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Energy
CFC Clears Gas Natural To Acquire Union Fenosa's Mexican Assets
October 6, 2008
Pemex has awarded a USD 40.3 million contract to oil company KRC Grupo Petrolero de Mexico, a unit of KRC Resources of Houston, to drill vertical and directional wells in northern Mexico. Work is expected to start this month and last two years.
Sempra Energy To Invest In Aeolian Energy Project In Mexico
October 7, 2008
According to the Finance and Public Credit Ministry (SHCP), Pemex has paid approximately MXN 518 billion in taxes between January and August 2008, making its contribution 48.6% higher than it was in the same 2007 period, or amounting to some MXN 185 billion. Meanwhile, Pemex’s participation in its own income fell 45.4%, from MXN 213 billion in August 2007 to MXN 121 billion this year.
Legislators Begin Working On Energy Reform Ruling
October 6, 2008
Senators have concluded discussions on the energy reform proposals by President Calderon and opposition political parties, and have begun working on a draft of the corresponding ruling. Senators will issue a vote on the document, which features 34 core issues and 9 laws, by the end of the month. The draft allows private investment in some areas of the country’s oil sector, such as exploration and refining.
Pemex Loses MXN 9 Billion In Two Years For Illegal Fuel Extraction
October 8, 2008
Pemex losses due to illegal fuel extraction from the company’s pipelines amounted to at least MXN 9 billion during the past two years. Figures indicate that 1,563 clandestine extraction points have been detected between 2000 and 2008, and 308 alleged felons have been arrested but half of them have been set free due to gaps in corresponding legislation.
Experts: Pemex Should Invest More In Oil Fields
October 9, 2008
According to experts speaking during the Private Sector In the Oil Industry Forum, Pemex’s contributions during 2006 and 2007 amounted to some USD 70 billion and the accumulated contribution until the previous administration reached USD 250,000 billion. However, investment in exploration and production has not been profitable and production has declined. Experts suggest Pemex invest more in oil Fields.
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Trade & Investment
Russia And Mexico Agree To Fight Financial Crisis
October 8, 2008
Russia and Mexico agreed to promote economic cooperation and bolster joint efforts to solve the problems created by the global financial crisis. Russian Foreign Minister Sergei Lavrov said after meeting with Mexican counterpart Patricia Espinosa that he was in favor of expanding trade with Mexico and expressed interest in carrying out projects of far-reaching importance, such as those in the energy industry. Russia-Mexico trade reached a record USD 700 million in 2007.
Dallas Opens Commercial Office In Mexico
October 7, 2008
Dallas’ Regional Chamber, which promotes economic development in the U.S. city, announced the opening of an office in Mexico City in an effort to make Dallas-Fort Worth a commercial partner with firms south of the border. Dallas Mayor Tom Leppert and some 30 businessmen from northern Texas inaugurated the office. According to the chamber, trade between Mexico and Dallas-Fort Worth totals an average of USD 740 million every year.
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Banking, Insurance & Finance
Mexico Commercial Paper, Interbank Market Still Open For Business
October 8, 2008
According to the chief investment officer at a local asset management firm that oversees more than MXN 40 billion in pension and mutual fund assets, Mexico's commercial paper and interbank lending markets have so far managed to avoid the liquidity crunch observed in other countries, although the near-term outlook is far from certain amid a crisis of confidence roiling global financial markets. The executive, who asked not to be named, said issuers will have to offer higher rates to investors who are increasingly selective in the paper they buy.
AMIS Sees Insurance Sector Income Falling
October 9, 2008
The Mexican Insurance Association’s (AMIS) forecast for the insurance sector’s growth at the end of the year has fallen from 9% to 6.5% due to the global financial crisis. AMIS said that the crisis will undoubtedly hit Mexico’s economy, mostly the remittances, tourism and insurance sectors, adding that recovery from the impact will be slow. AMIS said that Mexican insurers are currently planning programs to get around the crisis in 2009.
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Business & Industry
Techint To Invest USD 6.6 Billion In Mexico
October 9, 2008
Italian-Argentinean conglomerate Techint said that it plans to invest USD 6.6 billion over the next five years in the Mexican iron and steel sector as part of the “Growing With Mexico” Program, which is divided into three projects. The first project consists of installing a state-of-the-art small diameter rolling mill to produce seamless pipes at its Tenaris-Tamsa industrial facilities located in the state of Veracruz. The second project is the development of an iron and tin reserve in the states of Michoacan, Jalisco and Colima; and the third project aims at building a flat steel plant in the state of Nuevo Leon.
