Big Opportunities in Latin America for U.S. Companies

“There are big opportunities in Latin America,” says Mr. Diez Barroso, great-grandson of the Televisa founder. “But a lot of the [U.S.] companies I talk to have resources committed to Asia – and not Latin America.”


A new joint venture, between a new bank, Evolution Media Capital, and Creative Artists Agency aims to make it easier for U.S. institutions and other groups to identify film, television and sports investments in the U.S. and Latin America. This is something that is becoming increasingly attractive thanks to sharp growth in the region’s media sector.


Mr. Diez Barroso said the joint venture would become a “gateway” for the region creating opportunities for U.S. investors that had previously been limited to wealthy individuals or families from Latin America. “We want to provide an access point for these deals,” he told the Financial Times.

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.

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.

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.

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.

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.

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.

Fed Reserve to Keep Interest Rates at Record Low

Via Bloomberg.com:
"The Federal Reserve pledged for the first time to keep its interest rate at a record low at least through mid-2013 in an effort to revive a flagging recovery after the worldwide stock fall."

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?

Inflation Rises in Mexico for First Time in Four Months

Via the WSJ.com: The National Statistics Institute, or Inegi, said today that the consumer price index rose 0.48% in July, pushing the annual rate up to 3.55%. Mexican consumer prices rose in July for the first time in four months, pushed by higher food and transportation costs.

Mexico Exports to U.S. Hit Record High

Mexico broke the record of its share of total imports (in terms of non-petroleum market) to the USA, reaching 12.7% of all foreign exports in the first five months of 2011, breaking last year's record of 12.6%. Click here to get the full story.

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.

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...

Mexico's Largest Fishery Passes Sustainability Assessment

The Pacific sardine (Sardinops sagax) fishery in the Gulf of California, has been certified as meeting the MSC standard for sustainable, well-managed fisheries. After following an independent assessment.

“The certification is important because it sends a clear message that it is possible to fish in a responsible way in accordance to the FAO fishing code, by being certified we are committed to fish in a responsible, sustainable and environmentally friendly way. [...]"

Click here to read more on the subject and what this could mean for the industry in Mexico.

New Bombardier Jet Manufactured in Mexico

There is news that the innovative, ultra-modern jet made by the aviation company Bombardier, which 5 years ago invested heavily to build it's first manufacturing plant in Mexico, is ready to assemble its new executive jet, expected to start flying in 2013.

The Canadian company, Bombardier, creator of the 8-passenger Learjet85, has invested US$250 million in Mexico since 2008. Click here to read more about this advancement in the Mexican aerospace industry.

Coca Cola Earnings Up 18% this Quarter

Coca-Cola Company said today that its second-quarter profit jumped 18% to $2.8 billion, or $1.20 a share, from $2.37 billion, in the year-ago period. The maker of sweetened sodas, juice drinks and bottled water said that its productivity initiatives were right on track with the $400 million to $500 million four-year guidance that they planned to "slightly exceed".

Coca cola FEMSA, established in Mexico in 2003, is the second largest Coca-Cola bottler in the world.

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.

Analysis of U.S. Economy: Debt Ceiling

Via the Financial Times, here is a video that gives us a good idea of how economic analysts predict the conclusion of the debt ceiling talks before August 2nd and how it can potentially affect the rest of the world economy.