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Friday, September 30, 2011

Survey Reveals Car Sales in U.S. Best Since April

Toyota Motor Corp. (7203) and Honda Motor Co.’s have returned to full production this month. “The big story this month was better inventory and favorable pricing” for consumers, said Jessica Caldwell, an analyst at Santa Monica, California-based Toyota and Honda have both bounced back from the effects of the earthquake in Japan this spring, and are greatly responsable for boosting U.S. auto sales back near the pace reached before Japan’s earthquake.

Thursday, September 29, 2011

Latin American Slump Ends After Two-Year Lows

After reaching more than two-year lows last week, Brazil's real has bounced back approximately 7 percent while Mexico's peso has rebounded by more than 5 percent. "There is a lot of caution out there due to the way the dollar dropped in the last couple days," said Francisco Diez, director of emerging market trading at RBC Capital Markets in New York. Mauricio Rosal, Chief economist at Raymond James in Sao Paulo, stated, "Really the situation can only be ameliorated with a resolution to these uncertainties in Europe." "Until then, the trend will be a stronger dollar and a weakening of those currencies not considered safe havens," he said.

Mexico's Central Bank Chief Shows Faith in Peso Gains

Mexico's Central Bank Governor Agustin Carstens stated yesterday that currency markets are working well and that he expects the country's peso to come to a steady position soon. "The market is functioning well," Carstens told reporters at an event, adding that Mexico still has a solid economic base. "(What) will anchor the exchange rate at acceptable levels, certainly an exchange rate lower than what we are seeing today, is precisely that we are maintaining healthy fundamentals, " Carstens said.

Mexico City Inagurates "Zero-Emission" Taxi Program

Mexico's capital inaugurated its "Zero-Emission Taxis" program today with the introduction of the first three electric vehicles. Marcelo Ebrard, the Mayor of Mexico City, who presided over the ceremony, said the electric stations where these cars will recharge their batteries, located in the capital's historic center, will use solar energy collected by photovoltaic panels.

Tuesday, September 27, 2011

Swiss Chocolatier to Invest $30 million in Mexico

One of the largest confectioners in the world, Barry Callebaut, will buy the industrial part of Grupo Turin's chocolate plant in Toluca, State of Mexico and will invest $US 30 million before 2015. After sealing the deal with Grupo Turin, Barry Callebaut's CEO, Jesus Carlos Valencia, said that the purpose of the strategic alliance is 'to increase production capacity by up to 20,000 tons per year, with the idea of improving market penetration in central Mexico.'

Emerging Market Currencies, Peso and Real, Rebound on Hopes for Greece

Late Monday trading yielded positive results for Mexico and Brazil's currencies. The expectation that the euro zone and the European Central Bank will take stronger measures and take a more active role to prevent a Greek default from spreading to Portugal, Ireland, Spain and Italy helped markets rebound in late in the day yesterday. Mexico's peso (MXN=D2) rose 0.60 percent to 13.5019 to the dollar.

Mexico-Built Tacoma Gets Touch-Up for 2012

Mexico-built and assembled Toyota Tacoma will be receiving a sort of a make-over soon, as the nation's best-selling midsize pickup will be updated both inside and out with a new grille, hood, front bumper and headlights.
Nothing drastic has been done, however, as there was really no need to mess with success. Toyota sold more than 106,000 of the Tacoma last year; and so far this year, sales have totaled 70,474 through August, up 2.1 percent from 2010.

Nissan Manufacturer Booming Across the Globe

“At the moment, we’ve only got one problem – making enough cars. I’ve got back orders for 30,000 cars in Mexico, 20,000 in Latin America. In Europe, even though they’re working seven days a week with shifts, I’ve got orders going back for two months on Qashqai," said Nissan Chief Performance Officer and Executive Vice President Colin Dodge in an interview in Yokohama, Japan yesterday. He stated that most of growth comes from booming emerging markets, like Mexico, where Nissan has an amazing market share of 26.4 percent.

Latin America well placed to survive slowdown

According to the Wall Street Journal, although the International Monetary Fund and the World Bank have stated current account deficits could affect the region’s future growth prospects, Latin America’s economies are well placed to survive upcoming slowdowns in Europe and the U.S. The booming economies in the region, such as Mexico and Brazil, are riding on high commodity prices and inflows from the bond market. Even with news of recession in Europe and the U.S., the region is forecast to grow, on average, more than 4 per cent this year and to decrease slightly from that in 2012. The IMF forecasts that Brazil, the largest economy, will grow 3.8 per cent in 2011 and 3.6 per cent in 2012, the same as Mexico, the second-biggest economy.

