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Energy
Pemex Seeks Five Offshore Drilling Rigs For Cantarell
November 19, 2008
Pemex published tenders for five offshore rigs that will begin work between early and mid-2009. Pemex said it plans to use the rigs for drilling and well completion work at its Cantarell and Ku Maloob Zaap heavy oil fields and the Sihil light oil field. Mexico is counting on new production from the Ku Maloob Zaap complex as well as Sihil to counter an expected 25% drop in production from Cantarell through the end of 2009. Pemex awarded contracts for three shallow water drilling rigs to units of Ensco International.
Pemex Prepares 68 New Drilling Sites At Chicontepec Basin
November 18, 2008
Pemex said that it is preparing 68 new drilling sites at the Chicontepec oil basin that it hopes will offset declining production at the country’s traditional oil fields. Pemex has launched tenders to build access roads and the initial infrastructure needed to place drilling rigs at the 68 sites. Pemex is already behind schedule at Chicontepec, as it hoped to be pumping 65,000 barrels a day by the end of this year, but delays with a major drilling contract have pushed some of this new production into 2009.
SENER Creates Hydrocarbons Sector And Energetic Sustainability Funds
November 19, 2008
The Energy Ministry (SENER) has announced the creation of the Hydrocarbons Sector and Energetic Sustainability Funds which will have an initial budget of USD 350 million. SENER explained that the amount will be increasing gradually in the future and in 2011 will amount to 0.65% of the country’s oil and gas production value. With the funds, SENER will destine USD 700 million per year to scientific and technological research and development.
Mexican Mezcla Falls USD 2.10 To USD 38.2 Per Barrel
November 18, 2008
Mexico’s mezcla crude oil blend was valued at USD 38.9 per barrel, which is USD 2.10 lower than the most recent estimate of USD 40.39 per barrel, representing a 5.2% loss.
The mezcla price had not been that low since 2005. The Finance and Public Credit Ministry’s 2009 income budget had estimated the price of the mezcla to be USD 70, USD 31.7 higher than the current value.
Mexican Gasoline Prices Surpass U.S. Prices
November 19, 2008
According to figures provided by a local daily, U.S. unleaded and Premium UBA gasoline were sold in the U.S. at an average price in pesos of MXN 7.25 and MXN 8.19 per liter, respectively. Meanwhile Mexico’s Magna and Premium gasoline prices are more expensive than the U.S. fuel prices and were MXN 7.57 and MXN 9.92 last week.
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Mining
Relatives Take Over Mexican GMex Mine Where 65 Died
November 20, 2008
Relatives of dozens of miners killed in a 2006 explosion took over the abandoned Pasta de Conchos coal mine, which belongs to Mexican miner Grupo Mexico (GMex), in the northern state of Coahuila. The group says it is launching its own search for remains of the 63 miners still missing after the government stopped looking in March. The search was halted after officials said built-up gas inside the mine made it too dangerous to justify recovering the remains. It was unclear how the group intends to reach the remains without causing another explosion. Authorities found only two of 65 miners killed in 2006 at the mine.
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Trade & Investment
January-September FDI Falls 15%
November 21, 2008
According to data provided by the Economy Ministry (SE), Foreign Direct Investment (FDI) in Mexico fell 15.4% in the first nine months of 2008 amid a global financial crisis and a recession in the U.S. Foreign companies from the U.S., Canada, Europe and Asia invested USD 15.56 billion in Mexico from January to September, less than the same period a year ago. Mexico earned USD 27 billion in FDI in 2007, the second-highest level since SE began publishing investment data, but expects only about USD 20 billion this year.
Mexican Firms Listed In BMV Register Losses Of MXN 1.5 Trillion This Year
November 21, 2008
According to the President of Mexico’s Stock Exchange (BMV), Mexican firms listed in the BMV have registered joint losses of MXN 1.5 trillion so far this year due to the current global financial crisis. BMV’s president said that the depreciation of Mexico’s peso (MXN) is equivalent to a 35% drop in the companies’ capitalization value.
