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Energy
PRI, PAN, PRD Agree to Pass Oil Sector Reform Next Ordinary Term
August 7, 2008
Beatriz Paredes, German Martinez and Guadalupe Acosta, the presidents of the opposition Institutional Revolutionary Party (PRI), the ruling National Action Party and leftist Democratic Revolution Party (PRD), respectively, agreed to discuss and pass an oil sector reform during Congress's next ordinary term, which begins September 1. The parties' leaders also agreed to pass public security reforms.
FAP Could Present Alternative Oil Sector Reform Proposal August 25
August 6, 2008
Legislators from the leftist Democratic Revolution Party's (PRD) and other leftist parties that form the Broad Progressive Front (FAP) announced that they expect to present their own proposal for an oil sector reform on August 25. FAP hopes to enhance Pemex and obtain political stability with its proposal.
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Trade & Investment
Sojo: Mexico Open To New NAFTA Talks
August 2, 2008
Former Economy Minister and current National Statistics Institute's (INEGI) Director Eduardo Sojo said that the Mexican government dismisses talk of disbanding the North American Free Trade Agreement (NAFTA) as politic pandering, but would back the idea of a new round of North American trade talks, with the aim of including issues such as the environment and labor. Sojo made his comments in Chicago acting as Mexican Economy Minister the first week of August to address the U.S.-Mexican Chamber of Commerce, responding to criticism of NAFTA that resurfaced during the 2008 Democratic presidential primaries.
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Banking, Insurance & Finance
Telecomm-Telegrafos, Banregio Sign Cooperation Agreement
August 7, 2008
The government's telegraph and communications company Telecomunicaciones de Mexico (Telecomm-Telegrafos) and local bank Grupo Financiero Banregio have signed a cooperation agreement to provide joint banking and remittance-related services. The two companies will begin providing services through 1,575 branches across the country this month.
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Business & Industry
Mexico Lifts Plant Requirement For Pharmaceutical Companies
August 6, 2008
The federal government announced it will gradually lift an Economy Ministry (SE) requirement that pharmaceutical companies operating in Mexico must have a manufacturing plant in the country in order to sell medicines in the country. The announcement comes a week after President Calderon ordered the requirement be lifted for laboratories producing drugs to treat AIDS.
SSA Looking To Save Over MXN 310 Million With Drug Discounts
August 6, 2008
The Health Ministry (SSA) said it has saved as much as MXN 310 million in HIV/AIDS medicines since some pharmaceutical companies agreed to lower the prices of the drugs for the government by approximately 40%. SSA said it expects savings in antiretroviral purchases to reach MXN 620 million by 2009. Some of the laboratories that have reduced antiretroviral prices include Merck, Stendhal and Boehringer.
Farmacias Similares Closes Down Remaining Branches In Argentina
August 6, 2008
According to an Argentinean newspaper, Mexican drugstore chain Farmacias Similares (Farmacias del Doctor Simi) has closed down its remaining branches in Argentina, as it could not compete with local drugstore Farmacias del Doctor Ahorro. The newspaper said Doctor Simi started closing down its approximately 40 branches in Argentina in 2006. Additional reasons for the retraction point to the Mexican firm's inability to adapt to Argentina's commercial medicines market.
Coca-Cola Femsa, Coca-Cola To Buy SABMiller Colombian Water Business
August 7, 2008
Mexican soft-drink bottler Coca-Cola Femsa (KOF) and the Coca-Cola Company (KO) said that they have agreed to buy Colombian bottled water business Brisa from brewer SABMiller's unit Bavaria for USD 92 million. The acquisition, which includes the Brisa brand and production assets, requires antitrust approval. KOF and its partner Coca-Cola will each put up half of the money for the acquisition.
Grupo Modelo Renews Agreement With New Zealand's Beer Maker Lion Nathan
August 6, 2008
Mexican brewer Grupo Modelo (GModelo) announced it renewed an agreement with peer Lion Nathan from New Zealand for the import and commercialization of its Corona Extra beer brand. GModelo first signed such an agreement with Lion Nathan in 1988. New Zealand's Corona Extra imports have grown 31% during the past three years.
