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Tuesday SITREP: Americas Focus
Nepal Protests Kill 19, Parliament Stormed, US Stocks Near Highs on Fed Cut Bets, France Faces Fresh Political Uncertainty

Good morning,
🇳🇵Nepal Protests Kill 19, Parliament Stormed
At least 19 people died and dozens were injured as police fired live rounds, tear gas and rubber bullets at young protesters demonstrating against Nepal's social media ban and government corruption, with some forcing their way into Parliament in Kathmandu. Seven victims died at the National Trauma Centre with many shot in the head and chest, while thousands of students in school uniforms held signs reading "Shut down corruption and not social media" as Prime Minister KP Sharma Oli called an emergency cabinet meeting. The UN called for accountability following the bloodshed as analysts said Gen Z frustration with unstable governments, rampant corruption and limited job prospects had reached a "tipping point" after the government blocked Facebook, YouTube and X for failing to register with authorities, prompting what organizers dubbed "demonstrations by Gen Z" demanding change from a generation that "grew up with the optimism and dream of an inclusive new Nepal." More - Al Jazeera
🐂 US Stocks Near Highs on Fed Cut Bets
Wall Street traders drove stocks close to all-time highs betting the Federal Reserve will cut rates, with the S&P 500 bouncing back after weak jobs data as hopes grow that policy easing will power corporate America without triggering recession. Markets are bracing for almost three Fed cuts this year starting in September, with Treasury yields at 2022 lows and the dollar retreating, though Thursday's core CPI data could derail rate cut expectations if inflation surprises to the upside. Strategists see potential for continued gains with Goldman Sachs expecting small caps to catch up, while Morgan Stanley's Wilson anticipates a "durable and broad" earnings recovery as the economy transitions to an "early cycle" stage, though some warn the market is "priced for perfection" and a September rate cut could become a "sell the news" event. More - Bloomberg
🇫🇷 France Faces Fresh Political Uncertainty
Prime Minister François Bayrou lost a confidence vote 364-194 in the National Assembly and will resign Tuesday, making him France's fifth PM in less than two years as the left and hard-right united against his €44 billion austerity budget proposing to scrap two national holidays and freeze welfare payments. Bayrou staked his government on tackling France's €3.4 trillion debt, warning that "submission to debt is the same as submission to arms" and current levels meant "plunging young people into slavery," but opposition parties saw the vote as settling accounts with President Macron. Macron must now choose between naming another center-right PM, pivoting to the left to work with Socialists, or dissolving parliament for new elections, with Defense Minister Sébastien Lecornu, Labour Minister Catherine Vautrin and Finance Minister Éric Lombard mentioned as potential replacements amid calls for Macron's own resignation. More - BBC
Americas Stability Ratings and News Summary
More Unstable
🇦🇷 Argentina, 🇧🇿 Belize, 🇧🇴 Bolivia, 🇧🇷 Brazil, 🇨🇦 Canada, 🇨🇱 Chile, 🇨🇴 Colombia, 🇨🇺 Cuba, 🇩🇴 Dominican Republic, 🇪🇨 Ecuador, 🇸🇻 El Salvador, 🇬🇹 Guatemala, 🇬🇾 Guyana, 🇭🇹 Haiti, 🇭🇳 Honduras, 🇯🇲 Jamaica, 🇲🇽 Mexico, 🇳🇮 Nicaragua, 🇵🇪 Peru, 🇰🇳 Saint Kitts and Nevis, 🇱🇨 Saint Lucia, 🇸🇷 Suriname, 🇧🇸 The Bahamas, 🇺🇸 United States Of America, 🇻🇪 Venezuela
More Stable
No countries were more stable over this period
Unchanged
🇦🇬 Antigua and Barbuda, 🇧🇧 Barbados, 🇨🇷 Costa Rica, 🇩🇲 Dominica, 🇬🇩 Grenada, 🇵🇦 Panama, 🇵🇾 Paraguay, 🇻🇨 Saint Vincent and the Grenadines, 🇹🇹 Trinidad and Tobago, 🇺🇾 Uruguay
Regional News Summary
Brazil's relationship with China is deepening, as the country has become China's second-largest global investment target, reflecting the growing economic cooperation within the BRICS partnership, which includes India, Russia, and South Africa. This surge in investment comes amid rising tensions with the United States, which has attempted to block a $1.4 billion Chinese nickel deal in Brazil due to concerns over rare earth materials [SOURCE - The Rio Times].
In the realm of trade, Brazil is grappling with the repercussions of U.S. tariffs, prompting the government to announce plans to purchase domestic products affected by these tariffs, excluding coffee and beef. This strategy aims to cushion local producers from the financial blow. President Lula has also authorized retaliatory measures against the U.S. tariffs, which were initially imposed during the Trump administration, highlighting ongoing trade tensions [SOURCE - India Today].
Meanwhile, Brazil's economy faces challenges, with a rising current account deficit despite an influx of foreign investment. This deficit is primarily driven by increased imports, particularly of capital goods, raising concerns about the sustainability of Brazil's economic growth [SOURCE - The Rio Times].
In a significant political development, Brazil has downgraded its diplomatic ties with Israel following a dispute over the appointment of Israel's new ambassador. This move signals a rift between the two nations, further complicated by the U.S. revoking the visa of Brazilian Justice Minister Ricardo Lewandowski amid escalating tensions over trade and diplomacy [SOURCE - The Rio Times].
In Mexico, the country has reported a record trade surplus with the U.S., driven by a significant increase in exports. However, U.S. tariffs have adversely affected Mexico's steel exports, which have declined by 16.6%. In response, Mexico is considering raising tariffs on Chinese imports, a move that could benefit U.S. interests [SOURCE - CGTN].
Tensions between Mexico and the U.S. are escalating, with Mexican President Sheinbaum rejecting claims that Mexico City is controlled by cartels. This comes as U.S. Senator Marco Rubio plans a visit to Mexico and Ecuador, amid growing concerns about U.S. intervention in the region [SOURCE - Mexico News Daily].
In a significant legal development, notorious Mexican drug lord Ismael 'El Mayo' Zambada has pleaded guilty to federal charges in the U.S., which could provide the government with substantial leverage in its ongoing crackdown on drug cartels [SOURCE - Japan Today].
Turning to Canada, the economy has contracted by 1.6% in the second quarter, marking its first decline in seven quarters, largely due to the impact of U.S. tariffs on exports. A U.S. appeals court has ruled that these tariffs are illegal, which could have significant implications for trade relations between the two countries [SOURCE - Times of India].
In the Caribbean, Venezuela's President Nicolás Maduro has deployed 15,000 troops to the Colombian border amid rising tensions with the U.S., accusing it of planning an invasion. This military buildup is seen as a show of force, while Venezuelan civilians are joining militias to defend against perceived threats [SOURCE - CBS News].
Carpe tomorrow!
