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Brazilian minister believes that the possibility of having a common currency with Argentina is “distant”

Brazilian Economy Minister Paulo Guedes considered that the creation of a common currency between his country and Argentina is something “distant”, but warned that this intention would not be possible if Alberto Fernández wins the presidential elections.

The official explained that “when we talk about integrating with Argentina, we have to think that the countries that followed that process ended up with a common currency, and that’s why we talk about the ‘real weight’.”

“The understanding with Argentina was very fast because the Government sees that, in the face of high inflation, this monetary convergence could be timely to accelerate the price drop,” he added.

However, Guedes evaluated that “from the objective point of view, there was none of this yet. We are talking about a horizon where we could end up in a common currency. It is a horizon, but distant. Although without a doubt that, to accelerate this process, it would be a great help for Argentina.”

The Brazilian minister stressed that “having a common currency throughout Latin America would be very good. I think that in 15 years, there will be four or five major currencies in the world. In 15 years there will be the dollar, the euro, the Chinese renminbi, and I hope there is the real weight.”

“I think we are going to reach a common currency in the future. That would help Argentina a lot to fight its inflation, which will be in the order of 40% this year. If the Government’s political sign does not change, it is likely that let’s move on, “he emphasized.

However, he said that if Alberto Fernández wins the presidential elections, the discussion about the common currency will be “closed.”

“I imagine that neither Kirchnerist Argentina nor we would like to discuss a common currency, for being regimes with different conceptions. On the other hand, the proximity of Macri and Bolsonaro fits this vision of modernization of the economies very well. If neither of them continues, this reform would not be possible,” he stressed.

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AMLO asks senior finance officer to withstand pressure

President Andrés Manuel López Obrador asked the senior officer of the Ministry of Finance and Public Credit (SHCP), Raquel Buenrostro, to withstand all the pressures and threats, in order to meet the goal of savings in purchases of the federal administration.

He claimed to have an agreement with Buenrostro to “support her in everything and to withstand all the pressures,” after it has been indicated to have been one of the officials with whom the former Secretary of the Treasury, Carlos Urzúa, had differences that led him to present his resignation.

During the Dialogue with the Community of the Rural Hospital of Villamar, in Michoacán, he said that the senior officer must withstand the pressures “because there are many vested interests,” because she has the instructions to save at least 20 percent of the 200 thousand million pesos that the government allocates to its purchases.

“We are going to save at least 20 percent this year; this is 200 billion pesos that were nailed,” said Andrés Manuel López Obrador, President of Mexico.

Speaking before hospital staff in this municipality, the head of the federal Executive said that there is a shortage of doctors to meet the needs of the entire country, with a staff of 270,600 general practitioners, when according to international standards there must be at least 393,000 doctors.

“We lack 123,000 doctors in the country,” said López Obrador and mentioned that this lag is due to universities not accepting medical students; the National Autonomous University of Mexico (UNAM) rejects 98% of applicants.

In this regard, he explained that at the beginning of the year, 13,711 applicants presented their exam for the medical career in the highest house of studies, and only 211 entered, which corresponds to two percent.

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Credit risk rating agencies warn that the “Fernández plan” for Argentine debt would be considered a default

In the midst of the electoral campaign, despite the lack of months for the presidential elections, the issue of debt once again raises concerns in the financial market. The oratory of some candidates (mainly from the opposition) is not music for the ears of investors.

Argentina, which was considered a “serial defaulter” by the world, could play again with fire. Although the specific plans are not known, Kirchnerism – with Cristina Fernández at the helm but recently with several definitions left by Alberto Fernández – is the political space that most fuses the idea of ​​a debt restructuring.

Will it be friendly or unilateral? It is not known. But the risk rating agencies, that is, the market players that note the bonds issued by the countries, are on high alert for the possibility that Argentina will again default on the debt.

“It is difficult to comment on what is said in the campaign. We will see what the winner does. But yes, any restructuring of debt with private bondholders is a default. Under our definition and that of ISDA, I don’t know if it’s what they propose or what they have in mind. Clearly, restructuring is making a default, but we’ll see what they do,” said Gabriel Torres, VP and senior credit officer of Moody’s.

Candidate for president, Alberto Fernández, spoke several times of raising some measure of waiting for private creditors. He knows that to extend the deadlines with the International Monetary Fund, he would need to commit to a series of structural reforms that he does not want to face. Nor can the Fund be defaulted. Hence the “adjustment variable” is the holders of private bonds.

Recently, Fernández prepared a document with Sergio Massa in which they commit to work on various issues as a result of the alliance they sealed. In one of them, they talk about debt treatment.

“The situation of violent financial instability, generated by over-indebtedness, should be addressed through broad agreements with creditors, which contemplate the need to guarantee an inclusive growth process as the only resource to meet external and internal commitments” , explains the platform approved by Massa and Fernández.

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The founder of Huawei said that Washington “underestimates them”

Huawei founder Ren Zhengfei said the United States “underestimates” his company and that the telecommunications giant’s plans in its 5G technology program will not be affected by Washington’s decisions to block it.

“American politicians, with their way of acting today, show that they underestimate our strength,” Ren said in an interview with state television CCTV and other media, adding that the company has chip reserves and “cannot be isolated” of the world in this regard.

In a context of commercial war and technological rivalry between Beijing and Washington, President Donald Trump decided last week to ban exports of US technology products to certain companies considered “at risk” for national security.

Huawei is in the spotlight of the US president. The world leader in 5G technology (the fifth generation of cellular technology), explicitly appeared on a blacklist in Washington.

“Huawei’s 5G network will not be affected at all,” Ren Zhengfei promised in the CCTV interview.

“In terms of 5G technology, that the other companies reach Huawei is not a matter of two or three years,” he said.

The giant Google, whose Android system equips the vast majority of smartphones in the world, announced Sunday that it would have to cut the bridges with Huawei, which would deprive the Chinese group of accessing certain Android services and its popular Gmail applications or Google Maps

This decision also affects a range of US companies, from software providers to semiconductor manufacturers that supply Huawei, in 2018, the Chinese company invested $11 billion in the purchase of components from US companies.

This is Huawei’s “Plan B” in the face of the US blockade

“We are not going to move on to American chips now, lightly and on a whim. We must grow together [with manufacturing companies],” Ren Zhengfei said.

“But in case of difficulty of supply, we have spare solutions. In the peace period, that is, before the commercial war began, we supplied 50% with chips from the United States and another 50% with those from Huawei. We cannot be isolated from the rest of the world,” he insisted.

The US authorities seemed to try to calm the situation by decreeing a delay of 90 days before imposing the sanctions, so that Huawei and its business partners can adapt.

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EU restrictions on Huawei will not have an impact, says founder

Huawei founder Ren Zhengfei was confident that Washington’s restrictions on technology sales to the company will have little impact, and said the Chinese tech giant is talking to Google about “emergency relief measures” to possible service losses in their smartphones.

Huawei Technologies Ltd., the largest manufacturer of networking equipment for telephone companies, has ” supply reserves” if it loses access to US chips, Ren Zhengfei said.

“These controls will have no impact on this company or the development of the new generation of communications technology, although some low-cost firms could be affected,” stated Ren Zhengfei, founder of Huawei.

Huawei has developed its own processors for some cell phones and other products, but it depends on US suppliers for more advanced components.

Google did not offer details on what services might be restricted, but the company may not be able to transfer hardware or software directly to Huawei, which could have repercussions on maps or other services that require the support of the US firm.