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Energy
Pemex Results Fall Despite Increased Spending In Exploration And Production
August 9, 2008
According to official figures, Pemex's performance in exploration and production has been deteriorating despite a 133% increase in the company's budget for the said activities to MXN 14 billion, up from MXN 6 billion in 2000. Pemex said it drilled 615 wells in 2007, down from 653 in 2003, and discovered 14 oil fields in 2007, down from the 33 it found in 2003. Crude output fell to 699 barrels per day (b/d) in 2007, down from the 880 b/d it produced in 2003.
Pemex Mulls Expansions To Enhance Refining
August 11, 2008
Pemex said it is analyzing possibilities for building new refineries in order to reduce gasoline imports, which currently amount to 40% of the gasoline that is sold in the country. Pemex said that new refineries could be built in the states of Tamaulipas, Veracruz and Oaxaca. Pemex said that required investment to build a refinery would amount to USD 9 billion and that the definitive location of the facility will be determined shortly.
Mexico Fines U.S. Citizens For Carrying Extra Fuel Containers
August 9, 2008
Authorities in the border city of Ciudad Acuña, in the state of Coahuila, have started a program to discourage U.S. citizens from crossing the border to fill up extra drums, tanks or barrels with subsidized Mexican diesel fuel. Authorities said they fined four U.S. residents for carrying extra fuel containers, which violates customs laws and possibly safety standards.
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Trade & Investment
INEGI: Mexico's May Fixed Investment Up 3.7% On Year
August 12, 2008
According to figures from the National Statistics Institute (INEGI), fixed investment in Mexico rose 3.7% in May from the year-ago month, tempered by a drop in construction. INEGI said investment in equipment and machinery was up 12.3% from May 2007, but investment in construction fell 1.8%. INEGI reported decreased construction activity in housing, commercial buildings, roads and bridges, among other areas. INEGI said that fixed investment in May was up 1.1%, seasonally adjusted from April.
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Banking, Insurance & Finance
Consar: Pension Savings Reach MXN 839.91 Billion At The End Of July
August 15, 2008
According to pension regulator Consar, Mexico's pension fund companies reported MXN 839.91 billion in compulsory retirement savings under management at the end of last month, up from MXN 785.43 billion in July 2007. July's total, however, was below the record MXN 867.92 billion reported at the end of May. Total assets under management, including voluntary and other types of savings as well as pension companies' regulatory capital, reached MXN 855.78 billion at the end of July.
Compartamos Proposes MXN 700 Million Share Buyback Fund
August 14, 2008
Mexican microfinance bank Banco Compartamos said that it will ask its shareholders to approve the creation of a MXN 700 million share buyback fund. Compartamos said it has recommended that shareholders approve management's proposal to transfer retained earnings to a buyback fund at an upcoming shareholders' meeting. Compartamos had MXN 4.79 billion in loans and 940,645 clients at the end of June.
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Business & Industry
AMELAF: Lifting The Plant Requirement Was An Erroneous Decision
August 14, 2008
According to the Mexican Association of Pharmaceutical Laboratories (AMELAF), the government's decision to lift a requirement that pharmaceutical companies operating in Mexico must have a manufacturing plant in the country in order to use or sell drugs in Mexico was a premeditated decision and a way to pressure laboratories to lower their prices. AMELAF said that they are concerned because the Federal Commission for Sanitary Risks Protection (Cofepris) is unable to guarantee the good quality of the drugs that will enter the country.
Canifarma: Pharmaceutical Industry Needs Support To Compete Internationally
August 15, 2008
According to the National Pharmaceutical Chamber (Canifarma), Mexico's pharmaceutical industry requires fiscal incentives and support for basic and productive research, among other supportive measures, in order to better compete internationally. Canifarma said that lifting a requirement compelling pharmaceutical firms operating in Mexico to have a manufacturing plant in the country in order to commercialize drugs within it will boost competitiveness but will affect the smallest companies, which represent 20% of the industry.
