America Movil Deals with Regulation and Lower Rates

Yesterday it was announced that concerns over regulations for America Movil are going to be shadowed by lower rates.

America Movil's (AMX.N) (AMXL.MX) Mexico earnings before interest, tax, depreciation and amortization margins dropped 330 basis points to 50.5 percent in the quarter ended in June from a year earlier.

Heinz to Invest US$6 Million in Mexico

Via Maquilaportal.com
With a plant in Guadalajara, Jalisco, and corporate offices in Mexico City, Heinz Mexico estimates to close 2011 with invoicing for US$60 million, including exports. The Company plans investments for US$6 million in the next two years to produce in Mexico its flag-product, tomato ketchup.

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.

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.

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.

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.

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

Mexico: Inside A Top-of-the-Line Saddle Business

Talabarteria Rancho Grande is located in Sonora, Mexico. It's a world-class saddle maker, and is the preferred saddle for expert riders, as well as anyone who has a great appreciation for horse-back riding or an equestrian flair.

The business stands out from the rest because it has essentially turned saddle-making into an art. The store, started by Luis Molina in 1949 and now run by his son David, specializes in high-end, elaborate saddles that last up to 30 or 40 years.

Click here to read more about this inspiring Mexican business.

Mexico Experiences Biggest Trade Surplus in 15 Years

Today Reuters reported that Mexico exported $23.5 billion in factory goods in May compared to $22.9 billion in the previous month. In March, "Mexico posted its biggest monthly trade surplus in more than 15 years" as the Mexican economy benefitted greatly from higher gas prices as the United States' primary crude supplier.

Mexico's economy is expected to grow around 4.5 percent this year on factory exports and a rekindling of domestic consumer demand following the 2008-2009 recession.

Click here to get the full report on the increase in trade dollars.

More Foreign Investment in Mexico Has Lead to A Protected Economy

From El Financiero:

El Financiero reported today that foreign institutional investors put more money into Mexico during the first quarter of this year compared to same quarter last year, creating a barrier against the negative effects of the global economy. The board also analyzed what impact the EU, particularly Greece, might have on Mexican economics.

Read the entire report here. (Report in Spanish)

Mexican Retail Sales Accelerate in April

From Reuters:

The news has come out that Mexican retail sales jumped in April from March, largely due to stronger consumer demand. Reuters reported that 'growth in year-over-year retail sales accelerated to 4.9 percent MXRSLY=ECI in April'. These numbers symbolize Mexico's growing economy empowered by its large export industry that caters to the United States.

The economist Alberto Ramos of Goldman Sachs said private consumption growth should rise in the near future due to improvement in the labor market and stronger credit flows.

"Mexico's economy is expected to expand by more than 4.5 percent this year, largely because of industrial output as factories churn out goods for the U.S. market."

Cartstens Promises to Boost Emerging Economies if Chosen for IMF

The head of Mexico’s central bank, Agustin Carstens, said today that if chosen as the top official at the International Monetary Fund he will work to increase representation for developing countries. He also spoke of increasing the IMF’s abilities to deal with financial crises, something that after managing the economic crisis of 2008 and with vast experience as the head of Banxico, he is well suited to do.

Agustin Carstens told the IMF’s 24-member executive board today that the world’s emerging economies needed a bigger voice in IMF decisions.

What is your opinion on the topic?

Source: The Washington Post