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Summary – July 26

LATAM
  • On Friday, Brazil outstanding loans figures for June are expected, followed by central government budget balance data. In Mexico, June trade data are due, while in Chile, the BCCh will publish its latest traders survey, ahead of the July 31 MPC meeting. In the US, today’s June PCE report will take focus. There are no central bank speakers of note, with the Fed inside their pre-decision blackout period.
  • Global news:
    • US (MNI) – In today’s June PCE report, markets will particularly watch non-housing core services PCE for the latest outturn and revisions, having moderated from 0.28% m/m to 0.096% m/m in May. Bloomberg consensus sees core PCE inflation at 0.2% m/m in a close call with 0.1, although this is now a little stale after yesterday's stronger than expected Q2 advance release of 2.89% annualised vs. consensus 2.7.
    • US / CHINA (MNI London) – The Chinese Foreign Ministry has confirmed that Foreign Minister Wang Yi will meet US Secretary of State Antony Blinken in Laos. Blinken is on a multi-nation tour of Southeast Asia. The ministers last met in Beijing in late-April when Wang "acknowledged the China-US relationship was beginning to stabilise, but said it was still being tested by "negative factors".
    • WORLD – G-20 finance chiefs are set to leave Brazil’s controversial plan for a global billionaires tax to future summits, pledging in a draft communique to continue discussions after debating the idea this week in Rio de Janeiro. The draft communique includes a pledge to continue “dialogue on fair and progressive taxation, including of ultra-high net worth individuals.”

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