Accival: Poultry, Poultry Food Imports From U.S. Negatively Affecting Bachoco
August 4, 2008
According to consultancy firm Accival, a decreased demand for chicken, high prices for poultry food and increased imports of such products from the U.S. have negatively impacted leading Mexican chicken and eggs producer Bachoco. The company is looking for new strategies that would allow it to transfer increased production costs to consumers' prices and ease impacts of the poultry market's current difficulties.
Anafarmex: 80% Of Mexican Drugstores Need Financing
August 7, 2008
According to the president of the National Pharmacies Association (Anafarmex), 80% of Mexico's drugstores are small or medium companies that require some financing in order to ensure their supplies of medicine. Meanwhile, Health Minister Jose Angel Cordova Villalobos said the Ministry is working to improve supply and distribution of medicines, and that it succeeded in increasing drugs supply by 13% from 2006.
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Automotive
Ford De Mexico To Produce Motors For The U.S.
August 6, 2008
The Mexican unit of U.S. automaker Ford announced it will begin assembling diesel motors for light trucks at its facility in the state of Chihuahua. The production of the new engines, which will supply the U.S. market, come as Ford recently invested USD 3 billion to broaden its motor manufacture capacity in Mexico. Ford has invested over USD 5 billion in the country over the past five years.
Hino Motors To Open Plant In Mexico
August 8, 2008
Japanese truck company Hino Motors will open a new manufacturing facility in the state of Guanajuato through a joint venture with peer Mitsui. The plant will have the capacity to produce 1,200 vehicles per year and will begin operations in July 2009. Hino will invest USD 7.2 million and Mitsui USD 1.8 million in the facility. Hino first entered the Mexican market in August 2007 when it established its local sales branch, HIMEX.
Chrysler, Nissan To Produce Medium-Sized Cars
August 7, 2008
According to a U.S. newspaper, automakers Chrysler and Nissan are negotiating the joint production of medium-sized vehicles, which would be sold under the Chrysler brand in the U.S. The daily also said that negotiations are to expand former agreements under which Nissan would produce small cars in Mexico that Chrysler would sell under its brand in the U.S. Also under the agreement, Chrysler would produce pickup trucks that Nissan would commercialize under its brand in Brazil.
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Housing & Mortgaging
BBVA Bancomer To Sell MXN 4.83 Billion In Mortgage Bonds
August 4, 2008
BBVA Bancomer, the Mexican unit of Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA), said that it plans to sell MXN 4.83 billion in mortgage-backed securities (MBS) in what will be the largest single issuance of its kind on the local market. Bancomer said the securities – which form part of a larger five-year, MXN 20 billion programs – will be sold in two series. This round of MBS will be denominated in inflation-indexed UDIs (explain) and mature in January 2033. BBVA Bancomer's brokerage unit is managing the sale.
HSBC Mexico Files To Sell Up To MXN 2.04 Billion In Mortgage Bonds
August 7, 2008
The Mexican arm of U.K.-based HSBC Holdings filed to sell up to MXN 2.04 billion in residential mortgage-backed securities (RMBS) later this year in what will be its third issuance of mortgage bonds on the local market. HSBC Mexico said the bonds will be issued in two series as part of a MXN 10 billion program. The timing and tenure of the issuance was not disclosed. The issuance will be HSBC Mexico's first in 2008, after it sold about MXN 6 billion of mortgage bonds in two placements last year.
Singapore's GIC Acquires Stake In Mexico Retail Properties
August 6, 2008
The Government of Singapore Investment Corp.'s (GIC) real estate arm said it has taken a stake in a property fund that will invest in malls across Mexico. GIC Real Estate declined to give details of the size of its investment in Mexico Retail Properties (MRP), which currently owns 14 retail centers in the country and has another 26 projects in the pipeline. In 2005, it formed a USD 700 million joint venture with U.S.-based AMB Property Corp. to invest in industrial distribution properties in Mexico.
