Mexico & recession fears, Brazil stimulus

Mexico’s preliminary Q2 GDP figures due next week are likely to show that the economy stagnated, dodging a technical recession. But whether the growth figure is above zero or not, the key point is that the economy is extremely weak and the case for interest rate cuts as soon as next month is building. Elsewhere, stimulus is coming in Brazil, with a rate cut likely next Wednesday. But the government’s recently-announced package is unlikely to do much to turn the economy around.