Fiscal dominance, Mexico’s Trump risk, Uruguay votes

Hawkish comments from Brazil's central bank amid concerns that the economy is overheating and that the narrative that ‘fiscal dominance’ may take hold suggest that Copom is likely to step up the pace of tightening at its meeting next month. Elsewhere, Mexico – and its vehicle sector in particular – now appears to be in the firing line if Donald Trump were to win the US election. Finally, the outcome of Uruguay's elections on Sunday is unlikely to alter the path of economic policy. But the pension referendum taking place at the same time could have a potentially big negative impact on growth and Uruguay’s public finances.