My Blog List

Wednesday, August 31, 2011

Bill Gross, Head of PIMCO, Recommends Mexico for FDI

Bill Gross, founder, managing director and co-CIO of PIMCO, a financial advisory dedicated to global investment, is expecting a longer recuperation time for the U.S. and Europe. In a monthly statement issued on PIMCO's website, the "Bond King" said he is investing in Australia, Mexico, Canada, Brazil, as well as other non-dollar currencies with stronger ties to Asian economies. Gross believes that in these times global equities also faces exposure to faltering economies. "The increasing gap between the rich and poor is pushing yields lower," Gross says. However, in Brazil, Mexico, Canada, and Australia, cleaner balance sheets and higher yields look much more promising. During the European debt crisis, European confidence in August sunk to its lowest level in nearly three years. The EC also reported Tuesday consumer sentiment fell from 103 in July to 98.3 in August, it's lowest point since May 2010.

Tuesday, August 30, 2011

Timmins Gold's Drilling Finds New Resources in Mexico

Timmins Gold Corp. recently reported in July that it found additional gold deposits within its San Francisco mine located in Sonora, Mexico. The mining company said their current drill program has the potential to significantly increase the amount of gold deposits in the mine. Furthermore, Timmins announced that they found gold minerals at their open-pit called La Chicharra, which is only about a mile from the San Francisco mine located in Sonora, Mexico.

The Future of Mexico as Global Player

Alfredo Gonzalez from the Inter American Development Bank talks about how Mexico will expand in the following years and what sectors are the ones to watch out for.

Direct Foreign Investment in Mexico Expected to Grow Exponentially

Mexico may receive up to $20 billion in foreign direct investment this year, an increase of 11 percent over last year. The automotive industry is a key place for foreign investment in Mexico. Volkswagen AG, Nissan Motor Co., Mazda Motor Co. and General Motors Co. have all invested over $400 million each in the country. The ever-growing automotive industry and increased foreign investment in Mexico are due to a wide variety of factors. Financial analysts suggest the incentives for investment in the country include Mexico’s fixed production costs – which are 25 percent lower than in the United States, a growing number of engineers in the workforce, and free trade agreements between Mexico and other nations.

Calvin Klein to Invest in Mexico with 30 Stores

Mexico City - Warnaco, the owner of Calvin Klein Underwear, Calvin Klein Jeans, Speedo, Olga and Warner's, is planning on opening approximately 30 new shops in Mexico, that will join the 6 they currently have. In an interview during the presentation of the advertising campaign "Déjate Ver con Calvin Klein" or Be in the spotlight with Calvin Klein, the Country Manager of Calvin Klein said that Warnaco will open three new shops at Santa Fe, Perisur and Interlomas. He added that in 2012 they will inaugurate 12 shops and a year later 14 new sales points. Each Calvin Klein unit opened may represent an investment that ranges from US$250 thousand to US$3.5 million, depending on the size of the store.

Is the Dollar a New Safe Haven for Investors?

Many are searching for new ways to invest and protect their money in the current economy. Robert Sinche, global head of currency strategy at RBS Securities in Stamford, Connecticut, analyzes the state of the current economy in terms of interest rate differentials and dollar strength. Important news for investors to know.

PEMEX Leads Debt Sales Revival : Mexico Credit

September is due to see corporate bond sales in Mexico rise to a five-month high. Companies like Mexichem SAB and Petroleos Mexicanos SA are taking advantage of the falling borrowing costs and are planning on selling their debt. Mexican local corporate bond sales are poised to climb to a five-month high in September as companies from Mexichem SAB to Petroleos Mexicanos SA take advantage of falling borrowing costs. This comes as no surprise, as Mexican companies are lining up to sell debt as speculation grows that Banco de Mexico, the only major central bank to keep interest rates unchanged in the past year may cut them as early as December. Pemex, Latin America's biggest oil producer, may sell as much as 15 billion pesos ($1.2 billion) of debt next month, while plastic pipe maker Mexichem plans to offer as much as 2.5 billion pesos of notes, according to filings with Mexico's stock exchange. The sales would make September the busiest month since April after issuance sank 37 percent in August, shows data compiled by Bloomberg.