Monday, September 26, 2011

Greek Crisis Affects Mexican Peso Today

The 120-day correlation coefficient between Mexican bonds and Treasuries dropped to a nine-month low of 0.29 from a high of 0.57 last week.
Mexico’s bonds, the emerging-market securities most correlated with U.S. Treasuries, are no longer moving in lockstep with debt from its northern neighbor as Europe’s debt crisis curbs demand for all but the safest assets.
“We expect the European authorities to finally react,” said Alonso Madero, who helps manage about $5.5 billion at Corp. Actinver SAB, in a telephone interview from Mexico City. “We would expect confidence to return to the markets little by little and see the same correlation return.”

Mexico Trade: $71 Million Surplus in August

Mexico posted a trade surplus last August as petrol exports made up for a slip in the manufacturing exports that drive Latin America's second-largest economy. The trade surplus was $71 million in August when adjusted for seasonal swings, down from a revised $276.5 million deficit in July, the national statistics agency said earlier today. Mexico's trade balance has a history of reflecting changes in global demand for oil and appetites for its factory goods, most of which head over the northern border to the United States.

Honeywell Recruits Top Mexican Engineering Graduates in Aerospace Sector

Honeywell has a history in general engineering. Not only does the American company have 122,000 employees worldwide, but it also has been giving back to the general engineering community since 2008. GE organizes university programs in which science and math initiatives are promoted to engineering graduates in the cities of Monterrey, Chihuahua and Mexicali.

Manufacturing in Mexico: Daimler’s Nuevo León Plant Sees Impressive Sales Results

With more than 5,000 people employed and three manufacturing facilities across Mexico, Daimler has earned its position as a leading automotive manufacturer in the region. Daimler Vehículos Comerciales boasts some of the most outstanding sales results in Mexico, as part of a Daimler México branch created in 2007.

General Electric Mexico sees New Business Opportunities in Aerospace Science

After establishing itself in the U.S. in 1881, General Electric expanded to Mexico 15 years later, in 1896, and has maintained an active presence in the region ever since. These days, however, General Electric Mexico is focused on stimulating the research and development facet of its operations in Mexico.

Euro Debt Crisis: Possible Bail-out from BRIC Nations?

Since the greek debt crisis began, economists and economic analysts alike have been thinking of new solutions to the economic debt crisis in Europe. One of the possible solutions being debated is whether it would make sense for the developing BRIC countries to step in and alleviate the crisis. Why? Well, the booming Bric nations alone have more than $4,000bn in reserves between them -- meaning they have the resources to fund a great deal of deficit.

As the Wall Street Journal reports today, national governments are suffering from skewed incentives, so that actions benefiting individual countries in the short term may hurt Europe as a whole in the future.

Apparently there are more negatives than positives to a BRIC nation bail-out: right now, Europe runs an account surplus. "By definition, this means that far from being starved of capital, European savings exceed European investment, and it exports the excess to the rest of the world. Any big increase in the amount of official foreign capital directed at purchasing the bonds of struggling European governments would inevitably cut the European trade surplus" -- one of Europe's major strengths at the moment.

If foreign central banks sold large amounts of dollars to buy euros, this would strengthen the euro against the dollar, making European manufacturers less competitive in the global trade market and their exports would drop, leading to multiple negative consequences such as higher unemployment in the region.

Click here to read more on the pros and cons of this new solution to the European debt crisis being debated.

Friday, September 23, 2011

Mexico's Carlos Slim Selling Bonds to Japanese

Latin America’s largest wireless carrier, America Móvil SAB, may become the first non-financial company in Mexico to sell its bonds in Japan. After raising $3.1 billion of debt in the U.S. and Switzerland last month, Mexico's Carlos Slim has realized the power of diversifying sources of financing. For assistance in financing a recent $6.5 billion acquisition of Telefonos de Mexico SAB shares, America Móvil SAB has been stepping up its debt sales since August -- and is now turning to Japan's bond market. The company is seeking to expand financing sources across the globe as economic growth in the U.S. is slowing and Europe’s worsening sovereign debt crisis is increasingly pinching supply in those markets.

DIFA Glass Company to Supply Grupo Modelo

Dirección de Fabricas de Nava (DIFA) is the glass company that will supply Grupo Modelo's Coahuila brewery with the appropriate bottle for use in the global export market. In the first phase of investment, Dirección de Fábricas de Nava will invest US$250 million in the construction of a plant. DIFA will contribute to the regional development of the area by making the commitment to use raw materials, such as silica sand, lime and barite located in Coahuila and its surroundings -- while reaching production levels of an estimated 3 million 2 thousand bottles daily. Estimates are that the first stage DIFA will generate 550 direct jobs in the construction and when the plant is in full operation approximately 2,000 people will be working.

