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Summary – July 02

LATAM
  • Focus on Tuesday turns to Mexico gross fixed investment and private consumption data for April, followed by June PMI figures in Colombia. Chile IMCE business confidence may also cross. In the US, JOLTS job openings data is the highlight of the calendar, while elsewhere the ECB's central banking conference in Sintra is set to continue. The highlight today will likely be a panel appearance from the Fed's Powell, ECB's Lagarde and BCB's Campos Neto at 1430BST/0930ET.
  • Global news:
    • US – The Democratic National Committee is considering formally nominating Joe Biden as early as mid-July to ensure that the president is on November ballots, while helping to stamp out intra-party chatter of replacing him after last week’s poor debate performance. A potential date for Biden’s nomination is July 21, when the Democratic convention’s credentials committee meets virtually, according to people familiar with the matter.
    • FRANCE (MNI) – Eligible candidates face a deadline of 1800CET to formally declare whether they intend to run in the 7 July second round legislative elections. This comes as the so-called 'republican front' of centrist and left-wing parties seek to minimise gains for the right-wing nationalist Rassemblement National (RN) by reducing the number of tripartite run-offs that could split the vote and allow the RN to win a majority.
    • US – Federal Reserve Bank of Chicago President Austan Goolsbee said policymakers should cut interest rates if US inflation continues to fall back to the 2% target. The Chicago Fed chief, speaking Tuesday on Bloomberg TV in Sintra, Portugal, said he feels “we are on a path to 2%” inflation and “if you just hold the rates where they are while inflation comes down, you are tightening — so you should do that by decision, not by default.”

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