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Construction & Infrastructure
Pinfra Wins MXN 770 Million Highway Contract In Sonora
August 6, 2008
Mexican infrastructure firm Pinfra said it won a MXN 770 million contract to build a 48-kilometer section of highway in the state of Sonora. The road will connect the towns of San Luis Rio Colorado and Estacion Doctor. Pinfra's contract is for 30 years and includes the right to build, maintain and operate the highway. The company said the road will provide a faster, safer alternative to the existing route, which is considered dangerous.
Cemex To Raise U.S. Concrete Prices In October
August 4, 2008
Mexican cement maker Cemex said it plans to raise its ready-mix concrete prices across the U.S. by USD 25 a cubic yard, or by about one-fifth, in October, citing higher fuel costs. Cemex USA said the price of concrete will then remain stable through January 2010. Cemex USA said its fuel costs have more than doubled since the end of 2006, affecting the cost of raw materials and delivery.
Venezuela Says Cemex Owes USD 37.3 Million In Back Taxes
August 5, 2008
Venezuela's national tax agency SENIAT notified Mexican cement maker Cemex that it must pay USD 37.3 million after discovering that its taxes had not been paid in full for the 2006 and 2007 fiscal periods. SENIAT customs and tax service said that Cemex, which is in the process of negotiating its upcoming nationalization with the Venezuelan authorities, will have 15 working days to "present a new tax return and pay all or part of the amount in question." If Cemex fails to respond by the deadline, it could face an additional fine.
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Transportation
U.S. Extends Mexico Truck Program Despite Objections
August 5, 2008
The Bush Administration extended a test program allowing long-haul trucks from Mexico full access to U.S. highways for up to two years, despite pending legislation in Congress to shut it down. Organized labor, highway safety and consumer groups have fiercely opposed the initiative, which was permitted under the North American Free Trade Agreement (NAFTA). Trucks from Mexico have historically been confined to U.S. border areas, where they offload goods to be trucked by American companies.
Aviation Regulator Suspends Two Local Airlines
August 4, 2008
The civil aviation regulator said it suspended all the flights of local airlines Avolar Aerolineas and Polar Airlines (Nova Air) for failing to pay flight rights to use the country's airspace. The Communications and Transport Ministry (SCT) said that Avolar owes MXN 131 million in fees and unspecified penalty charges. Meanwhile, Nova Air owes MXN 20 million. However, Avolar has been cleared by SCT to resume operations after it appealed the suspension.
SCT Announces Upcoming Tender For Interurban Train In Guanajuato
August 4, 2008
Communications and Transport Minister Luis Tellez announced that bidding rules for the construction of the Interurban train in the state of Guanajuato will be ready in 14 to 16 months, approximately. In addition, Tellez announced the construction of a rail beltway in the state's capital city of Celaya. Construction of the beltway will require resources from the National Infrastructure Fund as well as state and municipal capital.
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Telecommunications & Technology
Anixter International Acquires Two Companies In Mexico For USD 80 Million
August 4, 2008
U.S. communications products distributor Anixter International said it acquired the assets and operations of QSN Industries and all outstanding shares of Quality Screw de Mexico. Anixter, which distributes wire, cable, fasteners and other small parts for the communications industry, will pay approximately USD 80 million in cash and assume trade liabilities for all of the assets and operations of the two companies. Quality Screw de Mexico, based in the state of Aguascalientes, distributes fasteners and has five operational sites in Mexico.
America Movil To Sell iPhone In 10 New Countries This Month
August 6, 2008
Mexican mobile telephony provider America Movil said that it plans to launch Apple's iPhone 3G in 10 more countries in Latin America by the end of the month. The iPhone 3G will be available in Argentina, Chile, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Paraguay, Peru and Uruguay on August 22. America Movil became the first carrier to offer the iPhone 3G in Latin America when it launched the handset in Mexico last month. Meanwhile, Spain's Telefonica announced plans to launch the iPhone 3G in Latin America on August 22 as well.
America Movil Acquires Nicaraguan Telco
August 7, 2008
Mexican mobile telephony provider America Movil said that it has acquired a 100% stake in Nicaraguan telecommunications firm Estesa Holding as part of its expansion in Central America, for an undisclosed amount. The deal boosts America Movil's presence in Central America, where it has over 8.8 million wireless customers and about 2.2 million fixed lines in Guatemala, Nicaragua, El Salvador and Honduras.