Despite Lackluster Sales, Mexico's Manufacturing Industry Thrives

Although exports from Mexico to the U.S. have recently decreased, the U.S. Manufacturing industry in Mexico remains a stronghold in the Mexican economy. Revenue in exports reached close to $65 billion in 2010, exceeding revenues from crude oil, remittances and tourism combined and its predicted that by 2014, automotive production will reach 2.4 million units. Part of the reason for this is that eight of the 10 leading OEM’s have assembly plants in Mexico: more than 300 Tier 1 suppliers are manufacturing in Mexico including: Chrysler, Ford, GM, Honda, Nissan, WV and Toyota. Heavy truck manufacturers present in Mexico include Dina, Navistar, Kenworth, Daimler, Volvo, Isuzu and Scania. With such a well-established U.S. manufacturing industry in the country, Mexico keeps capturing the attention of new car manufacturers such as Mazda -- the company recently announced plans to invest 500 million dollars to produce 140,000 vehicles a year for export to Central and South America. Why so much investment in Mexico? Well, Mexico offers manufacturing costs that are 25% lower than the U.S. and it's estimated that by 2020, sales from the automotive industry in Mexico are expected to reach 120 billion dollars.

Honda Plans 50 Millon Dollar Expansion in U.S.

Honda Motor Co. will invest $50 million its Logan County transmission plant in Ohio. The company announced this past Wednesday that it plans to add a 75,0000-square-foot expansion in Russells Point to increase capacity for the casting of aluminum transmission cases. When the project is complete, Honda's Transmission operations will encompass 1 million square feet. Honda officials said the expansion will create more than 100 jobs by 2013. Currently, the transmission plant has more than 1,000 employees.

World's First Transatlantic Flight Using Biofuel

CNN reported in mid-August that a recent Aeromexico flight from Mexico City to Madrid was extremely news worthy, due to the fact that it was the world's first transatlantic flight (on a commercial airline) using exclusively a new type of biofuel. Mexico is already known for its oil production and, since it the inauguration of a biodiesel plant by Presidente Calderón in 2010, many believe that Mexico is on its way to becoming a leader in the future of biofuel production. Thanks in part to its flats of arid, marginal land, Mexico presents advantages to biofuel production -- its growing popularity all over the globe furthering its biofuel production.

Mexico follows Thailand, South Korea and Russia adding Gold Reserves to Its Coffers

Gold had its worst weekly performance in more than four months after investors sold metal alongside global equities and other commodities on growing concern that the global economy will enter a second phase of economic crisis. Global stocks entered a difficult market for the first time in more than two years this week: oil touched a six-week low and copper fell to the lowest level in a year, numbers that display worries that the debt crisis in Europe may escalate as the U.S. faces another recession. The Federal Reserve said Sept. 21 there are “significant downside risks” to the outlook. Although its value has decreased, last month Russia’s central bank increased its gold reserves from 27 million at the end of July to 27.2 million troy ounces. This Sept. 20, Bank Rossii joined Thailand, South Korea and Mexico in adding the metal to their coffers.

Thursday, September 22, 2011

How Everyday Things are Made: Lesson by Stanford University

If you've ever wondered how everyday items such as cars, candy or a home appliance are made, click on this link on the manufacturing industry that will walk you through a presentation that will show you the basics of manufacturing. A must see!

Mexico Annual Inflation Slows in September

Mexico inflation climbed less than expected in the first half of September, allowing Banxico to lower borrowing rates. Compared with the 0.36 percent rise that analysts expected, the consumer price index was 0.15 percent lower than expected. The annual inflation rate slowed to 3.16 percent through the first half of September.

Tuesday, September 20, 2011

Spirited Business Travelers: Must-see Mezcalerias in Mexico City

Mexico is known for being the home of tequila as well as ice-cold, refreshing Micheladas. Now, however, what is most popular is the Mexican liquor called Mezcal, an agave-based spirit similar to tequila. What used to be demeaningly considered 'for construction workers', "now has a very good image", says Junior Merino, owner of a cocktail consultant company, The Liquid Chef. "What's trending now in Mexico is the mezcalerias," he adds explaining that, "A lot of people are opening places dedicated to mezcal, not tequila. You find artisanal products, different varieties; sometimes the bottles don't even have labels." Place like Nobu and China Grill are both trending in the renovated Santa Fe district of Mexico City.