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Banking, Insurance & Finance
Pension Savings Reach MXN 823.79 Billion End October
November 18, 2008
According to pension fund regulator Consar, Mexico’s pension fund administrators (Afores) reported MXN 823.79 billion in compulsory retirement savings under management at the end of last month, up from MXN 810.91 billion in October 2007. Total assets under management, including voluntary and other types of savings as well as pension companies’ regulatory capital, totaled MXN 838.61 billion as of October 31, down from MXN 867.82 billion the previous month, but up modestly from the MXN 823.09 billion reported in October 2007.
Slim Suggests Afores’ Resources Be Used In Infrastructure Projects
November 20, 2008
Mexican billionaire Carlos Slim has suggested that resources in pension fund managers (Afores) be used to address the lingering infrastructure industry in Mexico. In addition, Slim proposed that the National Works and Public Services Bank (Banobras) help finance projects in order to boost development.
Banks Hike Rates On Credit Cards As Defaults Rise
November 19, 2008
According to a top executive at the Mexican arm of Canada’s Bank of Nova Scotia (Scotiabank), Mexico’s banks are hiking interest rates and focusing on less risky consumers in their credit card businesses. According to a recent survey of 13 banks by financial services consumer protection agency Condusef, lenders charged annual percentage rates between 47.6% and 113.4% for the most common type of credit card as of last month.
CNBV To Demand More Transparency From Banks
November 19, 2008
The National Banking and Securities Commission (CNBV) said it will present new rules to compel financial intermediaries to provide more transparent information. The announcement comes after the Federal Regulatory Commission (Cofemer) submitted a proposal to allow companies controlling and evaluating financial groups to keep the banking institutions’ documents during a longer period of time in order to ensure reliable and timely information.
HSBC To Open 120 New Branches In 2009
November 19, 2008
U.K.-based bank HSBC said that it will open 120 new branches in Mexico in 2009 and that it plans to launch a foundation to help take care of the environment and to improve education. HSBC added that the services of the branches they plan to open will vary according to the type of clients they will serve.
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Business & Industry
INEGI: September Industrial Production Down 1.8%
November 19, 2008
According to the National Statistics Institute (INEGI), Mexico’s industrial production fell for a fifth straight month in September as oil production plunged, construction steepened its decline, and utilities slowed substantially. INEGI said industrial production fell 1.8% from the like 2007 period. In seasonally adjusted terms, industrial production slid 2.69% from August. Mining output, including petroleum, fell 9.6% due to lower crude oil production, and was the main drag on Mexican industry, as it has been all year.
Pepsi To Invest USD 3 Billion, To Cut Over 1,000 Jobs In Mexico
November 19, 2008
U.S. soft drink maker PepsiCo said that it plans to spend as much as USD 3 billion in Mexico over the next five years. Pepsi said it will spend about USD 2 billion on local research and development, manufacturing, distribution, marketing and advertising for its Sabritas and Gamesa foods businesses. The remaining USD 1 billion will be spent on marketing and advertising programs for Pepsi’s beverages over the next three years. Meanwhile, Pepsi plans to close plants in Mexico in a move that would eliminate 2,200 jobs.
Salinas Pliego Buys Stake In Circuit City
November 18, 2008
Mexican billionaire Ricardo Salinas Pliego, who controls the Grupo Salinas conglomerate, now holds a 13% stake in U.S. electronics distributor Circuit City Stores, which is under bankruptcy protection. According to documents filed with the U.S. Securities and Exchange Commission (SEC), Salinas Pliego now owns more than 22 million shares of Circuit City.
Cascade Raises Stakes In Femsa
November 19, 2008
According to a filing with the U.S. Securities and Exchange Commission (SEC), billionaire Bill Gates’ investment firm, Cascade Investment, has increased its stakes in the Mexican beverage company. Cascade more than doubled its position in Coca Cola Femsa, the world’s second-largest bottler of Coca-Cola drinks, to 857,128 shares in September. Cascade owns about 21 million shares of Coca-Cola Femsa.
