Political Landscape & Election Results - Javier Milei's midterm election performance significantly exceeded expectations, securing 41% of total votes, surpassing pre-election polls and exceeding the opposition by nine points [2] - This victory marks a turnaround from a previous 14-point defeat in a local vote, restoring investor confidence in Milei's free-market policies [1][2] Market Reaction - Argentina's bonds and stocks experienced a surge in response to the election results, with benchmark dollar notes increasing by over 13% [2] Policy & Reform Implications - Milei now needs to collaborate with moderate factions to enact key reforms, including tax, labor, and pension reforms, to foster growth and secure potential reelection in 2027 [3] - Securing over a third of the lower house is a step forward, but Milei still needs to build consensus to achieve a simple majority for lasting reforms [3] Economic Context - Argentina faces ongoing economic challenges, requiring significant reforms to ensure long-term stability and growth [1][3] - Donald Trump had previously extended a 20 billion USD lifeline to Argentina, highlighting the nation's economic difficulties [1]