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PERU
  • Pedro Castillo brought forward the swearing in of his cabinet to yesterday but at the time of writing, Castillo has yet to appoint a finance minister at all, further fuelling investor anxiety over his policy plans.
  • The new president disappointed markets by swearing in Guido Bellido as prime Minister yesterday.
  • Bellido is a member of his own Peru Libre Party and is a close ally of founder, Vladimir Cerron.
  • Naming someone from Peru Libre may be a signal that he is beholden to socialists in his own party, which may make it harder to forge the alliances to pass legislation in congress where he doesn't have a majority.
  • JPMorgan point out that Bellido's appointment has been criticized not only by the opposition and centrist parties (for example, centrist Morado Party already asked the Congress to reject confidence in the Premier), but also center-left political spaces that were expected to be Castillo's allies in the government.
  • If former World Bank economist Pedro Francke or someone seen as moderate doesn't lead economic policy, investors will likely sour further on the outlook for the South American country.
  • Pre-market pricing indicating a tough day ahead for local assets as markets reopen following two days of national holiday:
  • Peruvian Sol Drops, Near Record Low At 3.9850/Usd (BBG)