The Economy in Mexico: Foreign Direct Investment

This video from The Economist explains how Mexico is still the largest trader in all Latin American and how the economy is bouncing back from the effects of the U.S. recession. Listen to this economic journalist explain how Mexico is implementing its current economic strategies across the globe.

Mexico's Booming Garment Manufacturing Industry

Did you know that not only is Mexico a leader in the automobile and aerospace engineering and manufacturing industries, but in the textile manufacturing business as well? According to data from Banxico (Banco de Mexico), the Mexican Chamber of Garments Industry, and Camara Nacional de la Industria del Vestido (Canaive), sales of clothing garments made in Mexico abroad are assisting national production levels from falling. Banxico’s data reveals that exports have started growing over the past 2 years; in the first half of 2010 they grew 5.3% and from January to June 2011 growth was 7.8%.

NAFTA: U.S. Should Work More with Canada and Mexico

When it comes to Mexico foreign direct investment, many opine that NAFTA should be more widely implemented and it would be beneficial to not only Mexico's manufacturing industry, but for the U.S. economy to increase trade relations between the three countries. From an article written by Robert A. Pastor, a professor at American University and author of "The North American Idea: A Vision of a Continental Future," for the SFGate:
North America's share of the world gross product soared from 29 percent in 1994 to 36 percent in 2001. Since then, it has declined to where it was in 1994. Together, the three governments could recover our past success and spread the increasing benefits to those in our countries that have been left behind. It all starts with a North American idea - a healthy respect for our neighbors and a determination to create a formidable regional community.

Italy's Credit Rating Lowered by Standard and Poor-Austerity Measures Labeled 'Insufficient'

Due to its higher-than-expected levels of government debt and weakening economic growth, Standard and Poor has lowered Italy's credit rating a notch - to "A/A-1" from "A+/A-1+." "We believe the reduced pace of Italy's economic activity to date will make the government's revised fiscal targets difficult to achieve," S&P said. The downgrade comes after the European Central Bank demanded this summer that Italy apply stiff austerity measures to calm investors facing doubts about how capable Italy is about handling its outrageous debt. Italy is the eurozone's No. 3 economy and has a deficit to gross domestic product ratio of 120 percent, one of Europe's highest. From
The bank has spent billions over the last month buying up Italian government bonds in a bid to lower Italy's borrowing costs and keep it from becoming the next eurozone nation to need an international bailout. The S&P downgrade, however, could lead to higher borrowing costs for Italy because it implies that investors face greater risks when buying Italian debt.

Mexican Soft Drink Company Coca-Cola Femsa to Acquire Grupo Cisma Bottler

Today, in Invest in Mexico news, it's been reported that Coca-Cola Femsa is going to buy local Mexican bottler company Grupo Cimsa. Putting refreshments in the hands of over 5 million people by working with over 70,000 retailers, Cimsa has been valued at $838 million by Coca-Cola Femsa. Read more about this piece of manufacturing news in the official release by the Mexican soft drink maker.

Monday, September 19, 2011

Turkish Stocks Rebounds to World's Best this Month as Banks Cut Rates

“Foreigners are just starting to realize that our central bank is doing great things for bank earnings at the moment, and the ISE is going to outperform as long as banks are being bought,” said Isik Okte, a trader at Finans Invest, an Istanbul-based brokerage. As this article suggests, Turkey “may actually be at the forefront of central bank policy-making,” and countries including Mexico, South Africa, Hungary and Poland may follow, Anne, the head of emerging-market strategy at Societe Generale, said in an interview.

Thursday, September 15, 2011

Nissan Investment in Mexico to Reach $328 Million

During the celebration of Nissan Mexicana’s 50th anniversary, President and CEO, Jose Muñoz, announced that the company will invest US$328 million more in their two plants in Mexico, located in Aguascalientes and Morelos. These resources will be allocated to manufacture new models like a multi-purpose vehicle based in V platform, which is assembled in the Aguascalientes plant, as well as the manufacturing of the Taxi of Tomorrow for New York City, which will be assembled at the CIVAC Plant located in Cuernavaca, Morelos and which is expected to be launched in 2013.

Latin American Stocks Rise on European Optimism for Greece

Latin American stocks rose yesterday after European leaders rallied to prevent a Greek default and stem the debt crisis in the euro zone. Volume in Mexico and Brazil remained in line with recent sessions and did not suggest that investors were flocking back to the region's stocks. "The message they wanted to portray is that Greece is and will remain part of the euro zone. They made it sound to me, as a pretty strong commitment from all sides," said Alberto Bernal, head of analysis at Bulltick Capital Markets in Miami.

