Investment in Mexican Manufacturing toppling Canadian Auto Industry

Via Reuters.com:

Canada's auto industry, which accounts for about 10 percent of the country's manufacturing output, is in danger of losing market share in North America as investment dollars flow to Mexico, an economist stated on Tuesday. Mexico overtook Canada in 2008 as the second biggest assembler of vehicles in North America after the United States, and now accounts for about 20 percent of the continent's output. Canada accounts for about 16 percent of North American vehicle assembly but that will probably change in the next years as big investments in Mexico's auto sector are projected to continue, Scotiabank economist Carlos Gomes said.

Emerging Stocks Advance as Central Banks Reduce Dollar Funding Costs

Via Bloomberg.com:

Emerging-market stocks have advanced as the Federal Reserve and five other central banks cut the cost of emergency dollar funding for European banks to help alleviate the region’s debt crisis. Cemex SAB (CEMEXCPO), the largest cement maker in the Americas, led stocks higher on the IPC in Mexico City, climbing for a third day and gaining 6.6 percent to 6.32 pesos.

IMF chief, Christine Lagarde, visits Mexico

Via Google News:
The head of the International Monetary Fund arrived in Mexico on Tuesday, where she will meet the president and central bank chief, on a Latin America tour overshadowed by the European debt crisis. IMF chief Christine Lagarde said in a blog post ahead of the trip that Mexico was "in a unique position to shape our collective economic destiny over the coming year" as it takes over leadership of the Group of 20 most powerful economies in 2012. Lagarde was scheduled for private talks with central bank chief Agustin Carstens Tuesday, before meeting with President Felipe Calderon and Finance Minister Jose Antonio Meade and giving a news conference Wednesday.

Obama Puts Renewed Pressure on European Leaders

Yesterday, President Barack Obama renewed pressure on European leaders to prevent a dismantling of the single currency before euro-area finance ministers met to seek a resolution to the two-year-old crisis. Agreeing on a sufficient response to Europe’s problems is of “huge importance” to the U.S., Obama told reporters after meeting on Sunday with European Union President Herman Van Rompuy and European Commission President José Barroso.

U.S. Housing Market Outlook

Via Bloomberg.com:

Tom Porcelli, chief U.S. economist at RBC Capital Markets, discusses the outlook for the U.S. housing market. The S&P/Case-Shiller index of property values in 20 cities dropped 3.6 percent in September from the same month in 2010 after decreasing 3.8 percent in the year ended August. Porcelli speaks with Betty Liu on Bloomberg Television's "In the Loop."

The Fed's Top Bailout Earnings

Nov. 29 (Bloomberg) -- Bloomberg's Bob Ivry reports on how bankers failed to mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. He speaks with Erik Schatzker on Bloomberg Television's "InsideTrack."

Consumer Confidence Experiences Largest Boost since 2003

Via Bloomberg.com: U.S. consumer confidence climbed in November by the most in more than eight years as Americans grew more upbeat about employment and income prospects. The Conference Board’s index increased to 56 from a revised 40.9 reading in October, the biggest monthly gain since April 2003, figures from the New York-based private research group showed today. The gauge, at a four-month high, exceeded the most-optimistic forecast in a Bloomberg News survey of economists.

Mexico Stocks: Cemex, Corp. Geo, Industrias Penoles Shares Gain

Via Bloomberg.com: The following companies are having unusual price changes in Mexico trading. The IPC index (MEXBOL) surged 4 percent to 35,942.77. Mexican stocks soared, snapping a four-day slide and following U.S. equities higher as euro-area leaders were said to boost efforts to end the debt crisis. German newspaper Welt am Sonntag reported German Chancellor Angela Merkel and French President Nicolas Sarkozy are discussing an agreement under which member states will commit to tighter budget discipline without waiting for treaty changes.

Mexico's Peso Rallies Thanks to U.S. Thanksgiving Sales

Via Bloomberg.com:
Mexico’s peso jumped the most in three weeks as record U.S. Thanksgiving retail sales boosted optimism for exports from Latin America’s second-biggest economy. The peso rose 1.5 percent to 14.0258 per U.S. dollar at the close in Mexico City, for the biggest advance since Nov. 3. Retail sales totaled $52.4 billion during the U.S. holiday weekend and the average shopper spent $398.62, up from $365.34 a year earlier, the Washington-based National Retail Federation said yesterday, citing a survey conducted by BIGresearch. Additionally, Mexican exports increased by $1.27 billion in October from September to $30 billion, according to preliminary data from the national statistics agency. The U.S. is the destination for 80 percent of Mexico’s exports.