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Automotive
Mexico's July Auto Production Down 2.8% To 144,714 Units
August 12, 2008
According to the Mexican Auto Industry Association (AMIA), Mexico's auto production and exports fell in July from the year-ago month, while domestic new car sales were higher. AMIA said production last month fell 2.8% to 144,714 units, while exports were 6.2% lower at 121,561 units. Domestic sales, which have been lagging behind output and exports, rose 2.7% from July 2007 to 85,324 units.
Volkswagen Averts Mexico Strike With 5.4% Wage Increase
August 18, 2008
The Mexican unit of German automaker Volkswagen reached an agreement to pay its workers a 5.4% wage increase, warding off a strike. Volkswagen de Mexico said that the settlement also includes an increase in benefits, such as more grocery vouchers and an additional day of Christmas bonus. The wage agreement was in line with inflation, which was an annual 5.4% at the end of July. Average private and public sector wage increases in July were 4.8%, according to data from the Labor Ministry (STPS).
Tafime To Expand Queretaro Plant
August 13, 2008
Spanish aluminum and plastics injection producer Tafime announced that it will invest EUR 50 million to expand its facility at the Queretaro Industrial Park, in the state of the same name. Tafime said that the Queretaro plant's broadening will allow it to produce one million monoblocks per year for motors produced by U.S. automaker Chrysler. Works are expected to conclude in 2010 and the expansion will allow Tafime to create 600 jobs.
Sanluis Rassini To Export Car Suspensions To Brazil
August 12, 2008
Mexican autoparts manufacturer SanLuis Rassini announced that it has begun exporting suspension systems and other autoparts for heavy vehicles to Brazil through its Rassini NHK Autopeças (RNA) subsidiary. RNA specializes in helicoidal springs for car assemblers and for replacements' providers.
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Housing & Mortgaging
Metrofinanciera Files To Sell MXN 2.32 Billion In Mortgage Bonds
August 13, 2008
Mexican home finance company Metrofinanciera said that it has filed to sell up to MXN 2.32 billion of mortgage bonds in two series later this year. The company said it plans to issue the first series of bonds denominated in inflation-indexed UDIs for about MXN 1.55 billion, and up to MXN 769.6 million of peso-denominated bonds in the second series. The issuance is part of a larger MXN 10 billion program and will be Metrofinanciera's third placement of mortgage bonds this year.
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Construction & Infrastructure
IFC, FIRA: Private Sector Resources For Roads To Total USD 11.8 Billion
August 11, 2008
According to a joint statement by the International Finance Corporation (IFC), a World Bank (WB) agency, and the Trust Funds Related to Agriculture (FIRA), the private sector's resources to be provided for the construction of roads and highways in Mexico should represent 45% of the National Infrastructure Plan (PNI), an amount totaling approximately USD 11.8 billion.
SCT To Build, Modernize 3,300 KM Of Rural Roads
August 11, 2008
The Communications and Transport Ministry (SCT) announced that it will invest approximately MXN 11 billion this year to expand and modernize 3,300 kilometers of rural highways. SCT stated that rural roads benefit over 15 million people, including indigenous, marginalized and extremely poor communities. SCT also said that it will put in a tender for MXN 8.2 billion for road projects through public-private associations, and investment that is part of a broader MXN 71.5 billion investment program.
Mexico Announces USD 1.27 Billion Drain Tunnel
August 13, 2008
Mexico announced it will build a USD 1.27 billion tunnel to help solve the centuries-old drainage problem of Mexico City (DF). Mexico City is sinking because of groundwater extraction, and is vulnerable to flooding because it sits in a mountain-ringed valley with no natural exit for rainwater. President Calderon said that the tunnel will be the largest of its type in Mexico, and one of the biggest and most expensive public works projects of his administration.
ICA Wins Two Contracts Worth MXN 642.6 Million
August 11, 2008
Mexican infrastructure firm Empresas ICA said it won contracts to build a convention center in the central city of San Luis Potosi, in the state of the same name, and to carry out renovations at the Mexico City International Airport (AICM). The convention center requires an investment of MXN 428.6 million and is to be built in 362 days. The project at AICM consists of MXN 214 million in repairs and upgrades to a runway, and is expected to be completed in four months.
