ARGENTINA: Upcoming Power Outages & more – 26th Sep 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 26th of September twenty twenty-four. A quick summary of what's going down in Argentina.

The government is planning to schedule power outages during the summer. According to Chief of Staff Guillermo Francos, this is due to high demand and insufficient energy supply. However, these outages will mainly impact industries, not residential areas, and the government is negotiating with companies to reduce their electricity consumption voluntarily in exchange for economic compensation.

The other topic dominating the headlines is the Córdoba province’s wildfires. Over 16,000 hectares have been burned and dozens of homes were destroyed, particularly in the Punilla Valley. Firefighters are battling four main blazes, but there are concerns over reduced environmental funding, which may hinder future wildfire management.

While wildfires are common in the area, experts point to human activity as a primary cause, and several arrests have been made for arson.

If you’re in Buenos Aires City, keep in mind that the city government is rolling out its dengue vaccination campaign. The first group to get the free vaccine will be teens aged fifteen to nineteen, who can book an appointment online through the city’s official site. The campaign will expand in phases, next targeting people aged twenty to twenty-nine.

The program follows recommendations from the National Immunization Commission, focusing on the groups most affected by the virus. Vaccination centers include several hospitals and health facilities across the city. Residents just need to bring their ID; prescriptions are not required. Plus, the vaccine is free, but those who’ve recently had dengue should wait three to six months before getting the shot.

Moving into politics, President Milei traveled to New York for his first speech at the United Nations General Assembly on Tuesday, the 24th. In his speech, he promised to lift currency exchange controls once inflation reaches zero, a move that didn’t sit well with investors. Argentine bonds took a hit after the speech, dropping by an average of 3.6% on Wall Street.

In response to the market volatility, Milei’s government issued a decree allowing debt exchanges without Congressional approval, aiming to manage the economic situation.

This trip marked Milei’s 14th foreign visit since taking office. A few of those included meetings with Elon Musk, who announced this week that his companies, including Tesla and SpaceX, are exploring ways to invest in Argentina. However, he didn’t confirm any concrete investment plans.

Back to the topic of the United Nations, Argentina has decided not to support the UN’s Pact for the Future, a broad plan aimed at tackling global challenges like peace, poverty, climate change, and gender equality. At the UN Summit in New York, Diana Mondino, Argentina’s Foreign Minister, explained that the decision was made to defend economic freedom and private property, which the pact could undermine.

While the pact was adopted by the UN General Assembly without a vote, Mondino clarified that Argentina chose to dissociate itself from the agreement, emphasizing that the country would continue working toward global solutions, but with a focus on its own priorities.

What the government does support is the arrest of Nicolás Maduro, the Venezuelan president. An Argentine federal court has ordered the international arrest of Maduro and his top officials, accusing them of crimes against humanity, including torture, kidnapping, and murder. The ruling is based on reports from Venezuelan refugees in Argentina and applies the principle of universal justice, allowing crimes committed in other countries to be prosecuted.

The Clooney Foundation for Justice and Amnesty International are supporting the case, which marks the first such arrest order against Maduro.

Next, Milei mentioned the plan to lift currency controls, and last week, Argentina’s National Securities Commission eased some of the country’s currency exchange restrictions. The changes include lifting a restriction on participants who had taken short-term loans in dollars for certain financial operations and eliminating a five-day notice requirement for large transactions.

Recent adjustments to Central Bank documents also suggest that full elimination of currency controls may not occur until at least twenty twenty-seven.

In other news, the government has enacted a decree allowing foreign crews and companies to operate domestic flights. This decision comes amid tensions with unions representing employees at the flagship airline Aerolíneas Argentinas, and follows the government’s recent push to privatize the carrier. The new regulations enable foreign entities to manage local routes without needing to register their aircraft in Argentina, aiming to mitigate disruptions caused by strikes.

On that note, the Chilean low-cost airline JetSmart has decided to discontinue its Buenos Aires-Montevideo route, after just four months of operation. The airline had anticipated better performance but fell short of its targets, attributing it to difficulties stemming from high taxes, lack of promotional support, and intense competition from other transport options.

You know who is landing in Argentina? Victoria’s Secret. The American lingerie brand is officially opening its first store in Argentina at the Unicenter shopping mall in Buenos Aires. The company had expressed interest in entering the Argentine market back in twenty nineteen, but various challenges—including strict government regulations and the pandemic—delayed their plans.

Speaking of American companies, Amazon just launched a five-dollar flat-rate shipping service from the US to Argentina. The service allows customers to order select products directly from Amazon US and have them delivered to their door, but with some restrictions—like a limit on weight and number of items per order.

You can place up to five orders a year under this deal, which will arrive via private couriers like FedEx or DHL, and you’ll need an AFIP fiscal key at level three to receive them. That’s basically a type of login ID for the tax authority’s website.

This announcement has caught a lot of attention, especially since its low shipping costs could challenge the dominance of the online marketplace company Mercado Libre.

While some open shop, others draw the curtains. A court has ordered a block on Magis TV, a major piracy platform that illegally streams content from various paid services. The decision compels Google to disable the app for Android devices and stop new downloads. Judge Esteban Rossignoli issued the ruling after a comprehensive investigation by the Cybercrime Unit, prompted by a complaint from the Alliance Against Audiovisual Piracy.

Things aren’t much easier for restaurants. A new article by the news outlet Courthouse News Service analyzes the significant downturn in Buenos Aires’s restaurant industry due to the ongoing recession, with reports indicating a drop of at least 20% in consumption.

Find the link in the show notes to read the full piece!

YPF, Argentina’s largest energy company, is actively looking for new investors for a liquefied natural gas plant in Río Negro. Malaysian energy giant Petronas was initially expected to take on this role, but YPF sources suggest that Petronas may be rethinking its involvement due to internal disagreements. While the project will move forward, YPF still needs to secure power purchase agreements, which are crucial for financing.

Before we wrap up, a couple of music-related news. Coldplay will be hosting an exclusive listening event for their upcoming album Moon Music at the Valle de la Luna in San Juan. The event will take place at sunset with a focus on sustainability—using reusable materials and noise-canceling headphones to minimize sound pollution. Fans can win a spot through various contests.

The Rolling Stone Magazine recently published an article exploring how a new wave of Argentine rappers is revolutionizing Buenos Aires’ underground music scene with a bold DIY approach. These young artists are fusing global sounds like hyperpop, trap, and urbano, creating a unique genre dubbed hypertrap. By embracing this avant-garde style, they aim to disrupt the Latin music industry and elevate Argentina’s underground rap scene to international recognition.

To know more, check out the link in the show notes!

If you’re more of a rock person, the Argentine rock icon Charly García has made a triumphant return with La Lógica del Escorpión, or The Logic of the Scorpion. This thirteen-track album mixes genres like rock, jazz, blues and electronic music. Plus, it features collaborations with legendary Argentine musicians like Pedro Aznar and Fito Páez.

Aaand that’s it for this week!

Thanks for sticking around for this episode of the Rorshok Argentina update! If you’ve got questions, thoughts, or just want to say hi, reach out at info@rorshok.com. Don’t forget to hit subscribe on your favorite podcast app!

¡Nos vemos la próxima semana!