Today's Must-Know Stock News

Check out this great link to the latest financial news on the stock market from this morning, named "Wall Street Breakfast: Must-Know News." Contains insight into all the most important stock market news.

IMF Predicts Global Crisis if U.S. Cannot Agree on Debt Ceiling Solution

As MexBizNews reported today, "A loss of investor confidence in U.S. debt could have "universally large and negative" effects on the rest of the world, the International Monetary Fund said this week in its annual assessment of the U.S. economy."

The IMF delivered its warning as the White House and Congress struggled to reach a deal to increase the federal government's borrowing limit before an Aug. 2 deadline.

A downgrade would be "very damaging for both the US economy and the rest of the world" by hitting stock markets and pushing interest rates higher, IMF senior adviser Rodrigo Valdes told reporters. It would be new territory for U.S. debt, so "there's a lot of uncertainty," he said. "Nobody really knows what would be the true effect."

Mexico Becoming a New Manufacturing World Hub in the Aerospace Market

This Reuters article, published today, reports that Mexico is becoming a New Manufacturing World Hub in the Aerospace Industry. Did you know?... "Mexico has the second largest fleet of private aircraft in the world after the United States, is the tenth largest supplier to the United States market, and has become one of the largest recipients of aerospace foreign direct investments over the past two years."

Why are companies investing so heavily in Mexico's capabilities as an Aerospace Industry Leader? Quality of Work, Strong Engineering Skills, Cost Efficiencies, Safety and Security, and Visionary Mexican Framework are amongst the most commonly heard reasons for constant foreign direct investment in Mexico's bulletproof economy.

New Web Site Shares News on Mexico's Growing Economy

As part of an initiative to share news and current events in Mexico, yesterday Marca País – Imagen de México launched the www.MexicoToday.org web site. Mexico Today will be offering the latest news on tourism, culture, economy, and the environment, among other topics. Invest in Mexico will be partnering in the site in order to bring you the latest on investment and financial news, as well as insight into business opportunities in Mexico. Take a look here.

AUDI Wants North American Plant - Probably in Mexico

According to Inside Line Magazine, Audi CEO Rupert Stadler wants to build cars in North America and hints he may now be looking at Mexico, rather than the U.S. In another interview with Automotive News, he was recorded saying, "It is totally clear that we need new production capacity in the U.S. The question only is when."

Mexico, due to its lower manufacturing costs, high-quality engineering and close proximity to the U.S. and Canada, is a top contender for many automobile manufacturers including Honda, Nissan, Toyota, Fiat and Volkswagen, among others, and has been greatly expanding over the past few years.

Both Toyota and Honda Planning to Build Plants in Mexico

Via Maquilaportal.com:

"According to Global Insight, Honda and Toyota need a plant in North America, since only 59% of the autos they sell in the region are manufactured in North America; while Nissan manufactures 85% of the cars sold in the region, which provides a competitive advantage."

Hence this analysis, Japanese automakers, Honda and Toyota, are looking for a plot of land suitable to install a new plant in Mexico, different sectors of the automotive industry assure.

"In both cases it would be their second plant in Mexico, since Honda already has one in El Salto, Jalisco, and Toyota does in Baja California."

Volaris Airline Introduces Direct Flights Between Mexico and U.S.

The Mexican and U.S. governments have recently approved direct flights between Mexico City, Los Angeles and Las Vegas as well as flights between Monterrey and Chicago. According to an article by Milenio, a Mexican newspaper, the Mexican airline Volaris will be operating these direct flight routes. In 2011, Volaris has increased the amount of flights it offers between the two countries by virtually 50% percent.

Mexico City Reduces Green House Gas Emissions by the Millions

Mexico City is making improvements in leaps and bounds, with its Green Plan, implemented in 2008, aiming to make Mexico City a sustainable city in the next 15 years. Not only has the plan already reduced GHG by 5.7 million metric tons, but is the basis for making investments in transportation, energy and water conservation, solid waste management, and air quality, among other initiatives.

"Over the past four years, we have made significant progress toward becoming one of the world's most sustainable cities by promoting environmental stewardship not only in our government operations but also by encouraging widespread business and citizen participation," said Marcelo Ebrard, Mexico City's current mayor.

Brazil Tariff Barriers Complicate Trade Deal with Mexico

Via Bloomberg.com:

"Brazil’s existing tariff barriers complicate promised negotiations on a free-trade agreement with Mexico and there is no date to start formal talks, said Mexico’s undersecretary of industry and commerce, Lorenza Martinez. “What is the most difficult part is to solve the known tariff barriers that Brazil has,” Lorenza Martinez said in an interview at the Mexican embassy yesterday in Tokyo. “It is more difficult to do business in Brazil than in Mexico. It has a more complicated system to operate. That’s the part that makes this agreement a little bit more difficult than others.”

Brazil is Latin America’s largest economy and Mexico, the second biggest, relies on the U.S. to buy about 80 percent of its exports.

