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Energy
Government Proposal Lifts Pemex’s 2009 Budget To USD 21.5 Billion
September 8, 2008
According to the government’s 2009 budget proposal submitted to Congress, Pemex will have USD 21.5 billion investment resources, up from the USD 20 billion the company is authorized to spend this year. The amount includes direct investment by Pemex and financed projects. The 2009 budget plan indicates a huge increase in drilling activities, with 1,882 development wells and 82 exploratory wells slated for next year. The plan also projects the price of Mexican crude oil at USD 80 a barrel.
Government Plans Strategies To Look For Alternative Energies
September 8, 2008
President Calderon’s administration said it has an “alternative strategy” aiming to boost the search for radioactive materials such as uranium, and allowing private investment in the search for new alternative energies in order to reduce the country’s dependence on oil and generate autarchy in the energy sector. The strategy is divided into two parts, the first of which is called the “Energetic Exploration 19479,” in which the Mexican Geologic Service (SGM) calls for MXN 108 billion private investment for alternative energies. The second part calls for governmental exploration for uranium.
Pemex Seeks Bids For Ultralow-Sulfur Gasoline Plants
September 11, 2008
Pemex has begun seeking bids for plants to produce ultralow-sulfur gasoline at its Tula and Salamanca refineries, in the state of Hidalgo. Pemex said that it eventually plans to produce the ultralow-sulfur fuel at all of the six refineries in the country. Bids are due December 11, and Pemex said it expects to award the contracts in early 2009. Work is expected to take three and a half years to complete. Financial details were not provided.
Mexico Plans To Phase Out Gasoline Subsidies By 2010
September 12, 2008
The Finance and Public Credit Ministry (SHCP) has proposed to increase the price of gasoline sold by Pemex on a weekly basis until it reaches average international market rates in 2010. SHCP said that phasing out subsidies by 43% next year would put MXN 138 billion back into other sectors of the economy. Already this year, President Calderon’s government has experimented with increasing gasoline prices, which are currently about MXN 10 below prices across the border in the United States.
Legislators Expect Deal On Oil Sector Reform By October
September 11, 2008
Ruling and opposition parties’ legislators said that a deal on the oil sector reform could still be reached by October. Senators have so far reached only preliminary deals on minor issues, such as how to plan long-term energy policy. They have not yet tackled the much trickier core issues of how to get more private companies drilling in Mexico and add new refineries without breaching laws against foreign ownership of operations in either sector.
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Trade & Investment
Mexican Gross Fixed Investment Jumps 8% In June
September 11, 2008
According to the National Statistics Institute (INEGI), Mexico’s gross fixed investment rose 8% in June from the year-ago month, led by a 19% increase in equipment and machinery. Gross fixed investment rose 2.67% when compared with May, according to seasonally adjusted figures. Spending on equipment and machinery soared 19.4%, of which investment in domestically produced items rose 15.1%. Expenditures on imported equipment and machinery climbed 21%.
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Banking, Insurance & Finance
BMV’s Shares Fall 19% In Less Than Four Months
September 8, 2008
The Mexican Stock Exchange’s (BMV) shares have fallen 19% in less than four months from their April 22 record high and are on the verge of hitting a new record low, below the 25,284.88 points that were registered on January 21.
Inbursa’s Board Of Directors Backs Criteria Tender
September 8, 2008
Mexican banking group Grupo Financiero Inbursa said that its board of directors has backed a public tender offer by Spain’s Criteria CaixaCorp for a 10% stake in the firm. Inbursa said of its 13 board members, as well as the bank’s chief executive officer, plan to sell shares to Criteria. Criteria, the investment arm of Spanish savings bank La Caixa, launched the offer in late August in a transaction worth up to MXN 12.83 billion.
