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Energy
Output At Cantarell Oil Field Falling Fast
July 8, 2008
According to recent reports, production at Cantarell oil field, the country's largest, is falling at the fastest pace in 12 years; output at Cantarell fell 34% in May from the same month of 2007, the biggest decline since October 1995. Analysts say curbs on investments in Mexico's oil sector are responsible for an overall decline in production.
Mexico Estimates USD 70 To USD 80 P/B For 2009 Budget
July 9, 2008
According to the Finance and Public Credit Ministry (SHCP), Mexico will likely base its 2009 federal budget on a sharply higher oil price than compared with this year’s. SHCP said the government is still sorting out the details of the budget, but predicted an average price of between USD 70 and USD 80 per barrel (p/b) based on current oil prices, up from USD 49 p/b in the 2008 budget. The executive branch will submit the 2009 budget proposal to Congress in September, when the fall session begins.
Pemex Sees 15,000 B/D Domestic Ethanol Demand By 2012
July 10, 2008
Pemex said it expects domestic ethanol demand to reach 15,000 barrels per day (b/d) by 2012 after the state-run company begins using the fuel as a gasoline additive in Mexico's three main cities. Pemex will begin using ethanol in Guadalajara in 2010, and then in Mexico City and Monterrey by 2012. Pemex said it will buy ethanol from outside suppliers. Mexico plans to use sugar as a feedstock for ethanol production. Officials have said 300,000 hectares of farmland will be set aside for ethanol by 2012.
Pemex Announces Works At Tula Catalytic Cracker
July 8 , 2008
Pemex has announced tenders for maintenance works at a catalytic converter and for industrial cleaning to a catalytic cracker at the Tula oil refinery, in the state of Hidalgo. One tender calls for 25 days of industrial cleanup at the towers of the refinery's fluid catalytic cracker #1, which produces gasoline blending components. A second tender calls for 90 days of maintenance at the catalytic converter, located in the refinery's fluid catalytic cracker #1. Works are will be carried out in September.
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Mining
GMex: Asarco Sought New Owner All Along
July 10, 2008
Mexican miner Grupo Mexico (GMex) said that bankrupt U.S. copper miner Asarco LLC never intended to allow it to retain control of the company. GMex said Asarco had schemed to find a new buyer and prevented GMex from making a proper bid to keep control of its subsidiary. GMex, which bought Asarco in 1999 but lacks board control due to the bankruptcy filing, claims Asarco's board violated its fiduciary duties by accepting Indian Sterlite Industries' USD 2.6 billion bid over GMex's plan to pay creditors in full.
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Trade & Investment
President Calderon Calls On China To Invest In Mexico
July 10, 2008
President Calderon began his first official visit to China and invited more than 360 Chinese business leaders to invest in Mexico. President Calderon said the Mexican economy was specializing in industries such as automobiles and aviation. The head of the Shanghai Municipal Council for the Promotion of International Trade acknowledged that Mexico is already China's second-largest trade partner in Latin America. Calderon, for his part, said China is Mexico's second-largest trade partner, with bilateral trade surging from about USD 3 billion in 2000 to nearly USD 31.7 billion last year.
Mexico, Korea Want To Strengthen Their Economic Relations
July 10, 2008
President Calderon and Korean counterpart Lee Myung-Bak held a private meeting at the G-8 Summit and agreed to enhance economic relations and work on entering a Free Trade Agreement (FTA) between both countries. Calderon mentioned the importance of strengthening the Strategic Relations for Mutual Prosperity, established in 2003, as well as reviewing negotiations to enter the Mexico-Korea FTA. Korea is Mexico’s sixth trade partner in the world and third investor from the Asia-Pacific Region.
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Banking, Insurance & Finance
Bancomer To Raise Credit Investment By 20% In 2008
July 7, 2008
Bancomer, the Mexican unit of Spanish bank BBVA, said that it expects to raise its credit investments by 20%, down from the nearly 27% a year earlier. Bancomer executives have stated that they are optimistic regarding Mexico’s environment for doing business regardless of the current uncertainty in the international system. Bancomer also said it feels confident it will succeed in having 18 million clients in Mexico by 2010.