Warren Buffet's $5 Billion Investment in Bank of America

Take a look at this interesting video in which the debate on what effects Warren Buffet's $5 billion investment in Bank of America could have continues.

Sunday, August 28, 2011

Mexico's Chemical Industry to Invest over US $10bn from 2012-2016

In an interview with a local Mexican newspaper El Semanario, Miguel Benedetto, general director of ANIQ, the National Chemical Industry Association, said an average of US$2bn would be invested each year from 2012 to 2016.

Double the figure seen in 2011, the director of ANIQ added, "The industry has been investing around US$900mn annually, but with the announcement of projects like Brazilian firm Braskem's [NYSE: BAK] Ethylene XXI and Mexico's IDESA, and the joint venture between Mexichem [BMV: MEXCHEM] and [state oil company] Pemex for the production of vinyl chloride at the Pajaritos complex in Coatzacoalcos, Veracruz, this figure will more than double."

Wall Street Journal Interview with Electrolux CFO on U.S. Economy, Investment

Recently U.S. Presidential Candidate Michele Bachmann accused Swedish appliance maker Electrolux AB of shutting out the U.S. for its manufacturing needs, after relocating the operations of an Iowa-based plant to Mexico.

The Wall Street Journal recently spoke to Robbert Kaufman, the finance chief of Electrolux's North American appliances division about the status of its U.S. operations, its outlook for the U.S. economy, as well as investor advice on how to behave in the current economy.

Bernanke Boosts Investor Confidence in Emerging Markets

Grupo Financiero Banorte SAB de CV (GFNORTEO)'s interactive chart as of 08/26/2011

The benchmark index has risen for the first time in five weeks, as emerging-market stocks rose on Friday. At the annual Fed symposium last Friday, Federal Reserve Chairman Ben. S. Bernanke eased investors concerned about the state of the economy, relaying that U.S. growth is sound in the long run, and that the Fed still has tools to aid the recovery if needed. This also affected the way investors will go about investing in emerging economies, such as Mexico.

The MSCI Emerging Markets Index gained 0.3 percent to 975.92 at 5:41 p.m. in New York, after dropping as much as 0.5 percent in the first five minutes following Bernanke’s speech today at an annual Fed symposium. Brazil’s Bovespa Index rose 0.8 percent while Mexico’s benchmark advanced 0.4 percent. Turkey’s ISE National 100 Index (XU100) climbed 1.4 percent after the trade deficit narrowed from a month earlier and Russia’s Micex Index added 1.1 percent.

Thursday, August 25, 2011

Foreign Direct Investment in Mexico Shows Mexican Market as the Best Place to Invest

vid - Watch more Videos at Vodpod.
Just this week, Mexico raised its foreign direct investment forecast by 11 percent to 20 billion dollars. “Companies are looking for the best place to invest,” Economy Minister Bruno Ferrari said in an interview at “Expo Mexico Emprende". It’s obvious that Mexico has been that place for North America.” On this story, you'll be able to see why investment in Mexico has grown substantially over the past five years and watch an exclusive, in-depth interview with Mexico's Economy Minister, Bruno Ferrari.

Brazil's Poor Middle Class

Although Brazil attracts a slightly larger amount of FDI, Mexico's general population is much closer to the American definition of 'middle class' than Brazil's. Lately the cliché ‘the rise of the middle classes’ reveals itself when talking about any of the emerging economies. But what does 'middle class' really mean?
For Brits, this might mean anyone who shops at Brazil’s version of Waitrose or who has golf clubs in the back of their Volvo. Alternatively, if you’re in the US, maybe it’s an image of white picket fences springing up across the Amazon.
But Brazil’s middle class is, by most of our standards, poor. The Brazilian government’s definition is any household with a combined monthly family income of between R$1,000 ($631) and R$4,000. In other words, a whole family surviving on about $20 a day is still considered middle class. Aspirations are high. Since the US has a strong cultural influence on Brazil, when Brazilians think of the middle class, they also often think of a much higher standard of living than $20 a day could afford.

