While markets have focused attention on China as the primary source of market risk in 2016, Latin America has provided the more significant headlines in recent weeks. Political turmoil in Brazil has resulted in the resignation of a market-friendly finance minister, and default looms in Venezuela. But perhaps nowhere in Latin America is more at stake than with the economic revolution now underway in Argentina.
The Greek parliament last night passed the first package of measures required by the government’s agreement with European governments reached over the weekend, winning 229 of 300 votes in the parliament. There were a large number of Syriza defections (39) that would appear at minimum to require a cabinet reshuffling. Some local analysts predict the government could fall, though most expect that if that happened Prime Minister Tsipras would reemerge as prime minister in a new coalition government.