New Web Site Shares News on Mexico's Growing Economy

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

AUDI Wants North American Plant - Probably in Mexico

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

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

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

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

Mexico City Reduces Green House Gas Emissions by the Millions

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

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

Mexico Among Group of New Emerging Economies

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

PepsiCo Opens New Beverage Company in Mexico

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

America Movil Posts Impressive 2Q Earnings

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

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

Germany to Continue Heavy Investment in Mexico

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

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

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

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

Top Ten New "BRIC" Countries

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

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

New Emerging Economies to Enter BRIC term?

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

Google Defends Investment

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

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

Mexico Bonds Market Update: July 14th, 2011

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

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

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

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

Mexico Credit Update - July 14th, 2011 -

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

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

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

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

Manufacturing Increases in Mexico

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

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

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

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

Feel free to leave me your comments below.

One Way Investing in Mexico Affects the U.S.

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

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

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

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

Mexico Industrial Output Up in May

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

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

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

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

What Makes Emerging Markets Great Investments?

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

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

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

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

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

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

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

Read more here at NYTimes.com