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Media & Entertainment
Televisa Raises Investment In Games And Raffles By 21% Despite Taxes
August 8, 2008
Mexican media conglomerate Grupo Televisa announced that it will raise investment in the gaming and raffles sector by nearly 21% during 2008 to USD 50 million, up from USD 41.4 million last year. Televisa announced the increased investment in the sector despite being taxed with the recently implemented Special Tax on Production and Services (IEPS).
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Farming & Agriculture
U.S.-Mexico Sugar Free Market Taking Shape
August 6, 2008
Officials from Mexico and the U.S. said that free trade in sweeteners between the U.S. and Mexico mandated by the North American Free Trade Agreement (NAFTA) is rounding into shape despite some hiccups. The use of excess sugar entering into the U.S. for production of the alternative fuel ethanol has helped keep the market in balance. NAFTA required the start of free trade on sweeteners on January 1.
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Hospitality & Tourism
Acapulco To Receive Grant From Spain's Water Fund
August 4, 2008
The Spanish government has chosen to award the first grant from its Water Fund to a program that ensures the supply of potable water and the treatment of sewage in the Mexican city of Acapulco, in the state of Guerrero. A plan to clean up Acapulco Bay will be carried out between 2008 and 2011 and is intended to guarantee the supply of high-quality potable water to the entire population, as well as improve the sanitary drainage system and ensure that 100% of raw sewage that is currently spewed into the Pacific Ocean is treated.
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Economy
President Calderon Appoints New Economy Minister, Director Of INEGI
August 6, 2008
President Calderon named his pro-business former chief of staff Gerardo Ruiz Mateos as Economy Minister. Gerardo Ruiz, a top manager of Calderon's 2006 presidential campaign and former president of the Council of the Social Union of Mexican Businesses, will replace Eduardo Sojo, who was named president of the National Statistics Institute (INEGI). Sojo's appointment to INEGI requires congressional approval.
Peso Firms To Six-Year High; Stocks Tumble
August 4, 2008
The Mexican peso (MXN) strengthened to a six-year high as lower oil prices eased some economic fears and investors bet on higher local interest rates, while stocks sank to a six-month low. MXN gained 0.9% at the central bank's (Banxico’s) final reference to MXN 9.8745/USD, its strongest since late August 2002. The benchmark IPC stock index closed 1.75% lower at 26,487.76 as falling commodity prices hit Mexican mining companies and fears of further losses at banks knocked down stock markets around the world.
Consumer Confidence Lowest On Record In July
August 5, 2008
Mexico's consumer confidence continued to fall in July, reaching its lowest level on record amid rising inflation and worsening economic growth prospects. The National Statistics Institute (INEGI) said that the consumer confidence index was 88.4 last month, down from 90.7 in June and 104.8 in July 2007. Confidence fell in all five categories, with consumers less optimistic about the economy as a whole, their personal economic situations and prospects, and their ability to buy big-ticket items.
IMF Urges Mexico to Tap Potential in Oil Sector
August 10, 2008
The International Monetary Fund (IMF) recommended Mexico to take necessary measures to curb a possible drop in oil income driven by a fall in oil production. IMF suggested Mexico raised investment in the oil sector to tap the country's potential and that the country lower its financial deficit to keep its budget balanced. IMF said Mexico should promote competition, mostly in sectors such as telecommunications, to boost productivity and growth while trying to reduce the country's broad socioeconomic gap.
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Border & Migration
Repatriation Of 64,000 Illegal Mexican Migrants Cost The U.S. USD 51 Million
August 10, 2008
The U.S. government has spent more than USD 51 million over the past four years flying nearly 64,000 illegal immigrants home to Mexico City. The flights are intended to break the smuggling cycle and reduce the desert death count. But experts say evidence shows that the binational Interior Repatriation Program has not made any substantial difference in border smuggling or desert deaths. Experts also say the principal beneficiary is a Mexican airline contracted to operate the twice-daily flights out of Tucson.