"Separately, Mexico hasn’t changed a forecast for the country to create 557,000 new private sector jobs this year as it recovers from the global downturn in 2009, she said. “The recovery has been faster than in previous cycles,” she said, adding that manufacturing firms have led the rebound."

How U.S. Debt Ceiling Could Affect National and Foreign Stock and Bonds

Here's an article by SeekingAlpha.com on how lowering the U.S. debt ceiling could impact the stock and bond prices in the U.S. and abroad:

"Since the United States has carried a AAA debt rating since 1917, the term unprecedented has been properly applied to the possibility of a downgrade to AA. The uncertainty associated with a debt downgrade/short-term default was captured by the Wall Street Journal on July 25:

In one recent meeting at a major bank, executives were asked to suggest what they would recommend buying the very moment the debt limit wasn’t raised. For each argument made, there was a valid counterargument for why the purchase wouldn’t be wise." Click on the link above to see the surprising facts on what this could mean for the stock market.

FIAT to Export 50,000 Cars From Mexico to China Each Year

A few days ago, the first 100 cars of FIAT's Cinquecento model assembled in Mexico arrived in China. The FIAT manufacturing plant, which is putting together the latest edition of the Cinquecento is located in Toluca, Mexico and is quickly becoming another example of the valued quality engineering that Mexico offers. The Italy-based auto assembler plans to manufacture 100,000 of these units by February 2012. Victor Villanueva, CEO of Fiat Mexico said that Fiat will sell 50% of their production to the Chinese market. Click here to see to what other countries the Cinquecento will go.

Mexico Among Group of New Emerging Economies

Here's an article I found on Mexicotoday.org that talks about what I posted last week on the fact that now Mexico is considering one of the latest in a new group of emerging economies: MIST (Mexico, Indonesia, South Korea and Turkey). I'd love to hear your comments on this.

PepsiCo Opens New Beverage Company in Mexico

This July, it was announced that PepsiCo was initiating a new merger with the Mexican bottling company, Grupo Embotelladoras Unidas. Still pending approval from the Federal Competition Commission of Mexico, the two companies will complete discussions about the merger by late September 2011. After the formation of a strong partnership and the new beverage company in Mexico, GEUPEC will hold a majority interest in the joint venture...

FoxConn, Chinese Electronics Manufacturing Company & Owner of Scientific Atlantic, To Absorb 5,500 Employees in Ciudad Juarez

The electronics leader Foxconn will absorb the almost 5,500 employees working for Scientific Atlanta in Ciudad Juarez, who will keep their seniority and salaries. As Maquilaportal reports, Francisco Uranga Thomas, Foxconn Operations Vice-president for Latin America, said that they decided to acquire Scientific Atlanta due to the great value of its people, who have been working as a team for 17 years now.

Mexico's Televisa and Netflix Reach Content Licensing Agreement

Mexican broadcast and telecommunications company Grupo Televisa SAB (TV, TLEVISA.MX) stated today that it had reached a licensing agreement to provide content for online movie and television provider Netflix Inc. (NFLX). Read more about the news here.

Mexico's First Humanoid Robot

Did you know that Mexico is now the creator of a world-class humanoid robot? The Mexican robot named MexOne is the most advanced robot of its type in Latin America, according to its creators, with functions similar or superior to those built by Japanese, American, and European companies.

America Movil Deals with Regulation and Lower Rates

Yesterday it was announced that concerns over regulations for America Movil are going to be shadowed by lower rates.

America Movil's (AMX.N) (AMXL.MX) Mexico earnings before interest, tax, depreciation and amortization margins dropped 330 basis points to 50.5 percent in the quarter ended in June from a year earlier.

America Movil Posts Impressive 2Q Earnings

The largest telecom carrier in Latin America and also a Mexican company, America Movil, has reported second quarter earnings per ADR of $1.04, much higher than most analysts predicted. Total costs and expenses in the reported quarter were up 12.0% year over year at around MXN$97.7 billion ($8.3 billion).

According to analysis, America Movil continues to dominate the Mexican wireless market by expanding data and Pay TV services. Click here for a more in depth analysis of the increases in America Movil's 2Q earnings.

PEMEX, Mexican State-Owned Oil Company, Reaching Privatization?

Did you know?

According to the Mexican constitution (Article 27) all subsurface minerals are the property of the Mexican government, and not the people who own the land where these minerals are found

While some would rather see PEMEX in the public realm, others are hesitant to see the company privatized due to a notion of national pride that comes with the oil company claiming Mexican ownership.

The fact that surface minerals are property of the Mexican government has led to 1/3rd of the federal budget being derived from the fossil fuels found and produced in Mexico, and accounting for 10% of all export earnings for the country.

However, as this article states, "over the past 5 years the amount of barrels per day being produced has been declining, mostly due to the difficulty that surrounds new oil exploration, the need for more advanced technology and risk taking investment. With the need for investment and most of the profit utilized as expenditures in the federal budget, PEMEX lacks the resources necessary to continue to produce optimally and also to reach its goal of 600,000 barrels of crude per day by 2021."

