Brazil’s job market, Argentina’s bailout, Peru’s crisis

The announcement that the US Treasury purchased Argentine peso assets has provided a boost to Argentina’s financial markets. It's unclear what the US will demand in exchange, but it could include the cancelation of Argentina's swap line with the PBOC and preferential access for US companies to critical minerals. Elsewhere, the impeachment of Peruvian President Boluarte highlights the country's governability issues, which are likely to weigh on investment and dent medium-term growth prospects. Finally, it seems that Brazil’s central bank is looking for signs of labour market weakness to give it confidence to cut rates. Our analysis suggests this should happen around the turn of the year.