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Politics
Poll: PRI, PAN Have Same Level Of Support Ahead Of Midterm Elections
August 8, 2008
A poll by a local newspaper indicated that the opposition Institutional Revolutionary Party (PRI) has as much support as President Calderon's conservative National Action Party (PAN) ahead of next year's midterm congressional elections. According to the survey, the PRI and PAN would each take 30.3% of the vote if the elections were held today. The PRI has been trying to recover since losing the presidency to the PAN in 2000, when Vicente Fox ended the PRI's 70-year grip on the office. The poll also indicated that only 12.8% of those surveyed would vote for the leftist PRD party.
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Justice, Safety & Crime
U.S. Treasury Freezes Assets Connected To Sinaloa Cartel
August 5, 2008
The U.S. Treasury Department said it has frozen the domestic assets of 14 companies and 17 individuals tied to suspected drug trafficking kingpin Rigoberto Gaxiola Medina. Medina, currently in prison in Mexico, leads a major drug-trafficking ring that has brought thousands of tons of marijuana from Mexico to the U.S. through a network of underground tunnels. His organization is a vital component of the Sinaloa Cartel. Despite Medina's arrest, a network of family and business associates continues to launder drug money for him. Companies in the mining, real estate, construction, retail and transportation sectors as well as a private gym and a car dealership are facing Treasury action under the Foreign Narcotics Kingpin Designation Act.
Two Officials Arrested In Killing Of Wealthy Mexican Teen
August 4, 2008
Authorities have arrested three men, including a local police commander and a federal agent in connection with the kidnap-slaying of the 14-year-old son of a prominent businessman. The decomposed body of Fernando Marti was found in the trunk of a car abandoned in a southern Mexico City (DF) neighborhood. He was seized on June 4 by men in federal police uniforms at a phony checkpoint while being driven to school. His chauffeur and bodyguard were found the day after the abduction also in the trunk of an abandoned car. Initial reports indicated that both had been strangled, however, the bodyguard survived (if you are strangled, you have died), but was reported dead by police for his protection and in order to enhance their investigation (not sure what this means).
Police Scandal Renews Calls To Reform Criminal Justice System
August 8, 2008
Mexico City (DF) policemen were officially accused of being behind the kidnap-slaying of the 14-year-old son of millionaire Alejandro Marti, which yielded renewed calls from the administration of President Calderon to reform the country's criminal justice system. Meanwhile, 13 DF police officers denied they belonged to the kidnapping ring that killed Fernando Marti and said they were coming forward to clear their names. The officers, who are members of DF attorney's office's police force, were under the command of Jose Luis Romero, who was arrested for his alleged role in the kidnapping and murder of Marti.
President Calderon Seeks Tougher Penalties For Kidnappers
August 7, 2008
President Calderon said he is sending a bill to Congress that seeks tougher penalties for kidnappers. Calderon said the proposal seeks to raise the maximum penalty to life imprisonment in certain cases, including kidnappers who are or have been members of a police force, for those who kidnap minors or people with a disability, and for those who harm, mutilate or kill their victims.
Outspoken General Aponte Polito Loses His Tijuana Post
August 8, 2008
An outspoken general who urged residents to call the army when they witnessed a murder or drug deal in the crime-stricken border city of Tijuana, in the state of Baja California, was ousted after repeatedly chastising police for being corrupt. General Sergio Aponte Polito publicized a phone number to field the public's pleas for help, and he gave the news media a 5,700-word bombshell letter complaining about bad cops. Experts say such public provocations are extremely out of character for military leaders in Mexico, and may have cost the popular Aponte his job.
Mexico Shuts Down Major Illegal-Drug Lab
August 7, 2008
Police and soldiers seized a major clandestine drug laboratory in the state of Jalisco. The lab was located on Los Ontiveros ranch in the municipality of Juanacatlan, 35 kilometers (22 miles) from Guadalajara. Four people were arrested in the operation, while six ovens, four processors and other equipment were seized from a 600-sq.-meter (6,449-sq.-foot) storeroom, as well as dozens of containers of raw material and other containers filled with a substance thought to be finished drug.