Corporacion Durango To Restructure USD 1.52 Billion In Debt
October 6, 2008
Mexican holding company Corporacion Durango said it has filed for bankruptcy protection in Mexico in order to restructure USD 1.52 billion in debt. CODUSA, as the company is known, said that as a result of the current financial crisis and negative outlook in the paper manufacturing industry, it missed an interest payment on its 10.5% senior notes due 2017. The company said it filed for protection in Mexico, with an auxiliary process in the U.S. CODUSA said the planned restructuring includes USD 509 million in public debt and around USD 1 billion in liabilities with its subsidiaries.
Anheuser-Busch: Grupo Modelo Could To Obstruct Sale To InBev
October 6, 2008
U.S. brewer Anheuser-Busch (AB) said that Mexican peer and partner Grupo Modelo will seek international arbitration in the USD 52 billion purchase proposal that Brazilian-Belgian brewer InBev has made for the U.S. firm. AB owns half of GModelo and the latter claims it needs to approve of the transaction in order for it to be completed.
Mexican Firms At Risk Due To Global Financial Crisis
October 7, 2008
Several Mexican firms from different sectors, including Cemex, America Movil, Alfa, Axtel, Telmex, Televisa, Grupo Kuo, are at risk due to the current global financial crisis and because of the peso’s (MXN) depreciation in recent days. Some of the most affected companies include retailer Comercial Mexicana, which is trying to restructure a USD 2 billion debt and is in a dire situation.
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Automotive
U.S. To Comply With Mexico’s Used Cars Imports Regulations
October 6, 2008
According to the Mexican Association of Auto Distributors (AMDA), the U.S. government said it will comply with Mexico’s eventual regulations controlling imports of used U.S. cars. AMDA said, after holding a meeting with U.S. counterpart National Automobile Dealers Association (NADA) and authorities, that they are looking forward to having a favorable environment for whenever Mexico’s government issues regulations regarding imports of used U.S. cars, which are expected in January 2009.
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Construction & Infrastructure
President Calderon Unveils Emergency Spending In Infrastructure
October 9, 2008
President Calderon unveiled plans for USD 4.4 billion in emergency spending on infrastructure next year in a bid to help Mexico combat the world financial crisis. The package, which still has to be approved by Congress, will be used for infrastructure projects. Calderon assured the nation's banks are solid and have not slowed lending to companies or individuals, despite the global credit crunch that has sent Mexican stocks tumbling and seen the peso (MXN) weaken to a record low against the dollar (USD). Calderon said the emergency spending is not a financial rescue package, but will focus on strengthening the motors of the economy.
IFC Approves USD 150 Million To Buy Mexican Mortgage-Backed Securities
October 9, 2008
The International Finance Corporation (IFC), a division of the World Bank, has set up a USD 150 million fund to buy Mexican mortgage-backed securities in an effort to avert liquidity problems in Mexico's mortgage market. The fund, known as the Mexican Housing Finance Intervention Facility, was set up in close collaboration with Mexico's state housing development bank Sociedad Hipotecaria Federal. It can purchase up to 15% of Mexico's mortgage securities, helping to offset a drop in demand for these securities.
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Retail
BMV Lifts Comercial Mexicana’s Suspension
October 10, 2008
The Mexican Stock Exchange (BMV) lifted the trading suspension of Mexican retailer Comercial Mexicana after the company disclosed debt information to the market. Comercial Mexicana said that it missed a MXN 400 million debt payment and has filed for bankruptcy protection in Mexico to restructure its debt. The company ran into problems with its derivatives as a result of the rout in financial markets that sent the peso from a six-year high to an all-time low against the dollar (USD) in two months.
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Transportation
Bombardier To Broaden Mexico, Wichita Plants
October 7, 2008
Canadian aircraft manufacturer Bombardier Aerospace announced plans to expand its Learjet airplane producing facilities in Queretaro, in the state of the same name, and in Wichita, Kansas. The first Mexican employees will be trained in Canada on composite lay-up techniques, then return to Mexico to help train other employees. The Queretaro facility is where the aircrafts are assembled.