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Transportation
Government Seeks Bids On New Suburban Train Line
August 11, 2008
The Communications and Transport Ministry (SCT) said that the government has begun seeking bids to build a new suburban train line worth an estimated MXN 5.3 billion. The project – Line 2 – is one of three suburban railways the government plans to build in the Mexico City metropolitan area. The line will cover about 20 kilometers in the northeastern part of the capital, joining the Federal District with the municipality of Ecatepec in the neighboring State of Mexico (Edomex).
KCSM Plans New Intermodal Terminal In Mexico, USD 100 Million Investment
August 13, 2008
Kansas City Southern de Mexico (KCSM), the Mexican unit of U.S. railway company KCS, said that it expects to complete next month a project proposal for a new intermodal terminal. KCSM said that the terminal would serve the states of Veracruz, Michoacan, Queretaro, Hidalgo, Jalisco and the Federal District and that it would be used to transport automobiles. KCSM also announced a USD 100 million investment for maintenance of its network, and to acquire new locomotives and other equipment.
Mexico Loses 10,600 Flights Due To U.S. Air Crisis, Turbosine High Prices
August 15, 2008
According to figures from the Communications and Transport Ministry (SCT), the U.S. air crisis and high turbosine prices have led Mexican airlines to lose approximately 10,599 domestic and international flights between April and June. SCT said domestic operations were more affected with 9,635 lost flights, whereas airlines lost 964 international flights in the said period.
Civil Aeronautics Director: Mexicana-Aeromexico Could Merge
August 12, 2008
According to Mexico's Civil Aeronautics director Gilberto Lopez Meyer, Mexico's two most important airlines Mexicana and Aeromexico could merge by the end of the year in order to face the sector's current crisis. Lopez Meyer said that the mentioned firms could look forward to a merger in order to cushion the impact of increased fuel prices, the market slowdown and price hikes that led to lower demand.
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Telecommunications & Technology
Luz Y Fuerza Del Centro Sets Sights On Telecom Market
August 13, 2008
State-run electricity firm Luz y Fuerza del Centro (LyFC) plans to use its fiber-optic lines to enter Mexico's telecommunications market. LyFC said the company will begin by using its fiber-optic lines to provide phone and Internet services for its own offices, as well as federal and municipal government offices. But it could eventually compete in the residential market. LyFC still has to carry out a feasibility study and submit a project proposal to telecommunications regulators and the Communications and Transport Ministry (SCT).
Telmex To Lower Tariffs If Allowed To Provide Triple Play Services
August 13, 2008
Telmex executives said that the company needs to have its concession modified in order to take advantage of the telecommunications services' convergence. Telmex said that if its concession is changed and it is allowed to provide triple play services it will be able to keep and even increase efficiency, leading to lower tariffs for its clients. Telmex has not raised tariffs in eight consecutive years and is currently competing with cable TV companies that are providing telephony services at lower prices.
Spending For Internet-Based Advertising Up 95%
August 12, 2008
According to the Interactive Advertising Bureau (IAB), Mexico's spending in Internet advertising during 2007 grew 95% when compared to figures from 2006 and amounted to more than MXN 1 billion. IAB said that although spending in Internet advertising was much less than spending in other advertising platforms, results are encouraging and could grow even more in upcoming years.
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Media & Entertainment
Legislators Discuss Possibility Of Allowing Casinos In Tourist Destinations
August 13, 2008
Legislators are reviewing the Gaming and Raffles Law from 1947 in order to update it and possibly allow casinos to open in some locations, mostly in tourist destinations, in order to create jobs and enhance economic development. Legislators will also investigate 763 permits that were awarded for casino operators during the terms of former Interior Ministers Santiago Creel, Francisco Ramirez Acuña and current Minister Juan Camilo Mouriño.
Televisa Interested By Tender To Acquire License For TV Station In Colombia
August 12, 2008
Mexican media conglomerate Grupo Televisa said it is interested by a tender to acquire a license for a new TV station in Colombia. According to a Colombian newspaper, local company Grupo Cisneros, Spanish Grupo Planeta and Promotora de Informaciones (Prisa) are some of the current bidders.