Mexico Businesses Tighten Security Against Drugs
August 6, 2008
Businesses in Mexico are tightening security against drug gangs that sneak narcotics into export shipments to the U.S. and have turned manufacturing centers on the U.S. border into battlegrounds. The violence has hardly damaged the broad economy but several recent incidents where illegal drugs were found hidden within the cargo shipments of major exporters have put executives on edge. The president of the National Council of Mexico's Maquiladoras said they have had to reinforce security measures.
Texas Executes Mexican-Born Killer
August 6, 2008
Jose Medellin, a Mexican-born condemned prisoner, was executed in Texas for the rape and murder of two teenage girls 15 years ago after a divided U.S. Supreme Court rejected his request for a reprieve. Medellin's execution attracted international attention after he raised claims he wasn't allowed to consult the Mexican consulate for legal help following his arrest. Mexico's government condemned the execution of Medellin and said the U.S. violated international law, expressing concern for the rights of other Mexicans detained in the U.S.
Mexican Soldiers Enter Arizona, Hold Border Patrol Agent Briefly
August 6, 2008
U.S. authorities said that four Mexican soldiers crossed into a remote area of Arizona and briefly held a U.S. Border Patrol agent at gunpoint before realizing where they were and returning to Mexico. The confrontation occurred on the Tohono O'odham Indian Reservation, about 85 miles southwest of Tucson, in an area fenced only with barbed wire. The soldiers pointed their rifles at the agent and shouted at him not to move. They lowered their weapons when the agent convinced them of who he was and where they were. The soldiers then retreated into Mexico.
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Health & Science
Five Countries Awarded Red Ribbons For Fighting HIV/AIDS
August 7, 2008
The United Nations Development Program (UNDP) awarded five organizations from Ghana, India, Iran, Malawi and Mexico with Red Ribbon awards, in recognition of their roles in fighting Human Immunodeficiency Virus (HIV). Rebecca Grynspan, UNDP regional director for Latin America and the Caribbean, who conveyed the award at the 17th International Aids Conference in Mexico City, said the award recipients "have demonstrated extraordinary creativity, courage and leadership in response to the epidemic and achieved tangible results with limited resources."
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Sports
Music Excites Mexican Delegation In Olympic Opening Ceremony
August 8, 2008
Mexican athletes were very enthusiastic during the opening ceremony of the 29th Olympic games in Beijing, China, as the music playing during the event included several Mexican vernacular pieces. Diver Paola Espinoza, who bore the Mexican flag, led the Mexican delegation. The delegation marched in the 197th position among the 204 participating countries and regions.
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Other
Clinton, Slim Announce USD 50 Million In Projects In Mexico, Colombia And Peru
August 4, 2008
President Clinton joined philanthropists and prominent businessmen Frank Giustra and Carlos Slim, along with President of the Inter-American Development Bank (IDB) Luis Moreno, to announce new projects of the Clinton Giustra Sustainable Growth Initiative (CGSGI) in three countries. The projects will create a new USD 20 million project to strengthen small and medium-sized businesses in underserved areas of Colombia; support 50,000 additional cataract surgeries over three years in Peru; and support a USD 20 million education project in Mexico.
Chicago To Celebrate Mexico's Independence Day
August 8, 2008
Authorities from the city of Chicago announced they will celebrate Mexico's Independence Day for the fourth year in a row. Up until now, 43 of the city's most prominent buildings have confirmed that they will be participating in the celebration by hanging Mexican flags and using green, white and red – the colors of the Mexican flag – illuminated at night. Javier Salas, who is the radio host and counselor of the Institute for Mexicans Abroad, created the event, dubbed "Mexican Independent Skyline Tribute."
Woman Fights Off Lion With Machete
August 7, 2008
A woman said she fought a 500-pound lion with a machete near the resort city of Acapulco and scared him away. Celsa Aleman said she and her 7-year-old niece were riding a donkey along a road when the lion went after the animal's legs. The 35-year-old woman said she found the courage to fight the lion because she thought it would attack her niece. She said she hit the animal with a machete until the beast ran away and Aleman and her niece were unharmed. The lion, which killed two dogs and ate a pig, had escaped from a private zoo owned by a former local congressman.
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