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Business & Industry
Ternium To Build USD 4.2 Billion Steel Mill In Mexico
September 8, 2008
Steelmaker Ternium, a subsidiary of Italo-Argentine conglomerate Techint, said that it plans to spend USD 4.2 billion to build a state-of-the-art flat steel plant in the state of Nuevo Leon. The facility, to be located in the Monterrey suburb of Pesqueria, will employ 1,500 people and is expected to generate an additional 3,500 indirect jobs once it is operating at full capacity. Ternium plans to produce around 2.3 million tons of hot rolled coils per year at the facility.
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Automotive
Mexico August Auto Output Down 4.7% From A Year Ago
September 9, 2008
According to the Mexican Auto Industry Association (AMIA), Mexican auto production fell 4.7% in August from the same month in 2007 to 204,854 units, as some automakers adjusted their production platforms to prepare for next year’s models and as demand faltered in the U.S. car market. Mexico’s exports were down 14.7% from August 2007. Most of Mexico’s auto production is exported to the United States, where auto sales dropped 15.5% in August. Sales inside Mexico also fell 2.8% in August from the same month last year.
Grupo Salinas Inaugurates Italika Motorcycles Plant
September 8, 2008
Mexican conglomerate Grupo Salinas has inaugurated its USD 15 million Italika Motorcycles plant in the industrial park of Toluca, in the state of Mexico (Edomex). The facility has the capacity to produce 350,000 units per year.
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Construction & Infrastructure
Cemex Cuts 2008 Outlook Amid Weakness In United States, Europe
September 11, 2008
Mexican cement maker Cemex cut its guidance for 2008 due to a worse-than-expected performance at its United States operations and a downturn in its key European markets of United Kingdom and Spain. Cemex said it expects full-year EBITDA of between USD 4.6 billion and USD 4.7 billion, down from previous guidance of about USD 5.3 billion. The company also cut its estimate of free cash flow after maintenance capital expenditures to about USD 2.6 billion from USD 3 billion, and said it plans to lower its capital expenditures for this year and 2009.
SCJN Rules Against Cemex In Tax Case
September 10, 2008
The Supreme Court (SCJN) ruled against Mexican cement giant Cemex in a case involving investments in countries that serve as tax havens. SCJN said that it overturned an injunction Cemex had obtained against the Mexican government charging taxes on the investments in territories where there are no taxes or taxes are much lower than in Mexico. The court did not specify the countries or amounts involved in the case. Cemex said that the ruling will likely have little financial impact on the company.
Gicsa To Build MXN 1 Billion Mall Plaza Paseo Campeche
September 10, 2008
Mexican construction and engineering company Carso Infraestructura y Construccion (Cicsa) said that it will build the MXN 1 billion luxury mall called Plaza Paseo Campeche, in the capital of the state of Campeche. The mall will feature theatres, amusement centers, restaurants, department stores, and banks, totaling about 200 businesses.
Cicsa Wins MXN 550 Million Contract To Build Reservoir
September 11, 2008
Mexican construction and engineering company Carso Infraestructura y Construccion (Cicsa) said it has won a MXN 550 million contract to build a reservoir in the state of Guanajuato. Cicsa said the federal government awarded the contract to a consortium in which one of its subsidiaries holds a 51% stake. The project, which will provide drinking water to the city of San Luis Potosi, is expected to be completed within three years.
Retail
Famsa To Open Second Store In the United States
September 10, 2008
Mexican retailer Famsa announced that it plans to open its second store in the United States in the upcoming months, after it arrived in Chicago earlier this year. Famsa is currently looking to expand its presence in the United States and make the most of the market potential offered by Hispanics that live there. In addition, Famsa will take the number of its distribution centers in the United States to five by opening a new one in northern California.
Mexican Retailer Gigante Reviews Joint Venture With Radio Shack
September 11, 2008
Mexican retailer Grupo Gigante said it is reviewing its joint venture with electronics stores chain Radio Shack that could lead to an expansion or an end to the partnership. Gigante said the talks with Radio Shack de Mexico could lead to an expansion of the electronics goods chain in Mexico and Latin America, to Gigante buying Radio Shack’s share of the joint venture, or Gigante selling its share to Radio Shack.