Royal Boskalis Acquires Remaining 50% Stake In Dragamex
November 17, 2008
Dutch marine engineering contractor Royal Boskalis Westminster N.V. has announced that it has acquired the remaining 50% share in its Mexican subsidiary Dragamex for an undisclosed amount. Boskalis has had an ongoing presence in Mexico since 1993 when the Mexican dredging market was liberalized, at which point Boskalis, together with its local partner, acquired a large part of the government’s dredging fleet.
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Automotive
Volkswagen De Mexico Surpasses 2007 Production Mark, To Reach 2008 Goal
November 19, 2008
German automaker Volkswagen said that its plant in the state of Puebla has produced more cars so far this year than in all of 2007 and is on track to meet its 2008 output goal of a record 450,000 units. Volkswagen said that at the moment of the announcement the plant had made 411,000 cars. The plant set its production record in 2000, when it manufactured 425,000 cars.
State Of Coahuila: U.S. Auto Producers Maintain Investment Targets
November 21, 2008
According to the Economic Promotion Minister of the state of Coahuila, U.S. automakers Chrysler and General Motors will continue with their planned investment goals at their plants in the state despite the economic downturn in the U.S. The official said that Freightliner and Chrysler are also ready to begin tests at their Derramadero facilities, in the same state, in 2009.
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Housing & Mortgaging
Mexico Housing Fund Infonavit Cuts 2009 Lending Goal
November 19, 2008
Federal housing fund Infonavit said that it has cut its lending forecast for next year to 500,000 loans as the global financial crisis is expected to limit the institution’s ability to raise funding in capital markets. Infonavit also lowered its outlook for 2010 to 570,000 loans from the 600,000 it forecast in November of last year. For the 2009-2013 period, Infonavit expects to make 3.12 million loans and to raise MXN 115 billion in funding from the sale of different types of mortgage bonds.
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Construction & Infrastructure
Congress Authorizes MXN 17.9 Billion For Infrastructure Projects
November 20, 2008
Congress has authorized spending of MXN 17.9 billion for infrastructure projects to be used over several years. Of the said amount MXN 5.2 billion will be spent in 2009. The funds will be earmarked to roads, hydraulic works and tourism infrastructure to be located mostly in the states of Sonora, Baja California, Tabasco, Guerrero, Durango, Zacatecas and the State of Mexico (Edomex).
Engineering Companies & Government Announce Creation Of FIPE Revolving Fund
November 21, 2008
Mexican construction and engineering firms led by ICA and IDEAL announced, along with the Ministry Of Finance (SHCP), the Ministry of Communications and Transportation (SCT), Pemex, CFE and Conagua as well as FONDIN (The National Infrastructure Fund) the creation of a MXN 200 million Revolving Fund (FIPE), which will promote the execution of engineering studies that will support infrastructure projects included in the National Infrastructure Program as well as other initiatives to be executed by government entities at the federal, state and municipal levels. FONDIN provided 49% of the resources, while private investors contributed the remaining 51%.
SCT: Investment In Infrastructure At A Steady Pace
November 21, 2008
According to the Communications and Transport Ministry (SCT), investment in infrastructure is advancing at a steady pace and the sector continues drawing investors’ interest. SCT said that three large consortiums that include companies such as CAF, Bombardier Aerospace, Siemens and ICA have purchased bidding rules for the upcoming tender to develop System 3 of Mexico’s Valley Suburban Train.
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Transportation
OMA Airport Taps Hotel Business
November 19, 2008
Mexican airport operator Grupo Aeroportuario del Centro Norte (OMA), said that it will develop a hotel and commercial areas at the Mexico City International Airport (AICM). OMA acquired 90% of Consorcio Grupo Hotelero for an undisclosed amount to develop an NH hotel and shops at AICM’s Terminal 2. Under the contract, OMA will be responsible for managing the commercial areas of the hotel beginning in 2010. The hotel itself, which NH will manage, is expected to open next March. The hotel involves an investment by the consortium of MXN 300 million.