Mexican Credit Risk Assessment Firm HR Ratings Begins Operations
July 10, 2008
Mexican credit rating and risks assessment firm HR Ratings, which was authorized in March 2007 by the National Banking and Securities Commission (CNBV) to provide its services, said it will compete with U.S. peers, Fitch Ratings and Standard & Poor’s, and bring more competition to the ratings market. The company has formed a strategic alliance with one of India's leading ratings agencies, Credit Analysis & Research (CARE).
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Business & Industry
Five Mexican Firms Amongst Fortune 500
July 11, 2008
Five Mexican companies have been included in Fortune magazine’s 500 bigger, most valuable companies list. The firms include state–owned Pemex and Comision Federal de Electricidad (CFE); billionaire Carlos Slim’s telcos America Movil and Carso Global Telecomm. Mexican cement maker Cemex was also among the said five. Pemex was number 42; America Movil, 283; Cemex 389; CFE was number 408 and Carso Global Telecom ranked 464.
Grupo Gruma To Open Three New Plants In China
July 10, 2008
Mexican tortilla maker Grupo Gruma said that its Maseca subsidiary will open three new plants in China before 2010 and will require an estimated investment of some USD 100 million. Maseca’s facilities will produce dough for brands such as McDonald’s, Pizza Hut, and KFC, as well as other products to be sold at supermarkets for final consumers. Maseca’s products will also supply the South Korean and Japanese markets. Gruma is the Mexican firm that has invested the most in China to date.
Femsa To Invest MXN 250 Million In Yucatan
July 10, 2008
Mexican conglomerate FEMSA announced it will invest MXN 250 million during the next three years in the state of Yucatan and that the said investment will create about 2,600 jobs. FEMSA explained that the investment will be for its brewer subsidiary FEMSA Cerveza and will include the construction of new facilities in the state, as well as the expansion of current ones.
Laureate Education Acquires Leading Universities In Mexico, Costa Rica
July 8, 2008
Global network of universities Laureate Education announced it has acquired the Universidad Tecnologica de Mexico (UNITEC), one of the largest private universities in Mexico, and the Universidad Latina and Universidad Americana (UAM) in Costa Rica. UNITEC has eight campuses throughout Mexico, including six in Mexico City (DF), one in Guadalajara and one in Monterrey. The university has a 40-year tradition and currently serves more than 36,000 students throughout Mexico.
El Surtidor del Hogar To Compete With Elektra, Banco Azteca
July 10, 2008
Mexican furniture and appliances distributor El Surtidor del Hogar, which was recently acquired by steel maker Consorcio Villacero, said that it plans to compete with Mexican conglomerate Grupo Salinas’ retail and banking units Elektra and Banco Azteca. Villacero said that the retail subsidiary of El Surtidor del Hogar will be called Surtifirme. El Surtidor del Hogar currently operates in the states of Nuevo Leon and Coahuila.
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Automotive
AMIA: Mexico Auto Output Down 1.2% In June
July 10, 2008
According to the Mexican Auto Industry Association (AMIA), auto production fell 1.2% in June compared with the like 2007 period as demand faltered in the U.S. car market. Mexico produced 189,595 vehicles during the month, down from 191,921 in June 2007. AMIA also said exports last month edged up 0.1% year-on-year to 153,345 units, while domestic sales rose 1.2% to 81,421 units. Output was affected in part by some assembly plants being adapted for production of different models.
Ford To Spend USD 6 Billion In Autoparts
July 9, 2008
U.S. automaker Ford Motor’s Mexican subsidiary said that its autoparts acquisitions in Mexico for 2008 will amount to some USD 6 billion, a USD 300 million increase if compared with 2007 figures. Ford seeks to purchase autoparts from the Mexican autoparts sector in order to reduce its costs. Currently, 30% of Ford Mexico’s auoparts providers are local; however, the company expects to double the said percentage in upcoming years.
Geely To Invest USD 269 Million In Guanajuato Plant
July 11, 2008
Chinese car manufacturer Geely Automobile Holdings said it will invest USD 269 million during the next five years to set up a car assembly plant in Leon, in the state of Guanajuato. The plant is expected to create some 2,104 jobs and have a capacity to produce 120,000 cars per year. The governor of Guanajuato said that some 12 firms willing to provide Geely would also arrive to Guanajuato with a joint estimated investment of some USD 231 million, a total investment amounting to about USD 500 million in upcoming years.