What is your opinion on privatizing the state-owned oil company PEMEX? Would you be willing to invest in the risk-taking investments needed to keep it in the hands of the Mexican government?

Mexico Inflation Increases In Early July

Via Reuters:

Today Mexico's statistics agency said that consumer prices rose 3.53 percent in the year through July 15. "Prices climbed 0.32 percent in the two-week period MXCPIF=ECI, faster than the 0.24 percent reading expected in a Reuters poll."

Inflation remains close to the central bank's 3 percent inflation target. Policymakers say they can live with variations of up to a percentage point higher or lower.

Mexico's Largest Fishery Passes Sustainability Assessment

The Pacific sardine (Sardinops sagax) fishery in the Gulf of California, has been certified as meeting the MSC standard for sustainable, well-managed fisheries. After following an independent assessment.

“The certification is important because it sends a clear message that it is possible to fish in a responsible way in accordance to the FAO fishing code, by being certified we are committed to fish in a responsible, sustainable and environmentally friendly way. [...]"

Click here to read more on the subject and what this could mean for the industry in Mexico.

Calderón First to Roll Out Newest Volkswagen Beetle Produced In Mexico

Last week, President Felipe Calderón was the first to drive the latest model of the Volkswagen Beetle, http://www.mexicotoday.org/article/newest-volkswagen-beetle-makes-president-felipe-calderon-proud-cars-begin-rolling-production stating, “It is a point of pride for Mexico to know that the new Beetle will be fully produced in our country.” Click here for more details and what this means for Mexico's economy.

Felipe Calderón: "With Higher Employment, We Will Build a Stronger Mexico"

In this video, Mexico's President, Felipe Calderón, talks about the strength of the automobile industry in Mexico - the 6th country in the world in car exports - and how Mexico is a strong contender for a leading spot in this sector in the global economy. In this video he speaks at the Estado de Puebla conference where he remarks on the successes of Mexico, as well as the work that is still to be done.

Heinz to Invest US$6 Million in Mexico

Via Maquilaportal.com
With a plant in Guadalajara, Jalisco, and corporate offices in Mexico City, Heinz Mexico estimates to close 2011 with invoicing for US$60 million, including exports. The Company plans investments for US$6 million in the next two years to produce in Mexico its flag-product, tomato ketchup.

New Bombardier Jet Manufactured in Mexico

There is news that the innovative, ultra-modern jet made by the aviation company Bombardier, which 5 years ago invested heavily to build it's first manufacturing plant in Mexico, is ready to assemble its new executive jet, expected to start flying in 2013.

The Canadian company, Bombardier, creator of the 8-passenger Learjet85, has invested US$250 million in Mexico since 2008. Click here to read more about this advancement in the Mexican aerospace industry.

Germany to Continue Heavy Investment in Mexico

“There are more than 1,000 German companies in Mexico, which is proof of how deeply linked we are in the [Mexican] economic arena”, says The German Minister of Foreign Affairs, Guido Westerwelle, who is visiting Mexico. He also mentioned that German businessmen lend their attention to the news on Mexico's current affairs, yet are interested in continuing to invest.

Mexico Outdoes Canada in Automobile Production

Latest news from maquilaportal.com has says that Mexico has outdone Canada in terms of production of automobiles and light trucks, in between 2008 and 2010. Last year 2,262,164 units were assembled, a number that is higher than Canada’s production total. "This year, if the shadow of the recession in the USA does not affect original plans, the record could be broken, mainly with expansion plans by Nissan, GM, VW and Chrysler."

Mexico Less Dependent on U.S. Market

Mexico is less dependent on the U.S. market says the Mexican government. This news was released yesterday as the Secretary of Economy, Bruno Ferrari, stated that the United States once accounted for 85 percent of Mexico's international trade flows but that proportion has fallen to 80 percent. This change comes after Mexico has been opening up new markets in other countries.

Click here to get the full perspective on this issue with in depth data for a variety of industries.

Fresnillo Silver Mine in Mexico Sees Over US$300 Million Investment

"We're going to be the largest producer of silver in the world, that thanks to Zacatecas, of course, thanks to the growth of the mining industry in the country," said President Calderon, adding that Mexico is also among the top ten gold producers. The comment was sparked by news that the Fresnillo Silver Mine in Mexico is going to see a US$300 Million investment that will produce 10 million ounces of silver and 50,000 ounces of gold in 2015 at its Saucito mine in north-central Mexico.

Global silver demand climbed 15 percent to 1.06 billion ounces last year, the highest level in at least 20 years. Read more on the significance of this huge investment that will change the business landscape of Mexico.

Mexico Attracts Investment Interest of Japanese Businessmen

In the past 3 years, approximately 25 Japanese auto parts manufacturers have moved to Mexico, Raul Urteaga Triani, Head of Mexico-Japan Economic Association Bureau in the Ministry of the Economy, declared. Part of this migration of Japanese companies to Mexico is from the United States to Mexico. As Maquila portal reported Triani saying, “Japanese companies which were previously manufacturing at states such as Michigan, Ohio or Illinois started moving their production to Mexico to be near the automobiles assemblers operating in Mexico."

