Summary - Banxico To Appeal Bill, Brazil Political Struggles

MEXICO - Mexico's central bank could appeal to the country's highest court if rules requiring it to absorb excess dollars in the economy are approved. Of note, the bill has been left off today's agenda in the Lower House, leaving little time to get it passed before congress breaks for Christmas on Tuesday.

• Deputy central bank governor Heath has mentioned that one company would be the main beneficiary of the contentious legislation, appearing to refer to the business empire of billionaire Ricardo Salinas Pliego, Mexico's third richest man.
• Several Mexican Banks issued a joint statement opposing the bill, stating it threatens financial stability.

* In other news, the Mexican government's medical safety commission approved the emergency use of the Pfizer-BioNTech coronavirus vaccine, making Mexico the fourth country to do so.

BRAZIL - According to lower house speaker Rodrigo Maia, Brazil is heading into a "fiscal abyss" and a serious crisis next year, following the decision to postpone parliamentary debate on a bill extending emergency aid spending.

• Further evidence of the political struggles regarding Tax Reform, Maia also commented that "Tax reform is ready. It has the votes. But it will not be voted on because it is Rodrigo Maia's tax reform, that's all."

Elsewhere, the government presented a coronavirus immunization plan to the Supreme Court that provides initially for only enough shots for about a quarter of the population and does not indicate a start date, highlighting the mammoth task ahead.

• Brazil Oct Economic Activity m/m came in 0.86% vs 1.05% expected (bbg)
• Brazil Oct Economic Activity y/y comes in -2.61% vs -2% expected (bbg)
• This morning Brazil Economists also revised their year-end forecast for inflation up to 4.35% from 4.21%.