AutoExpress Inbursa To Finance Low-Cost Trucks
July 7, 2008
Billionaire Carlos Slim’s banking firm Inbursa has announced it will provide credits through its Autoexpress Inbursa brand to purchase low-cost trucks built by Giant Motors. The vehicles will be produced with Chinese automobile maker FAW’s technology. Giant Motors will be competing with retailer Elektra’s low-cost vehicles and financing programs and expects to place about 3,100 vehicles on the market by the end of 2008. Giant Motors will assemble the trucks at its plant in the state of Hidalgo.
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Housing & Mortgaging
Cartesian Capital To Invest USD 65 Million In Metrofinanciera
July 8, 2008
Mexican home finance company Metrofinanciera said that it has reached an agreement with private equity firm Cartesian Capital Group to invest USD 65 million in the lender through a capital increase. Metrofinanciera said Cartesian will have a minority stake in the company and a seat on its board of directors. The lender said Cartesian's investment will diversify its funding sources and strengthen its growth plans.
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Transportation
Teamsters, U.S. Legislators Insist On Blocking Mexican Truck Program
July 11, 2008
Opponents of a pilot program giving Mexican trucks greater access to U.S. highways won another round in their battle with the Bush administration as the U.S. Senate Appropriations Committee voted 20-9 to block the program, which opponents say erodes highway safety and threatens U.S. jobs. Teamsters General President Jim Hoffa commended the Committee for approving the amendment to ban any and all programs to open the border to long-haul trucks from Mexico. The amendment removes the Bush administration's pretense that it can lawfully operate a pilot program to allow Mexican trucks to travel freely on U.S. highways.
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Telecommunications & Technology
Mobile Phone Providers Unite In Seeking Court Protection
July 11, 2008
Mobile telephone providers Telcel, Iusacell and MoviStar have sought court protection (amparo) against some articles in the Competition Law after a resolution by the Federal Competition Commission (CFC) declared the companies dominant on grounds that they exert dominance on calls’ termination. The firms have not yet been awarded the protection and experts say they may believe the CFC is acting beyond its own functions.
CFC Enthusiastic About Proposal To Award FM Frequencies To AM Operators
July 8, 2008
The Federal Competition Commission (CFC) has seemed to be enthusiastic about a proposal by legislators from the opposition Institutional Revolutionary Party (PRI) to award FM frequencies to AM stations’ operators. CFC said that it appears that the proposal could enhance competition in the sector as supply of FM based broadcasting would be broadened.
Nokia Siemens: Telcel Launches 3G Data Network
July 7, 2008
Nokia Siemens Networks said that mobile phone provider America Movil’s subsidiary Telcel has launched its third-generation (3G) high-speed broadband network in several cities, bringing wireless internet to customers. Telcel aims to attract new subscribers to its service through the offer of services such as live video sharing, news and entertainment. Nokia Siemens, one of Telcel's preferred vendors of 3G technology, will participate in this project by providing a solution combining infrastructure and services based on High-Speed Downlink Packet Access (HSDPA).
America Movil To Offer iPhone To Prepaid Wireless Market
July 9, 2008
Telcel, the Mexican unit of billionaire Carlos Slim’s mobile operator America Movil, plans to offer the iPhone 3G to the country's massive prepaid consumer market in the short term. Telcel dominates Mexico's wireless industry with 51.5 million subscribers and a 73% market share at the end of 1Q. Telcel will sell two versions of Apple’s iPhone 3G under three postpaid plans costing between MXN 459 and MXN 799 a month. Telcel will charge between MXN 889 and MXN 4,689 for each phone depending on the plan.
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Farming & Agriculture
SAGARPA: U.S. Salmonella Outbreak Not Caused By Mexican Tomatoes
July 7, 2008
The Agriculture, Livestock and Rural Development Ministry (SAGARPA) said that its tests found no salmonella in Mexican tomatoes. SAGARPA explained that Mexican officials took samples from the same soil, water and tomatoes recently examined by U.S. inspectors and found no evidence of the bacteria. A team of inspectors from the U.S. Food and Drug Administration (FDA) visited five Mexican farms in search of the source of a salmonella outbreak that has sickened more than 1,000 people. The FDA has not released the results of its tests in Mexico.