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Transportation
United States House Votes To End Mexican Truck Program
September 9, 2008
United States House of Representatives defied a White House veto threat by voting to end a pilot program that gives long-haul commercial trucks from Mexico full access to United States highways. The bill, approved 395-18, would reverse a decision by the Transportation Department to continue the program, which was begun last year under the North American Free Trade Agreement (NAFTA). The Senate has yet to take action on the issue and unless Senate leaders can garner a veto-proof two-thirds vote against the program it appeared set to continue. Still, the Mexican Embassy in Washington said it was “deeply concerned” about the House vote and welcomed the administration’s intention to veto the measure.
SCT: Ports Law To Be Modified To Attract Investments
September 8, 2008
According to the Communications and Transport Ministry (SCT), the country’s Ports Law will be modified in order to attract foreign investment amounting to MXN 106 billion to develop and modernize 11 port projects. SCT also said that regulation and administrative procedures will be reviewed to provide judicial certainty and transparency in port operations to investors. In addition, the General Customs Administration (AGA) and the Mexican Association of Navy Agents (Amanac) are working on a common electronic network to reduce logistics costs for exporters and importers.
Ferromex, KCSM To Appeal SCT’s Passage Rights Ruling
September 8, 2008
Mexican railroad company Ferromex and U.S. peer Kansas City Southern’s Mexican subsidiary KCSM will appeal the Communications and Transport Ministry’s (SCT) resolutions on the procedures to charge for passage rights. KCSM paid USD 1.4 for a 4,674 km network while Ferromex paid USD 480 million for its 7,930 km network.
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Telecommunications & Technology
Cofetel Sets Connection Fees For Telmex, Rival Carriers
September 8, 2008
The Federal Telecommunications Commission (Cofetel) said that it has set the interconnection fees that Telmex and long distance carrier Alestra, a joint venture between Mexican conglomerate Alfa and AT&T, can charge between them at USD 0.0080 per phone call. At the same time, Cofetel established a fee of USD 0.0105 for calls between Telmex and rival Grupo de Telecomunicaciones Mexicanas, in which Spain’s Telefonica owns a stake.
INEGI: Number Of Internet Users In Mexico Grows 341% Since 2000
September 10, 2008
According to the National Statistics Institute (INEGI), Mexico had 22.3 million Internet users in March, up 341% from the 5.05 million registered in 2000. The country has 31.9 million people who use computers, up 114% from the 14.9 million who owned the electronic devices in 2000. Mexico has nearly 109 million inhabitants. Of Mexico’s 27 million households, some 7.12 million, or 25.7%, have computers. Only 3.7 million of the households that own computers, however, have Internet access at home and the majority of connected households have broadband access.
Telmex To Be The Main Provider Of Internet TV In Latin America
September 8, 2008
According to a report by Signals Telecomm Consulting (STC), Telmex will be Latin America’s main provider of Internet supported TV (IPTV) in five years, and the Mexican telecomm giant could have a 31% market share in the region. STC also said that Telmex’s closest competitor will be its Spanish peer Telefonica, which will have a 27% market share, leading the two companies to have a combined 58% market share.
Asustek Computer Plans To Enter Mexican Market
September 8, 2008
Taiwanese computer maker Asustek Computer (Asus) plans to enter the Mexican market and provide its products in the country. Asus, which currently has corporate offices in Mexico and an assembly plant in the state of Chihuahua, said it is looking forward to entering the Mexican market and provide PCs, laptops, monitors, PDAs, GPSs, and cell phones, among other products.
