Surprise: Brazil Slashes Benchmark Rate

The video discusses Brazil's economic recovery in 2017, highlighting the impact of interest rates and inflation reduction. It also covers Argentina's bond sale strategy ahead of the US presidential inauguration, emphasizing the economic performance and investor interest in Argentina's debt. The discussion includes insights on the fiscal policies and economic outlook for both countries.

What was the main economic challenge Brazil faced in 2016?

• Currency devaluation

• High unemployment rates

• Political instability

• A deep recession

Why did Argentina decide to mandate a $10 billion bond sale before the US presidential inauguration?

• To take advantage of low US treasury rates

• To preempt expected rate increases

• To avoid potential trade tariffs

• To capitalize on a strong US dollar

What is the expected growth rate for Argentina in 2017?

• 4%

• 3%

• 2%

• 1%

How does Argentina's bond performance compare to US high yield bonds according to Morgan Stanley?

• Worse than US high yield

• Similar to US high yield

• Better than US high yield

• Not comparable to US high yield

What fiscal target is Argentina aiming to achieve in 2017?

• A reduction in public debt by 4.2%

• A balanced budget

• A primary fiscal surplus of 4.2%

• A primary fiscal deficit of 4.2%