Coca Cola Earnings Up 18% this Quarter

Coca-Cola Company said today that its second-quarter profit jumped 18% to $2.8 billion, or $1.20 a share, from $2.37 billion, in the year-ago period. The maker of sweetened sodas, juice drinks and bottled water said that its productivity initiatives were right on track with the $400 million to $500 million four-year guidance that they planned to "slightly exceed".

Coca cola FEMSA, established in Mexico in 2003, is the second largest Coca-Cola bottler in the world.

Volkswagen Initiates Production of Beetle in Mexico

In the central Mexican city of Puebla - the exclusive manufacturer of the vehicle - Volkswagen has begun production of its latest Beetle model at its giant plant.

In a speech at the launch ceremony for the new model, President Felipe Calderon said the German’s automaker’s $400 million investment in the rollout “will have a very positive multiplying effect.”

Harry Potter Has Richest Opening Weekend in Box Office History

6.2 Billion dollars is what Harry Potter and the Deathly Hallows: Part 2 brought in this opening weekend, the most in box office history.

Of course when talking about records, it’s always worth taking into consideration the effects of inflation and 3-D ticket hikes. Just check out this story I wrote in February 2010. It includes a list of the highest-grossing films when adjusted for inflation. Gone With the Wind earned an inflation adjusted $1.48 billion domestically compared to Avatar‘s $760 million.

Not everyone agrees with adjusting for inflation though. Read more about what the author's colleague has to say about adjusting inflation in order to match records to today's prices.

"The Perfect Indicator for All Markets"

Did you know that On-balance volume (OBV) is a proven-effective leading indicator that allows traders to spot turning points and valid signals across a wide variety of markets and time frames?

Read more about how this indicator could improve your personal investing techniques.

News on European Bank Stress Tests

Five Spanish banks have failed the European Union bank stress tests, including Caixa Catalunya, making up the bulk of the eight failures in the bloc, the Bank of Spain said on July 15, 2011. But the five will not need additional capital because the sector is already being restructured, the governor of the Bank of Spain, Miguel Angel Fernandez Ordonez, told a news conference. Read more here.

What do you think will be the consequences of the failed stress tests for the European economy?

Top Ten New "BRIC" Countries

According to this article, the unexpected and dramatic development of the way that the global economy works after the 2008-2009 recession has "not been due to the vigour of the Chinese economy or the BRIC (Brazil, Russia, India, China) economies as a whole, but the emergence of a major new force in the global economy - the 10 middle-income emergent countries."

Click here to read more on which are the new emerging economies worldwide and how this could affect the way you see your personal investing.

New Emerging Economies to Enter BRIC term?

Jim O’Neill, the chairman of Goldman Sachs Asset Management, who coined the term BRIC to describe a group of emerging economies that comprises Brazil, Russia, India and China, said he planned to redefine growing markets and will explain the new approach to clients this month, the Financial Times reported. Read which countries he expects to include, here.

Google Defends Investment

Larry Page, who is the chief executive of Google, defended his company's controversial investment priorities, after having reported higher-than-expected earning for the second quarter.

Wall Street has repeatedly reported it's worries that have spun out of control this year as Google has launched a number of ambitious expansion plans, including its recently launched Google+ social networking service. Click here to get the full story.

Analysis of U.S. Economy: Debt Ceiling

Via the Financial Times, here is a video that gives us a good idea of how economic analysts predict the conclusion of the debt ceiling talks before August 2nd and how it can potentially affect the rest of the world economy.

Mexico’s Marcatel Acquires 50% of STX Communications

The largest distributor of phone cards in U.S., STX Communications, sold 50 percent of its stocks to Marcatel SA, a closely held Mexican telecommunications company, the company said today in an e-mail statement made by PRNewswire. Through STX Communications, Marcatel aims to strengthen its business structure.

Intelligent Investing: Can Mexico Grow Like China?

Check out this video that debates whether Mexico will be able to expand like China and what reforms are necessary for that to happen. Very interesting video.

Feel free to leave your comments below!

China Mantains Rare Earth Quotas

“This is highly disappointing,” said the European Trade Commission. “The EU continues to encourage the Chinese authorities to revisit their export restrictions policy to ensure there is full, fair, predictable and non-discriminatory access to rare earth supplies as well as other raw materials for EU industries.”

After months of heavy lobbying from Washington, Brussels and Tokyo, on Thursday China released new quota figures which would keep exports of the strategic materials on par with last year’s levels. Read more about the news here.

I'd love to hear your perspective on the issue. Feel free to leave your comments below.

Mexico Bonds Market Update: July 14th, 2011

As it says in this article, "you don't necessarily need the world’s biggest interest rates to attract a lot of capital". It turns out that Brazil, while the obvious choice, isn't the only high-earning carry trade. Peru, Colombia and Mexico are all well worth the while.

Look further north, to Mexico. Low interest rates, hardly any currency appreciation – yet investors have been flooding there much as they have to Brazil (see chart supplied by RBS based on data from the Mexican central bank).

