Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Argentina Deal Wouldn't Happen If It Were Up To Congress: Senator Elizabeth Warren - Balance of Power
Oct 14, 2025 Latest Videos
US President Donald Trump made it clear to his Argentine counterpart Javier Milei that any Chinese military activity in the South American country wouldn’t be received well in Washington.
The two leaders met at the White House on Tuesday, after Trump’s finance chief pledged wide-ranging support for Argentina’s beleaguered currency and broader economy in a bid to boost the libertarian Milei ahead of a crucial midterm election later this month.
“You can do some trade, but you certainly shouldn’t be doing beyond that,” said Trump, seated in front of Milei, referring to Argentina’s ties to the Asian giant. “Certainly shouldn’t be doing anything having to do with the military with China and if that’s what’s happening, I’d be very upset about that.”
Senator Elizabeth Warren (D-MA) voices her frustration with President Trump’s $20B Argentina Lifeline plan as Argentina made a deal with China that impacts US farmers. She also talks about the government shutdown critiquing her Republican colleagues, and if she feels the city of Boston is the President’s next target to have National Guard troops.
Senator Warren speaks with Joe Mathieu and Julie Fine on the late edition of Bloomberg’s “Balance of Power.”
Argentina’s sovereign bonds jumped Wednesday after media outlets reported that US Treasury Secretary Scott Bessent outlined financial aid that would total $40 billion to Javier Milei’s government, double the previous pledge.
Bessent is working on a separate $20 billion facility from the private sector that would complement a currency swap line from the government of a similar size, Semafor reported. Meanwhile, Axios reported that Bessent told reporters the Treasury bought Argentine pesos again in the spot market Wednesday.
Notes maturing in 2035 were up by almost 2 cents, trading above 59 cents on the dollar, according to indicative pricing data compiled by Bloomberg. The peso erased earlier losses and gained as much as 0.4% in afternoon trading.
The facility would be “adjacent” to the swap line and has drawn interest from banks and sovereign funds, Bessent said, according to Semafor.
The Treasury secretary’s comments are a fresh salve for Argentine assets, which have been reeling since Tuesday when President Donald Trump appeared to make aid to the country contingent on a victory for Milei’s party in midterm elections on Oct. 26. Milei’s ministers insist he has US support until his term ends in 2027, but Trump has done little to clarify the matter.
“Bessent’s statement is aiming at solving that uncertainty,” said Pedro Siaba Serrate, head of research and strategy of PPI Argentina. “We were not completely ruling out additional hints ahead of the election.”
Still, the relief in the markets after Bessent’s latest comments wasn’t universal. Argentine short-term interest rates soared for a second day, with the overnight collateralized peso repo rate — known as caucion in Argentina — jumping to a record 170% from 115% the previous session. That increase is coming at a heavy cost to the economy.
“The rise in rates has led to a contraction in commercial lending, a slowdown in consumer credit — particularly credit-card financing — and, indirectly, an increase in delinquency indicators,” Federico Filippini, head of research and strategy at AdCap Financial Group in Buenos Aires, said by email. “All of this is weighing on economic activity.”
Milei had tried to appease markets on a CNBC interview aired earlier on Wednesday, saying that the US support was ensured at least until Argentina’s 2027 presidential election. He also said that Trump’s aid package was intended to help his nation honor its debt and expressed confidence on his party’s ability to do well in the upcoming midterm elections.
“Doubts will remain as to whether this loan is contingent on Milei doing well in the midterms,” said Matias Montes, a strategist at EMFI. “Regardless, the US continues to buy pesos, which is super positive for the government.”
US President Donald Trump made it clear to his Argentine counterpart Javier Milei that any Chinese military activity in the South American country wouldn’t be received well in Washington.
The two leaders met at the White House on Tuesday, after Trump’s finance chief pledged wide-ranging support for Argentina’s beleaguered currency and broader economy in a bid to boost the libertarian Milei ahead of a crucial midterm election later this month.
“You can do some trade, but you certainly shouldn’t be doing beyond that,” said Trump, seated in front of Milei, referring to Argentina’s ties to the Asian giant. “Certainly shouldn’t be doing anything having to do with the military with China and if that’s what’s happening, I’d be very upset about that.”
Senator Elizabeth Warren (D-MA) voices her frustration with President Trump’s $20B Argentina Lifeline plan as Argentina made a deal with China that impacts US farmers. She also talks about the government shutdown critiquing her Republican colleagues, and if she feels the city of Boston is the President’s next target to have National Guard troops.
Senator Warren speaks with Joe Mathieu and Julie Fine on the late edition of Bloomberg’s “Balance of Power.”
Argentina’s sovereign bonds jumped Wednesday after media outlets reported that US Treasury Secretary Scott Bessent outlined financial aid that would total $40 billion to Javier Milei’s government, double the previous pledge.
Bessent is working on a separate $20 billion facility from the private sector that would complement a currency swap line from the government of a similar size, Semafor reported. Meanwhile, Axios reported that Bessent told reporters the Treasury bought Argentine pesos again in the spot market Wednesday.
Notes maturing in 2035 were up by almost 2 cents, trading above 59 cents on the dollar, according to indicative pricing data compiled by Bloomberg. The peso erased earlier losses and gained as much as 0.4% in afternoon trading.
The facility would be “adjacent” to the swap line and has drawn interest from banks and sovereign funds, Bessent said, according to Semafor.
The Treasury secretary’s comments are a fresh salve for Argentine assets, which have been reeling since Tuesday when President Donald Trump appeared to make aid to the country contingent on a victory for Milei’s party in midterm elections on Oct. 26. Milei’s ministers insist he has US support until his term ends in 2027, but Trump has done little to clarify the matter.
“Bessent’s statement is aiming at solving that uncertainty,” said Pedro Siaba Serrate, head of research and strategy of PPI Argentina. “We were not completely ruling out additional hints ahead of the election.”
Still, the relief in the markets after Bessent’s latest comments wasn’t universal. Argentine short-term interest rates soared for a second day, with the overnight collateralized peso repo rate — known as caucion in Argentina — jumping to a record 170% from 115% the previous session. That increase is coming at a heavy cost to the economy.
“The rise in rates has led to a contraction in commercial lending, a slowdown in consumer credit — particularly credit-card financing — and, indirectly, an increase in delinquency indicators,” Federico Filippini, head of research and strategy at AdCap Financial Group in Buenos Aires, said by email. “All of this is weighing on economic activity.”
Milei had tried to appease markets on a CNBC interview aired earlier on Wednesday, saying that the US support was ensured at least until Argentina’s 2027 presidential election. He also said that Trump’s aid package was intended to help his nation honor its debt and expressed confidence on his party’s ability to do well in the upcoming midterm elections.
“Doubts will remain as to whether this loan is contingent on Milei doing well in the midterms,” said Matias Montes, a strategist at EMFI. “Regardless, the US continues to buy pesos, which is super positive for the government.”
2 replies
= new reply since forum marked as read
= new reply since forum marked as read