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Hospitality & Tourism
LaSalle To Invest USD 60 Million With Mexican Hotel Operator Posadas
August 13, 2008
Real estate investment firm LaSalle Investment Management has signed a deal to invest USD 60 million in the development of eight hotels by Mexican operator Grupo Posadas. The strategic alliance involves eight new hotels in Mexico – four Fiesta Inn hotels and four One hotels. LaSalle Investment Management will put up the entire USD 60 million for the hotels, which Posadas will develop, build and operate. The hotels are expected be fully operational within two years.
MTB, Travelocity Sign Deal To Capture Cost-Conscious U.S. Travelers
August 13, 2008
The Mexico Tourism Board (MTB) said it launched a new shopping and booking engine on Visitmexico.com for travelers in the U.S. The new deal with U.S. travel agency Travelocity aims to bring those travelers to Mexico. The announcement comes at a time when many travelers have already started shifting their international travel plans to Mexico. Travelocity recently reported that the share of its bookings to Mexico this summer increased 31.4%, while destinations in Western Europe declined by 14.6%.
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Economy
Bank Hikes Benchmark Rate To 8.25% From 8%
August 15, 2008
The Bank of Mexico (Banxico) raised the benchmark rate by a quarter of a percentage point to 8.25% in its third straight hike this year, saying it seeks to anchor inflation expectations. Banxico raised the overnight rate by 25 basis points in both June and July in a bid to anchor inflation expectations and keep soaring food and energy prices from spilling over into other prices and wages.
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Border & Migration
Governor Schwarzenegger Urges U.S.-Mexico Cooperation
August 14, 2008
California Governor Arnold Schwarzenegger urged fellow governors on both sides of the U.S.-Mexico border to cooperate on issues such as law enforcement, international human rights, victim assistance, human trafficking, pollution, gunrunning and drug violence, and economic potential during the 26th annual Border Governors Conference. Also at the forum were experts in the mentioned fields from the U.S. and Mexico.
U.S. Authorities: Self-Deportation Program Seen Failing
August 10, 2008
U.S. Immigration and Customs Enforcement (ICE) officials said that only three people have taken the self-deportation option that is offered by the three-week pilot program called Scheduled Departure. The program started giving 457,000 illegal immigrants a chance to turn themselves in without the usual threat of arrest and detention. U.S. immigration authorities have promoted the program through news conferences and Spanish-language television and newspaper ads.
U.S. Has Deported 90,000 Mexican Children During 2008
August 11, 2008
According to a study by the Institutional Revolutionary Party's (PRI's) migration workgroup, the U.S. has deported 90,000 Mexican children during 2008. The study indicates that 15% of the children, amounting to approximately 13,500, live along the Mexico-U.S. border and have no protection from the Mexican government. The study also provided figures showing that the U.S. has deported 300,000 adults during the first seven months of 2008.
U.S. Census Bureau: In A Generation, Minorities May Be The U.S. Majority
August 14, 2008
According to new projections by the U.S. Census Bureau, ethnic and racial minorities will comprise a majority of the nation's population in a little more than a generation because a transformation is occurring faster than anticipated just a few years ago. The census calculates that by 2042, Americans who identify themselves as Hispanic, black, Asian, American Indian, Native Hawaiian and Pacific Islander will together outnumber non-Hispanic whites.
Construction Begins On USD 57 Million San Diego Border Fence
August 15, 2008
U.S. authorities said they have awarded Kiewit Corp. of Omaha a USD 57 million contract to construct a border fence in the southwestern corner of the U.S. The 3.5-mile (5.6-kilometer) stretch extends from a state park on an oceanfront cliff through a canyon known as Smuggler's Gulch. At a cost of about USD 16 million per mile (per 1.6 kilometers), the fence will be far more expensive than fences the U.S. government is building elsewhere along the nation's 1,952-mile (3,140-kilometer) border with Mexico.