Vegas Caters to Thousands of Mexican Visitors for Independence Day

At least six-thousand Mexicans will be flying in for the "Dieciseis de Septiembre" holiday (Mexican Independence Day) tomorrow -- and this figure doesn't even include the others that may be driving in. Casinos and hotels are eager to receive Mexican vacationers since these visitors normally stay in Las Vegas longer and spend more money-- $1,000 each, excluding gambling. Mexican visitors are eager to come to Las Vegas for vacation, a place that's close to home but at the same time has an international feel and is ready and eager to host this rush of visitors. "It's a vast amount of people coming in from Mexico," said McCarran International Airport spokesman, Chris Jones. "The airport's happy to accommodate them, obviously. (It) means money coming in and supporting our community, our economy and jobs."

Euro Debt Concerns Ease and Mexico Stocks Close Higher

After the emergency teleconference in which the European leaders spoke about ways to prevent the Greek default, Mexico's IPC index gained 2.1% for second-straight winning session. The talks taking place these past two days have eased the fears of the dreaded Greek default -- making Mexican stocks OHL Mexico, America Movil and Chedraui among the top gainers of the session.

Mexico Rises 8 Ranks on 2011-2012 Global Competitiveness Report

Mexico beat it's own 2010-2011 ranking of No. 66 in global competitiveness, according to the World Economic Forum’s GCI Report. The 2011-2012 Global Competitiveness Report states that Mexico has “one of the highest improvements in regional rankings.” Mexico’s global competitiveness ranking rose eight spots from last year; Mexico currently holds No. 58 on this list. In addition to making significant improvements in technology and economic policy, Mexico is also emerging as an ideal market for entrepreneurs.

Wednesday, September 14, 2011

Siemens Mexico: Over a century of accomplishments doing business in Mexico

Siemens Mesoamerica CEO Louise Goeser spoke with Mexico Today about why she considers Mexico to be the best place to invest. In this interview, Goeser unveils little-known realities about doing business in Mexico, including Mexico’s status as the world’s most open economy.

Tuesday, September 13, 2011

Update: Mexico and Brazil Talks of Free Trade Agreement

“Brazil currently has trade negotiations under way that date far back with many different countries,” Espinosa said in an interview in Bloomberg’s Mexico City offices yesterday. “This makes us think that it’s a country in which there isn’t much flexibility for a negotiation.” Mexican President Felipe Calderon and former Brazilian leader Luiz Inacio Lula da Silva vowed in 2010 to start talks on a free-trade pact between the two countries. This potential free trade agreement would help Mexico diversify trade away from the U.S., which buys 80 percent of its exports, but it seems like it may be deterred by Brazil’s efforts to boost protection for it's manufacturers being hurt by a rally in its currency and increased competition from China. Espinosa said that while “it’s difficult” to determine if Calderon will be able to sign a trade agreement with Brazil before his term ends in November 2012, the government is putting forth its best effort.

Up to 1.8 Billion Dollars in Investment Expected for Mexico's Plastic Industry

Eduardo Martinez Hernandez, the Chairman of the National Association of Plastics Industries (Asociacion Nacional de Industrias del Plastico (ANIPAC)), announced the upcoming plastics-focused tradeshow the 17th annual PLASTIMAGEN Mexico, to be held next October 4th to the 7th at Banamex Center in Mexico City. After having announced that by the end of 2011 investment in the plastics industry in Mexico should reach US$1.8 billion, the chairman added that machinery purchase deals could fetch up to US$450 million each.

Mexico's New Anti-Venom: A Pharmaceutical Win From Mexico to the U.S. Market

Did you know that Scorpion stings can cause blurred vision, slurred speech, nauseas and even death? An anti-venom being produced in Mexico was recently approved by the U.S. Food and Drug Administration (FDA) as a scorpion sting treatment. The first drug of its kind approved by FDA, the accomplishment is a result of 12 years of research and development. Scorpion stings are seen most prominently in Arizona, Southern Nevada, and New Mexico, as well as in Mexico and Morrocco.

