Asia Stocks Decline After Weak US Jobs Report - TheStreet

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

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

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

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

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

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

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

Click here to read the full story.

Mexico Central Bank Keeps Benchmark Rate Unchanged

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

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

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

Read the full article here.

Grupo Mexico Looking to Invest in Peru Copper Mine

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

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

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

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

Mexico Becoming Go-To Country for Export Manufacturing Sector

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

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

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

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