SCT Announces New Rules For Government’s Aircrafts’ Pilots
November 15, 2008
The Communications and Transport Ministry (SCT) announced that the government is preparing a new protocol for high level officials’ air travel under which pilots flying government aircrafts will have to be approved and certified by governmental entities. The measure comes to ensure the officials’ security and after Interior Minister Juan Camilo Mouriño and other officials perished in a jet crash earlier this month. The plane’s pilots were civilians, but other Ministries’ planes have always been flown by military pilots.
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Telecommunications & Technology
Huawei To Enter Mexican Market With 3G Mobile Phones
November 18, 2008
Chinese provider of customized network solutions for telecom carriers Huawei Technologies announced that it plans to enter the Mexican market by supplying 3G mobile phones to carrier America Movil’s local unit Telcel. The phones will be sold by Telcel at lower prices than other brands’ products and will grant access to that technology to people having a lower purchasing power.
IFE Awards Contract For 2009 Election Spots
November 18, 2008
The Federal Electoral Institute (IFE) has awarded a contract to Mexican telco Grupo de Tecnologia Cibernetica (GTC) to monitor radio and TV spots for political parties during the 2009 mid-term congressional elections. IFE said GTC’s proposal was for USD 25.7 million and that it was submitted along with those of peers Sistemas para Imagenes y Computacion, Procomar, Excelencia en Comunicaciones y Tecnologia and Tecnus.
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Media & Entertainment
Legislators Seek To Legalize Casinos
November 18, 2008
The Lower House’s Games and Raffles Subcommission said that it has the final version of a bill seeking to legalize casinos and which features measures allowing greater control over gaming parlors in order to prevent money laundering, including fines of as much as MXN 3 million for establishments that would infringe the law. The bill is expected to be submitted during the current ordinary sessions period and could be voted by April of next year.
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Economy
Mexico Economic Growth Slows In 3Q
November 21, 2008
According to figures by the National Statistics Institute (INEGI) economic growth in Mexico cooled to its weakest pace in five years in the third quarter, hurt by weaker U.S. demand for exports and a drop in oil production. However, the country’s economy grew 2.3% between January and September this year when compared to 2007 figures, as growth in the service industry and agriculture partially offset deceleration in the industrial sector.
President Calderon During APEC Summit: Market Panic Must Stop
November 22, 2008
President Calderon said during a summit of the Asia-Pacific Economic Cooperation Forum (APEC) that world powers must act quickly to prevent generalized panic in the financial markets. Just before the summit, Calderon echoed statements by Canadian Prime Minister Stephen Harper, blaming the U.S. for causing the current global crisis. Meanwhile, Calderon and Chilean counterpart Michelle Bachelet said that protectionism will not solve this global financial crisis.
Banxico: Foreign Reserves Fall To USD 80.86 Billion As Of November 14
November 19, 2008
According to the central bank (Banxico), Mexico’s foreign reserves fell USD 251 million last week to USD 80.86 billion on November 14. The reduction was due to the sale of USD 85 million in the exchange market under Banxico’s daily dollar-sale mechanism, and the sale of USD 78 million to the federal government. Banxico auctions USD 400 million each day at a minimum exchange rate that is 2% above the previous day’s rate. Banxico auctions the dollars to prevent the pesos’ (MXN) depreciation, which has been sold as high as MXN 14.5 per dollar.
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Border & Migration
INEGI: Mexican Emigration Dropped 42% In Two Years
November 20, 2008
According to a study by the National Statistics Institute (INEGI), Mexican emigration has dropped 42% over the last two years, confirming that the U.S. has become less appealing amid an economic downturn and stepped up raids against illegal migrants. About 8 of every 1,000 Mexicans emigrated between February and May of this year, a 42% drop from the same period in 2006. In all of 2007, an estimated 814,000 Mexicans emigrated, compared to 1.2 million in 2006. The figure, which was reached through household surveys, includes all Mexicans who left the country, and did not break down legal and illegal migration.