Some of the Most Important Companies in Mexico Located in State of Chihuahua

The business magazine CNN Expansion published its list of the 500 most important Mexican companies, highlighting 3 companies located in the State of Chihuahua. The first in the ranking is Grupo Cementos de Chihuahua, with annual sales of $7.793 billion pesos, ranking 182, down from their rank as 150 that they held in 2009. It is followed by Grupo Bafar, devoted to the food sector, with annual sales for $5.895 billion pesos. Interceramic ranks third among Chihuahua-based companies, as published by CNN Expansion, with annual sales for MXP$5.635 billion; they are in position 202, up from 222 in 2009. Pemex is number one throughout Mexico with annual sales for over MXP$1 trillion.

Chihuahua, Mexico is Largest Importer of Maquila Supplies

It has been reported that the State of Chihuahua is the largest maquila supplies importer in Mexico, according to the Mexican Statistics Agency, INEGI. The news correlates with preexisting data like that fact that Chihuahua is the state with the largest number of workers in this sector, accounting for over 13% of the total in Mexico. Chihuahua is followed by Nuevo Leon and Baja California ranks third. Supplies are the components used to assemble products at plants in Mexico, to be later shipped abroad as finished products, as defined by INEGI.

Mexico's Economy Secretary Says Another Economic Crisis Unlikely

Last week the Mexican Economy Secretary Bruno Ferrari said in an interview with Agencia Efe that the current economic situation is nothing like in 2009, when Mexico's economy contracted by 6.5 percent, but the government should remain "cautious."
"We have to be very cautious. What could happen now, I see it as remotely possible or very far from looking like the global crisis we already went through, the biggest since the 1920s."

Tracking tweets proves profitable for Derwent Capital

The London-based hedge fund, Derwent Capital, finished with a 1.85% return after incorporating a new trade strategy using data from Twitter to track the market mood and this way better predict the changes and ebbs of the stock exchange. Many are surprised that this extremely innovative strategy has worked. However, the strategy is "based on research published by the University of Manchester and Indiana University in October which demonstrated that the number of emotional words on Twitter could be used to predict daily moves in the Dow Jones Industrial Average."

The founder of Derwent Capital, Paul Hawtin, said he was “very confident” about the strategy, stating, “We watch to see how each of the different mood states changes in real time. The biggest sentiment change is reflected in the market around two to four days later.”

Suntech to Invest in Mexico

Via Sun2Home: Suntech Power Holdings Co. Ltd. (STP, K3ND.SG) has signed a contract to supply the solar panels for a 23-megawatt solar farm planned for the California desert near the Mexico border, providing approximately 100,000 solar panels.

Mexican Peso Up Against Dollar

This morning's news on Mexico investment could start no other way but with the good news that the Mexican peso has risen again against the dollar. Today the peso has bounced back from the steep loss in the previous session that took it near 12.50 pesos to the dollar. In this week's mexico investment news, there have been reports as to why the peso is rising: First of all, Mexico's foreign reserves are helping to boost the peso, moving up by $1.59 billion last week to a record $136.13 billion, according to the Bank of Mexico. While the State oil monopoly Petroleos Mexicanos, or Pemex, remained the principal source of reserves as it sold $1 billion to the central bank last week, the remainder came from an increase in the value of the central bank's reserve holdings and other transactions.

Wednesday, August 24, 2011

Carlos Slim increases his stake in NY Times

Just weeks after the New York Times repaid the emergency $250m loan that it took from the Mexican billionaire Carlos Slim Helu in 2009, it has been reported today that the billionaire has increased his stake in the New York Times Company. Mr Slim’s Inmobiliaria Carso SA also increased his stake in Saks, the luxury retailer, from 15.7 per cent to 16 per cent on the same day. “We are buying because we feel that the shares are at a very good price, and we are increasing our holdings in the two companies,” said Arturo Elias Ayub, Mr Slim’s son-in-law and head of strategic alliances at Telmex, Mr Slim’s fixed-line phone company. Through the purchase of 553,000 class A shares, Mr. Slim upped his stake from 6.9 per cent to 7.3 per cent, according to a regulatory filing. The new holdings, acquired on August 18 for between $6.83 and $7.09 per share, were purchased by Mr Slim’s Inmobiliaria Carso SA investment fund and came at the end of a volatile week on the stock market.