“Mexican 10 year bonds trade at 400 basis points over US Treasuries,” Morden says. “There’s no mark to market gain or forex gain. This is pure carry. It’s a statement of the still abundant global liquidity and the limited access to carry.”

Read the rest of the story to see why these countries are another successful choice for investors.

Unilever to invest 100 million Euros in Mexico

The world’s second biggest consumer goods company, Unilever, announced at the beginning of this week, that they plan to open a factory in Mexico, located in Jiutepec in the central Mexican state of Morelos in the CIVAC (Ciudad Industrial del Valle de Cuernavaca) industrial park.

President Felipe Calderon opened the new facility together with Unilever CEO Paul Polman, in which Unilever will invest 100 million Euros ($145 million dollars) in the factory over the next three years, as a way to double their sales growth. This new plant is expected to have a very positive effect on the economy of the region.

Click here to see the full story.

Mexico Credit Update - July 14th, 2011 -

It was reported yesterday that investor interest in Mexican government bills is jumping from a 16-month low due to speculation that a rebound in the U.S. economy will cause a rise in the peso.

The central bank said on its website that Cetes, as the 91-day securities are known, drew bids of 24.6 billion pesos ($2.1 billion), or 3.8 times the 6.5 billion pesos offered in yesterday’s auction.
Read more about how this insight could change your investment decisions.

Spain's BBVA to Invest $2 Billion in Mexico

Via Latin American Herald Tribune:

Spanish banking giant BBVA, the second largest bank conglomerate in Spain, and 7th in the world, will invest $2 billion in its Mexican unit, BBVA Bancomer, over the next three years, BBVA chairman and CEO Francisco Gonzalez said in June.

“

This plan entails strong investment in technology and new platforms, and it is also an indication of BBVA Bancomer’s commitment to banking and the promotion of lending,” Gonzalez said in an address that was attended by Mexican President Felipe Calderon.

With the ever-growing Mexican economy, the BBVA investment funds will be used to expand branches, add ATMs and payment terminals, and promote mobile banking, Gonzalez said.

How do you think this will affect the Mexican banking sector and the Mexican economy as a whole?
I'd be interested to read your comments below.

Mexico Investment Summit 2012

Check out this great link on the Mexico Investment Summit, taking place in January of 2012. This conference is the only international conference focused on Mexico to bring together senior decision makers from the entire investment and development community.

Mexico and Turkey Sign Air Transportation Agreement

According to Turkey’s Civil Aviation regulator, Turkey and Mexico recently signed an agreement to begin flights between the two countries. With the signing of this air transportation agreement, passenger and cargo flights between Mexico and Turkey will be allowed to connect through Portugal’s Lisbon and Porto airports. Read more on this great change in the international aviation industry here.

Venezuelan Economy: Opening the Gates to Corruption

According to a study published in June 2011 by the World Justice Project (WJP), Venezuela has “the worst result in the world” when it comes to justice, corruption, and interference by the Executive Branch in the other branches of government. The issue being raised in Venezuela for some time now is the amendment of a bill called the Anti-Corruption Act, which it said would potentially open new windows of opportunity for corruption, according to Mercedes De Freitas, the executive director of Transparencia Venezuela.

Click here to read more on the state of the Venezuelan economy and the new corruption act.

Latin America to Feel Effects of Greek Crisis, Too

Mexico’s economy is more open than Brazil’s, so its foreign exchange market is more susceptible to rapid changes in the global risk environment, says this article in Forbes magazine.

Read more here about how the Greek crisis will affect the Latin American and Mexican economy.

10 Things Investors Should Know About Latin America

Click here for an expansive list of what investors need to know in order to successfully invest in Latin America.

Latin American Economy Running Smoothly

As this story reports, there is a very positive outlook for the economy in Latin American, as well as for Mexico. For starters, Costa Rica has been nicknamed “the Silicon Valley of Latin America.” The middle class in Latin America is not only growing at a rapid pace but is very young compared to the rest of the developed world - concentrated in the 12 to 35 age range - meaning they will continue to be a strong force for years to come. Also, women are becoming more empowered and governments are investing in security, knowing that, as President Uribe puts it; “If foreign investors do not feel safe, they will not invest.”

Click here to read more about how structural and social changes in Latin America will create the ideal environment for a healthy Mexican economy.

Foreign Investment in Mexico Stands Strong

As this article mentions, there is a lot of talk about the violence in Mexico, but what most people don't realize is that the border economy is still booming.

Last year Reynosa, a city along the border, added 4,000 jobs to the Mexican auto industry. These plants refuse to let the persistent violence affect their business; foreign investment in Mexico continues to roll in and plans for factory expansions are in motion.

Unilever's New Focus on Sustainability

The much-criticized Unilever has started to embrace sustainability. Watch this video for more news on Unilever's approach to world production. How do you think this could affect Unilever's stock and sales?