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Politics
Mexican Scientist And Nobel Prize Winner Joins Obama’s Transition Team
November 19, 2008
Nobel Prize-winning Mexican chemist Mario Molina will be a part of the transition team of U.S. President-elect Barack Obama. Molina’s assistant Lorena Ibarra confirmed that the scientist was invited to join Obama’s transition team in the science and ecology fields. Molina, who won the Nobel in chemistry in 1995, will be part of the Executive Office of leaders of the president-elect’s team.
Indonesia’s President Arrives In Mexico For Official Visit
November 13, 2008
President Calderon welcomed Indonesian counterpart Susilo Bambang Yudhoyono to Mexico as he traveled to the country in an official visit. President Calderon expressed his condolences for the damages and losses that were caused by an earthquake in the Indonesian island of Sulawesi earlier this month. Later, Calderon stressed during the 55th anniversary of the establishment of the Mexico-Indonesia relations, the interest of Mexico in strengthening its economic ties with the Asian State and joining efforts to address climate change.
IFE Ratifies PRD Fine
November 18, 2008
The Federal Electoral Institute (IFE) ratified a MXN 57 million fine for the Democratic Revolution Party (PRD) and agreed to reduce a fine for the ruling National Action Party (PAN) to MXN 15 million from MXN 38 million. PRD was fined after its members took the Congress on September 1, 2006 during former President Fox’s last State of the Nation report, because they tried to prevent President Calderon from taking office on December 1, 2006 and because of the three month blockade they set in one of Mexico City’s main avenues.
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Justice, Safety & Crime
Calderon Defends His Strategy To Combat Crime
November 18, 2008
President Calderon said that there has been progress in the fight against organized crime but that improvements are gradual and will be perceived little by little. During a visit to the state of Michoacan the President indicated that security strategies implemented during his government have helped to reduce the amount of executions in the said state by 46%. In September, alleged drug cartel operatives tossed grenades at a crowd celebrating Mexico’s Independence Day in Michoacan’s capital city of Morelia.
Mexico Arrests Former Drug Czar
November 21, 2008
The Attorney General’s Office (PGR) announced that Mexico’s former drug czar Noe Ramirez Mandujano was arrested as part of a probe into possible links between top law enforcement officials and the country’s drug cartels. PGR said Mandujano “turned himself in voluntarily” for questioning by the Deputy Attorney General’s Office for Specialized Investigation into Organized Crime (SIEDO), and it was later determined that there were grounds for his arrest as he was accused of accepting USD 450,000 monthly in bribes from a drug cartel to inform the criminal organization of anti-drug operations.
Interpol Mexico Chief Arrested In “Operation Clean-Up”
November 18, 2008
The head of Interpol Mexico, Ricardo Gutierrez Vargas, was arrested by the Attorney General’s Office (PGR) on the weekend within the scope of “Operation Clean-up,” in which several top police officials have been taken into custody for their alleged links with organized crime. The operation was begun in October and so far has nabbed two top officials at the Deputy Attorney General’s Office for Specialized Investigation into Organized Crime (SIEDO), the former chief of the Federal Preventive Police (PFP), Gerardo Garay, and the director of the Regional Deployment division of the AFI (Mexico’s FBI), Rodolfo de la Guardia.
Prosecutors Investigate Former Aide To Public Security Minister
November 20, 2008
Prosecutors said they are investigating Mario Velarde, a former close aide to Public Security Minister Genaro Garcia Luna as part of a probe into alleged information leaks to drug cartels. Mario Velarde has been named in the investigation known as “Operation Clean Up,” a sweeping investigation aimed at weeding out corrupt officials. In addition, authorities have detained a former coordinator of the Regional Deployment division of the Federal Preventive Police who in February wrote a letter to President Calderon to denounce several irregularities made by Garcia Luna.