Mexico Denies Media Reports That U.S. Halting Mexican Vegetables Imports
July 7, 2008
The Agriculture, Livestock and Rural Development Ministry (SAGARPA) is denying reports that the U.S. will close its borders to some Mexican produce. SAGARPA said it knows of no U.S. plan to stop imports of Mexican cilantro and jalapeño peppers, contrary to U.S. media reports. The FDA said it was testing jalapeño peppers and other vegetables used to make sauce in addition to the tomatoes that caused a recent salmonella outbreak in the U.S.
Mexico To Export Pork Meat To China
July 7, 2008
The Economy Ministry (SE) has said that Mexico and China have finished negotiating a bilateral agreement to boost Mexico’s exports of pork meat to China. Authorities from both States signed the agreement during president Calderon’s recent visit to China. China has been having some sanitary issues with its pork breeding places and has begun importing pork meat from several countries.
Mexico June 2007-2008 Coffee Exports Down 11% To 250,692 Bags
July 10, 2008
The Agriculture, Livestock and Rural Development Ministry (SAGARPA) said that Mexican coffee exports in June, the ninth month of the 2007-2008 crop cycle, were down 11% to 250,692 (60-kilogram) bags; total Mexican coffee exports from October through June, meanwhile, were down 10% at 1,927,622 bags from 2,149,671 bags in the first nine months of the 2006-07 harvest year.
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Hospitality & Tourism
U.S. Seeks To Attract 10% More Mexican Tourists
July 11, 2008
The U.S. government and tourism companies have launched the first official tourism web portal in order to attract more Mexican visitors. A top executive from the Travel Industry Association (TIA) stated that the portal cost USD 4 million and is expected to attract 10% more Mexican tourists to the U.S. In 2007, 15 million Mexican tourists traveled to the U.S.
Mexico City Seeks To Attract More Chinese Tourists
July 8, 2008
Mexico City’s (DF) Tourism Ministry has said that it is seeking to draw more Chinese tourists by launching promotion programs and training related staff. The local Tourism Ministry has also called for an adjustment to Mexico's visa policy to make the visa issuance procedure faster and less complicated in order to attract more Chinese tourists, which have expressed interest in visiting Mexico. DF’s Tourism Ministry said that Mexico receives 16,000 Chinese visitors per year.
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Economy
Mexico Inflation Jumps To Highest Since Late 2004
July 9, 2008
The central bank (Banxico) said that the inflation rate in June jumped at its fastest pace since late 2004 on rising food prices, adding pressure to again raise borrowing costs despite a slowing economy. The peso (MXN) firmed as the central bank said consumer prices rose 5.26% in the 12 months through June. Banxico said rising gasoline, electricity and housing costs also contributed to the spike.
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Border & Migration
Number Of Mexicans Gaining U.S. Citizenship Soars In 2007
July 11, 2008
According to a report by the U.S. government, the number of Mexican-born immigrants who became U.S. citizens swelled by nearly 50% last year amid a massive campaign by Spanish-language media and immigrant advocacy groups to help eligible residents apply for citizenship. Despite Mexicans' historically low rates of naturalization, 122,000 attained U.S. citizenship in 2007, up from 84,000 the previous year, with California and Texas posting the largest gains.
Police Rescue 115 Migrants From Sweltering Cargo Truck
July 7, 2008
Police have rescued 115 Central American migrants who were hidden in a cage inside a sweltering cargo truck. Federal police at a roadblock near the Guatemalan border discovered the migrants after they screamed for help. The migrants were dehydrated and the truck's two drivers were arrested. The National Migration Institute (INM) said that more than 120,000 Central Americans were detained in 2007.
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Politics
President Calderon Makes Official Visit To China, Signs Seven Accords
July 11, 2008
President Calderon arrived in China for a four-day state visit at the invitation of Chinese President Hu Jintao. Calderon marked his first visit to China with seven bilateral accords, including the signing of a veterinary protocol for the sale of pork and an extradition treaty. Two other documents include technical cooperation on social assistance and well being and a 2008-2010 cooperation program between the two countries' respective anti-poverty agencies. Another document is an agreement between China and Mexico for the promotion and reciprocal protection of investments.