Unilever's 100 Million Dollar Sustainable Plant in Mexico

In July I announced that Unilever was going to open a new Unilever plant in Mexico, pumping over 100 million dollars into the country. Here's a new perspective to the story that lets us in on the highly efficient and sustainable plant that Unilever has created. Via Packaging Manu: The new factory will accelerate the growth agenda in North and Central America – it will double the national production of deodorants, and will supply markets in Mexico, the United States, Canada, Central America, the Caribbean and Colombia. Equally important, the Unilever plant has its own solar energy production, water collection and recycling systems, and will be a model of sustainable practices for future plants built elsewhere.

Mexican Soft Drink Company, Coca-Cola FEMSA, to Acquire Tampico

The Mexican soft drink company, Coca-Cola FEMSA, is expected to acquire Tampico, one of the biggest soft drink bottlers in Mexico for 790 million dollars at the end of the third quarter this year. Read more about what's behind the acquisition here.

Manufacturing Increases in Mexico

In the Latin American economy, there is a lot of talk about Mexico. The Mexican economy is “growing considerably faster” than that of the United States, according to an article by The New York Times.

The New York Times stated, “The Mexican economy, the second largest in Latin America after Brazil, grew 5.5 percent last year, its fastest pace in a decade, and is expected to grow 4.5 percent this year, driven largely by manufacturing as well as internal growth from an expanding middle class.”

International business expansion to Mexico has become very common with more manufacturing plants installing themselves in Mexico every year.

What are your thoughts on the subject? Do you have any news or insight you'd like to share?

Feel free to leave me your comments below.

One Way Investing in Mexico Affects the U.S.

For those that believe that undocumented immigration from Mexico to the U.S. is a problem, there is a very good way to calm the appetite for the American dream: invest in Mexico.

"No one wants to hear it, but the flow has already stopped," Douglas Massey of Princeton told the New York Times in regard to the amount of illegal immigration from Mexico to the U.S. He continued, "For the first time in 60 years, the net traffic has gone to zero and is probably a little bit negative." The primary reasons: The Mexican birth rate has fallen to about two children per woman from nearly seven in 1970; Mexico's education system and economy have improved to a point more young people choose to stay (per family income is up 45 percent this decade); and drug violence along Mexico's border is likely deterring those who do think of crossing. It seems that stepped-up border enforcement and Arizona SB1070-type laws have little to do with the decline [...]."

Basically, Mexicans that emigrate to the U.S. are searching for a better life and more opportunities. Most simply want to be a part of a middle class and are willing to leave their country behind to find it. Foreign investments in Mexico have made a huge improvement in the general economy, spurring job growth and amplifying stock and trade numbers.

If you think that this is a problem for the U.S., one of the things that can really improve the issue is investing in Mexico in order to improve the economy and further resolve unemployment rates and urge to relocate to the U.S.

Mexico Credit: First Airport Bond Created

Grupo Aeroportuario del Centro Norte SAB is selling its first bond by a Mexican airport operator as a way to refurbish terminals and refinance debt, tapping into the recent rebound in business travel.

The company, known as OMA, may issue as much as 1.5 billion pesos ($129 million) of debt in the local market as soon as tomorrow to yield 60 basis points above the 28-day interbank lending rate, known as TIIE, or about 5.43 percent, according to Interacciones Casa de Bolsa SA, Scotia Capital and Corp. Actinver SAB. Dollar bonds sold by Aeropuertos Argentina 2000, the South American country's biggest airport operator, yield 9.27 percent, according to data compiled by Bloomberg.

Click here to read the entire story.

Mexico Industrial Output Up in May

Mexico industrial production in May rose more than expected, after three months of declines, just as an expansion in the factory sector rose for the second-largest economy in Latin America.

The national statistics agency said on Tuesday that industrial production grew by 1.1 percent in May from April MXIP=ECI.

On one hand, the manufacturing sector expanded in May for its second-straight month, growing by 1 percent as local factories increased production to meet increased consumer demand north of the border.

Read more about what exports were in most demand and what three manufacturing sectors recorded the highest gains in May.

Debunking Market Myths: 4 Reasons to Keep Investing | Fin - Breakout - US - Yahoo! Finance

Debunking Market Myths: 4 Reasons to Keep Investing | Fin - Breakout - US - Yahoo! Finance

Watch this video on personal investing that can be considered as a mini class in learning where to invest your money. Knowing the keys to economic recession and recovery can affect just how well you carry out your offshore investing.

What Makes Emerging Markets Great Investments?

What Makes Emerging Markets Great Investments? - Kenneth Rapoza - BRIC Breaker - Forbes

Here is a great article if you want to read about how to invest money wisely and what markets are ranking high in offshore investing.

“Ranking the BRICs from my favorite to least favorite we’d go with Russia, Brazil, China, India,” says Vlad Signorelli, Global Research Director at boutique investment research firm Brettonwoods Research LLC in New Jersey. Read more here and, as the article suggests, 'See what emerging capital markets will outperform their counterparts in developed countries.'

