Jun 20, 2019

Argentina's "Macrisis" continues

Dion Rabouin, author of Markets

President of Argentina Mauricio Macri. Photo: Mario De Fina/NurPhoto via Getty Images

Argentina's economy is falling apart, further evidenced by its second straight quarter of negative GDP growth, but no one has bothered to tell its Merval stock index, which has risen almost 18% in June and 32% year to date.

The big picture: The country is firmly in a recession, but analysts say the improved prospects of market-friendly President Mauricio Macri, who has overseen the country's "Macrisis," winning re-election are buoying the market this month.

Driving the news: The country's GDP fell 5.8% in the first quarter after a 6.2% fall in the fourth quarter of 2018.

What's happening: Under Macri Argentina has seen record high inflation and poverty rates and its peso currency has fallen to what is by far the lowest level on record.

  • However, his opponent in October's presidential race, Alberto Fernández, is running with former president Cristina Fernández de Kirchner, who investors worry could lead the country into yet another default on its sovereign bonds and end its record $57 billion IMF bailout program.

Go deeper: Argentina's Mauricio Macri has the country in a "Macrisis"

Go deeper

Pandemic and protests can't stop the stock market

Traders work on the floor of the NYSE. Photo: Spencer Platt/Getty Images.

United States equities were on pace to open higher Monday following big gains in Asia and Europe and a risk-on bid in currency markets.

Why it matters: Stock markets could continue to rise despite an unprecedented global pandemic, violent protests over police violence in the U.S. not seen since the 1960s, and spiking tensions between the world's two largest economies.

1 hour ago - Sports

The sports world speaks up about death of George Floyd

Celtics guard Jaylen Brown. Screenshot: Jaylen Brown/Instagram

There was a time when a months-long sports absence would have silenced athletes, leaving them without a platform to reach fans or make their voices heard.

Why it matters: But now that athletes boast massive social media followings and no longer need live game broadcasts or media outlets to reach millions, they're speaking out en masse amid protests over the death of George Floyd and other police-related killings of black people — delivering messages of frustration and unity, despite their leagues not currently operating.

The technology of witnessing brutality

Charging Alabama state troopers pass by fallen demonstrators in Selma on March 7, 1965. Photo: Bettmann/Getty Images

The ways Americans capture and share records of racist violence and police misconduct keep changing, but the pain of the underlying injustices they chronicle remains a stubborn constant.

Driving the news: After George Floyd's death at the hands of Minneapolis police sparked wide protests, Minnesota Gov. Tim Walz said, “Thank God a young person had a camera to video it."