'Black Friday' Defines Maquila Industry's Production Rates

Via MaquilaPortal.com: Employment in maquiladora industry greatly depends on consumers’ behavior throughout the United States tomorrow, “Black Friday”, when Holidays shopping starts, said Jose Luis Armendariz Bailon, Chairman of Maquiladoras Association, Asociacion de Maquiladoras Asociacion Civil (AMAC) Mr. Armendariz reminded that consumers’ behavior in the so-called “Black Friday”, one day after Thanksgiving, offers a hint of the status of US economy. Based on such behavior, he added, corporations set their strategies for the next year and start planning production. Depending on production, Armendariz Bailon pointed-out, labor force growth is estimated, so companies will start planning depending on what happens this Friday.

What is a Stock?

Check out this explanation of what stock is from Mint.com. There are some fun facts in the chart so don't miss it!

Central Banks, Including Mexico's, to Reduce Benchmark Interest Rates

Via Bloomberg.com: Central banks across five continents are undertaking the broadest reduction in borrowing costs since 2009 to avert a global economic slump stemming from Europe’s sovereign-debt turmoil. The U.S., the U.K. and nine other nations, along with the European Central Bank, have bolstered monetary stimulus in the past three months. Six more countries, including Mexico and Sweden, probably will cut benchmark interest rates by the end of March, JPMorgan Chase & Co. forecasts.

IMF’s Lagarde Seeks Latin America Help for Europe in ‘Historic About-Turn’

Via Bloomberg.com: International Monetary Fund chief Christine Lagarde will seek support from Latin America’s largest economies this week to help contain Europe’s mounting debt crisis. The visit that kicks off in Peru today, her first to Latin America since taking office in July, marks a role reversal for a region that harbors deep-seated resentment over decades of IMF- imposed austerity measures, said Roberto Abdenur, a former Brazilian ambassador to the U.S. “Previously local authorities trembled when even the most junior IMF official visited,” Abdenur said in a telephone interview. “Today, the chief is coming to seek aid. It’s an historic about-turn.” Struggling with repeated crises until just over a decade ago, Latin America today helps drive global growth with expansion forecast at 4.5 percent this year, compared with 1.6 percent for developed nations, according to the IMF. Lagarde wants to tap the new-found wealth of Brazil and Mexico to beef up the fund’s resources to contain the debt crisis, while placating their demands for a larger say at the institution.

Risen Energy Signs 200-Megawatt Solar Power Deal in Mexico

Via Bloomberg.com: Risen Energy Co. signed an agreement with the government of Durango, Mexico, to build a 200-megawatt solar-power plant, the company said in a notice to the Shenzhen stock exchange. The first phase of the project will require an investment of $60 million, the statement said.

Annual compensation could fall 30 percent at Wall St firms

Annual compensation for employees at big Wall Street firms could fall 27-30 percent from a year earlier to its lowest level since 2008, the Wall Street Journal reported, citing a compensation study conducted by the Options Group. Bonuses, which make up an important part of many finance workers' pay, are on track to decline 35-40 percent, on average, according to the forecast by Options Group, an executive search and consulting firm. Pay is likely to be hardest hit in firms specializing in the areas of currencies and commodities, the Journal said.

Blogger: Mexico Most Attractive Investment?

Currently, many firms are growingly bullish on Mexico (EWW). “It’s one of four countries with accelerating leading indicators as defined by the Organization for Economic Cooperation and Development,” David Garff, president of Accuvest. Garff said. “Its stock market is showing relatively strong short- and medium-term momentum on several different levels. On a relative basis, we think Mexico poses a much lower level of risk than most other countries.”

Charles Schwab insider reveals general concerns for investors

The economy and stock market have encountered rough waters lately, and when Schwab CEO Walt Bettinger thinks about turbulence, it’s clear he believes that the company’s role is to help investors suit up for the challenge. The author of the "Schwab Talk" blog spent some time talking with the CEO about how U.S. investors are feeling, and gives investment advice as to how they might navigate the turns ahead. A great, insider interview that is a must-read!

Business advice from Vicente Fox, former President of Mexico

Listen to this inside business advice from Vicente Fox, Mexico's former President who urges businessmen and women to "reach for the stars."

Mexico's Debate Over Digital TV

Mexico’s debate over digital TV is becoming increasingly complicated, with the threat of the president’s intention to bring forward the analogue switch-off to 2015 being overruled by the Supreme Court, and COFETEL opening an online consultation.