U.S. Wants To Be Sure Drug-Fighting Aid For Mexico Won’t Be Pilfered
November 14, 2008
The U.S. government has not delivered the USD 400 million promised emergency security assistance to Mexico under the Merida Initiative as the U.S. remains skeptical about the correct use of the funds. According to sources close to the matter, the delays are being attributed to delicate U.S.-Mexican negotiations over measures to prevent corruption and protect human rights, the role and number of U.S. personnel in Mexico, and Bush administration steps to satisfy a series of congressional requirements.
Tony Garza: Americans Must Accept Part In Mexico’s Drug-Related Problems
November 14, 2008
Tony Garza, the U.S. Ambassador to Mexico, called on the U.S. to recognize its responsibility in the fight against drug traffickers in Mexico. Garza said that Mexico would not be the center of the cartel’s activities, nor would it be experiencing the levels of violence it experiences, if it wasn’t for the U.S. – the major consumer of illegal drugs and the principal supplier of arms to the cartels. Garza added that the U.S. and Mexico must fight organized crime together or fail together.
Military To Patrol Tijuana
November 18, 2008
Soldiers, marines and federal police will take public safety in their hands in the city of Tijuana, in the state of Baja California, which is plagued with warring drug traffickers. The measure will last a month and forms part of a new security plan agreed upon by federal, state and municipal governments to fight the escalation of crime and provide intensive training to the roughly 2,000 members of the Tijuana police force.
Reporters Without Borders Appeals For Asylum For Mexican Journalists
November 19, 2008
Reporters Without Borders issued an appeal to the international community to provide asylum for journalists fleeing violence-plagued Mexican cities such as Ciudad Juarez, in the state of Chihuahua. The non-profit group appealed especially to the U.S. and Canada to provide humanitarian assistance. Journalists’ lives who cover organized crime in Mexico are often at risk. The move comes in the wake of the murder of Armando Rodriguez, a crime reporter for the El Diario newspaper.
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Health & Science
Legislators Discuss Measures To Prevent Pharmaceutical Monopolies
November 20, 2008
The Lower House’s Competitiveness Committee pledged to establish new norms and make some reforms to current legal guidelines ruling the pharmaceutical sector in order to prevent possible monopolies in that industry. Legislators also vowed to ensure that medicines and health supplies will not be controlled by a few companies. Meanwhile, firms from the sector demanded certainty in the laws ruling the sector’s activity that can draw investment in the country.
Mexico City Mayor Seeks Support For Cities of Knowledge Project
November 20, 2008
Mexico City Mayor Marcelo Ebrard said during his second official visit to New York City that he seeks the support of the international scientific community for the Cities of Knowledge project, which would contribute to a planning of Mexico City’s economic, cultural and educational future. Ebrard said that starting 2009, he will disclose where the clusters known as cities of knowledge will be located in Mexico City.
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Sports
Lorena Ochoa Named LPGA Player Of The Year
October 21, 2008
Mexican world number one female golfer Lorena Ochoa has been named the LPGA Tour’s Player of the Year for the third season in a row. Ochoa won seven titles in 2008, including her second successive major at the Kraft Nabisco Championship in April. She launched the season with a red-hot run of six victories in nine events. The Guadalajara native also won the Vare Trophy for the lowest scoring average on the LPGA Tour (68.58).
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Arts & Culture
Head Of Harvard’s Peabody Museum Says Mexico Should Have Mayan Jade
November 18, 2008
The director of Harvard’s Peabody Museum said that he wants to return about 50 ancient carved Mayan jade pieces to Mexico almost a century after a U.S. consul dredged the artifacts from the sacred lake at the ruins of Chichen Itza. The artifacts were among hundreds of pieces taken to the U.S. by American consul Edward Herbert Thompson, who dredged up the bottom of the sacred lake between 1904 and 1910 to recover offerings deposited there by the Mayas.
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