The fights in the Cabinet, Sandra Pettovello’s mole and the movement of the markets
Daniel Funes from Rioja was a diplomat. But he did not hesitate to describe a dramatic situation. In private he said: “Minister, the factory decline is devastating and tragic.” In front was Guillermo Francos. The influential Chief of Staff had done everything right to open a sincere dialogue. Isidorito – that’s what they call the UIA boss – asked Diego Coatz to explain. Coatz – the UIA economist – was lapidary: “All sectors are falling and layoffs have begun.” Francos listened. The minister stated: “We already knew this was going to happen.” And he counterpunched: “But the worst is over.”
At the UIA they don’t share it. The unemployment rate will be in double digits. Javier Viqueira – vice SME and metallurgist – launched it against the RIGI. Francos stopped him and talked about his kindness. The announcement: “The law is going to pass, there are plenty of votes.” Francos seeks to reach a consensus: negotiate, distribute and close.
The last straw was that of a senator from Neuquén. Lucila Crexell – this week – told her colleagues that will vote on the law in exchange for the Embassy in UNESCO. He goes to Paris. Thus, the votes in general would be and -finally- Javier Milei will obtain a political victory.
It will happen after two fateful weeks for León. Since he sang at Luna Park his misfortunes have not stopped. The intrigues increased. The internal shock shook the ministers. There was a double Cabinet crisis and the fights deepened. This Thursday Milei accused the opposition: “Unclean caste.” On top of that – unexpectedly – the markets lit up. In their secret reports, Wall Street businessmen talk about the “semester itch.” This Thursday, the markets shook again: bonds sank, stocks collapsed and risk jumped again. It touched 1,600 points.
in manhattan They applaud Milei’s story, but doubts reappeared about governance: how will Milei carry out what he promises? The papers from JP Morgan, Morgan Stanley and HSBC repeat this phrase: “Wait and see.” The epicenter of the exchange rate tension occurs due to the delay of the dollar. The field settles less than Luis Caputo expected. serious mistake by Toto. He initiated a stabilization plan with a low dollar. That never happened in the stabilization plans.
Funes –at the UIA– warned Francos: “We were expensive in dollars again.” Rodrigo Valdés, the IMF’s chief auditor, wrote in his report: the delay would be 20%. The issue makes noise. Furthermore, the exchange gap reaches 40%. Santiago Bausili is co-responsible. The lowering of the rate was overreacted. In addition, the BCRA began to loosen monetary issuance to cushion the harsh recession.
Local bankers have a powerful confidential report. That hot paper circulates between the bosses of ABA and ADEBA. The text warns about a new situation: Since the end of March, the monetary base has risen 25%. Fluid for the bill to rise. Both –Toto and Santi– They also failed in the way of negotiating the swap with China. Bausili was wrong to go to Beijing with firefighter Diana Mondino. Thus, the two exposed themselves to mixing the imminent expiration of the swap with all the conflicts that Milei created with China.
Now, Bausili changed strategy. He decided to open one last direct negotiation with Pan Gongshen, head of the Bank of China.
Bausili promised Milei to spare him a bad time: China wants the President to ask Xi Jinping for an official favor by letter. The BCRA plays injury time. So far the issue is not closed. It is not ruled out that Argentina will have to pay the first payment and then continue negotiating.
Bausili opened a unexpected intern with Patricia Bullrich. It was due to a recent BCRA resolution that softens banking security controls. La Pato shouted to the heavens in Casa Rosada: benefits cybercrime and drug business. It only happened when the BCRA ruled on the difficult conflict between the banks and Mercado Pago on May 30. It was through the circular Com A3080 that -incredibly- made controls for electronic transfers more flexible. The BCRA leadership did it to compensate for the setback caused by Marcos Galperin.
The Cabinet crisis and the Pettovello factor
Franco is still in his Interior office. Nicolás Posse’s desk will be occupied by Federico Sturzenegger. The deregulating fanatic has a strained relationship with Toto. Caputo sabotaged it with Mauricio Macri, to kick him out of the BCRA.
They both coexist. But they never recomposed. In the red circle they insist that The promotion of “Sturze” will be a problem for Caputo.
In the UIA they speculate – and insist – on one issue: that Milei elevates Sturzenegger to have an eventual ministerial position, in case Toto is voted out. Milei doesn’t think about taking Caputo out. Quite the opposite. But he knows those far-fetched readings.
That’s why he lives by ratifying Toto. He called him a “rockstar” in Córdoba, as Mauricio called him “the Messi of finance.” Macri fired him at the request of Christine Lagarde, the powerful head of the IMF. Macri savors the Cabinet crisis. He says it this way: “There are many idiots in the government.” Sandra Pettovello resigned over the weekend for the third time from her position. Milei had to ratify it four times to convince her not to leave him alone. The President has a special relationship with Sandra. She says that she contains him and reassures him in her moments of doubt and crisis.
That support has been going on for a long time, when they became friends. Pettovello is the only minister – according to official records – who sometimes sleeps in Olivos.
That’s why Milei desperately blocked his exit: It would be an irremediable personal and also political blow.
Karina knows the issue. But she is grumpy because she says Sandra caused unnecessary wear and tear on the President by forcing him to publicly insist on his permanence. Now, The Karina-Sandra relationship has turbulence.
Pettovello resigned three times since taking office. The first was when in the summer she found out that Nicolás Posse was spying on her and she changed her custody manager.
In April he almost left, after the university march. The last crisis was over the weekend. Now he is full of energy, but looking for revenge.
This Thursday he had lunch with the leadership of the Argentine Chamber of Commerce. Sandra arrived and said: “I’m not going crazy.” She later told them: “Toto told me that the fall in inflation is shocking.” The index it would be 4.8%.
They saw her well. The problem is that It is overwhelmed by management and exposed to multiple political operations of wear. She suspects an unfaithful mole Because there are officials who don’t have it. Pettovello also has confidential information that an influential pro-government media operator – who frequently visits Olivos – launched an attack against the minister and provided a lot of material to degrade her.. They say he is seeking his resignation and control of Education.
But the food episode was a real embarrassment. Leila Gianni put her in trouble. It was pathetic to see the former camper denying everything on TV – she was carrying packages of weed – and then swallow the truth about Sebastián Casanello’s ruling. Cúneo Libarona also lost his turtle. He also succeeded Santiago Caputo. He first ordered his army of trolls: “Let’s empty the clip on the critics.” He made a big mistake. Pettovello left both hanging by a brush. He fired his number two, the figure Milei appointed to ingratiate himself with Pope Francis.
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