Decis SITREP: Americas Focus

Good morning.

There are three big stories worth tracking today, but first, it’s worth pulling a few of these together.

The ceasefire between Israel and Hezbollah looks increasingly shaky. Israel has conducted daily strikes against Hezbollah, accusing the group of not sticking to the terms of the truce. Hezbollah responded in kind on Monday with a “warning strike” that resulted in multiple retaliatory Israeli airstrikes, killing nine. [SOURCE - Al Jazeera]

Another telecommunications cable in Europe was damaged in what polic suspect was criminal behavior. The cable between Finland and Sweden was severed on Monday, causing an internet outage [Source - Euronews] This follows other recent attacks on infrastructure in the Baltics which Sir Richard Moore, head of the UK’s MI6, has called part of a “staggeringly reckless campaign of Russian sabotage in Europe”. [Full speech text]

There will be a vote of no-confidence in the French Parliament on Wednesday, which seems likely to collapse the current government. This makes it extremely unlikely that France will meet its end-of-year budget deadline creating huge uncertainty over the direction of the French economy. [SOURCE - Bloomberg]

Commodity and Rate Snapshot

_{As at Dec 3, 06:00ET -Data is illustrative, not for decision-making.}

Financial data via Bloomberg, Freightos and AlphaVantage

Americas Stability Ratings and News Summary

More Unstable

🇦🇷 Argentina, 🇧🇿 Belize, 🇧🇴 Bolivia, 🇧🇷 Brazil, 🇨🇦 Canada, 🇨🇴 Colombia, 🇨🇷 Costa Rica, 🇨🇺 Cuba, 🇩🇴 Dominican Republic, 🇪🇨 Ecuador, 🇸🇻 El Salvador, 🇬🇩 Grenada, 🇬🇹 Guatemala, 🇬🇾 Guyana, 🇭🇹 Haiti, 🇭🇳 Honduras, 🇯🇲 Jamaica, 🇲🇽 Mexico, 🇳🇮 Nicaragua, 🇵🇪 Peru, 🇱🇨 Saint Lucia, 🇸🇷 Suriname, 🇹🇹 Trinidad and Tobago, 🇺🇸 United States Of America, 🇻🇪 Venezuela

More Stable

No countries were more stable over this period

Unchanged

🇦🇬 Antigua and Barbuda, 🇧🇧 Barbados, 🇨🇱 Chile, 🇩🇲 Dominica, 🇵🇦 Panama, 🇵🇾 Paraguay, 🇰🇳 Saint Kitts and Nevis, 🇻🇨 Saint Vincent and the Grenadines, 🇧🇸 The Bahamas, 🇺🇾 Uruguay

Americas News Summary

In Brazil, the tech giant Apple is facing antitrust challenges as the country's regulatory body has mandated the removal of restrictions on in-app payments. This ruling could reshape Apple's business practices not only in Brazil but potentially in other markets as well [SOURCE - Reuters]. Meanwhile, Brazil's economy grapples with inflation and declining manufacturing output, yet individual investors have seen their portfolios grow to $1.3 trillion, indicating a resilient financial sector [SOURCE - Rio Times Online]. The agricultural sector is also thriving, with a notable increase in cotton production and exports, which bodes well for the economy [SOURCE - Economic Times].

In the political arena, President Lula is preparing to implement spending cuts to address economic challenges, while unemployment rates have shown a significant decline [SOURCE - Financial Post]. However, Brazil's economy faces external pressures, including potential tariffs from the US if it adopts a common currency with other BRICS nations [SOURCE - IFP]. The US dollar has also reached a historic high against the Brazilian real, raising concerns among investors [SOURCE - Rio Times Online].

Turning to the United States, President-elect Donald Trump has threatened to impose a 25% tariff on goods from Canada and Mexico, escalating tensions over trade and immigration [SOURCE - CTV News]. This move has prompted responses from both nations, with Mexico's President Claudia Sheinbaum asserting that her country has already taken steps to curb irregular migration, while also warning of potential retaliatory tariffs [SOURCE - RT]. Canadian Prime Minister Justin Trudeau has expressed hope for a reconsideration of the tariffs during a recent meeting with Trump [SOURCE - IbTimes].

In Argentina, the country is navigating economic turmoil but is on the brink of international agreements that could bolster its economy. A significant deal with Russia's Rosatom aims to enhance nuclear fuel production, potentially providing a much-needed economic boost [SOURCE - TASS]. Additionally, individual investors are optimistic, with reports indicating a rise in commercial confidence despite a contraction in industrial outlook [SOURCE - Rio Times Online].

Venezuela continues to face an intensifying crisis, exacerbated by US sanctions on top officials amid a fuel production decline that threatens to plunge the nation into further shortages [SOURCE - Times of India]. The situation raises questions about the government's economic management and its implications for global energy markets [SOURCE - The Rio Times Online].

In Chile, voters have shown a preference for moderation in recent elections, favoring centrist candidates over more extreme options, which could signal a shift in the political landscape [SOURCE - RIO TIMES]. This trend may have significant implications for the country's economic policies moving forward.

Carpe tomorrow!