Santander sees Latin America well positioned globally

Speaking Tuesday at an event hosted by the bank at its New York headquarters, Ms. Botín pointed to geopolitical and economic factors creating momentum for deeper integration between Latin America and the United States. She said the reconfiguration of the global order is here to stay, noting that the shift in global supply chains is opening up opportunities to serve markets such as China. “I believe Latin America will continue to come out ahead—relatively speaking—even if it’s hard to make precise forecasts.”

Brazil, in particular, may be less vulnerable to short-term inflationary pressures stemming from new trade tariffs due to its relatively closed economy, Ms. Botín said. At the same time, the country has room to expand its export base. “We’re already seeing increased demand for soybeans from China,” she said. “There will be volatility, but the outlook for Brazil is positive.”

Europe, too, is beginning to benefit from the new global context. According to Ms. Botín, some of the world’s largest institutional investors—mainly American—are shifting more capital toward Europe while reducing exposure to the U.S. “We held a financial sector conference in London a few weeks ago, and I’ve never seen this much interest in European investment,” she said. “There is a rebalancing of capital from the U.S. to Europe.”

In this environment, Ms. Botín expressed support for finalizing the long-delayed trade agreement between the European Union and Mercosur. “All the work is done. The only thing left is the signature,” she said. “There is a lot of interest from Europe in moving forward with the deal, which we know depends on one major European country—I won’t name it, but it’s not Spain or Germany,” she added, referring to France.

Ms. Botín argued that Latin American countries are better positioned today than in past decades to navigate the evolving global order. “Institutional strength has improved. We had a decade of growth, and the region’s fundamentals are more solid now than in previous cycles.”

Praised earlier this year by U.S. President Donald Trump for her “fantastic job” leading Santander, Ms. Botín avoided direct criticism of his trade policies. The Spanish bank has a significant presence in the United States. Rather than challenge President Trump’s rhetoric head-on, she has opted to highlight the opportunities his approach might create for Europe. A month ago, she remarked that Europe is awakening, and the alarm clock has been President Trump.”

She also took a measured tone when addressing Mr. Trump’s recent pressure on Federal Reserve Chair Jerome Powell, which has stirred volatility in financial markets. Ms. Botín emphasized the critical role central banks play as anchors of financial stability and stressed the importance of preserving their independence. “It’s not unusual for governments and central banks to have different views—that’s something we need to monitor,” she said, adding that she is confident that institutional independence “will be upheld.”

Declining to speculate on the Fed’s next moves, Ms. Botín said Santander is working with a baseline scenario that sees interest rates in Europe falling to 2% by year-end. In the U.S., she added, any slowdown in economic growth would logically lead to a recalibration of interest rates.