Aerospace Manufacturing in Mexico: Introduction

Via The Offshore Group:
Aerospace manufacturing in Mexico has made great strides over the course of the last decade. Developing a domestic industry is one of the national government’s highest economic priorities. While in 2004, aerospace companies operating in Mexico exported a total of $146 million worth of products, the number had risen to $3.5 billion in 2010. Aerospace manufacturing in Mexico takes place in a total of sixteen Mexican states. The industry, however, is concentrated in five major clusters that are located in the following geographical areas: Sonora Baja California Chihuahua Nuevo Leon Queretaro While each area has its specialties, the Sonora aerospace cluster is rapidly becoming a center for precision aerospace machining in Mexico. Aerospace Manufacturing in Mexico today consists of 232 companies that employ an approximate 29,000 workers. In terms of activity, these companies breakdown in the following way: Manufacturing: 79% MRO: 11% Design and Engineering: 10% Estimates are that aerospace manufacturing in Mexico will grow up t0 20 percent per annum through 2016. It is projected that the Mexican aerospace industry will, at that time, consist of approximately 350 companies and will employ a total of 37,000 workers. Recent research has shown companies that are manufacturing in Mexico save between 28% – 34% of the cost of doing so in other higher cost countries. Click here for more information.

Monday, August 22, 2011

Head of Investment Research: How to Invest in Times of Turmoil

John Haynes, head of research at Investec Wealth and Investment, talks about the outlook in terms of investment in the global economy, and how he expects the U.S., which is not doing as badly as many news sources say, to "start re-focusing on the fundamentals of the current economy." He also talks about the role fear has played in real stock decline and how he expects investor fear to subside in the near future.

Mexican Stock Exchange: IPC Index Up

This morning the IPC index is still in the green at 0.606% or a value of 33,337.660 MXN. Check out the interactive stock chart (pictured above) here.

Thursday, August 18, 2011

Aeronautics News: Mexico Aeronautics Industry Makes History Through Biofuel Development

There's been a revolution in the aerospace industry this month. Now, thanks to AeroMexico and Boeing, transcontinental commercial flights will be able to fly with a smaller carbon footprint. Why? Well, Aeromexico and Boeing have made history by accomplishing the first transcontinental commercial flight that uses biocombustible fuel exclusively. This biofuel development was created with a mixture of 70 percent jet fuel and 30 percent biofuel from the oilseed plant Jatropha Curcas, which is grown in several regions of the world including Mexico.

Mexico's Stocks Close Higher For 3rd Straight Day; IPC Up 0.3%

This week Mexico's stocks have closed higher for the 3rd straight day. The IPC has risen to 1.3% and America Movil's shares have also risen -- by 1.3%. Monex, a gold and silver bullion dealer in the US., cut its year-end estimate for the IPC to 36,500 from 42,000, summarizing today as a host of cautious gains after an unpredictable week.

IMF Says Mexico has overcome Global Economic Crisis

I always talk about how the Mexican economy has come back quite quickly from the global economic recession. It turns out that while many countries are still struggling with the greatest financial crisis since The Great Depression, the International Monetary Fund (IMF) has proclaimed that Mexico's economy has overcome the global economic crisis and returned to pre-crisis levels, stating that, "inflation has remained benign." At the end of a meeting with Mexican officials, the IMF stated that "After a sharp contraction in 2009, growth in Mexico picked up strongly in 2010, reaching 5.4 percent. Robust growth has brought output back to pre-crisis levels, with manufacturing exports leading the recovery and the rebound in domestic demand helping sustain the momentum." Good news for Mexico and the U.S. Click here to find out why.