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Media & Entertainment
Carlos Slim Acquires 6.4% Stake In NYT Company
September 11, 2008
Mexican telecommunications tycoon and billionaire Carlos Slim has bought a 6.4% stake in The New York Times. Slim, the world’s second-richest man according to Forbes magazine, is the second prominent investor this year to buy a piece of the United States company, which publishes The New York Times, the Boston Globe and smaller daily newspapers. Slim said the purchase was “financial,” indicating he was not making a strategic move into United States media. He declined to say how much he paid or whether he would increase his stake.
SEGOB Closes Down 29 Illegal Gambling Establishments
September 11, 2008
The Interior Ministry (SEGOB) announced that it has closed down 17 “minicasinos” and 12 regular casinos, all of which were operating illegally in different parts throughout the country. The measure is part of the broader strategy dubbed “Operation Against Illegal Gaming” that started in September 2006 and will end this month. SEGOB also said that during the said period, there have been 41 operations against illegal gambling and gaming establishments and 40 people have been detained.
Economy
SHCP Submits MXN 2.82 Trillion Budget Proposal To Congress
September 8, 2008
The Finance and Public Credit Ministry (SHCP) has handed in the government’s 2009 budget proposal to Congress, which amounts to MXN 2.82 trillion, saying it expects economic growth of 3% next year and inflation of 3.8%. In the proposal, SHCP cut its estimate for growth in GDP this year to 2.4% from 2.8%. The plan has entailed MXN 72 billion to be destined to the country’s 32 states’ local budgets. Congress has until mid-November to debate, modify if necessary and pass the proposal.
Mexico Annual Inflation Rises To Five-Year High In August
September 9, 2008
According to the central bank, (Banxico) Mexico’s annual inflation rate rose for the 7th straight month in August to 5.57%, its fastest pace in more than five years on higher energy and transport prices. Consumer prices rose a higher-than-expected 0.58% in August, while core inflation, which strips out some volatile food and energy prices, was 0.43% during the month. Banxico has raised its key interest rate three times since June to 8.25% to fight inflation that has also been fueled by high global food prices.
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Border & Migration
Calderon’s Labor Policy Fails, Leads To Emigration Record High
September 8, 2008
Legislators from the opposition Institutional Revolutionary Party (PRI) and the Democratic Revolution Party (PRD) at the Lower House said that President Calderon’s labor policy has failed and led to the departure of 1.3 million Mexicans to find jobs in the United States since he took office in 2006. The lawmakers noted that Calderon’s First Job program has only created 26,176 jobs in ten months when the goal was to have about 300,000 people employed in a year, leading to a record high in emigration.
Boeing Virtual Fence For Mexico Border On Hold
September 10, 2008
The United States Customs and Border Protection (CBP) is putting off plans for a “virtual fence” being built by United States plane manufacturer Boeing along the Mexico border and instead will focus on getting a physical fence in place. CBP said that the highest priority is to put out a system of physical fences and barriers that will keep people and vehicles from illegally crossing the United States-Mexico border. The physical fence is over budget and needs USD 400 million more than is budgeted.
Collin Powell Calls For Mexican-United States Migratory Agreement
September 11, 2008
Former United States Secretary of State Collin Powell said that Mexico and the United States should quickly reach a migratory agreement since Mexican workers, even those lacking the required documentation, contribute greatly to the United States economy. Powell also called for the United States to inhibit its illegal drugs consumption in order to ease Mexico’s drug related violence, and help and collaborate with its southern neighbor by reducing the arms flow to Mexico.
Mexico- United States Border 2012 National Coordinators Concludes Successfully
September 8, 2008
At a ceremony concluding this year’s Mexico– United States Border 2012 National Coordinators meeting held in Ciudad Juarez, in the Mexican state of Chihuahua, the United States and Mexico pledged to continue removing millions of abandoned tires, provide additional water and sanitation, promote biodiesel, and reduce greenhouse gas emissions from diesel trucks operating along the border. A Joint Contingency Plan was signed, concluding the meeting, which was hosted by Mexico’s Environment Ministry (SEMARNAT) in collaboration with the U.S. EPA and participation of border states, county and local governments, among others.
