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 Outdoes Canada in Automobile Production

Latest news from maquilaportal.com has says that Mexico has outdone Canada in terms of production of automobiles and light trucks, in between 2008 and 2010. Last year 2,262,164 units were assembled, a number that is higher than Canada’s production total. "This year, if the shadow of the recession in the USA does not affect original plans, the record could be broken, mainly with expansion plans by Nissan, GM, VW and Chrysler."

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.

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.

Mexico Credit: First Airport Bond Created

Grupo Aeroportuario del Centro Norte SAB is selling its first bond by a Mexican airport operator as a way to refurbish terminals and refinance debt, tapping into the recent rebound in business travel.

The company, known as OMA, may issue as much as 1.5 billion pesos ($129 million) of debt in the local market as soon as tomorrow to yield 60 basis points above the 28-day interbank lending rate, known as TIIE, or about 5.43 percent, according to Interacciones Casa de Bolsa SA, Scotia Capital and Corp. Actinver SAB. Dollar bonds sold by Aeropuertos Argentina 2000, the South American country's biggest airport operator, yield 9.27 percent, according to data compiled by Bloomberg.

Click here to read the entire story.

Trade Agreement to Improve Economic Area

Up until this week, Mexican trucks were prohibited to travel within 25 miles of the border.
This change, in what was part of the NAFTA agreement signed in 1994, was made with the inception of President Obama, most probably due to security concerns.

“The agreement signed today between the governments of Mexico and the United States to resolve the cross-border long-haul trucking dispute is a major win for U.S. agriculture, American jobs and our nation’s economic prosperity,” U.S. Agriculture Secretary Tom Vilsack wrote in a release.

Mexico will lower existing tariffs ranging on U.S. goods by 50 percent at the start of the program and the remaining 50 percent will be suspended shortly after Mexican trucks are allowed to cross.

Click here to read more.

Increased Employment Rate Advances U.S. Stocks

Via WSJ:

Positive data in both U.S. employment and retail sales numbers sent investors back to risky assests.

The Dow Jones Industrial Average gained 82 points, or 0.7%, to 12708 by midsession, setting the index up for a seventh gain in eight sessions.

Investors' spirits were risen by an employment survey that showed U.S. private-sector jobs rose by 157,000 last month, outdoing economists' forecast by over 50%. The WSJ article states taht the figure "contrasted with months of weak readings on U.S. employment."
Click here for the full article.

Consumer Confidence Up in Mexico for June

Mexico's population grew increasingly confident in terms of spending this past June. It was released on Tuesday by the national statistics agency that Mexico's consumer confidence index rose to 91.9 in June (when adjusted for seasonal factors). Analysts polled by Reuters expected June data to reflect 90.7.

Although consumer confidence hasn't risen much since the recession, the good news is investors predict that interest rates will remain steady until April 2012.

Read more on the positive impact this could have on the Mexican economy.

The World Competitiveness Rankings 2011‬‏

YouTube - ‪The World Competitiveness Rankings 2011‬‏
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Check out this new performance rating with analysis and some surprising news on what countries you should be investing in overseas.

Which do you think are good companies to invest in, in Mexico or abroad? I'd love to read your comments below.

Mexico Credit Status: Bonds Fueled by Slowing Inflation

June 27 (Bloomberg) -- Mexican bonds are posting their biggest gain in 10 months.

Due to speculation that slowing inflation will prompt the central bank to keep interest rates at a record low, the yield on government bonds dropped 22 basis points since June 17, for notes due in 2020.

In comparison to other leading Latin American economies, yields on Brazil's real-denominated bonds climbed 0.09 percentage points (nine basis points) to 12.41%, during the same time period for bonds maturing in 2021.

"The fundamental story of inflation is just very positive," Alberto Bernal, head of fixed income research for Miami-based Bulltick Capital Markets, said in a telephone interview. "We've been very vocal about being long in the long end, and so far so good."

Alejandro Padilla, a debt strategist at Grupo Financiero Banorte-Ixe in Mexico City, said in a telephone interview, "There's a positive effect from the exchange rate. Their inflation reports keep showing signs that there aren't inflationary pressures on the side of internal demand. We don't see any factors that could push the Mexican central bank to move up its tightening cycle."

Alejandro Padilla said his recommendation to investors would be to buy Mexico peso bonds maturing in 2013 and 2015.

Read more: www.sfgate.com

Made in Mexico: The New China

It's no secret that Mexico's economy is booming...but did you know that it's becoming the new China in terms of exports? Mexico's place as an emerging market is largely due to it's export industry. Mexico's share of the global export industry was 12.5% in 2010, the highest in a decade. While the perception has been that China's cheap labor and large production capabilities are greater than Mexico's, the Financial Times states that Mexico could become the U.S.'s second-largest source of imports.

What are your thoughts on the subject? Do you think Mexico is bound to become the next China? In what ways?

Please leave me your comments below :)

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."