Mexican Homebuilders Bonds' Yields Up 4x

President Calderon's plan to reduce housing shortages, which in turn makes them less vulnerable to swings in the economy, is working. Mexican homebuilders' bond yields are rising as much as four times faster than that of corporate peers. So much so that banks like Citigroup Inc. and Scotia Capital are recommending buying the debt "as a bet subsidies [that] will help the companies weather slowing growth." For instance, according to data compiled by, Mexico’s third-biggest homebuilder, Urbi Desarrollos Urbanos SAB's yield on dollar bonds due in 2020 jumped 87 basis points this month to 8.29 percent. Emerging-market corporate bond yields climbed 10 basis points.

Tuesday, August 16, 2011

Euro Debt Crisis: Video on Today's E. U. Economy

On the topic of the European debt crisis that has been much talked about in the news today, here is a video that explores the different solutions to the debt crisis in the European Union, such as Germany leaving the E.U. area and Euro Bonds. What are your thoughts on the subject?

U.S. Stocks Lower with European Union Meeting

Stocks declined after touching session highs in choppy Tuesday morning as traders were disappointed by comments from French President Nicolas Sarkozy and German Chancellor Angela Merkel's press conference in Paris.


The Dow Jones Industrial Average fell, led by BofA [BAC 7.4789 -0.2811(-3.62%)] and Caterpillar [CAT 89.51-1.86(-2.04%)] after soaring more than 200 points in the previous session. The S&P 500 and Nasdaq also slumped. The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose near 33. All 10 S&P sectors slipped, led by financials and industrials. The banking sector has alternated between gains and losses every day since last Monday.

Global Investment Insights: Monthly Desk Report

If you're eager to get a world perspective on the stock market, today the web site "Investment Insights" has issued it's monthly report, covering the recent topics of the euro crisis, the Middle East and the effects of the U.S. debt ceiling crisis. A must-read for any global investor, here are a few of the insights offered on the report:

-During the month of July markets were weak, with the FTSE 100 index falling 2.2% in line with European and US markets

-The main sticking point to equity market progress is the degree to which the U.S. economic recovery has been impacted by events in Japan

-The euro issue for now is a local one with grave consequences for affected countries, but unlikely to be allowed to spiral out of control

Invest in Mexico News: NET1 To Set Up Shop In Mexico

Net1 UEPS has signed a deal with a Citigroup subsidiary in order to provide mobile virtual card technology in Mexico, and through this partnership, will be expanding its presence in South America.
Yesterday, it announced it had inked a deal with Banamex, a Mexico-based bank, to provide mobile virtual card technologies. The contract was signed through its wholly-owned subsidiary in Austria, Net1 Universal Technologies. This move will allow its coveted target market to enter affordably into electronic transactions with each other: government agencies, banks, employers, merchants and other financial service providers in Mexico will benefit. As CEO and Chairman Serge Belamant states, the deal "will open up money remittance and bill payment opportunities between the US and Mexico."
The company, listed on the Nasdaq exchange and the JSE, already operates all over the world, including countries in Africa as well as Iraq, Ukraine, Colombia, Vietnam, Uzbekistan, Russia, Oman, India, Moldova, Mongolia, the US and the Republic of South Korea.

Dickten Masch to Invest in Mexico

Via JSOnline: Nashotah-based manufacturer Dickten Masch Plastics LLC said Monday it has acquired a plastics plant in Monterrey, Mexico. Dickten Masch bought the 105,000-square-foot factory from United Plastics Group Inc., of Oak Brook, Ill., for an undisclosed price. Dickten Masch will retain the plant's 112 employees and continue producing parts for its customers, which include automotive, electrical and power-tool manufacturers. The acquisition places the Nashotah company closer to its customers who operate in Mexico, said Doreen Lettau, vice president for market and business development. There will be no cutbacks at Dickten Masch's factories in Nashotah and Ankeny, Iowa, Lettau said. Those plants currently employ about 400 people, including 270 in Nashotah. Dickten Masch uses processes such as injection molding to produce plastic parts for medical devices, agricultural equipment and autos. The firm also stamps out most of the dipsticks used by carmakers in the U.S.

