International Flows and FX Risk

Month to date the market had seen the USD adding pressure to some countries, many commodities and some equity markets.  This is on risk that many companies in Asia and LatAm are not ready to hedge. North American companies and European are more used to than others to understand the FX risk. They usually have

Americas YTD Update: #SP500 +1.9%, Peru +34%

The SP500 is consolidating in positive territory YTD. Peru is at 34% YTD.  Local elections, Commodity Prices and weaker USD contributed to the performance. Mexico is at 6.2% while the SP500 is at 1.9%

$Italy $Brazil $Peru

The optimism is coming from the news that the Italian government is working on a plan to set up a state backed fund to provide capital to banks and to buy bad loans. As a full disclosure we have a position in Italy. Brazil is deploying a large number of troops in Brasilia, the capital

PERU: BCRP RAISES THE POLICY INTEREST RATE TO 3.75%

The Board of the Central Reserve Bank of Peru approved to raise the monetary policy interest rate by 25 bps to 3.75 percent. This level of the policy rate is compatible with an inflation that foresees that inflation will converge to the target range in 2016    

$Peru is expected to grow at 3.9% – Q4 2015

Based on data from BCRP at the Thomson Reuters Foro in Lima, Peruvian GDP is expected to grow at 3.9% for Q4 Newspaper article