Labinal Moves Production From Oklahoma To Mexico
October 6, 2008
French aeroparts manufacturer Labinal announced that it will close its U.S. plant in Pryor, Oklahoma, and move its aicraft wiring systems’ production to Mexico in 2009. Labinal announced that its 485 employees at the Pryor plant will be reassigned to the Mexican state of Chihuahua and to Corinth, Texas. Labinal currently has two plants in Chihuahua in which it produces wiring systems for aircraft manufacturers Airbus and Bombardier.
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Telecommunications & Technology
Cofetel Publishes Schedule For AM To FM Migration Process
October 9, 2008
The Federal Telecommunications Commission (Cofetel) has published a schedule indicating the availability of radio frequencies so that AM operators wishing to migrate to the FM format can do so in an orderly fashion. According to information provided by Cofetel, the migration process will start in the states of Tabasco, Campeche, Yucatan and Quintana Roo, which compose Region 1, as long as there is enough radio spectrum for those interested in shifting operations.
CANITEC To Make Formal Complaint Against CFE
October 9, 2008
The National Cable Television Industry Chamber (CANITEC) is preparing a formal complaint against the Federal Electricity Commission (CFE) and will submit it to the Public Function Ministry (SFP) since CFE refuses to lease its dark fiber network. CANITEC said that CFE’s refusal to lease due to alleged national security concerns inhibits competition in the sector and leads to higher prices and lower quality telecomm services.
SCT Could Tender Telecom Spectrum In Early 2009
October 9, 2008
According to Deputy Communication and Transport Minister Purificacion Carpinteyro, the government expects to tender spectrum for cellphones, WiMax and mobile Internet in the first quarter of next year. However, the Communications and Transport Ministry (SCT) official said that the spectrum tenders should begin early next year but that the international crisis could lead earnings from the process to be much lower than those potentially available during a period of economic stability, reducing the possibilities of the tender to take place.
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Media & Entertainment
Televisa Signs Deal With Argentinean, Brazilian Peers
October 8, 2008
Mexican media conglomerate Televisa announced it has signed a three-year agreement with Argentinean peers Cris Morena Group and RBG Entertainment to extend its international reach. Televisa said the agreement will give all involved wider distribution for scripts, audiovisual programs and new media platforms directed at family audiences. RGB and Cris Morena Group said that together they reach 40 countries in Latin America, Europe and Asia. Meanwhile, Televisa said that it has inked a five-year agreement with Brazil’s television station Record to produce Portuguese-language soap operas for the Brazilian market.
CFC Investigates Monopolist Practices In Gaming And Raffles Market
October 10, 2008
The Federal Competition Commission (CFC) has launched an investigation on alleged monopolist practices in the distribution and commercialization of gaming and raffle tickets. CFC started the investigation after an affected company from the sector –whose name was not provided – filed a lawsuit. However, the company believed to be the affected one is media giant Televisa’s gaming unit Apuestas Internacionales.
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Economy
Mexican Peso Registers Worst Day Since 1995 Crisis, Extends Fall
October 6, 2008
Mexico's peso (MXN) plunged in its biggest one-day drop since the currency crisis of the mid-1990s and stocks sank as financial trouble in Europe stoked worries of a global economic downturn. The peso fell 6.43% to 11.98 per dollar (USD), its weakest level against the dollar since the government ended currency controls in late 1994. However, MXN later extended its decline against the USD, plummeting to an historic low of 14.31 MXN per USD 1.
Banxico Auctions USD 6.4 Billion In Dollars To Boost Peso
October 10, 2008
The Central bank (Banxico) sold a total of USD 6.4 billion to defend the peso (MXN), which dipped to an historic low of MXN 14.31/1 USD. Banxico said in a communique that it auctioned the USD in three separate tranches. The Exchange Commission, comprising personnel from Banxico and the Finance and Public Credit Ministry (SHCP), said that it would take steps to address the "abnormal" currency-market conditions arising from the global credit crisis.
Government Offers To Swap Up To MXN 10 Billion In Bonds Due December
October 10, 2008
The government offered to swap up to MXN 10 billion in one-year bonds due December 2008 for new one-year and three-year bonds with maturities ranging from 2009 to 2011. The Bank of Mexico (Banxico), which acts as a financial agent for the federal government, conducted the swap auction on October 8. The government carries out occasional bond swaps in the local market, which in part are aimed at boosting the liquidity of benchmark maturities.
