How a Small Town in Mexico is Taking Tequila Global

Tequila is a business on the rise and thanks to this new “gold rush,” Mexico is now promoting the town of Tequila as the tourist destination for tequila enthusiasts around the globe.

The town of Tequila is home to major brands like Jose Cuervo, Sauza, and a number of smaller producers distilling the highest quality product in the world. Naturally, as the interest in tequila rises, so does Mexico’s production of these golden spirits. For instance, according to figures from Mexico's Secretary of Economy, tequila production has more than doubled since 1995. In 2011, Mexico exported more than 163 million liters of the agave-based alcohol, up from 64 million in 1995.

One of the more widely know distilleries, Sangre de Azteca, produces about 9,000 liters of pure tequila a day, selling it under different brand names in Mexico, France, and the United States.

Amistad Industrial Park Spurs Honda's Industrial Development in Mexico

Governor Juan Manuel Oliva inaugurated the Amistad Industrial Park in Celaya, Mexico last Oct. 12. This new industrial park, which represents a MXP$222.1 million investment in just the first stage, is expected to start operating in February 2012. According to estimates for the next 4 years, 30 companies will set up shop there, generating 2,000 jobs immediately and due to generate 5,000 direct jobs and 6,000 indirect jobs in the future.

According to the Minister of Economic Development, Ramon Alfaro Gomez, there are 10 companies interested in investing and establishing at Amistad Industrial Park, including Japanese Car maker, Honda.

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.”

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

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

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

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

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

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

Bernanke Boosts Investor Confidence in Emerging Markets

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

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

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

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

vid - Watch more Videos at Vodpod.

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

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

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

IMF Says Mexico has overcome Global Economic Crisis

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

Mexican Homebuilders Bonds' Yields Up 4x

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

U.S. Stocks Lower with European Union Meeting

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

Via CNBC.com:

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

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

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

Dickten Masch to Invest in Mexico

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

Honda to Invest 800$ Million in Mexico

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

List of 5 Best and Worst AAA-Rated Sovereigns

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

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

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

Paving the Way for More Immigrant Entrepreneurs

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

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