Mexico And Cuba Eyeing Clampdown On United States-Bound Migrants
September 12, 2008
Cuba’s Ambassador to Mexico said that his country and Mexico are discussing how to clamp down on the flow of illegal Cuban immigrants through Mexico to the United States. The Ambassador said that the two countries could reach an initial agreement on undocumented migration when Cuban Foreign Minister Felipe Perez Roque visits Mexico in the next few weeks. The Cuban ambassador said talks are centered around cracking down on migrant-smuggling gangs while also making it easier for academics and business executives to get visas to travel between the two countries.
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Politics
PAN Rejects Opposition Proposals To Implement Mandate Revocation
September 8, 2008
The Ruling National Action Party (PAN) has rejected the opposition Institutional Revolutionary Party’s (PRI) and the leftist parties’ coalition Broad Progressive Front’s (FAP) proposals to establish the mandate revocation and the cabinet members’ ratification mechanisms. Legislators from PAN said that such political tools cannot be implemented because there are no conditions allowing Mexico’s political system to become parliamentarian.
Civil Resistance Movement Announces Referendum On Calderon’s Continuance
September 8, 2008
The civil resistance movement that led the alternative Independence Day ceremony (El Grito de Los Libres) in the country’s main plaza, the Zocalo, said that it is preparing a referendum, to be held on November the 30th, on the approval of President Calderon’s continuance. Supporters of the movement said that they will ask citizens whether they agree or disagree on demanding President Calderon’s resignation.
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Justice, Safety & Crime
Mexico To Appropriate 40% More Funds To Fight Organized Crime
September 9, 2008
President Calderon has asked for 40% more resources in his 2009 federal budget proposal to fight organized crime. Under the new plan, resources for public security would amount to MXN 54 billion. In addition, Calderon has called for the creation of a new national police to eliminate corruption in security corporations.
Mexico Urges United States To Release Anti-Drug Aid Package
September 10, 2008
The Mexican government is urging the United States to release a USD 400 million package of anti-crime aid approved by the United States Congress in June. Mexican Foreign Affairs Minister Patricia Espinosa says the United States Congress is still analyzing supporting documents that were requested of Mexico. But Espinosa says Mexico needs the aircraft, inspection equipment and other aid as soon as possible.
McCain Supports Calderon’s War Against Drug Cartels
September 8, 2008
United States Republican presidential candidate John McCain said that President Calderon is fighting for his “country’s soul” by battling drug cartels and organized crime, showing his support for the Mexican leader’s current efforts to address the country’s security issues. McCain said the United States must help Calderon and noted that this is the first time that cooperation between the United States and Mexico in the security field reaches this level.
Michael Chertoff: Drug Lords Begin Focusing On Kidnapping Operations
September 10, 2008
According to United States Secretary of Homeland Security Michael Chertoff, Mexican drug cartels have begun shifting their drug trafficking operations to kidnappings in order to avoid negative effects on their organizations resulting from President Calderon and the United States’ efforts to address drug related issues.
Peru Arrests 20 Over Ties To Mexican Drug Cartel
September 8, 2008
According to the Peruvian Interior Ministry, their police have arrested 20 people suspected of working for Mexico’s Sinaloa drug cartel and seized 2.5 tons of cocaine hidden in boat bumpers. The seizure, valued at USD 125 million, included the arrest of four Mexicans, three Colombians and 13 Peruvians. The bust was the strongest sign yet the powerful Sinaloa cartel is making inroads in Peru, the world’s #2 grower of the coca leaf.
Police Discovers 24 Corpses In Central Mexico
September 13, 2008
Police found 24 bodies dumped outside a small town near a popular recreational area west of Mexico City in one of the most grisly discoveries yet in a rash of recent drug gang killings. The victims, left on grassy wasteland close to the town of San Pedro Atlapulco, in the State of Mexico (Edomex), had their hands tied and had been shot in the head. The method of execution is common among Mexico’s drug gangs. Twelve people have been arrested in the state of Guerrero in connection with the said massacre. The victims were mostly bricklayers and laborers from different states.