Mexico Unveils USD 4.4 Billion In Emergency Spending
October 9, 2008
President Calderon is proposing USD 4.4 billion in emergency spending on infrastructure next year to boost growth and jobs despite the world financial crisis. Calderon said the nation's banks are solid and have not slowed lending to companies or individuals. President Calderon also said that the country has enough foreign reserves to face the world's worst financial crisis in 80 years.
Calderon Proposes Pemex Autonomy To Confront Crisis, Raises Spending
October 8, 2008
President Calderon said he is proposing Congress give autonomy to Pemex to free the company from federal budget restrictions and give the government more money to spend next year. The proposal was one of a number of measures that Calderon said the government is seeking to counter the negative effects on the economy by the global financial crisis. President Calderon announced an increase in spending on infrastructure, the construction of a new oil refinery, and support for small businesses to help the country combat the global credit crisis.
Legislators To Revise 2009 Budget Proposals To Ease Crisis Spread
October 7, 2008
Deputy Finance Minister Jose Antonio Meade said the government will change growth, inflation and oil price forecasts and adjust interest rate targets in the 2009 budget proposal in order to face the global financial crisis after legislators called on the Finance Ministry and Public Credit Ministry (SHCP) to submit new macroeconomic estimates to Congress for the 2009 budget. In addition, lawmakers from Mexico and Central American States met to discuss ways to address the fall in remittances from nationals living in the U.S., and an eventual massive deportation, among other issues.
Banxico Governor: Mexico Is Comfortable On Debt
October 7, 2008
Central bank (Banxico) Governor Guillermo Ortiz said that the country's sovereign debt position is "comfortable" despite the global credit crisis and that Mexico does not require any financing at all. Ortiz added that Mexico is in better shape to face the current crisis than previous financial shocks, though he noted that the government is working on a package to protect the country from the turmoil in global markets.
Annual Inflation Dips In September
October 9, 2008
The Central bank (Banxico) said that Mexico's annual inflation dipped in September from more than a five-year high: twelve-month inflation was 5.47% in September, down from 5.57% in August, due to lower price rises in foods. On a monthly basis, consumer prices rose 0.68%, marginally above expectations. Core inflation, which strips out some volatile food and energy prices, was 0.60% in September.
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Border & Migration
CNC: 350,000 Countrymen To Return From The U.S.
October 7, 2008
According to the National Confederation of Farm Workers (CNC), Mexico should prepare for both the forced and voluntary return of more than 350,000 Mexicans currently living in the U.S. due to the financial crisis north of the border. The CNC said that the return of so many Mexicans will increase unemployment and also add to problems being caused by a fall in remittances.
U.S. Launches Internet Campaign In Mexico For Latino Vote
October 9, 2008
The U.S. has launched an Internet campaign in Mexico seeking to exhort citizens with a right to vote in the upcoming November 4 U.S. presidential elections to exercise their vote, since their participation could be decisive in some U.S. states, such as Nevada, Colorado and Virginia.
Legislators Urge The Government To Sign Migratory Agreement With Cuba
October 5, 2008
Legislators from the opposition Institutional Revolutionary Party (PRI) urged the federal government to sign a Memorandum of Understanding (MOU) with Cuba to regulate the illegal entrance of Cubans into the country, to eradicate people trafficking rings and authorities’ corruption. According to official figures, 14,600 Cubans crossing through Mexico entered the U.S. illegally between July 2007 and June 2008.
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Politics
PRI Posts Significant Electoral Gains In Guerrero
October 7, 2008
The Institutional Revolutionary Party (PRI), Mexico’s third political force and which governed the country for 71 consecutive years, notched up an important local election result in a sign that the party is on its way to performing strongly in next year’s vital mid-term congressional elections. With all the votes counted in a poll in the southern state of Guerrero, the PRI had won 13 of the 28 directly elected seats in the state legislature from nine three years ago. It also won 40 of 81 mayoral elections.