Canada Reinforces Temporary Workers Program
August 12, 2008
According to Canada's International Trade Minister, the government of Canada is working on a new strategy to reinforce its temporary workers program and rearrangements are being made in its imported labor policies as soon as possible. The official also pointed out that Mexican workers are highly competitive and that Canada needs these workers in order to meet the country's labor requirements in the services, financial and construction sectors.
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Politics
PRD To Have New President Until 2009/2010
August 13, 2008
According to the interim President and General Secretary of the leftist Democratic Revolution Party (PRD), Guadalupe Acosta Naranjo, new elections to choose the party's president will be held by the end of 2009 or early 2010. Acosta Naranjo said that it would be absurd to hold new elections in the middle of the party's current crisis and ahead of Congressional elections by mid-2009. In addition, Acosta said that he has support from several party members to remain in office until 2010.
Poll Indicates Approval For President Calderon
August 13, 2008
According to the national Buendia & Laredo/El Universal survey, 60% of Mexicans approve of President Calderon's performance, whereas 26% believe his work has not been satisfactory. The poll indicated that Calderon's support comes mostly from members of his National Action Party (PAN), people with bachelor degrees, youngsters and people in rural communities. Critics are mostly members of opposition parties PRI and PRD and people who are not affiliated with any political party.
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Justice, Safety & Crime
U.S., Mexico Reaffirm Border Security Partnership
August 15, 2008
Representatives of the U.S. Department of Homeland Security (DHS) and the Mexican government participated in a conference in Houston, Texas, to discuss a binational program dubbed Operation Against Smugglers Initiative on Safety and Security (OASISS). The OASISS program was initiated in 2005 with the objective of protecting migrants against the risks and violence they encounter. It has facilitated prosecution against individuals who engage in human smuggling and trafficking.
U.S. Officials Praise Mexico For Anti-Drug Efforts
August 12, 2008
Top U.S. law enforcement officials praised Mexico's anti-drug efforts and urged more binational cooperation as an antidote to the drug-fueled violence along the border. U.S. officials, including the heads of agencies such as the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), addressed the fifth annual border security conference and praised President Calderon for his strong response against drug cartels.
President Calderon Calls Urgent Security Meeting To Tackle Violence
August 14, 2008
President Calderon called an urgent meeting of the National Public Security Council (CNSP) in view of the recent wave of violence and kidnappings in the country. The president urged his security cabinet to respond to the demands of Mexicans regarding the issue. The CNSP is made up of federal, state and municipal authorities as well as civilian organizations. Calderon's call comes a day after the rights organization Mexico United Against Delinquency urged authorities to take action against the violence.
President Calderon Promises To Fight Police Corruption
August 11, 2008
President Calderon pledged to combat corruption among the country's policemen and restore people's confidence in them. There have been widespread calls to clean up the country's police force as many of them are believed to have connections with criminal gangs who carry out kidnappings and other serious offenses. In addition, the Mexico City (DF) government announced a program of anti-crime reforms, including more citizen involvement. Mayor Marcelo Ebrard announced that the city will create a new police investigative agency to replace its old, corruption-ridden detectives' unit.
Legislators Call For Anti-Crime Pact
August 11, 2008
The presidents of both chambers of Congress, Senator Santiago Creel and Deputy Ruth Zavaleta, have called for a political pact in order to face rising crime and violence in Mexico. Legislators have also called for the discussion of new measures to address impunity, including life imprisonment. Senator Creel also said that money from illegal activities, mostly from drug trafficking, is deposited in local banks and that the government should attack the financial operations of criminals.
Newspaper, ATF: Mexican Drug Cartels' Guns Come From U.S.
August 11, 2008
According to a U.S. newspaper, smugglers cross the border between the U.S. and Mexico transporting weapons and ammunition for drug cartels. The daily said that most of the arms come from Arizona, Texas and California, where buyers acquire them legally but then resell them to the Mexican cartels in exchange for drugs and/or cash. The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) said that more than 90% of the weapons seized on the border or in police raids and shootouts in Mexico have been identified as coming from the U.S.
