Schroders : BBC World News - Talking Business; Pablo Riveroll talks Mexican elections

In this video Schroders Head of Latin America Equities, Pablo Riveroll, talks to Aaron Heslehurst on BBC World News - Talking Business about the latest presidential election and the potential economic impact.

'The Mexican Presidential elections took place on July 1^st, and Andres Manuel Lopez Obrador (AMLO) and his party's coalition achieving a very strong victory. He will assume the presidency on December 1^st for a 6 year term. He will be one of the most powerful presidents in a long time, as he achieved over 53% of the votes and his coalition will control 60% of the Lower House and 55% of the Senate in Congress.

While AMLO made radical comments during the presidential campaign, his tone significantly moderated shortly before and after the election. His team's comments on macroeconomic policy have been consistently orthodox, claiming to keep central bank independence, a free floating exchange rate, no increase in the fiscal deficit and be in favour of NAFTA. Maintaining a low fiscal deficit will be difficult if he is to deliver on his social spending and infrastructure investment plans at once, so the new government will need to make choices between the different spending needs or accept a higher deficit. There has been a wave of optimism after elections took place in an orderly way and AMLO's conciliatory tone after his victory. Time will tell if he is indeed the pragmatic moderate the market is hoping for or if a less orthodox policy is implemented once he is in power.'

Important Information:

The views and opinions contained herein are those of Pablo Riveroll, Head of Latin America Equities, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.

This information is a marketing communication. Information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Information herein is believed to be reliable but we do not warrant its completeness or accuracy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider's consent. Neither we, nor the data provider, will have any liability in connection with the third party data. The material is not intended to provide, and should not be relied on for accounting, legal or tax advice. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. No responsibility can be accepted for error of fact or opinion. Any references to securities, sectors, regions and/or countries are for illustrative purposes only.

The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. Past Performance is not a guide to future performance and may not be repeated.

The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts and assumptions may be affected by external economic or other factors. To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.