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Justice, Safety & Crime
Calderon Calls For Joint Fight Against Organized Crime
October 7, 2008
President Calderon urged the accelerated process to release the Merida Initiative aid package and suggested that such aid should be extended to a continental level in order to efficiently address security issues of continental dimensions. During the Organization of American States’ (OAS) meeting on public security in the Americas, Calderon also called for transnational efforts to tackle organized crime.
Colombia Rebels Linked To Mexico’s Drug Cartels
October 8, 2008
According to Sergio Jaramillo, Colombia's Deputy Defense Minister, Mexico's drug cartels are buying cocaine directly from Colombia's main rebel group, the Revolutionary Armed Forces of Colombia (FARC). Jaramillo said that Oliver Solarte, the finance chief of the 48th Front of the FARC, which works along the Ecuador-Colombia border, is the main contact with the Mexican gangs that buy drugs from the rebels.
PRI Submits Reform Proposal To Create National Public Security System
October 7, 2008
The opposition Institutional Revolutionary Party (PRI) has submitted a constitutional reform proposal to establish a National Public Security System whose direction won’t be placed under the Public Security Ministry (SSP), but under the control of a Governmental Board formed by the President, state governors and representatives from the legislative and judicial branches.
Mexico Extradites Former Guatemalan President Portillo
October 7, 2008
Mexico’s federal Attorney General’s Office (PGR) announced that Former Guatemalan President Alfonso Portillo has been extradited from Mexico to Guatemala where he faces corruption charges. Portillo took refuge in Mexico at the end of his four-year presidential term in 2004 after he lost parliamentary immunity from prosecution. Portillo is accused of authorizing USD 15 million in transfers to Guatemala's Defense Department, where officials close to him allegedly took part of the money.
Mayor's Slaying Seen As Gang Threat Among Mexico’s Political Elite
October 8, 2008
Observers say that the recent drug gang slaying of the Ixtapan de la Sal Mayor Salvador Vergara Cruz has sent shudders of fear through Mexico's political elite. Vergara, 34, was seen as very anti-drug and a fast-rising star in political circles in the State of Mexico (Edomex). His assassination by hooded men armed with semiautomatic rifles is being interpreted as a threat by drug gangs to the highest levels of government against efforts to oppose them. Some observers said that Vergara's death may have been a message to his close ally, Enrique Peña Nieto, the Edomex governor and likely Institutional Revolutionary Party presidential candidate in 2012.
Authorities: Drug Slayings Show Tijuana Cartel's Woes
October 6, 2008
Authorities said that the recent slayings of 57 gang members in Tijuana, in the state of Baja California, is a sign of the breakup of the city's Arellano Felix drug organization. The Tijuana cartel, named for the Arellano Felix brothers, has ruled the city's lucrative drug trafficking business for two decades, but now is apparently fractured and facing deadly attacks from other contenders.
Army Arrests 4 Kidnappers, Frees 10 Hostages
October 9, 2008
Army troops arrested 4 suspected kidnappers and rescued 10 people who had been abducted in the central state of Zacatecas. Soldiers seized 18 rifles, 2 grenades and 35,000 rounds of ammunition, among other arms, during the operation in the Guadalupe neighborhood of Zacatecas city, the state capital. The suspects had in their possession Attorney General's Office (PGR), Federal Investigation Agency (AFI), and Tabasco state police uniforms, an automobile and a motorcycle.
Barroom Massacre Leaves 11 Dead
October 10, 2008
Suspected organized crime hitmen gunned down 11 people and wounded 6 others at the Rio Rosas bar in the city of Chihuahua, in the state of the same name. Officials said that masked gunmen arrived at the bar in an SUV, entered and opened fire indiscriminately on the people inside. Officers who responded to the shooting found 11 bodies and helped the wounded. State officials said four of the victims had criminal records, including two for drug charges. Officials are offering a reward of MXN 500,000 for the capture of the gunmen.
Grenade Attack Kills Five State Police In Jalisco
October 9, 2008
Authorities said that five state police officers were killed in the state of Jalisco by gunmen who fired more than 800 bullets and threw grenades at them. The officers were attacked as they prepared to search the passengers of a car they had just stopped in the town of Lagos de Moreno near Guadalajara. An unknown number of attackers arrived in two pickup trucks and opened fire on the officers, killing them instantly. Two civilians nearby were also wounded.
