LONDON A stronger-than-expected showing by Argentina's ruling Peronist coalition at a general election on Sunday has set the stage for a run-off vote on Nov. 19 between Economy Minister Sergio Massa and far-right radical Javier Milei.
Below are reactions from analysts to the results:
SERGIO ARMELLA, GOLDMAN SACHS, NEW YORK
"Investors’ attention will turn its focus to two points. First, any announcements by the two candidates advancing to the second round. When it comes to Mr. Massa, given his capacity as Finance Minister and candidates, policy announcements will be key."
"Policy missteps are something that Argentina cannot afford at this juncture. Inflation is tracking at 138% and accelerating, currency and financial pressures are building up, economic activity is contracting, the fiscal deficit is widening, international reserves are at critically low levels, and net international reserves are negative. For Mr. Milei, any announcement of cabinet positions in an eventual government, for example the finance minister, will be key."
DIEGO W. PEREIRA, JPMORGAN, NEW YORK
"Despite wider macro-imbalances, the recent general election results have shown that neither the deteriorating macro nor corruption scandals appear as decisive drivers to gauge the performance of the incumbent. More relevant will be how the transference of votes will operate between the different forces, especially the migration of (Patricia) Bullrich’s and (Juan) Schiaretti’s support."
"Proving competitive going into the runoff, in the weeks through Sunday November 19th, the government is expected to continue to pull rabbits out of a hat in an attempt to muddle-through and avoid a disordered devaluation."
(Reporting by Karin Strohecker, editing by Kirsten Donovan)
