milei, a political outsider, is riding a wave of voter anger with the main political parties after years of economic crises, despite a tough economic background and painful austerity measures he has pushed to try to boost the nation's finances.</p> <p>His government's non-negotiable zero deficit plan has gained huge cheers from markets, boosting bonds and stocks, while a tight monetary policy has also tamped down inflation and reduced a wide gap between official and parallel exchange rates.</p> <p>On Monday bonds jumped further away from distressed territory, where they had languished in recent years, rising on average 1.2%. Meanwhile, a key J.P. Morgan risk index of the country's debt hit its lowest level since mid-2019.</p> <p>&quot;The BCRA [central bank] buying reserves, new loans from international organizations, and high-frequency indicators showing October inflation at 3% were key to the fall in country risk,&quot; said Roberto Geretto of AdCap Grupo Financiero.</p> <p>Andres Vernengo of consultancy CMA said Milei was, against the odds, making the market happy. Fears about further potential sovereign debt defaults were receding.</p> <p>&quot;Just when it seemed local assets were beginning to falter ... more rabbits appeared out of the hat,&quot; he said.</p>
  • Content Type Text
  • Language English
  • NewsML Media Topics Arts, Culture, Entertainment and Media
  • Subtitles / Dubbing Available No
  • Network VOA
  • Embargo Date October 28, 2024 19:16 EDT
  • Byline Reuters
  • Brand / Language Service Voice of America - English
Related records