Debt Ceiling? What Debt Ceiling? - Kelly Phillips Erb - Taxgirl - Forbes

Debt Ceiling? What Debt Ceiling? - Kelly Phillips Erb - Taxgirl - Forbes

Here is a great read, for those of you who want to have a better understanding about what the debt ceiling is and how it affects the U.S. economy. This is a huge issue in the news and is said that it could have grave consequences if not solved by August 2, 2011. Read more here.

Obama to Hold News Conference Before Monday’s Debt Talks

Obama to hold news conference before Monday’s debt talks - The Washington Post

There's a historic default looming and a fragile economy that's increasingly vulnerable to the consequences of Washington’s divide over taxes and entitlements. Negotiations on Sunday failed to forge agreement on the debt ceiling, leaving talks on the subject deadlocked. With just three weeks remaining before what economists warn will be the beginning of a grave economic situation that could have disastrous consequences for the U.S. economy, Obama told the group to expect to meet daily until a deal is reached.

Read more about the debt ceiling and how it could boomerang into the international economy.

Despite Violence, Mexico Plants Hum at Border - NYTimes.com

Despite Violence, Mexico Plants Hum at Border - NYTimes.com

Despite the instability due to the war on drugs in Mexico, the Mexican economy is growing at a rapid pace, even more so than that of the United States. If you're interested in learning about business opportunities in Mexico, you should read the following article that could affect any investors world. Here is a brief summary:

Drug organizations are battling for turf around them, yet maquiladoras are continuing to expand, with more items being manufactured in the border cities than ever. Over all, jobs in Mexico’s manufacturing sector increased 8.2 percent to 1.8 million as of January (the most recent figures available) driven mostly by what Mexican officials called regaining health in the auto and electronics industries, the engine of the economy along the border.

Read more here at NYTimes.com

Asia Stocks Decline After Weak US Jobs Report - TheStreet

The Street, an economic blog, reports on how the world stock market fell after new data on the U.S.'s job market was released last Monday.

"Economic news in the U.S. was disappointing," said a Barclays Capital report Monday. "The employment report was weaker than expected across the board: employment, unemployment, hours, and wages all reflected the same worrisome trend."

Data released Saturday showed a negative outlook; China's inflation accelerated to a three-year high in June even as the overheated economy began to cool.

See the rest of the story and what this could mean for international stocks.

Mexico's Wind Power Conference in June

As this interesting article mentions, Mexico Wind Power, is a Wind Power conference where Mexican leaders discussed making more of an effort to develop its own wind energy industry. In order to take full advantage of Mexico’s wind power potential, Mexico needs to promote its own wind energy industry, not only support projects, and send clear signals to the market to conduct research and innovation in this regard.

Cannon Power Group to Invest $2.5bn in Mexican Wind Farms

Today the news was released that US company Cannon Power Group will make a $2.5bn investment into new wind farms in Mexico. Currently active in the Baja California area, according to reports, they will build another wind farm in the central state of Zacetecas.

It was reported that President Calderon has stated that the capital commitment from Cannon brings foreign investment during his term up to $100bn.

Click here to read the full story.

Cemex Revival of Shelved Offering Sparked by Market Rebound: Mexico Credit

Cemex sold $650 million of its notes due in 2018 on July 6. The company sold the bonds to yield 9.5 percent (462 basis points more than similar bonds sold by Holcim Ltd., the world’s second-biggest cement maker).

In addition, Mexican central bankers will leave the lending rate at a record-low 4.5 percent today. Mexico is the only major Latin American country to keep borrowing costs unchanged in the past year.

Trade Agreement to Improve Economic Area

Up until this week, Mexican trucks were prohibited to travel within 25 miles of the border.
This change, in what was part of the NAFTA agreement signed in 1994, was made with the inception of President Obama, most probably due to security concerns.

“The agreement signed today between the governments of Mexico and the United States to resolve the cross-border long-haul trucking dispute is a major win for U.S. agriculture, American jobs and our nation’s economic prosperity,” U.S. Agriculture Secretary Tom Vilsack wrote in a release.

Mexico will lower existing tariffs ranging on U.S. goods by 50 percent at the start of the program and the remaining 50 percent will be suspended shortly after Mexican trucks are allowed to cross.

Click here to read more.

Mexico Central Bank Keeps Benchmark Rate Unchanged

The “pace of economic activity appears to have slowed,” while domestic demand has lost some dynamism, the central bank said in the monetary decision statement. “We don’t expect generalized price pressures in the economy,” the bank said.

Banxico, as Mexico’s central bank is known, is saying “the traditional list of domestic risks to inflation is practically clean. The risks could come from international volatility,” Luna said in a telephone interview from Mexico City.

Industrial production grew 1.4 percent in April from a year earlier -- the slowest expansion since the 0.6 percent increase posted in December 2009 -- from 4.4 percent in March, the nation’s statistics agency reported June 13.

Read the full article here.

Grupo Mexico Looking to Invest in Peru Copper Mine

In particular, reports from Mexico indicate that Grupo Mexico is aiming to revive the $1bn Tía María project of its Southern Copper Corporation that was put on hold in April of last year by the current Peruvian government.

