Mexican pensions, Pemex report, Brazil’s tax reform

Mexican President López Obrador’s pension reform will help to alleviate old-age poverty but, by placing the burden for higher contributions squarely with employers, it may lead to greater layoffs and informality over the medium term. Otherwise, Pemex’s Q2 report next week will probably make for grim reading, which would reinforce our view that a restructuring of its external debts is more likely than not. Finally, Brazil’s latest tax reform proposals face a bump in the road.