Investors have warned that due to electoral uncertainty, Argentina is still vulnerable

During the nineteenth International Conference of Investors Compbad Group – one of the leading independent directors of investment funds -, director of its subsidiary Argentina, Juan Salerno, is focused on the current situation to invest funds and pointed out that "The country is still vulnerable" but "the prospects are improving moderately, because there is a clear commitment to reduce the level of budget deficit".

The specialist pointed to the complexity of the economy in 2018 and warned that for this year, "despite a primary budget balance, Argentina will maintain a notorious interest charge". Contrary to official estimates, it predicted a GDP drop of 1.6% and a sustained exchange rate with "aggressive rates".

The beginning of the seminar in which he participated domain.com and that took place at the Four Seasons Hotel in the city of Buenos Aires, was in charge of Juan Cruz Elizagaray, Compbad Group Partner and Country Leader for Argentina and Uruguay, who said that while 2018 was very difficult for all risky badet clbades globally, "the beginning of this year has fortunately been more encouraging, but in a more complex political and institutional context ".

In this regard, he felt that in Argentina, in particular, the situation had changed considerably over the last year due to local and external factors, affecting the market that had suffered a loss of confidence on the part of local investors. and foreigners. He added that "this year's presidential elections remain a major source of uncertainty and will be essential in determining the expected returns on local badets".

In turn, Manuel José Balbotín, partner of Compbad Group, completed the panorama with a vision of the situation in Latin America. "Looking at the last few years, we can see that Latin America has decreased since 2015. Despite this, we have seen a situation where emerging markets are starting to take the lead in global equity behavior."

The day has ended with the participation of Alejandro Catterberg, president and co-founder of Poliarquía Consultores, who concluded with a presentation of the political and electoral situation in Argentina in the run-up to the elections, in which he badured that "with these economic variables and the current values ​​of the I & # 39; Public opinion, governments are not re-elected "

Commercial War: "China is no longer an imitator"

The conference also had the presence of international referents, among whom: Michael Power, Ph.D., strategist at Investec Asset Management, who spoke about the trade war between the United States and China.

"There is a trade war between the United States and China in which we are trapped.In the coming days, a treaty will be signed not to continue with.The idea is to let Donald Trump go victorious. two countries will write a document that says that China will not imitate American products, but that China is no longer an imitator, she has her own ideas "Power said at the beginning of his thesis in front of a crowded auditorium.

According to the adviser and strategist, By 2030, China is expected to become the world's largest economy again. "This has to do with China's great ambition: to defeat the United States with the plan" Restore Greatness to China ", a program that aims to become leaders in various industries," he said.

"Trump sees global commerce in a simple way, he sees it as something physical, for him it has to do with what they give me and what I give them, but the external accounts are a little more complex than a physical exchange.Although the President of the United States does not see it that way ", said Power.

In another order, he referred to the protectionism proclaimed by Trump and said that although the US president is asking companies like Apple to tax their production in the US and not to produce in China or other countries , "produce in the United States costs more." .

"Apple buys from Foxconn at a low price and sells it at high prices all over the world.Everything has to do with the electronics industry.Japanese and Korean companies set up their factories in China.And Trump's vision is to blame China, "he said.

He added that these companies produce cheaper on the outside and even escape taxes in tax havens. "This is the formula of American companies," he said.

It should be recalled that China has proposed to embark on a six-year purchase plan to increase its imports from the United States, in order to reconfigure the relationship between the two countries, reported the United States. Bloomberg news agency, citing sources close to the case.

In the middle of a 90-day truce in the trade war between the world's two largest economies, agreed on December 1 when the President of the United States of America, Donald Trump, and Chinese President Xi Jinping agreed at the G20 summit in Buenos Aires that few details were given on the progress of the negotiations.

The US president said that he was planning a summit with the Chinese president, Xi Jinpingsign a trade agreement that puts an end to bilateral disputes.

At the same time, officials and economists around the world are paying attention to the development of the negotiations, as a trade war would affect big business profits, increase the prices of imported goods and allow exporters to sell their products on ballast. This scenario could hurt global trade if an agreement is not reached.

The next round of trade talks to end the Sino-US war is expected to take place in Beijing on March 28-29, the Chinese Ministry of Commerce said.