Following the declaration by Mexican president Felipe Calderón that the national analogue blackout will be set for 2015, the National Supreme Justice Court (SCJN) has stated that the issue doesn’t fall under the Executive jurisdiction and that the Federal Telecommunications Committee (COFETEL) should be the one handling the country’s TV cross-over to digital.

According to the Secretary of Communication and Transport (STC), the new date for the transition means both savings for companies and benefits for the population. Yet the National Radio and TV Industry Chamber (CIRT) plans to ask for more time before imposing the blackout, explaining that most of the networks won’t be technically ready to work with digital TV by 2015.

The TV networks Televisa and TV Azteca say that Mexico isn’t yet prepared for the switchover, and are therefore against the new date. The area that’s currently better suited for digital TV in Mexico is the region near the US border, and it will be necessary to help less privileged areas purchase new cable boxes.

Emerging Market Growth: 2011/2012 Data

Despite negative FDI results seen in many countries this year, specialists from Ernst & Young expect fast-growing markets to grow in 2011 by 6.2 percent or what is nearly four times the 1.6 percent growth reported by the Euro Zone.

Ernst & Young, in its quarterly forecast report for rapidly growing markets, says that FDI in emerging markets (among them Mexico) increased from $205 billion in 2000, to $444 billion in 2010. Foreign Direct Investment was stated to have accounted for 50% of global income for this type of investment.

The international consultant firm clarified that despite weak growth in advanced economies, which will invariably affect the development of rapidly growing markets, the 25-member country bloc will have to increase domestic consumption.

Regarding next year, Ernst and Young forecasts the growth of emerging economies to increase 5.9 percent, while European growth is expected fall 1.1 percent.

GKN Driveline Sees Continued Growth in Mexico

"Mexico is a very important growth market for GKN Driveline," said Fidel Otake. "We have invested over US$100 million (1.4 billion Pesos) in our Mexican operations since 2005. This has allowed us to more efficiently serve our growing customer base throughout the region."

Speaking at a media briefing at GKN Driveline's manufacturing and technical centre in Celaya, state of Guanajuato, Mexico, Fidel Otake, GKN Driveline Mexico's managing director said the company will manufacture nine million CVJ Systems by 2015, up from three million in 2005.

During this period, GKN Driveline has expanded the manufacturing facility, opened a technical centre and built a new state-of-the art precision forge all in Celaya. In nearby Villagran, a new assembly facility has also opened. GKN Driveline supplies its world-leading driveline systems and solutions to 10 vehicle makers in 16 cities throughout Mexico.

GKN Driveline expects to continue to grow its Mexican operations at a double-digit rate through to 2015.

Mexican Export Market Relying Less on U.S. Demand

Earlier this month, Mexico's Economy Minister, Bruno Ferrari, stressed how important it is to reduce the degree of reliance on the United States.

In this vein, Gerardo Gutierrez, president of Mexican employers' association Coparmex stated, "Being able to diversify Mexican exports is a priority for us," adding, "We have 12 free trade deals with 44 countries that we really don't make enough of."

Car makers in Mexico have been the first to capture new trade markets. Surging vehicle sales to Latin America have made a big dent in the U.S. dominance of Mexico's export business. For instance, the United States bought 61.7 percent of Mexico's car exports in October, while a year earlier it was 68.9 percent.

Another example of the diversification of Mexican exports is Mexico's new trade relations with Brazil; exports to Brazil quadrupled between 2005 and 2010. The surge has been boosted by demand for Mexican cell phones and telecoms components, exports of which rose five-fold last year, according to the Mexican-Brazilian chamber of commerce. At the same time, China's share of Mexican exports now nears 2 percent, making it the biggest market outside North America.

Gabriel Casillas, an economist at JPMorgan in Mexico City, expects Mexico's non-U.S. foreign trade to peak at about 25 percent of the total in the next five years.

Mexico's Stocks Close Higher On Better U.S. Data

News via WSJ.com:
MEXICO CITY (Dow Jones)--Mexican stocks rose Tuesday on better-than-expected economic data in the U.S. and as pressure on Italy, Europe's third-largest economy, eased somewhat after a new government took office there.
Mexican stocks rise due to:
--IPC index closes 0.6% higher
--Improvement in U.S. economic data lifts confidence
--Pressure eases in Italy

European Stocks Are Unchanged as Monti Takes Office to Fight Italian Debt

European stocks ended the day unchanged, after swinging between gains and losses, as Mario Monti became Italy’s new prime minister amid concern the sovereign-debt crisis is hurting the global economy. “The market is reacting very strongly to any news,” said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg. “The political situation will remain a determining factor. We’ll see what happens with Italy.”