"Born in Italy, Made in Mexico, Sold in China"

Fiat, now owned by Chrysler, has been anticipating the official launch of the standard 500 model in the Chinese market. In order to prepare for this, the automaker unveiled the Fiat 500 First Edition at Shanghai, a special version limited to 100 units. The plant where this model is produced is located in Toluca, Mexico and was created at the cost of 550 million USD. Capable of producing 120,000 vehicles a year, half of the production of the small city car will be sent to the U.S. while the other half will be sent to Brazil and China. The special Fiat 500 First Edition model displays several custom graphics on its sides, created by Chinese designers to represent the link between Italy and China. Sales in China are due to begin this September 2011.

GE Technology to Provide More Power for Northern Mexico

GE has recently announced that at the Latin America Engineering, Procurement & Construction Summit in Mexico City (EPC) that it will provide two Frame 7FA Gas turbines and provide long-term services for the Norte II Combined-Cycle Power Plant. As part of an independent power project (IPP) scheduled to enter commercial operation in May 2013, the power plant, located in Chihuahua, Mexico, will increase the region’s supply of reliable power and lower-emissions output.

Mexico Expected to Remain Latin America's Top Borrower

Mexico is seeking to step up overseas borrowing in 2012 after raising $3 billion this year from international offerings, more than any other country in Latin America. Borrowing is bringing a large amount of investment into Latin America’s second-biggest economy.

After raising $3 billion this year from international offerings -- more than any other country in Latin America -- Mexico is looking to keep steady, and improve, its overseas borrowing in 2012. According to the budget proposal presented on Sept. 8, Mexico's government is asking Congress for authorization to boost net external debt by $7 billion in 2012, up from the $5 billion increase it was granted for this year. But how does this compare to other emerging economies such as Brazil or Colombia?

It's reported that while these countries are making debt sales abroad to eschew gains in their currencies, in the mean time Mexico has been tapping into global markets to lock in record-low borrowing costs in the U.S.

Mexico has sold $15 billion of bonds outside its local market since 2009, up from $7 billion in the previous three years, while Brazil cut its sales 12 percent over that period to $6.9 billion. A lack of “high-quality sovereign debt” issues from developing nations will help fuel demand for more Mexican bonds, said Jeremy Brewin, who helps manage about $3.5 billion in emerging-market debt with Aviva Investors in London. “The appetite for external sovereign debt is quite robust so for Mexico to issue an extra $7 billion, I don’t think that’ll be a challenge,” he said.

Procter and Gamble Treats America's Economy like the Philippines

As this article states, for generations Procter & Gamble Co.’s growth strategy was focused on developing household staples for the vast American middle class. Lately P&G executives have seen that many of its former middle-market shoppers are trading down to lower-priced goods -- this gap is contributing to making products geared towards the middle classes more and more expensive. P&G, which estimates it has at least one product in 98% of American households, was forced to change the way it develops and sells its goods. For example, for the first time in 38 years, the company launched a new dish soap in the U.S. at a bargain price. “Companies have thought that if you’re in the middle, you’re safe,” says Citigroup analyst Deborah Weinswig. “But that’s not where the consumer is any more — the consumer hourglass is more pronounced now than ever.” “We now have a Gini index similar to the Philippines and Mexico—you’d never have imagined that,” says Phyllis Jackson, P&G’s vice president of consumer market knowledge for North America. “I don’t think we’ve typically thought about America as a country with big income gaps to this extent.”

Friday, September 9, 2011

Juarez Produces 100,000 Blackberries Everyday

Ubaldo Benevente Bermudez, Economy Deputy Secretary for the North of Mexico, informed after a visit to the company's facilities in Ciudad Juaréz, Mexico that around 100,000 smartphones of the Blackberry brand are being assembled every day for the Wistron corporation. Wistron, which also manufactures all Sony Bravia flat screens sold in the Americas, is considering the possibility to increase their labor force from 3,500 to 7,500 people. Benavente Bermudez also stated that brands such as Sony Bravia and Blackberry made their decision to manufacture their goods in Ciudad Juaréz due to the the quality of the labor force. Click here to read more.

World Economic Forum 2012 to Take Place In Mexico

Beautiful coastal beach town, Puerto Vallarta, will be the host of the 2012 World Economic Forum on Latin America this April 16-18, 2012. The forum will take place to address Latin American’s global economy and the upcoming presidential elections. Marisol Argueta de Barillas, Senior Director, Head of Latin America for the World Economic Forum stated that, "Latin American countries continue to be an attractive destination for investment and the region demonstrates strong finances, continued economic growth, and social development.”