Prisoners Escape In Tamaulipas
October 9, 2008
Seventeen prisoners escaped from a jail with help of four guards in the city of Reynosa, in the state of Tamaulipas, across the border with the U.S. The prison break occurred between 1 a.m. and 3 a.m. local time and was discovered some two hours later during the first daily review. This is the second escape in less than three months at the Social Re-adaptation Center of Reynosa. Police have started to hunt the prisoners and four guards, and set up check points on the main roads near Reynosa and surrounding towns.
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Health & Science
SSA: Mexicans To Be Enabled To Buy Mexico-U.S. Binational Insurance
October 7, 2008
Health Minister Jose Angel Cordova Villalobos announced during the 8th Health Binational Week between Mexico and the U.S. that a Health Binational Insurance will be put in place to guarantee that Mexican migrants to the U.S. have access to proper health services and medical attention. The insurance will cost between USD 20 and USD 40 per month and seeks to provide the basic health services Mexicans in the U.S. would eventually require, regardless of their migratory status. Attention to dire illness or disease will be provided by the Mexican government through the so-called Popular Insurance.
Mexico, U.S. To Put In Place Epidemiology Intelligence Unit Across Border
October 9, 2008
The California state Department of Public Health Services announced that Mexico and the U.S. will jointly install an epidemiology intelligence unit across the border in order to monitor sanitary risks and emergencies related to bioterrorist attacks or diseases that could lead to epidemics. Border sanitary authorities from both states are concerned due to an alert caused by the increased number of tuberculosis cases in the border area.
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Arts & Culture
Festival Internacional Cervantino Starts In Guanajuato
October 9, 2008
The arts international festival Festival Internacional Cervantino (FIC) held in the Mexican state of Guanajuato every year has begun. The FIC will feature nearly 2,000 artists from 24 European, Asian and American countries, as well as 225 artists from the Spanish region of Catalonia, which is the honor guest this year along with the Mexican state of Campeche. The festival features works from several artistic disciplines.
Mexican Director Servando Gonzalez Dies At 85
October 6, 2008
Mexican movie director Servando Gonzalez Hernandez died in Mexico City at age 85. Gonzalez was the government's chief documentary filmmaker when "a military person" asked him to set up six cameras around a Mexico City plaza in 1968 and film the events below. What occurred was the Tlatelolco massacre, when soldiers opened fire on a crowd of demonstrators leading to the death of between 25 and 350 people. Gonzalez said last year that the man who hired him appeared after the raw film was developed and took it all away. His best-known work abroad was "The Fool Killer," a 1965 film starring Anthony Perkins and Dana Elcar.
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Other
Hurricane Norbert Drowns Three In Northern Mexico
October 8, 2008
Hurricane Norbert killed three people as it swept over Mexico, pelting rain and swelling rivers after tearing across the Baja California peninsula. The victims drowned in a river near the town of Alamos in the state of Sonora after Norbert hit the agricultural region as a Category 1 hurricane with sustained winds as high as 85 mph (140 kph). Meanwhile, Tropical Storm Marco hit Mexico's Gulf coast with high winds and heavy rains, forcing the evacuation of some 2,000 people from high-risk areas. The storm flooded coastal highways and brought heavy rains to the city of Veracruz, where authorities closed schools and set up 22 shelters with accommodation for 150 people each.
Protesting Teachers Block Highways, Refuse To Start Current School Year
October 10, 2008
Tens of thousands of teachers are blocking highways and seizing government buildings across Mexico to protest a federal education reform ending their longtime practice of selling their jobs or giving them to their children. In the central state of Morelos, where opposition is centered, about 20,000 teachers have been on strike for more than 50 days. Though a few thousand children study in cantinas and makeshift classrooms, nearly 500,000 others have yet to start the school year. Since the strike erupted in Morelos in late August, protests have spread to at least a dozen other states and are threatening to go nationwide.
Environmental Officials Release 250,000 Turtle Hatchlings
October 7, 2008
Environmental officials have released more than 250,000 Olive Ridley turtle hatchlings in the Pacific Ocean. The hatchlings, which were released over the course of last week, joined 70,000 others released earlier on Ixtapilla, a beach in the central state of Michoacan. Environmental authorities have scheduled another large hatchling release for October 26, but they first plan to inspect nests made by some 5,000 turtles in the same area.
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