Wingstop Signs Agreement to Open 120 Restaurants in Mexico

Based on the success of its stores in Mexico City, Wingstop announced today that the company will add an impressive 120 restaurants across Mexico over the next seven years, thanks to a master franchise agreement with WIS Master S.A. de C.V. Franchise owners Antonio Ortiz Dominguez, Jose Francisco Cantu Quintero and Jose Luis Serrato Villegas opened 10 Wingstop locations in Mexico City over the last two years as part of an original multi-unit franchise agreement.

Nissan Announces New Plant in Mexico Nov. 18

Mexico is rapidly becoming a hot spot for international automakers. Nissan Motor Company, one of the top automakers in Japan, for example, is planning to invest $2 billion in building a new plant in the country. The world-renown automaker plans to target larger cities in the country as key markets and this way, increase its growth opportunities in Mexico. Nissan already has a plant in the city of Cuernavaca, south of Mexico City. It is also looking to expand in different large states and six are being considered as the new location of the plant. It is expected that Nissan will be announcing its decision this Friday, November 18, 2011.

Mexico Technology - Competitive Beyond Manufacturing

Beyond world class manufacturing, Mexico has the resources for development of technology by high quality engineers. "Mexico is one of the most important markets in the world" says Scott Overson CEO Intel Mexico. For the latest on Mexico technology, Mexico manufacturing and Mexico news, visit http://www.MexicoToday.org

Mexico Trade is the Platform for Trade With the World

For trade, Mexico has "an industrial infrastructure that I would call spectacular" says Mauricio Canineo, CEO of Pirelli. The heads of international companies talk about the benefits of using Mexico as a platform for trading with the world. For the latest on Mexico trade, industry, Mexico exports and Mexico news, visit http://www.MexicoToday.org.

HSBC Bank deems Mexico a 'very attractive investment'

From the London branch of HSBC, top executives of the same bank highlighted the benefits of investing in Mexico.
Sandy Flockhart, the General Director of HSBC Europe, Asia and Latin America confirmed that, 'Mexico is a very attractive destination and it offers access to the U.S. market.'
A few of the main reasons for investing in the country are its solid macroeconomic stability, qualified workforce, privileged geographic location and increasing investment in national infrastructure.

Railroads Will Invest Up to US$450 Million in Mexico

The Mexican Railroads Association, Asociación Mexicana de Ferrocarriles (AMF), has informed that since the privatization of railroad service in 1997 and up to 2011, investments made by the sector amount to more than US$4 billion, resources that have been used to improve railways and purchase cars. Emilio Sacristan, General Director, AMF, informed during the presentation of Expo Rail, that investments to be made in the future by railroads will be between US$350 and US$450 million per year.

Concha y Toro, Digrans create joint venture in Mexico

Chilean winemaker Concha y Toro and Mexico-based Digrans have established a new joint venture, VCT&DG Mexico, for distribution of wines in the Mexican market. The Joint Venture expects to set up a marketing and sales division exclusively for the market. VCT&DG Mexico has plans to invest in the development of the brands and strengthen their presence across Mexico. Already, around 40% of bottled Chilean wine exports to Mexico are from Concha y Toro. Its signature brand is Casillero del Diablo, a well-known Chilean wine all over the world. Digrans Mexico chairman Claudio Alvarez said the proven exporter vocation of Concha y Toro, with its successful global strategy of brand building, together with the company's knowledge and experience in the Mexican market, 'will enable these two dynamic companies to work as a team to strengthen the presence and consumption of wine in Mexico.'

Mexico to invest US$11 billion in gas pipelines and distribution

From Agencia EFE via COMTEX:

Mexican President Felipe Calderón announced the investment of $11 billion dollars in both public and private investment over the next seven years to build eight natural gas pipelines covering more than 4,500 kilometers (2,800 miles) as well as serving local distribution networks. At a ceremony being held in the northwestern state of Sonora, he announced that the new investment is expected to increase the current length of Mexico's natural gas pipeline system by 40 percent. An approximate $8 billion will be invested in the gas pipelines, while another 3 billion dollars will go towards the expansion of industrial and gas distribution networks. According to experts in the field, Mexico likely holds the world's fourth-largest reserves of shale gas.