FedEx Freight: Three New Locations in Mexico

FedEx Freight, a subsidiary of FedEx Corp announced yesterday that they will be serving three new markets in southeast Mexico, with the opening of three new service centers in Veracruz, Toluca, and Puebla, Mexico. The president and CEO of FedEx Freight, William J. Logue stated, “FedEx Freight is committed to being the premier LTL service provider in North America. We are pleased to offer greater choice, and the reliability for which FedEx is known, to these markets in Mexico.” In addition to the new service centers, opened last August 1, the company has reduced shipment times by an average of 50 percent for individuals shipping in southeast Mexico.

Mexico Investment: Mexico Investment Summit 2012

Just a reminder that the Mexico Investment Summit 2012, which I blogged about a few months ago is going to be held this January 31- February 2 in Mexico City, Mexico.
From the website:
The Mexico Investment Summit is a conference that brings together senior decision makers from the entire investment and development community. "The Mexico Investment Summit focuses on a country that many consider to be the world's best combination of logistically based geography and phenomenal natural resources, a discussion important not only for its positive internal impacts, but for it's strategic effects on North American and world competitiveness." -Jeffrey M. Jones, Venture Partner, Alta Growth Capital, President, JMax Asociados SC

Corn Ranked No. 1 Commodity by Morgan Stanley

Morgan Stanley today ranked corn at the top of their commodity bets list. As part of their recommendations for investors, their report entitled The path forward for corn: higher placed corn ahead of other commodities such as aluminium, copper and gold. "Tight U.S. supply will require continued demand rationing to keep the stocks-to-use ratio above 5%," the bank said. "Prices need to continue moving higher to accomplish this rationing." In its report, the bank has issued forecasts of corn futures to average $7.25 a bushel in the next year, an estimate higher than the USDA’s recent forecast due to the number of acres that will make it to harvest. "All told, this increase in production could allow for an incremental 157.5m bushels in Latin American exports, partially offsetting the needed rationing in U.S. exports. However, U.S. prices need to move higher to increase the attractiveness of exports from other origins," said Morgan Stanley in their report.

Mexico's 2012 Budget Seeks to Raise Spending

Mexican President Felipe Calderon, whose nonrenewable 6 yr. term will end in November 2012, submitted to Congress this Thursday his 2012 budget proposal. This new proposal shows that the government is looking for a smaller deficit with more spending compared with the 2011 budget. The spending plan, which will only exclude investment in state oil monopoly Petroleos Mexicanos, or Pemex, calls for a deficit of 36.7 billion pesos ($2.94 billion), equivalent to 0.2% of gross domestic product, compared with a deficit of 0.5% for this year. Oil income is expected to rise 5.8% from projections for 2011, while non-oil income is seen growing by 1.7% next year. Including Pemex investment, the deficit is expected to be 2.2% of GDP, an improvement from the 2.5 percent number for this year. The federal government would maintain Mexico investment levels in Pemex at 2% of GDP. Calderón explained that the new budget includes continued support for small and medium businesses, as well as investment to build, repair or upgrade 1,280 kilometers of roads and highways, he said.

Thursday, September 8, 2011

Mexican Stocks Rise As Investors See U.S. Jobs Aid Ahead

Via MarketWatch: Mexican stocks climbed Wednesday after news that President Obama may distribute financial aid in order to augment employment figures in the U.S. This is excellent news for those interested in investing in Mexico, since the U.S. is currently the top export market for Mexico (80% of its exports arrive to the U.S.). Latin America’s second-largest economy saw it's IPC level advance 2.2% to 35,179.59. Among the best stock performers were electronics retailer Grupo Elektra and cement maker Cemex, up 8.1% and 5.6%, respectively.

World Economic Forum Report on Global Competitiveness

The World Economic Forum Report is out with all of the numbers on Mexico's competitiveness from a multitude of aspects, including this year's innovative analysis of how the sustainability of a country is predicted to affect it's productivity and competitiveness in the future.

Mexico Moves Ahead in Competitiveness

According to the Wall Street Journal, Mexico is making strong progress in global competitiveness with an article reporting today that "Mexico moved up eight places in the World Economic Forum's Global Competitiveness Report with big gains in the evaluation of financial and goods markets." Although the data points to weakened public policies, the index shows Mexico's economic progress, quickly becoming one of the preferred countries for foreign direct investment.

Steel Technologies Investing $75 million in New Facility in Mexico

In recent weeks, Steel Technologies, LLC has received approval from Mexico to build a 300,000 square feet, $75 million steel processing facility in Nuevo León, Mexico. The new steel facility will increase North American production, with a processing capacity of over 800,000 tons. In a press release, Michael J. Carroll, the president and CEO of Steel Technologies, said that “the addition of this world-class operation will accelerate our growth and complement our strong network of steel-processing facilities within the country.” The Louisville based company is owned by Nucor Corp and Mitsui & Co and will start construction on the new site immediately.