Saturday, August 13, 2011

Investor Interest in Mexico Stays Strong

Via According to the Mexico’s Economy Ministry, foreign direct investment (FDI) totaled $31 billion between December 2006 and December 2010, up $1 billion from the previous four years, according to Financial Times. Mexico’s Finance Minister projected that the country’s second-quarter GDP expanded 3.5% year-over-year, according to Reuters. The Minister also forecasts economic growth of 4.3% this year. Click here for the full story. What are your experiences with the Mexican market?

Friday, August 12, 2011

Mexico Corn Imports to Rise 36 percent

Via SFGATE: The outlook for domestic corn output this year was cut to 22 million metric tons, from a previous estimate of 25.1 million tons, Hector Salazar, secretary general of the Mexico City-based group, said yesterday in an e-mailed response to questions from Bloomberg News. The drop may force Mexico to import a record 12.1 million tons of yellow corn, up from 8.9 million tons last year, he said. Corn output in Mexico will fall short of previous estimates, forcing the world’s second-biggest corn buyer to boost purchases from foreign suppliers by 36 percent to a record, the National Confederation of Farmers said.

Honda to Invest 800$ Million in Mexico

The Wall Street Journal - Honda Motor Co. will build an $800 million plant near Celaya, Guanajuato, to make subcompact cars for the North American market. The plant is scheduled to open in 2014 and employ 3,200 workers.

CEMEX Yield Growth Prompts Investor Confidence

Cemex SAB’s bonds are yielding more than twice the average for Mexican corporate debt, prompting Citigroup Inc. and Barclays Plc to recommend buying the notes in a bet the company’s cement sales will weather the global economic slowdown.
"It’s a good time to buy the bonds if you can stomach the volatility,” says Eric Ollom, a credit strategist at Citigroup Inc. Ollom, who recommends investors buy Cemex’s notes due in 2018, said the following in a telephone interview from New York:
“It seems to have bottomed out. The market still has concerns regarding growth, profits, and bank covenants, but few believe a default is forthcoming.”
Click here for more on CEMEX bonds.

Delta and Aeromexico Sign Long-term Deal

Via Zack Equity Research:
The second largest U.S. airline Delta Air Lines Inc. (DAL - Analyst Report) formed a long-term alliance with the largest Mexican airline, Grupo Aeromexico. Under the terms of the deal, Delta will invest $65 million in Aeromexico. In exchange, Delta will receive some shares of Aeromexico and will become a member of its board. The transaction is waiting approval from Mexican regulators. Click here to learn more.

Thursday, August 11, 2011

GE Executive John Rice Talks about Mexico as the "Economic Driver of the Americas"

It's no secret that Mexico is driving the America's from an economic standpoint. In this Mexico Today story, GE Executive John Rice reveals what he sees as a country full of business and investment opportunity. As the country's middle class population grows, Mexico is quickly becoming a first-class investment opportunity for companies from all over the world, including thriving multinationals like GE. Watch the video to find out why Mexico represents a such a positive business environment for investors.

Wednesday, August 10, 2011

List of 5 Best and Worst AAA-Rated Sovereigns

Here are the five best and five worst AAA-rated countries based on revenues and expenditures according to the CIA World Factbook. The First of the Best Five is the Isle of Man due to the offshore banking and tourism that drives the economy of this country, autonomous yet always protected by the United Kingdom in matters of economics and foreign relations...Can you guess the rest? Just in case, here are the other 4 best AAA-Rated Sovereigns (and worst!) Feel free to leave me your comments below.

Auto Production Up 16% in July to Reach Record 209,534 Units

The Mexican Auto Industry Association, said that this July vehicle production grew 16% and exports grew another 24% to 177,843 units. That was also a record for a month of July, said Mexican Auto Industry Association President, Eduardo Solis. Domestic auto sales, which have been rising at a slower rate than exports, rose by 11% in July to 68,533 vehicles. The auto industry is Mexico's largest single manufacturing sector, and production is frequently an early sign of strength in overall manufacturing.

Fed Reserve to Keep Interest Rates at Record Low

"The Federal Reserve pledged for the first time to keep its interest rate at a record low at least through mid-2013 in an effort to revive a flagging recovery after the worldwide stock fall."