Volkswagen de Mexico expected to break 2008 production volume record this year

Via MaquilaPortal.com:

Volkswagen de Mexico informed that at the end of the October 2011 period they reached an accrued production volume of 433,680 units, 23.8% above the same period last year. For the term between January and October 2011, production for export was 361,344 units, 23.5% over the volume exported between January and October 2010. Production of New Jetta remains as leader with 242,992 units, followed by Golf SportWagen with 108,398, Classic with 66,741 and 15,549 units of Beetle. If this production level continues, the Mexican assembler will break its record of 450,000 units before this month is over. It's record is for the year of 2008, year in which the Puebla, Mexico plant’s position was confirmed as number one in North America for production volume.

Kimberly-Clark Mexico outperforming in Mexico’s economy during the global recession

Via MexicoToday.org:

Kimberly Clark’s products are household names all over the world and even in times of global recession, the company has continued to grow strong. Claudio González, Chairman of Kimberly-Clark Mexico spoke about the current business climate in Mexico on the Bloomberg Television show, “Street Smart” with Lisa Murphy. “In spite of the security situation, [a regional problem] that so many people hear about, the economy is growing very well, our key economic indicators are very solid, and the growth prospects of the country are good.” As the host of “Street Smart” highlights, Mexico’s economy has stood out among those of other Latin American countries, because of it’s ability to keep businesses in Mexico thriving: “keeping inflation in check, while having fairly strong growth and also keeping unemployment extraordinarily low.” Check out the video on MexicoToday.org.

Mexico City Mayor Ebrard: "Mexico should boost finance for small business"

Mexico should boost financing and guarantees for medium and small businesses, Mexico City Mayor Marcelo Ebrard said yesterday in the Mexican capital. Ebrard explained that the government needed to reach an agreement with banks in order to increase access to business loans. “If the risk from those loans calls for bigger guarantees, the government may fund those guarantees,” he said, adding that 'a program in the capital to renovate the city’s fleet of aging taxes could be used as a blueprint for a national plan to replace older city buses and improve public transportation.'

Video on Greek Interim Premier Lucas Papademos

This trained economist has been the Vice-President of the ECB for eight years, as well as a guest speaker at Harvard's Kennedy School of Government and is a reform-minded individual who is hoped to be able to bridge the gap between both parties in Greek government.

Greece names economist Papademos as temporary Prime Minister replacement

Lucas Papademos, the former vice president of the European Central Bank, has been appointed to lead a temporary Greek unity government. One of his main objectives will be to secure financing to avert the country’s economic collapse. In regard to his election, Papademos declared, “I am not a politician but I have dedicated the biggest part of my professional life to economic policy both in Greece and Europe,” Papademos told reporters after being named. “The Greek economy still faces huge problems despite the huge efforts that have been made for fiscal consolidation and to improve competitiveness. Greece is at a critical crossroads.”

Mexico Helping Arizona's Local Economy

Via TrivalleyCentral.com:

According to recent data from the International Trade Administration, the strong Mexican economy is helping Arizona keep pace with other states in export sales this year.

According to reports, trade in exports to Mexico have accounted for more than a third of the state’s international trade in the first half of 2011, when Arizona’s total export sales jumped $1.2 billion, to $8.9 billion. It was the highest year-to-date increase in at least five years.

The bump in exports follows 10 years in which Arizona had the fourth-slowest growth rate among states in international trade, according to the administration’s data.

Mexico’s quick recovery from the global recession, a strong peso and rising commodities prices are key factors in its increasing share of Arizona’s exports, said Lora Mwaniki Lyman, a border economy expert with the University of Arizona’s Eller College of Management.

Exports to Mexico rose about a half-billion dollars to $2.9 billion in the first six months of the year. That total, not adjusted for inflation, is higher than the same period in 2008, which is Arizona’s best year in international sales. In the first half of that year, Arizona exported $2.8 billion in goods to Mexico and $10.8 billion overall.

Modelo Cerveza Invests US$20 million in Nava

Photo by Jairo Manzanares on Flickr.

Modelo will invest US$20 million in its already well-established plant in Nava to start producing barreled beer for the upcoming 2012. They may also start producing other presentations, such as Victoria and Negra Modelo beers, among others. Abel Loza, Director of Modelo, informed that they are considering producing 500,000 hectoliters of barreled beer per year. These barrels’ capacity will be either 30 or 60 liters and will be produced for the export market.

For more information on the increase in growth of Grupo Modelo, click here (article in Spanish).

