¡Buenos días from BA! This is the Rorshok Argentina Update from the 21st of August twenty twenty-five. A quick summary of what's going down in Argentina.

Let’s start with INDEC’s latest report on inflation. The national statistics agency revealed that this month’s inflation rate was 1.9% This marks the lowest monthly inflation rate in over three years. President Milei took to social media to celebrate the figure, suggesting the country is finally winning the battle against soaring prices.

However, the full picture is a bit more complicated. While consumer prices slowed down, wholesale prices jumped 2.8% in the same month. This difference often signals that businesses are absorbing higher costs that they haven’t yet passed on to customers. So, the pressure on wholesale goods could lead to price hikes down the road.

Also on the topic of economics, the government scored two major legal victories abroad this week related to the controversial expropriation of the oil company YPF. A quick refresher on this long-running case: back in twenty twelve, the government nationalized YPF, taking majority control from the Spanish firm Repsol. Minority shareholders sued, arguing the takeover was handled improperly, and a US court eventually ordered Argentina to pay them a staggering sixteen billion dollars. So, the current legal battles are all about a litigation fund trying to seize Argentine assets around the world to collect on that debt, and the government trying to stop them.

What happened this week is that a New York Court of Appeals sided with Argentina, halting efforts by the Burford Capital litigation fund to seize the nation’s assets, which are protected by sovereign immunity. Just a few days later, a court in Ireland ruled against Burford’s attempt too. These rulings provide significant breathing room for the government, preventing a potential seizure of assets that could have cost the country billions and complicated its financial standing on the world stage.

From the country’s economic future to its scientific one, the New York Times published a very interesting piece on the struggles of Argentina’s research community. Titled A Starfish Has Captivated Argentina. It Didn’t Ask to Be Political, the article explains the cultural phenomenon around the CONICET research body’s livestream and how it sparked another wave of outrage at the government’s austerity measures.

To read the piece, follow the link in the show notes.

The tough times are certainly being felt on the high street. A new report shows that retail sales for small and medium-sized businesses dropped by 5.7% in July compared to June. This marks the seventh consecutive month of decline, painting a clear picture of the ongoing recession and weak consumer demand. Sectors like pharmacies, food and beverages, and hardware stores were hit the hardest, showing that households are cutting back spending across the board.

Meanwhile, the global mining company Glencore announced it is looking for government incentives to move forward with two massive copper mining projects in the west-central San Juan province. The combined investment could reach an astounding thirteen billion dollars.

Glencore’s interest hinges on the government’s new investment incentive framework, known as RIGI. If the conditions are right, these projects could become a cornerstone of Argentina’s ambition to be a major global copper supplier, bringing in huge amounts of foreign currency.

Glencore isn’t the only major international player making moves. BYD, the Chinese electric vehicle giant that recently overtook Tesla in global sales, has officially registered as an automotive company in Argentina. Even though the company hasn’t made a formal announcement, this move strongly suggests it’s laying the groundwork for local production. If BYD does set up a plant in Argentina, it would be a significant step in the country’s transition to electric mobility.

Looking ahead, both the ruling La Libertad Avanza-PRO coalition and the opposition Peronist movement have begun confirming their key candidates for the twenty twenty-five midterm elections scheduled for the 26th of October. These elections will be the first major test of President Milei’s political strength since he took office and will determine his ability to pass legislation during the second half of his term.

The Buenos Aires Herald published an in-depth piece on this topic, including the full list of candidates. Link in the show notes!

In other news, Argentina’s drug regulator, ANMAT, issued a major warning this week, banning the online sale of a counterfeit version of Ozempic. The popular diabetes and weight-loss drug, which is only available as an injectable pen, was being illegally marketed in tablet form by an unregistered company. The fake pills were sold through social media, and authorities are now investigating what they actually contain.

ANMAT is urging the public to only buy medications through official channels to avoid dangerous fakes.

Residents of Buenos Aires City now have a new way to pay their bills. The city government has officially enabled payments for taxes and administrative procedures using cryptocurrencies. Residents can use popular digital currencies like Bitcoin and Ethereum to settle their accounts. The system works through partner payment processors that instantly convert the crypto into Argentine pesos, so the city’s treasury doesn’t actually hold any digital assets.

If you work in the city, you’ve probably noticed that your commute is feeling a lot more crowded these days. A new survey by the human resources firm Adecco Argentina confirms it’s not just your imagination: eighty-three percent of employees in Argentina are now working from the office one hundred percent of the time. However, the study also revealed that about half of those workers would much rather have a hybrid arrangement, splitting their time between the office and home.

The data shows a clear disconnect between what companies are demanding and what their employees truly want in a post-pandemic world.

Let’s turn to football, where one of Argentina’s most storied clubs is in serious trouble. San Lorenzo, one of the Big Five teams, is on the brink of bankruptcy following a major judicial setback. A court rejected the club’s proposed bankruptcy prevention plan, leaving it vulnerable to creditors who could force it into liquidation. The club is grappling with massive debts and now faces a critical fight for its survival.

Staying on the pitch, civic groups in Angola are publicly calling on Messi and the Argentine national team to cancel a planned friendly match against the Angolan team in Luanda. The groups argue that the game serves as a propaganda tool for Angola’s authoritarian government, which they accuse of serious human rights violations. They are urging Argentina’s football stars not to lend their image to a regime they describe as oppressive.

On a lighter note, Lionel Scaloni, the national football team’s coach, has officially announced the squad for the upcoming twenty twenty-six World Cup qualifiers in September. The list features all the big names you’d expect, including Messi, Lautaro Martínez, and Dibu Martínez. Scaloni also continues to bring in fresh talent like Real Madrid’s Franco Mastantuono and Manchester City’s Claudio Echeverri.

Argentina will play against Venezuela on the 4th of September and against Ecuador on the 9th.

Meanwhile, Argentina’s annual Tango Festival and Dance World Cup kicked off this week, drawing dancers and fans from all corners of the globe. For the next two weeks, milongas, concert halls, and theaters across the city will be filled with free concerts, classes, and competitions, culminating in the crowning of new world champions.

And to end with a truly sweet story, an alfajor from Patagonia has been named the best in the world. At the third annual Alfajor World Championship, a small family-run company from the town of Comodoro Rivadavia took home the grand prize. Their winning creation features a white chocolate coating, rich dulce de leche, and a heart made of a marroc-style peanut praline.

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

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