Grupo Mexico, is one of the world’s leading copper producers. It leads operations in the United States and Peru as well as in its home country, and reports have indicated that Grupo Mexico is striving to bring its $1bn Tía María project in Peru back to life. The project includes the construction of a desalination plant, that will be purposed to provide water for Tía María from the coast by means of a 20-mil aqueduct.

The project was stopped last April by the current Peruvian government but is expected to initiate once again with the expected change of elected leaders.

Click here to read more about the project and Mexico's current fdi projects.

Auto Industry Telling of U.S.-Mexico Trade and Economy Relations

When speculating on trade relations between the U.S. and Mexico, it's easy to refer to a variety of resources for an estimate on which is the biggest trade product. As this Houston article mentions, "Anyone wondering which industrial sector is the most important in U.S.-Mexico border trade only has to see what the double-stacked freight cars [...]."

This large amount of trade across borders is indicative of the health of cross-border trade between the U.S. and Mexico.

In the words of Keith Patridge, the McAllen Economic Development Corp. President,"We lost a few factories that did not survive the U.S. recession, operations that were purchased or merged. But Reynosa last year added 4,000 jobs, even with the violence, at maquiladoras in all categories."

Read about what other business leaders had to say about the increase in foreign investment in Mexico.

Increased Employment Rate Advances U.S. Stocks

Via WSJ:

Positive data in both U.S. employment and retail sales numbers sent investors back to risky assests.

The Dow Jones Industrial Average gained 82 points, or 0.7%, to 12708 by midsession, setting the index up for a seventh gain in eight sessions.

Investors' spirits were risen by an employment survey that showed U.S. private-sector jobs rose by 157,000 last month, outdoing economists' forecast by over 50%. The WSJ article states taht the figure "contrasted with months of weak readings on U.S. employment."
Click here for the full article.

Mexico "Making Huge Investment in Greening the Country"

Via MexicoToday.org

Watch this video with Andrew Selee from the Mexico Institute, who gives us an idea about how Mexico and the U.S. have teamed up to make more cross-border investments in renewable energy.

Consumer Confidence Up in Mexico for June

Mexico's population grew increasingly confident in terms of spending this past June. It was released on Tuesday by the national statistics agency that Mexico's consumer confidence index rose to 91.9 in June (when adjusted for seasonal factors). Analysts polled by Reuters expected June data to reflect 90.7.

Although consumer confidence hasn't risen much since the recession, the good news is investors predict that interest rates will remain steady until April 2012.

Read more on the positive impact this could have on the Mexican economy.

Top British Official Claims Mexico a Vital Partner

At a meeting this past Monday, July 4th, Foreign Secretary William Hague discussed UK-Mexico trade & climate change with Patricia Espinosa, Mexican Foreign Minister, stating afterwards, "It was a great pleasure to host the Mexican Minister of Foreign Affairs, Patricia Espinosa, for lunch at Carlton Gardens today. This Government is working hard to strengthen our links with Latin America, an area which Britain has neglected for far too long. Mexico is a vital economic and political partner for us within this region, and our cooperation is increasingly broad."

Click here to read more on their encounter and the improvement in UK-Mexico foreign relations.

Mexico Becoming Go-To Country for Export Manufacturing Sector

“Mexico is becoming more attractive for manufacturing, particularly that aimed at the US market.”

Mexico has been overlooked, without cause, for the past, oh, let's say ten years or so.
China has been the main cause of that, exporting cheap goods along with the idea that it's the only country in the world where companies can find the best ratio of production capacity and cheap labor.

A research note from RBC Capital Markets released this Tuesday reclaims Mexico's right to a larger part of the market share of U.S. imports. Mexico is an obvious first choice for many importers, due to its geographic advantage over China. Aside from this, in recent months, wage inflation in China and wage stagnation in Mexico have combined to make labor prices in these countries virtually equal.

Click here to read the rest of the story on the switch to Mexico for export manufacturers.

The World Competitiveness Rankings 2011‬‏

YouTube - ‪The World Competitiveness Rankings 2011‬‏
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Check out this new performance rating with analysis and some surprising news on what countries you should be investing in overseas.

Which do you think are good companies to invest in, in Mexico or abroad? I'd love to read your comments below.

Mexico: Inside A Top-of-the-Line Saddle Business

Talabarteria Rancho Grande is located in Sonora, Mexico. It's a world-class saddle maker, and is the preferred saddle for expert riders, as well as anyone who has a great appreciation for horse-back riding or an equestrian flair.

The business stands out from the rest because it has essentially turned saddle-making into an art. The store, started by Luis Molina in 1949 and now run by his son David, specializes in high-end, elaborate saddles that last up to 30 or 40 years.

Click here to read more about this inspiring Mexican business.

What is Mexico Today?

Mexico Today is part of an initiative on behalf of Marca País-Imagen de México that aims to provide the latest news on investment in Mexico, travel and tourism to Mexico, Mexican cultural news, Mexico's environmental solutions, Mexico's international relations and much more. Visit the site today for all the latest news and current events in Mexico!