Chairman of Mexico Airport Company, Asur, Sells Shares

Mexico's Grupo Aeroportuário del Sureste said yesterday that its chairman and largest shareholder, Chico Pardo, has agreed to sell a chunk of the airport operator's capital to bus company Autobuses de Oriente (ADO).

Asur will sell 37,746,290 shares, or 13.6 percent of the airport operator's B shares, to ADO (Autobuses de Oriente).

Currently held by an investment unit called Inversiones y Técnicas Aeroportuárias (ITA), the BB shares, which represent 7.65 percent of Asur's total capital stock, will be sold to repay loans, according to a statement from Chico Pardo.

Asur, which operates the airport in the popular tourist resort of Cancun and eight other airports, reported a 64 percent jump in third-quarter profit, helped by rising passenger traffic.

New Aeronautics Plant Established in Chihuahua

Via MaquilaPortal.com:

Chihuahua and New Mexico are set to enter several agreements that will establish new plants in the aeronautics sector in Mexico. The State Minister of the Economy, Alberto Chretin, announced that the new aeronautics plant in Albuquerque will be starting operations in the next days and the New Mexico Department of Economic Development and Chihuahua Ministry of the Economy will meet in February 2012 to discuss bringing it to Chihuahua. The Minister of Economy for the state of Chihuahua announced that this type of encounters pave the way to supplement aeronautics operations being performed at the state for several years now.

“We must look for business encounters and our job [...] as catalyzers, spreaders and facilitators for the flow of this type of projects required by both states for their economic development [is very important]”, Chretin Castillo declared.

Following his speech, Mr. Chretin added that a very precise diagnosis of the economic strengths of New Mexico as well as Chihuahua, had been made. Knowing of the increased employment and economic activity generated by the private sector in both states, he stated that Chihuahua will encourage entrepreneurs from New Mexico to visit Chihuahua and vice versa.

Mexican Aviation Market Sees Increasing Stability and Growth

The three biggest private airport operators in Mexico released their financial results this week for the period ending September 30, 2011. The Mexican aviation market has been in flux in the past decade but the market is becoming more stable following the exit of one of the oldest airlines in the world, Mexicana de Aviacion, more widely known as Mexicana. Mexico’s growth fundamentals in this industry remain sound; with a large population, strong economic growth and a very large population spread over a large, geographical area there is much to see from the airport business in Mexico.

IGNIA Fund Invests in Latin America

Via MarketWatch.com:

IGNIA Fund I, LP, the first impact investing fund in Latin America, announced today that it has invested over US $3 million in Comunidades que Renacen S.A.P.I. de C.V. ("Provive"), a new business concept which is set up to acquire, refurbish, and sell foreclosed homes in low-income housing developments while working with these communities to reestablish active neighbor participation in its revitalization process. "Provive's work with communities successfully addresses the degradation that many housing developments are suffering, caused by home abandonment and foreclosed homes" said Alvaro Rodriguez Arregui, co-founder and Managing Partner of IGNIA. "With an innovative approach, Provive works with credit providers, developers, NGOs and local authorities to identify, acquire, refurbish, and bring houses back to market, improving infrastructure and public spaces, and the quality of life for people in low income sectors" he added.

Pension Funds Critical in Mexico's Capital Market

The equities segment in Mexico has traditionally underperformed in the past, however, now analysts predict that equity capital markets will pick up in the following year due to the fact that Mexico's pension funds continue to grow and to diversify its investments. Bankers say that this is good for Mexico's fee income which has recovered faster than other country's since ECM work pays better than other financial markets sectors.

Mexican Business Leaders Increase Exports to China

China’s Economic Cooperation Center signed an agreement last Thursday, November 3, with a delegation of Mexican farm producers that were lead by Deputy Agriculture Secretary Gabriel Padilla. In order to improve Mexican farm exports, a group of 30 Mexican business leaders and officials will be visiting wholesale distributors and supermarkets and meet with representatives of the Beijing Western Food Association. The initiative is focused on balancing an uneven bilateral trade relationship between the two countries in which, similar to the U.S. and many other countries, Mexico imports much more from China than it exports to the country. Coordinated by the Mexican Chamber of Commerce in China, the delegation’s agenda includes 10 seminars where farm producers can showcase their products and signing ceremonies for 14 cooperation agreements. The delegation’s tour of four cities will conclude in Shanghai on Nov. 15.

