The day at a glance | November 18, 2021

The Top

*The heads of state of Mexico, the United States, and Canada will hold their first face-to-face meeting today.

*Europe’s money market delayed its expectations of interest rate hikes until 2023, after claims for patience from the ECB.

*Mexican economy would have grown 1.9% annually in October, according to the Leading Economic Activity Indicator.

*The high maritime transport costs of goods could contribute to a 1.5% increase in global consumer inflation by 2023: UNCTAD.

*FED members Bostic, Evans, Williams, and Daly will comment in public events today.

Economic environment

Washington receives Trudeau and AMLO. The United States of America President, Joe Biden, will receive at the White House to the Canadian Prime Minister, Justin Trudeau, and to the President of Mexico, Andrés Manuel Lopez Obrador, in the North American Leader’s Summit. The heads of state of these three countries had not held a face-to-face meeting since 2016 and will seek to discuss key issues related to the automotive industry, energy, trade, borders, and vaccination. The Summit is expected to be a conciliatory forum for trilateral relations, after the difficult moments that diplomacy went through in North America during the Trump administration. Nonetheless, several controversial issues will be touched. Mexico and Canada have opposed the implementation of a Biden proposal to subsidize the electric vehicles (EVs) manufacture in the U.S., very surely reviving discussions about the USMCA principles. At the same time, Mexico will demand transparency on the calculations of regional content in the trilateral trade pact. The electricity reform in Mexico will be a discussed subject because it affects North American private companies that have invested in the country, according to US officials’ statements. Other discussed topics will be migration, border controls standardization to facilitate the post-pandemic movement of people, and the cooperation of vaccine supply within the region.