Tuesday, August 9, 2011

Fed May Strengthen Stimulus Commitment

Via "Chairman Ben S. Bernanke and his colleagues are weighing the use of more untested policy tools after two rounds of bond buying totaling $2.3 trillion failed to spur sufficient economic growth and reduce unemployment below 9 percent. The Federal Open Market Committee holds its regular meeting today in Washington following the worst day for U.S. stocks since December 2008."

Mexico Stocks Open Higher After Rout, Peso Still Under Pressure -

Mexico's stocks opened higher today, after a heavy fall in the previous session.
The peso is still "under pressure" as the WJS asserts in its article, stating that " investors remained cautious about risky assets while waiting for the outcome of the U.S. Federal Reserve policy meeting and hoping for some soothing comments from Fed officials."

More to be posted on the U.S. Federal Reserve policy as soon as media is available.

Paving the Way for More Immigrant Entrepreneurs

Immigrants are what define this so-called 'melting pot' that is the United States today. Immigrant entrepreneurs have been credited with some of the most historic U.S. companies and partnerships. After all, who can say they were always American?

In this article, covers the issue of overseas entrepreneurship and brings some interesting points to the table. What are your thoughts on immigration and entrepreneurship?

Inflation Rises in Mexico for First Time in Four Months

Via the The National Statistics Institute, or Inegi, said today that the consumer price index rose 0.48% in July, pushing the annual rate up to 3.55%. Mexican consumer prices rose in July for the first time in four months, pushed by higher food and transportation costs.

Mexico Credit - Goldman Sachs GDP Cut Creates Rate-Bet Delays

After Goldman Sachs Group Inc. and Bank of America Corp. lowered Mexico's growth forecast with the growing concern that the U.S. may relapse into recession, Mexican traders are postponing bets for interest-rate increases. As Gabriel Casillas, chief economist for Mexico at JPMorgan Chase & Co. in Mexico City, said in a telephone interview "With the data where they are and inflation so benign, some are betting there could be an even longer pause. We expected a long pause.” The cause of the country's lowered forecast is belief that Mexico is "highly dependent" upon the American economy. What are your thoughts? Do you agree with this statement? Why or why not?

President Calderon Meets with Castro

Mayor Julián Castro of San Antonio, Texas and Mexican leader, President Calderón, discussed business investment and immigration, yesterday in Mexico City. Via San Antonio News, here is an account of what went on in the meeting that lasted nearly an hour on Monday evening: "Mexican President Felipe Calderón expressed his appreciation to Mayor Julián Castro for San Antonio’s pro-Mexico relationship, especially in business investments [...]. In the meeting at Los Pinos, the Mexican president’s official residence here, Castro declared support for comprehensive immigration reform and listed business investments San Antonio companies have made in Mexico." Continue reading here.

Friday, August 5, 2011

New Data: Less Unemployment and More Payrolls

The Labor Department said today that the U.S. economy has added more jobs than expected in July and the unemployment rate is down slightly, data that should help ease spreading concerns that a new recession may be around the corner. Nonfarm payrolls rose by 117,000 in June as private-sector employers added 154,000 jobs. Payroll data for the previous two months were revised up by a total 56,000 to show increases of 46,000 jobs in June and 53,000 in May. Source:

Investment Opportunity Part of Carlos Slim's Loss

The drop in America Movil, as part of Carlos Slim's stock losses in the IPC index, has created an interesting investment opportunity for foreign direct investment in Mexico. America Movil, which has fallen 21 percent this year, has been deemed by Leon Cabrera, a trader at prominent Mexico City-based Vanguardia Casa de Bolsa, as "an opportunity for investors to buy stock in a solid company." He also commented on Carlos Slim's loss this week, stating, “He’s been particularly hurt by those companies leaving the IPC,” said Leon Cabrera, . “It reflects the nervousness out there. It’s part of being in the market.”