President Calderon Attends G-8 Summit
July 8, 2008
President Calderon and counterparts from China, India, Brazil and South Africa — representatives from the group of developing countries (G-5) — and the eight countries from G-8 gathered in Sapporo, capital of Hokkaido, northern Japan, to exchange views on the issues of common concern, including global warming and the world’s food crisis. Leaders from the G-5 countries responded favorably to a call by President Calderon to create a “Green Fund” and finding solutions to solve the food crisis. Meanwhile, French President Sarkozy called on G-8 members to include countries from G-5. However, the U.S. and Italy refused to accept such a proposal. At the end of the summit, the eight formally endorsed a goal of halving global greenhouse-gas emissions by 2050.
Opposition Accuses President Calderon Of Using Espionage To Pass Energy Bill
July 7, 2008
Carlos Navarrete, leader of the leftist Democratic Revolution Party (PRD) party in the Senate, has accused the government of President Calderon of using state intelligence agency CISEN to spy on opposition members of Congress with the aim of using information gleaned from the espionage to blackmail them into supporting his energy reform bill. Navarrete said relations between Congress and the presidency would deteriorate if Calderon does not call for the resignation of CISEN Director Guillermo Valdes.
Alberto Begne Wins Presidency Of Alternativa Socialdemocrata Party
July 13, 2008
Alberto Begne Guerra beat rival Patricia Mercado at the leftist opposition Alternativa Socialdemocrata party’s elections. In addition, the party’s name was changed to Partido Socialdemocrata (PSD) a few hours before elections were held. Luciano Pascoe was elected PSD’s vicepresident, and Begne said that under his administration he will try to unite leftist trends in Mexico.
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Justice, Safety & Crime
U.S. Official Calls On Legislators To Fund Merida
July 7, 2008
A U.S. State Department official is calling on legislators to support the Merida Initiative aid package to combat transnational criminal organizations that threaten security. David Johnson, U.S. assistant secretary for international narcotics and law enforcement affairs, called on lawmakers to fund the initiative, which asks for USD 450 million for operations in Mexico and USD 100 million for Central America. The funding request is part of an over USD 1.4 billion multi-year request for counter-narcotics, counter-terrorism, and border security initiatives.
Legislators: Army Requires Resources To Be Up To Date
July 9, 2008
Legislators from the country’s three most important political parties — the ruling National Action Party (PAN), opposition Institutional Revolutionary Party (PRI) and the Democratic Revolution Party (PRD) — have said that the army is “defenseless” in its fight against organized crime because of a lack of resources: insufficient, unqualified and underpaid personnel as well as old weaponry and equipment. For the said reasons, legislators have asked the Finance and Public Credit Ministry (SHCP) to make available as soon as possible the MXN 7.7 billion that were supposed to be destined for military purposes in 2H.
Mexico Plans To Double Police Forces To Combat Drug Cartels
July 11, 2008
The government plans to nearly double the size of its federal police force in order to reduce the role of the military in combating drug trafficking, under a confidential anti-narcotics strategy that officials made available recently. The plan, known as the Comprehensive Strategy Against Drug Trafficking, also involves purging local police forces of corrupt officers and initiating social measures — such as improving safety in public spaces — designed to improve public confidence in government agencies tainted by corruption.
Switzerland Sends Mexico USD 73 Million Linked To Former President's Brother
July 10, 2008
The government said Switzerland has sent the country USD 73 million from bank accounts linked to former President Carlos Salinas' brother. Deputy Attorney General Jose Luis Santiago Vasconcelos said that an additional USD 1 million will be deposited in the treasury in the coming days. Mexican authorities have been investigating Raul Salinas on suspicion of taking bribes while his brother was in office from 1988 to 1994.
Mexico City Police Chief, Prosecutor Forced To Resign After Nightclub Tragedy
July 2, 2008
Mexico City's (DF) police chief Joel Ortega and the DF’s Attorney General Rodolfo Felix Cardenas were forced out of office following a deadly nightclub raid last month. DF Mayor Marcelo Ebrard made the announcement shortly after the Human Rights Commission (CNDH) presented a report alleging rampant misconduct by officials in the June 20 raid, in which 12 people died in a stampede. Ebrard said he accepted the resignation because “a great institutional change must be made.”
