Pemex cash injection, resilient Brazilian consumers

The decision by Mexican policymakers this week to provide support to Pemex to help it refinance its debts adds to signs that policymakers are starting to acknowledge the gravity of the problems at the state energy company. That said, the government hasn’t set out a clear plan on how to revive oil production, while meeting its fiscal goals. Elsewhere, retail sales figures out this week from Brazil confirmed that consumers remain a rare bright spot in the economy. But with other parts of the economy struggling, Copom is likely to cut the Selic rate by 50bp next week.