Wednesday, September 7, 2011

Mexico's economic growth - one of the many reasons Google does business in Mexico

Google Country Director John Farrell speaks with Mexico Today about why Google finds Mexico such an attractive country for investment. Not only is the Mexican economy growing at a rapid pace, but right now Mexico is the 11th economy in the world. In regard to other global investment options, Mr. Farrell says, "these other countries have received so much hype that they're overvalued." Read the article on Mexico Today to see why Google is so adamant about Mexico being the best place to invest.

Tuesday, September 6, 2011

Mexico Investment: SunPower Corp. Plans to Build Factory in Mexico

The American solar power company, SunPower Corporation, is taking advantage of the low interest rates in Mexico (and year-around sun) with plans to build a manufacturing plant in Mexicali, Mexico. SunPower Corporation announced on August 5 its plans to own and operate a solar panel manufacturing plant in the state of Baja California, Mexico. The Industrial Development Commission of Mexicali assisted SunPower in choosing the facility location where SunPower has finally decided to build its 320,000 square feet facility. Solar power is becoming more prevalent throughout North America, with opportunities for investment in the energy market ever-expanding.

Mexico Daybook Via Bloomberg: Up to Date News on Mexico Stocks

Via *Pemex, as the company is known, reports preliminary month-to-date oil output. The nation’s oil production averaged 2.557 million barrels a day from Aug. 1 through Aug. 28. Production averaged 2.533 million barrels a day in July. Get the rest of the news for investment in Mexico, like facts and figures for Cemex, Cemex SAB and Grupo Modelo, here.

Mexico May Ease Foreign Investment Caps

Mexico has recently noticed that it is time to revamp its foreign investment laws in order to increase the possibilities of greater foreign investment. Easing the limits on industries with little or no competition such as the airline, communications and energy sectors would improve the environment for investment in these promising markets. Additionally, the new competition among companies would lower prices for the general consumer and create a more dynamic economic landscape. "We think that investment restrictions have to be revisited systematically in tandem with the country's economic growth," Jose Antonio Torre, deputy minister for competition and standard-setting at Mexico's economy ministry, said. The economy ministry and regulators will be part of the study by Mexico's Foreign Investment National Commission to reconsider investment caps last reviewed in 1993. Currently, foreign investment in airlines is capped at 25 per cent and at 49 per cent for fixed-line telephony.

Mexico's IMEF August Manufacturing Index Rises From July

Yesterday, Mexico's Institute of Finance Executives, or IMEF, announced that its manufacturing index rose in August. Up to 51.5 in August from 50.4 in July (seasonally adjusted index), the numbers continue to point to Mexico's increased economic expansion. Although economists have been cutting their estimates for Mexico's economic growth this year, largely in response to the slowdown in the U.S., where Mexico sends about 80% of its exports, foreign investment in the country is still going strong, with over 20 billion dollars in fdi predicted for this 2011.

Mexico Considering Cutting Interest Rates

Mexico’s central bank recently stated that it may raise its interest rates. The country has earned a great deal of attention lately for being the only major Latin American country to hold off on raising interest rates, an aspect of its economy that has attracted billions of dollars in foreign investment. As the global economy is experimenting an uncertain recovery from the 2008 financial crisis, Banco de Mexico stated this past August 26 that if the growth outlook worsened it would consider "adjusting" its economic policy, including interest rates.

Tax Havens: Separating the Facts from the Myths

There are a lot of rumors that go around when it comes to foreign investment and tax havens abroad. Watch this video, courtesy of the CATO Institute, that explores the differences between the myths and realities behind international tax havens.

Friday, September 2, 2011

News on Bond Funds in the Emerging Market

Lately all of hottest bond funds on the market stem from emerging-market debt funds. Not only are these bond funds offering better returns than most U.S. funds and even generous returns (Mexican issues have paid more than 6 percent), but they are a way to get away from the weak dollar. In only 4 weeks, investors have poured more than $1.7 billion into emerging-market bond funds, according to fund researcher Lipper Inc., more than any other fixed-income fund category. Investing in government and corporate debt from developing nations like Mexico, Brazil and Russia, has seen inflows of $11.4 billion, up 20% from a year earlier. "A larger portion of portfolios that have historically been dominated by developed countries are increasingly flowing to emerging markets," says Ramin Toloui, one of the leaders of the emerging markets portfolio management team for Pimco.