ARGENTINA: Milei Congratulates Trump & more – 7th Nov 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 7th of November twenty twenty-four. A quick summary of what's going down in Argentina.

In the early hours of Wednesday the 6th, President Milei congratulated Donald Trump following his self-proclaimed victory in the US presidential election. Milei posted a message on social media saying, “Congrats on your formidable victory! You can count on Argentina.” This gesture underscores Milei’s alignment with Trump’s political approach and raises hopes within Argentina for potential US support, especially in dealing with the International Monetary Fund.

Either way, Argentina will need a new ambassador to the United States, as the current one, Gerardo Werthein, is now the Foreign Minister. After Milei fired Diana Mondino, which we reported last week, her replacement was sworn in at the Casa Rosada, taking his oath on the Torah.

Werthein is set to align closely with Milei’s foreign policy and will soon join him for key events, including the upcoming G20 summit and a visit from Italy’s Prime Minister Giorgia Meloni. Plus, with the new minister, Milei plans to drastically reduce the Foreign Ministry’s spending to align with his cost-cutting vision. Despite Milei’s push for austerity, Mondino’s budget more than doubled during her term, with significant portions going to salaries for what Milei calls an overpaid diplomatic caste.

Now, an update on another story from last week’s episode: Rescue operations continue in Villa Gesell after the tragic hotel collapse. So far, it has claimed three lives, with at least five people still missing. Authorities have arrested the architect responsible for unauthorized renovations believed to have caused the collapse, along with five construction workers who had been on-site. The hotel’s new owner, who purchased it in April, is under scrutiny, while community members mourn the loss of a familiar landmark.

Saturday the 2nd marked the 33rd annual LGBT+ Pride March, with thousands gathering in Buenos Aires. Marchers rallied under the slogan There is no freedom without rights, expressing concerns over Milei’s policies, which many called discriminatory and harmful to LGBTQ+ rights. Some of these policies include budget cuts that affect HIV treatments and reproductive services, and the elimination of the Women, Gender & Diversity Ministry. Calls were made for stronger anti-discrimination and trans rights laws.

Even the news outlet France 24 reported on the march, check out its video in English with the link in the show notes.

In the coming days, expect a flood of news about the twenty twenty-five budget. The president has been meeting with governors from various parties and provincial representatives to discuss allocations. Each governor has presented specific funding requests for their provinces as Milei’s administration finalizes the national budget plan. Key officials, including Guillermo Francos, the Chief of Cabinet, and Karina Milei, Secretary General, were also present in the meetings.

Turning to economic news, The Financial Times published two articles about Argentina this week. The first one discusses the ambitious deregulation campaign led by Federico Sturzenegger, the Minister of Deregulation and State Transformation. The other one covers the growing legal challenges the country is facing, with billions of dollars in judgments from international lawsuits.

Both articles offer insights into the current financial landscape, particularly regarding the cash flow issues and regulatory changes that could influence inflation, the peso’s exchange rate, and public services.

Link in the show notes!

In other news, the Central Bank has cut its benchmark interest rate from 40% to 35%, marking its first reduction in nearly six months. This decision comes as inflation slows, and is seen as a step toward further economic adjustments, including potential changes to currency controls.

As inflation falls, temperatures rise. The National Meteorological Service has announced that this summer will bring higher-than-usual temperatures and below-average rainfall, especially in Buenos Aires and along the Atlantic Coast. From November twenty twenty-four to January twenty twenty-five, the region will experience more heat due to the absence of major climate events like El Niño or La Niña, which usually influence rainfall patterns. This lack of rain, combined with rising temperatures, may cause heatwaves and strain the country’s energy and water resources.

In response, the government has rolled out a summer plan, which includes scheduled power cuts for industries, but assured no impact on residential areas. The government attributes these measures to the country’s struggle to meet energy demand due to outdated infrastructure and years of underinvestment.

If you’re not a fan of high temperatures, you might consider heading South. Speaking of which, researchers in Santa Cruz province have made an intriguing discovery. While searching for dinosaur fossils, they stumbled upon the world’s oldest known tadpole fossil, dating back to the Middle Jurassic period, around 160 million years ago. The fossil is preserved in remarkable condition and provides new insights into the evolution of frogs and toads, showing that their life cycle has changed very little over millions of years.

This discovery was completely unexpected, as the team was actually looking for dinosaur remains. The size suggests that tadpole gigantism was present among early species.

From fossils to fossil fuel, Exxon Mobil has agreed to sell most of its shale oil assets in the Vaca Muerta shale patch to Pluspetrol. However, the deal is pending approval from local authorities in the Neuquén province. This move aligns with Exxon’s strategy to refocus on other regions, particularly Guyana. Pluspetrol, an Argentine-controlled company, already operates in the region.

On the topic of sales, the US State Department has approved a potential $900 million dollar deal to sell advanced equipment to Argentina for its F-16 aircraft. This package includes air-to-air missiles, bombs, control systems, and communication security equipment, all aimed at improving Argentina’s air defense and operational readiness. Lockheed Martin, headquartered in Fort Worth, Texas, will be the primary contractor. The sale also includes training, maintenance, and additional support equipment.

The US emphasizes that this deal will not disrupt regional military balances or its own defense readiness, but will strengthen ties with Argentina and reinforce security goals in South America.

On that note about aircraft, JetSMART, the low-cost airline from Chile, is expanding its fleet in Argentina. This is likely a result of President Milei pushing for deregulation in the aviation sector, aiming to reduce Aerolíneas Argentinas’ control over domestic flights. JetSMART has invested 160 million dollars this year, adding new planes and increasing its presence in the Argentine market.

Now, onto upcoming events. The band Oasis has announced that they’ll be performing in Buenos Aires as part of their Oasis Live ‘25 world tour, marking the band’s return to South America after a sixteen-year break. Liam and Noel Gallagher’s group will play at River Plate Stadium on the 15th and 16th of November, twenty twenty-five. However, tickets will go on sale locally through AllAccess on the 13th of November of this year, with a limit of four per person.

Sice we mentioned the River Plate Stadium, Hilton has rolled out an exclusive package for football fans, delivering a full VIP game-day experience. The offer includes tickets to a River Plate match, transportation to and from the stadium, airport pickup, and River-themed amenities at the hotel. This collaboration is part of Hilton's aggressive expansion in Latin America, seeking to harness the deep emotional bond many Argentines have with football, while also attracting international tourists eager to experience Argentine football firsthand.

Also relevant for football fans: Diego Maradona’s children are honoring their father’s legacy by planning a memorial site, the M10 Memorial, set to open in twenty twenty-five in Buenos Aires’ Puerto Madero neighborhood. This memorial is expected to draw around one million visitors annually.

The 1,000-square-meter space will offer free access to Argentines, with optional donations enabling supporters to add their photos to a heritage wall. The site will also include a mausoleum for Maradona’s remains, moving him from his current resting place for easier public access.

Aaand that’s it for this week! Thank you for joining us!

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¡Nos vemos la próxima semana!