Overview

• Fuerza Patria took roughly 47% of the Buenos Aires provincial vote versus about 34% for La Libertad Avanza, a setback in Argentina’s most populous province.
• President Javier Milei acknowledged the loss and said he will not change his program, citing progress on inflation despite earlier deep spending cuts and layoffs.
• Financial markets fell after the vote as the dollar rose about 5% to 1,430 pesos, Buenos Aires stocks dropped roughly 11%, and the country risk gauge moved back above 1,000 points.
• A leaked audio alleging kickbacks involving chief of staff Karina Milei led the president to fire the disability agency’s director, and polls reported his approval slipping below 40%.
• Governor Axel Kicillof emerged strengthened within the opposition as attention turns to the October 26 legislative elections that will test the government’s ability to advance its agenda.