Organized Crime Leaves Over A Dozen Bodies During Weekend
July 8, 2008
Police discovered the tortured and burned bodies of six men in an empty lot in the city of Tijuana, in the state of Baja California, ending a two-month period of relative calm in the border city's war on organized crime. An additional five bodies were discovered since in violence believed to be drug related, including a woman whose body was found stuffed in a barrel. The city had remained relatively quiet since a wild shootout in April claimed the lives of 14 gunmen. In a separate incident, gunmen killed eight people and injured five others in the city of Guamuchil, in the state of Sinaloa; a group of attackers traveling in three vehicles shot passengers in four cars stopped by a red light on a busy street.
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Sports
More Mexican Women Than Men To Compete In Beijing Olympic Games
July 9, 2008
According to the head of the Mexican delegation of athletes participating in the upcoming Beijing 2008 Olympic Games, there will be 85 competitors of which 51%, or 43, are women. The Mexican delegation will compete in 21 sports and 63 trails; the delegation’s flag bearer will be diver Paola Espinoza who is one of the athletes expected to win a medal. Chinese coach Ma Jin trains Espinoza.
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Arts & Culture
Mexican Art Museum In Chicago Opens Exhibit On Immigrant Sorrows
July 7, 2008
Mexican artist Dulce Pinzon’s "A Declaration of Immigration" exhibit at the National Museum of Mexican Art in Chicago was recently opened and includes approximately 100 pieces, including paintings, photographs, sculptures, quilts and artifacts depicting real immigrant workers in the U.S. in their everyday jobs. Although some images are humorous, they intend to proclaim the immigrants as super heroes who work grueling hours to make a better life for their families.
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Other
Mexico Declares State Of Emergency In Veracuz
July 11, 2008
The Interior Ministry (SEGOB) declared a state of emergency in six cities of the eastern state of Veracruz after heavy rains slashed eastern Mexico. SEGOB said the General Coordination for Civil Protection will provide immediate aid to Zapata, Ixhuaxan de los Reyes, Naranjos Amatlan, Panuco, Pueblo Viejo and Tlaltetela. Fifteen of the 31 states were on maximum alert for downpours after landslides and floods killed seven people. Four rivers in Veracruz, the hardest-hit state, have overflowed and floods have left about 10,000 families homeless in 111 municipalities.
UNESCO Names Butterfly Reserve As World Heritage Site
July 8, 2008
The government said that United Nations Educational, Scientific and Cultural Organisation’s (UNESCO) World Heritage Committee has added a Monarch butterfly reserve in the state of Michoacan to its list of World Heritage sites. Each September the butterflies begin a 3,400-mile (5,470-kilometer) journey from the forests of eastern Canada and parts of the U.S. to the central Mexican mountains. The voyage is considered an aesthetic and scientific wonder. But illegal logging and development threaten a delicate migratory route that has spanned across a million square miles (2.6 million square kilometers) for some 10,000 years.
Mexico Plants More Than Eight Million Trees In Response To Illegal Felling
July 7, 2008
Thousands of persons responded to a call by the Executive branch to plant trees throughout the country to counter illegal logging and the belief that the government has sponsored excessive felling. The Environment Ministry (SEMARNAT) said that volunteers to the “Planta un arbol y se parte de la historia“ (Plant a tree and be a part of history) campaign planted 8.3 million trees.
Cargo Jet Crash In Mexico Kills U.S. Pilot
July 6, 2008
A DC-9-15 freighter operated by USA Jet Airlines and which was carrying a load of auto parts crashed as it was trying to land in northern Mexico, killing the pilot and severely injuring the co-pilot who were identified as U.S. citizens. The plane crashed half a mile (one kilometer) from the runway in Ramos Arizpe, in the state of Coahuila, 200 miles (320 kilometers) south of the U.S.-Mexico border. The co-pilot received second- and third-degree burns and was in critical condition at a hospital in the nearby city of Saltillo.
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