Treasury Secretary Scott Bessent said Tuesday the US government had completed “an economic stabilization” accord with Argentina’s central bank https://t.co/uETcb6yQPh ...

Economic Indicators - China's aggregate financing for September reached 30.09 trillion CNY, exceeding the estimated 29.905 trillion CNY and the previous month's 26.556 trillion CNY, indicating stronger-than-expected credit expansion [3][8] - New yuan loans for September were 14.750 trillion CNY, slightly below the estimated 14.919 trillion CNY but an increase from the prior month's 13.459 trillion CNY [3][8] - The M2 money supply grew by 8.4% year-over-year, slightly missing the 8.5% estimate and down from the previous 8.8% [4] - M1 money supply saw a robust increase of 7.2% year-over-year, exceeding the 6.1% estimate and the previous 6.0% [4][8] - M0 money supply rose by 11.5% year-over-year, matching the previous month's growth [4] U.S. Government Shutdown - The U.S. federal government is in its 15th day of shutdown due to a failure to pass appropriations legislation for the 2026 fiscal year, resulting in furloughs for approximately 900,000 federal employees and 700,000 working without pay [5][8] European Telecommunications Sector - Altice France rejected a €17 billion ($19.7 billion) bid from a consortium led by Bouygues for its SFR mobile unit, highlighting ongoing challenges in the French telecom market [6][8] UK Financial Regulation Changes - The UK's financial regulators announced plans to cut the bonus deferral period for senior bankers from eight to four years, effective October 16, 2025, aiming to enhance competitiveness and align with other jurisdictions [9][8] European Defense Initiatives - The European Union is advancing a military plan for 2026, focusing on drone and air defense projects amidst rising security concerns and a push for increased industrial integration [7][8]

Core Insights - The US is reinforcing its presence in Latin America by supporting Argentina's President Javier Milei, who is seen as a strategic geopolitical ally [2][4] - Milei's government is taking measures to stabilize the peso, including a temporary halt on agricultural export tariffs, which have generated $4.1 billion in tax revenue this year [3][5] - The US Treasury Secretary has pledged to provide various stabilization options to Argentina, which may include currency swap lines and direct currency repurchases [6][7] Economic Measures - Milei's administration has spent over $1 billion in foreign reserves to defend the peso, leading to a 4% gain in the currency after a period of decline [5][13] - The IMF has a $20 billion program with Argentina, and US support is seen as crucial for promoting stabilization and growth [11][12] - Argentina is facing a liquidity crisis rather than a solvency crisis, with concerns about political sustainability affecting market access [10] Political Context - Milei's recent electoral challenges include a significant defeat in a provincial election and rising disapproval ratings, raising concerns about his governance ability [14][15] - The upcoming midterm elections on October 26 will be a critical test for Milei, as his party's lead over the Peronist opposition has diminished [14][15] - Analysts suggest that a successful meeting between Milei and US officials could bolster investor confidence and Argentinian assets [15] Market Reactions - Following Milei's announcements, investor panic subsided, leading to a rebound in Argentina's dollar bonds and stock index [5][15] - The economic recovery under Milei has shown signs of faltering, with forecasts indicating potential declines in output and elevated unemployment [16]