May 28, 2019

Argentina's markets are OK so far with Cristina Kirchner's VP bid

Dion Rabouin, author of Markets

Former President of Argentina Cristina Fernandez de Kirchner will run for vice president. Photo: Eitan Abramovich/AFP/Getty Images

Investors have been flummoxed by the latest development out of Argentina, that former President Cristina Fernandez de Kirchner will run for vice president rather than president, as most had expected.

What's happening: While investors worried aloud that a Kirchner presidential victory in October's election would cause the country's bonds to default, torpedo its stock market and further sink its depreciating currency (already worth about one-third of what it was just a few years ago), the curve ball of a Kirchner vice presidency has so far gotten market approval.

  • The country's sovereign bonds edged higher for much of the week, its Merval stock index rose 5% and its currency gained against the dollar.

What's next? The market's comfort with a return of Kirchnerismo will be tested again on Monday. A new poll from Argentina's Pagina 12 newspaper shows Kirchner and her running mate, Peronist Alberto Fernandez, are close to clinching victory in a first round vote.

  • The poll shows Kirchner and Fernandez leading current President Mauricio Macri, who has become very unpopular as a result of Argentina's economic "Macrisis," by close to 10 percentage points.
  • To avoid a second round, a candidate must receive at least 45% of the first round vote or 40% and win by a margin of at least 10 percentage points.

Go deeper: Populism's Latin American revival could reach Argentina

Go deeper

Trump threatens to "assume control" of Minneapolis over unrest

Flames from a nearby fire illuminate protesters standing on a barricade in front of the Third Police Precinct in Minneapolis on Thursday. Photo: Kerem Yucel/AFP via Getty Images

President Trump threatened via Twitter early Friday to send the national guard to Minneapolis following three days of massive demonstrations and unrest in the city over George Floyd, a black man who died in police custody this week.

Details: "I can’t stand back & watch this happen to a great American City, Minneapolis. A total lack of leadership. Either the very weak Radical Left Mayor, Jacob Frey, get his act together and bring the City under control, or I will send in the National Guard & get the job done right," Trump tweeted after a police station was torched by some protesters.

17 mins ago - Technology

Twitter: Trump's Minnesota tweet violated rules on violence

Twitter said Friday morning that a tweet from President Trump in which he threatened shooting in response to civil unrest in Minneapolis violated the company's rules. The company said it was leaving the tweet up in the public interest.

Why it matters: The move exacerbates tensions between Twitter and Trump over the company's authority to label or limit his speech and, conversely, the president's authority to dictate rules for a private company.

Updated 2 hours ago - Politics & Policy

In photos: Protests over George Floyd's death grip Minneapolis

Protesters cheer as the Third Police Precinct burns behind them on in Minneapolis on Thursday night. Photo: Stephen Maturen/Getty Images

Cheering protesters set a Minneapolis police station on fire Thursday night in the third night of unrest following the death of George Floyd, a black man who died in police custody in the city, per AP.

The state of play: Minnesota's governor on Thursday activated the state's national guard following violent outbreaks throughout the week, as the nation waits to see if the officers involved will be charged with murder.