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Market Gazette
Argentina in crisis
The difference between the parallel dollar and the official dollar in Argentina reached more than 150% — Levels last seen during the country’s hyperinflation in 19891990, according to brokerage firm Portfolio Personal Inversiones.
A good portion of local produce is rebalanced by the “blue” dollar. The price index in the country reached 64% in the 12month period in June and should exceed it 90% by the end of the year, according to Morgan Stanley.
What is putting pressure on the parallel dollar:
- Debts: since defaulting in 2020, the country has been virtually locked out of the international debt market. This makes financing very difficult, which is associated with inflation and rising local interest rates.
- Unreliable Currency: Since people do not trust the peso, those who receive in this currency rush to exchange the currency, and those who export in dollars do not think about returning the resources.
- Small Savings: Argentina’s net foreign exchange reserves are just under $2.4 billionwhich increases the risk premium required by investors to lend money to the country.
- Subsidies: The government has issued increasing amounts of currency to fund debt and subsidies, particularly those related to energy prices.
Commitment to the IMF: A new trigger for the soaring parallel dollar was the departure of Economics Minister Martín Guzmán due to differences with Vice President Cristina Kirchner.
- He was responsible for negotiating a $44 billion debt restructuring agreement with the international organization based on reducing the budget deficit in three years and reducing central bank spending.
- Guzmán’s successor, Silvina Batakis, held an initial meeting with Kristalina Georgieva, Managing Director of the IMF, who described the call as “very good”.
- The problem is that the country is constrained by the agreement to print 765 billion pesos ($5.8 billion) yearround to fund its deficit, while the central bank has so far printed 630 billion pesos.
Big Techs and illegal mining
According to a report by Repórter Brasil, major tech companies Apple, Microsoft, Google and Amazon have been investigating mining companies among their suppliers for activities in illegal mining areas in the Amazon.
Understand: In 2020 and 2021, those companies bought gold which is used in electronic components from several refiners, including Italy’s Chimet and Brazil’s Marsam, according to documents accessed by Repórter Brasil.
- The second has a supplier who has been accused by the Federal Ministry of Public Relations of causing environmental damage by acquiring illegal gold.
Other side:
- After being contacted by the agency Repórter Brasil, Apple announced in a message that Marsam had been removed from the list of suppliers. However, Chimet remains fit.
- Google, Microsoft and Amazon said they would not comment.
- CHM, a Chimet supplier investigated by the PF, says it “never purchased gold from indigenous lands”. FD’Gold, a supplier to Marsam, declined to comment.
The Satellite Internet Race
The proposed merger between French satellite operator Eutelsat and Britain’s OneWeb, which the companies confirmed on Monday (25th), is the latest sign of expansion of the highspeed Internet market via loworbit satellites.
Understand: This type of connection is particularly useful for remote areas where fiber optic internet is not available, and can help take the paper off of grandiose projects on the high seas or in the desert, for example.
- It functions as a “constellation” of lowaltitude satellites, meaning they are in orbit up to 2,000 km from the ground. They travel around the planet and make connections to the earth terminals.
Who else is there:
- Elon Musk: SpaceX has already shipped half of them 4,400 satellites your Starlink constellation. The businessman came to Brazil to announce a project that would connect 19 thousand Schools in rural areas that would cover only 27.2% of the country’s needs.
- Amazon: Big Tech said in April it had placed the largest rocket order in history to launch most of its rockets 3,236 satellites in five years.
- governments: China plans to use no less than 13,000 satellites “Guowang”, while the European Union cites “sovereignty” as the reason for its own constellation from 2024.
The problems: These loworbit satellites are cheaper than geostationary ones, but ultimately have a shorter lifespan. This could lead to a lot of space junk in the future.
Belugas in Brazil
One of the world’s most acclaimed planes by aviation fans landed in Brazil for the first time this weekend. The Airbus Beluga ST was at Fortaleza Airport on Sunday and arrived in Campinas on Monday.
The flight, which was broadcast live on social media, was the most watched in the world on the FlightRadar24 and Radarbox tracking platforms. He was accompanied by more than 8,000 people at the same time.
What came to do: The trip was to bring an Airbus helicopter from France to be delivered to a Brazilian customer.
Why beluga: The aircraft, which the French manufacturer initially used to transport aircraft parts, allows the transport of large loads such as helicopters, engines and satellites, even with a load capacity of just 40 tons.
In numbers: The Beluga ST that came to Brazil was developed from the Airbus A300600 and has 39 meters Length, 7.1 meters wide and 6.7 meters high.