Mexico Detains Alleged Mastermind Of Brutal Boy Kidnap-Murder
September 8, 2008
Police officials have arrested a former law-enforcement official suspected of organizing the kidnapping and subsequent murder of the teenage son of a leading businessman. Sergio Humberto Ortiz Juarez, who reportedly worked at one time for a defunct crime prevention unit of the capital’s police force, was arrested along with several other members of his gang. Ortiz is suspected of being the leader of the kidnappers’ gang known as “The Flower.” In addition, active federal agent Lorena Gonzalez was also accused of being part of the gang.
Mexican Ex-Official Begs For Help In Kidnapping
September 10, 2008
Mexico’s former national sports commissioner, Nelson Vargas, is begging the public for help on the anniversary of his daughter’s kidnapping. Vargas says he has faith his daughter is still alive. But family members say they have no new information on her whereabouts, even after issuing public appeals and putting up banners asking the kidnappers or witnesses to contact them. The 18-year-old woman was abducted on September 10, 2007, and the parents agreed to pay a ransom but then lost contact with the kidnappers.
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Sports
Mexico Beats Canada 2-1 In World Cup Qualifier
September 11, 2008
Mexico beat Canada 2-1 for its third win in as many matches in CONCACAF third-round qualifying for the 2010 World Cup. The result put Mexico on the brink of qualifying for the next round, while leaving Canada five points behind second-placed Honduras in Group 2 with three games to play and only the top two teams to progress to the next round. In addition, Mexico striker Cuauhtemoc Blanco and player for U.S. soccer team Chicago Fire announced his international retirement after the said match.
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Arts & Culture
Teotihuacan Exhibit Summarizes 100 Years Of Research
September 10, 2008
The Mexican archaeological site of Teotihuacan, which was inaugurated in 1910 by then President Porfirio Diaz to celebrate the 100th anniversary of Mexico’s Independence from Spain, will commemorate 100 years of research with a mega exhibit that includes 426 items to be shown for the first time. The exhibit, dubbed “Teotihuacan, City of the Gods,” will be started September 21 at Monterrey, in the state of Nuevo Leon.
Cafe Tacuba Gets Six Latin Grammy Nominations
September 10, 2008
Mexican alternative rock group Cafe Tacuba scored six Latin Grammy nominations, including album of the year. The group’s “Sino” album also was nominated as best alternative album and record of the year while its single, “Volver a Comenzar,” (Starting Over) was nominated as best alternative song.
Other
Mexico Offers Cuba Aid After Hurricane
September 9, 2008
The Mexican government offered to help Cuba with property and electrical network reconstruction after the devastating “Ike” hurricane. Foreign Affairs Minister Patricia Espinosa said Cuba has requested support in power grid and house reconstruction, as well as food supplies. “Ike” hit western Cuba, causing four deaths, floods and great damage to towns and villages. Cuba received humanitarian aid from countries like Spain and East Timor last week after “Gustav” left.
Fire Burns Thousands Of Acres In Mexican Nature Reserve
September 14, 2008
Environmental officials from the state of Quintana Roo worked to extinguish a fire that scorched nearly 4,000 hectares (9,876 acres) in the Sian Ka’an Biosphere Reserve, one of the largest in Mexico. Fire crews cut roads into the reserve to move in heavy machinery, causing extensive environmental damage. The reserve was declared a World Heritage Site by UNESCO in 1987.
International Living: Mexico Is The Best Place In The World To Retire
September 10, 2008
According to International Living magazine, Mexico is a very easy country to live in and is the favored destination by United States and Canadian retirees. The magazine said that although it’s difficult to corroborate exact numbers, estimates are that one million American and Canadian retirees live in Mexico at least full- or part-time.
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