J.P. Morgan CEO Backs Milei’s Reforms: “Argentina Could Attract Over $100 Billion”
Dimon estimated that Argentina could attract around $100 billion in foreign investment, highlighting growing interest from major companies.
Quick overview
- J.P. Morgan CEO Jamie Dimon praised President Javier Milei's economic policies, stating Argentina has a 'real opportunity for transformation.'
- Dimon believes that if Milei continues his current policies, Argentina could attract around $100 billion in foreign investment.
- Despite a recent pullback in Argentine stocks and bonds, optimism remains high following the legislative elections.
- The decline in dollar-denominated sovereign bonds follows a significant post-election rally that reduced the country risk premium.
J.P. Morgan CEO Jamie Dimon praised President Javier Milei’s economic policies during a meeting in Buenos Aires, saying Argentina could “truly change” if the government stays the course.
In an interview with Reuters, Dimon said Milei’s administration is doing “a good job” managing the economy and that the country “has a real opportunity for transformation.”
“If Milei can keep implementing these policies for the rest of his term —and maybe another— Argentina could change,” he noted.
Dimon estimated that Argentina could attract around $100 billion in foreign investment, highlighting growing interest from major global companies. He added that J.P. Morgan is open to supporting the country financially if needed, though he doesn’t believe new external debt is necessary.
The executive also commented on U.S. economic policy, saying former President Donald Trump “believes in the Federal Reserve’s independence” but will “speak his mind freely” regarding financial matters.
Argentine Stocks and Bonds Retreat After Post-Election Rally
Argentine stocks and bonds pulled back on Thursday in New York, pausing after several days of strong gains fueled by optimism following the legislative elections.
Dollar-denominated sovereign bonds traded broadly lower, falling as much as 0.5%, led by the Global 2046 and Global 2041. In contrast, the Bonar 2029 and Bonar 2041 edged higher by 0.6% and 0.2%, respectively.
The decline comes after a sharp post-election rally that pushed the country risk premium down to 621 basis points, its lowest level in nine months.
Among Argentine ADRs, losses were widespread: Edenor (-2.5%), BBVA (-2.4%), and Grupo Financiero Galicia (-1.1%) led the declines. Central Puerto rose 1.1%, while Mercado Libre tumbled as much as 5.7%.
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