Breaking News: Carlos Slim Loses $8 Billion in 4 Days

Carlos Slim, the world’s richest man, lost about $8 billion this week due to Mexico's IPC index dropping 7.4 percent. The IPC index is the main benchmark stock index for the Mexican Stock Exchange and main indicator of the BMV's (Bolsa Mexicana de Valores) overall performance. On top of the low numbers, three of Slim’s companies have been removed from the IPC index, making matters worse. Slim, 71, has taken a big hit in only 4 days as the peso slid 2.5 percent against the dollar. The unfortunate data comes as a consequence of generalized concern that the lethargic U.S. economy will hurt demand for assets in Mexico.

Wednesday, August 3, 2011

Biggest Rally in 2 Years Means Sell for Barclays

Did you know that Mexican bonds have the highest correlation with U.S. Treasuries among Latin American government debt? According to Bloomberg's compiled data, yields on 10-year debt sold by the U.S, which buys 80 percent of Mexican exports, sank 34 basis points in the past week. Via "The biggest rally in Mexican peso bonds in two years is a sign to Barclays Plc and Silva Capital Management LLC to sell the debt on a bet the notes will slump as global investor demand for the safest assets wanes." Read more here.

Monday, August 1, 2011

Mexico's America Movil net Rises in Second Quarter

Mexico's America Movil, the biggest cell phone company in Latin America, rose by 14 percent in second-quarter earnings on Wednesday as it added 5.1 million new wireless subscribers. The company, one of the largest wireless companies in the world, ended June with 236 million cell phone clients from the United States to Argentina. Brazil, Mexico and Colombia account for 60 percent of the wireless base. Click here to get the full story on what this means for the Mexican economy.

Mexico Exports to U.S. Hit Record High

Mexico broke the record of its share of total imports (in terms of non-petroleum market) to the USA, reaching 12.7% of all foreign exports in the first five months of 2011, breaking last year's record of 12.6%. Click here to get the full story.

Mexico is No. 1 Country for Investment in Aeronautics Industry

The international aeronautics industry considers Mexico a site increasingly attractive for their investments, due to available engineers, low labor costs and its proximity to the United States, The Wall Street Journal published recently. The aeronautics sector in Mexico has grown 20% in the last five years, after attracting investments from companies such as Bombardier, General Electric and Textron, on top of major airplane manufacturers Boeing and Airbus, according to WSJ. See the numbers on foreign investment in Mexico for the aeronautics sector in 2010.

Nextel Mexico Borrows $375 Million From the China Development Bank (CDB)

In order to fund a new 3G Network build-out, NII Holdings, Inc. [NASDAQ: NIHD] or Nextel Mexico, has taken a $375 Million dollar loan from the China Development Bank. Infrastructure for the 3G Network will be supported by Huawei Technologies Co. Ltd., a global provider of next generation telecommunications network solutions. "The financing has a final maturity of ten years, with a three year drawdown period and a seven year repayment term."

Mexico's Cotton Plantations to Practically Double by 2016

"Mexico plans to increase the planted area of cotton by 71 percent to 300,000 hectares (741,000 acres) by 2016, the Agriculture Ministry said today."

Mexico Responsable for 30% of BBVA Profit

Javier Malagon, Chief Financial Officer for BBVA in Mexico, said in a press conference that Mexico’s contribution reached one-third in the first six months of 2011, while all of South America contributed 18%, Eurasia zone 15% and the USA 5%. In this last term, the profit from BBVA Bancomer Mexico grew 10.1% when compared to the same term in 2010, reaching MXP$14.775 billion.

Stock News: Herbalife Shares Up Almost 15%

Shares of weight-loss expert Herbalife (NYSE: HLF ) rose as much as 14% in intraday trading today with a heavier-than-average volume. For the second quarter, Herbalife reported total sales of $880 million, up 28% from last year -much more than the $829 million predicted by stock analysts. Herbalife showed investors $0.88 in per-share earnings against the $0.75 analysts were expecting. While growth in North America was nothing to write home about, strong performance in Asia Pacific, Mexico, and South and Central America drove the higher than expected results. The company's revenue from Asia pacific rose about 38 percent to $237.1 million, while Mexico revenues rose...Click here to see the data on