Mexico To Establish Five Anti-Kidnapping Centers
August 11, 2008
Mexico is establishing five national anti-kidnapping centers and pushing for a cleanup of police forces. The Public Security Ministry's (SSPF's) intelligence coordinator, Luis Cardenas, says the centers will be staffed by 300 federal police and will be open 24 hours a day. The actions follow a nationwide outcry over suspicions that several police officers participated in the abduction and killing of 14-year-old Fernando Marti. SSPF also said that private negotiators during kidnappings put the missing person's life at risk and they should not be hired.
Mexico Nabs Six Anti-Drug Officials Who Worked For Drug Cartel
August 13, 2008
A spokesperson for the Attorney General's Office (PGR) said that six federal agents have been arrested on suspicion of passing information to a group of powerful drug lords. The agents worked for SIEDO, the anti-drug-trafficking intelligence unit of the PGR. None were prosecutors, but all had various coordination responsibilities during arrests, interrogations and the transfer of prisoners. SIEDO is well known and generally trusted by U.S. law enforcement agencies.
Mexico Probes Missing Rebels Linked To Bombings
August 14, 2008
The government said that two missing members of the leftist People's Revolutionary Army (EPR) rebel group were the victims of a "forced disappearance" and not a kidnapping, indicating the government may have been involved. The men's disappearance prompted a spate of gas pipeline bombings in 2007 by the EPR, which pledged to carry out more attacks if the men were not released. The Interior Ministry (SEGOB) said that the Attorney General's Office (PGR) is in charge of the probe and the men's relatives will have access to the case files.
Hitmen Kill Nine At Prayer In Rehab Center
August 14, 2008
Hooded gunmen dressed in black burst into a drug and alcohol rehabilitation center in Ciudad Juarez, in the state of Chihuahua, dragged patients out of a prayer session and shot them dead in an attack that killed nine people. Witnesses said the first shootings caused panic and the patients tried to flee, prompting the gunmen to open fire on the stampede. The shootings were believed to be part of a drug gang feud. Police said the rehab center may have been suspected of protecting dealers from rival drug gangs.
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Sports
President Congratulates Tae Kwon Do Player, Divers For Olympic Medals
August 12, 2008
President Calderon congratulated Mexican Tae Kwon Do player Guillermo Perez for winning Olympic gold and claiming the title in the men's 58kg Tae Kwon Do event with superiority ruled by referees. President Calderon also congratulated Mexican divers Paola Espinosa and Tatiana Ortiz for winning bronze in synchronized diving at the Beijing Olympic Games.
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Arts & Culture
Authorities To Request That UNSECO Declare DF Neighborhoods World Heritage
August 13, 2008
The chief of the Alvaro Obregon district in Mexico City (DF) said he will request that the United Nations Educational Scientific and Cultural Organization (UNSECO) declare the San Angel and Chimalistac neighborhoods in his district as world heritage because of their historic, architectural and cultural value. The official said that several writers, painters and academicians will form a commission that will seek UNESCO's decision to be favorable.
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Other
Six Mexican Border States Join California In Fighting Climate Change
August 15, 2008
The border states of Sonora, Baja California, Chihuahua, Coahuila, Nuevo Leon and Tamaulipas pledged during the 26th annual U.S-Mexican Border Governors Conference to strengthen cooperation with California in fighting climate change and increase green investment through public-private partnerships. As part of the cooperation, the Mexican states and California have joined Pacific Gas & Electric (PG&E) and the California Climate Action Registry (CCAR) in a Memorandum of Understanding (MOU) to combat climate change.
SEP, SNTE: High Percentage Of Teachers Fail Abilities And Knowledge Exam
August 15, 2008
According to experts, the results from the National Teaching Abilities and Knowledge Exam indicate that Mexico's educational system and mostly teachers' training is catastrophic. According to figures from the Public Education Ministry (SEP), two out of three teachers who were evaluated failed to obtain the minimum score required to be awarded a position. SEP and the Education Worker's National Labor Union (SNTE) said that 86,536 applicants took the exam and that they had foreseen that only one out of ten candidates would be awarded a job.
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