Mexico's Entire Manufacturing Industry Meets

The Convention of the National Council of Maquiladora and Export Manufacturing Industry was held in Guanajuato last Thursday where representatives from the sector met with government officers to discuss future opportunities and challenges for the manufacturing industry in Mexico. All of the most important players were present, including President Calderón (for the inauguration of the event), the Chairman of CNIMME, The National Committee for the Manufacturing Industry in Mexico, Luis Aguirre Lang as well as the Guanajuato State Governor, Juan Manuel Oliva Ramirez and the Minister of the Economy, Bruno Ferrari, who also participated in the inauguration ceremony.

The Global Crisis and News from the G20 Meeting

Watch this video on George Papandreou stepping down from his position as Greek's Prime Minister and how it will affect stock market behavior in the immediate future. Although Greek bonds have taken a 50 percent haircut, the good news for investors is that Greek elections will most likely take place after it's new economic plan is implemented, spurring improved expectations for the future of the economy. (Source: Bloomberg)

Here, Binay Chandgothia, a Hong Kong-based fund manager at Principal Global Investors, talks about global financial markets and his investment strategy. Chandgothia also discusses the Group of 20 summit and Europe's sovereign debt crisis. He speaks with Susan Li on Bloomberg Television's "First Up."

Over U.S.$765 Million Invested in Chihuahua in last 5 years

Since 2006, the state of Chihuahua in Mexico has received 58 new production projects which have generated 13,000 new jobs, with an investment of over U.S.$765 million, the State Minister of the Economy, Alberto Chretin Castillo, informed. Recently, over 29 new operations have been initiated in six different municipalities in the state of Chihuahua. Overall, the area has received a total of over U.S.$500 million of Mexico foreign direct investment -- the cause for generating more than 8,500 jobs. These 29 new manufacturing and industry-based initiatives have sparked over $260 million dollars in investment and 4,600 new jobs. In addition to the multiplication of business enterprise, the recently held Aerospace Summit was a place for true business encounters, Alberto Chretin Castillo, Chihuahua's Minister of the Economy said.

Aeromexico Plans U.S. Expansion Following Profitable Third Quarter

Aeromexico recorded another strong profit in it's third quarter this year and is expected to continue to grow in Mexico, despite the worldwide recession. "Mexico's last legacy airline is planning to increase capacity by another 12% to 13% in 2012, which is driven partially by the launch of several new routes within Mexico and to the U.S." This expansion of Aeromexico’s U.S. network is made possible by its expanded partnership with Delta, which will be formalized over the next few weeks and will result in Delta taking a 4% stake in its SkyTeam partner. As for the CEO of AeroMexico, Andres Conesa has shown confidence that the market will absorb the planned capacity increases, telling analysts the Mexican economy remains relatively strong despite the global economic challenges. “The economic perspective in Mexico remains relatively solid,” he says, pointing out that Mexico’s GDP is still expected to grow by 3.8% in 2011.

How to Cut Financial Stress Today

Via Money Magazine, in conjunction with CNN Money, here are three surprising ways to ease your stress when it comes to your financial woes. One of the suggestions is as simple as, "I don't worry about money anymore." What are your tactics for dealing with the burden of the economic recession in Europe and the U.S.?

Some Predict Greece will Default and Exit Eurozone

Via Bloomberg.com:
Wolfgang Munchau, co-founder of the Eurointelligence website, talks about Greece's debt burden and the outlook for remaining in the euro zone.

Gold Value Booms as Confidence in the Dollar Wanes

Via Bloomberg:

The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved. Futures traded in New York may rise 13 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters

Greece's Prime Minister Pledges Referendum

Via Bloomberg.com: A confidence vote on the rescue deal will start today in Greece. This is being seen as a very risky move on Papandreou's part...watch the video to learn about the possible consequences of this vote, and the second vote he is planning on having before the year's end.

Emergence of the Middle-Class in Mexico is a "Game-Changer"

Via MexicoToday.org:

Mexico is a country that is driving the Americas forward. As this Douglas Dillon Fellow for Latin American Studies states in her interview with MexicoToday, the emergence of a thriving middle class in the country is a game-changer for the Mexican economy. Mexico's middle class is the spitting-image of the American middle class: an average couple will have 2.2 kids on average, will be homeowners, possess one or two cars, have liberal professions in the realms of teaching, medicine or law; work in small or large companies. Most importantly however, Mexico's middle class has many of the same aspirations as the middle class America. Keep watching on MexicoToday.org.

U.S. Trade Representative Talks to Mexico Today

Here Carla Hills, a former U.S. Trade Representative, speaks to MexicoToday on the state of trade relations between the U.S. and Mexico. At the present moment, Mexico buys more from the U.S. than China and Japan combined and - believe it or not - more than what she calls the "so-called BRICS." As she states in her interview, Mexico has grown to become a vibrant economy, something that is founded on what Mrs. Hills defines as, "good macroeconomic policy." For more videos like this one on Mexico's current economy, visit Mexicotoday.org.

New BorgWarner Turbocharger Plant Opens in Ramos, Mexico

Via MexicoToday.org:

BorgWarner has recently opened a new production plant in Ramos, Mexico, near Monterrey, Mexico. BorgWarner is a leading supplier of motor vehicle equipment and systems, simultaneously specializing in advanced turbocharger technology systems. BorgWarner president and General Manager of BorgWarner Turbo Systems Passenger Car Products, Frederic Lissalde, said, “Our new plant in Ramos is strategically located to meet growing customer demand through local production supported by our global resources.”

The newly opened BorgWarner turbocharger plant is anticipated to meet the demand for turbocharging technologies and turbocharged engines in all of North America.

'Chihuahua Country' Aged Beef Awarded Japanese Certification

“Chihuahua Country”, the leading brand of dry aged beef in North Mexico has been granted certification by the Japanese government to sell their products in Japan.

David Dajlala, the Deputy Minister of the Economy for the State Administration, explained yesterday that Chihuahua Country received the permit granted by the Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria or SENASICA (National Service of Sanitation, Harmlessness and Agriculture and Food Quality) which is the agency responsible for verifying that the foods meet international criteria created for exports, in agreement with the Japanese Government.

“This certification is of the utmost relevance; the Japanese market has very stringent norms and entering into their market is not easy. This shows, once again, that beef from Chihuahua and its byproducts are of excellent quality”, he said.

This year's VW profits already exceed 2010 profits

German automobiles manufacturer, Volkswagen, tripled their net benefit from the 1st to the 3rd quarter of 2011, which reached €13.600 billion an almost 250 percent increase over the same reporting period for 2010. The rise in net profit is due to a jump in sales and its increased share in Porsche.

Volkswagen informed today that sales went up to 6.2 million vehicles, due to an improvement in every brand. Invoicing grew 25.6%, to €116.3 billion, and operations benefit improved 86% to €9 billion.

Volkswagen has earned in the first nine months of the year more than throughout the whole last year, when operations profit was €7.1 billion.

Volkswagen has also stated that it intends to keep its share of almost 20% in the Japanese automobile manufacturer, Suzuki.

Mexico's Microfinance Lender, Compartamos, Says Profits Up in 3Q

Mexican microfinance lender Compartamos SAB (CMPRF, COMPARC.MX) said Monday that its third quarter net profit rose 10% this year but equaled last year's results due to recent heavy investment that has limited its profit growth. "The holding company is in a period of heavy investment," said Fernando Alvarez, chief executive of the Compartamos Banco unit in a phone interview from Mexico City. The chief executive added that the holding company opted to invest in software and other operational expenses as part of a strategy to boost future income.

"The holding company is in a period of heavy investment," Alvarez said, noting that the company is also busy consolidating information from new markets and learning the ropes in different countries and currencies.

The microfinance lender has also opened a unit in Guatemala. The Guatemalan unit, which Compartamos is developing from scratch, is growing faster than the company anticipated or would even like, Alvarez said. The unit attracted close to 10,000 clients during the quarter, with payment on all loans current.

"That the market is receiving us very well inspires us to keep growing in Guatemala and continue exploring options in other countries," he said.

The holding company's net interest income -- the difference between revenue generated by interest-bearing assets and the cost of servicing liabilities -- rose 35% on the year during the quarter to MXN2.02 billion.

Grupo Mexico withdraws proposed Asarco/Southern Copper merger

Grupo Mexico withdrew its proposal to combine the operations of its subsidiary companies Asarco and Southern Copper yesterday. The conglomerate made the announcement in its third-quarter 2011 financial reports: "Asarco's assets are operating at full capacity in the U.S., the jurisdiction with the lowest country risk," said Grupo Mexico. "The results for its operations have been better than expected; which are expected to report an EBITDA in excess of US$800 million for 2011. Grupo Mexico has reported a net income of $693.2 million for this third-quarter 2011, a 73.9% increase over the net income reported for third-quarter earnings in 2010. Cumulative net earnings of $1.9 billion were reported during the first nine months of this year, up 75.8% from same reporting period last year.