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Energy
Pemex Could Raise Exploration Budget By 27%
November 25, 2008
Pemex Exploracion y Produccion (PEP) said it may boost its exploration budget by 27% next year as it tries to find new reserves to offset an almost five-year drop in crude output. PEP noted that spending on exploration may increase to USD 2.1 billion this year. PEP added that it needs to spend at least USD 2 billion on exploration annually through 2012 to meet a production goal of 3 million barrels of crude per day. The government approved a 2009 budget of USD 14.5 billion for PEP.
Pemex Hires Halliburton To Increase Productivity
November 26, 2008
Pemex Exploracion y Produccion (PEP) said that it has hired U.S. Texas-based energy and oilfield services company Halliburton’s Mexican subsidiary and local peer Servicios Profesionales Petroleros to improve some wells’ productivity, enhance profitability of the hydrocarbons and solve mechanical problems. The USD 33 million contract will allow PEP to continue drilling, completing and repairing oil wells.
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Mining
GMex Changes Plan For Asarco After Fall On Copper
November 25, 2008
Mexican mining company Grupo Mexico’s (GMex’s) USD 2.7 billion offer to completely pay off creditors of its bankrupt U.S. unit Asarco has become unviable due to falling copper prices and rocky market conditions that changed the value of Asarco. Meanwhile, India’s Sterlite Industries, which originally offered USD 2.6 billion to buy Asarco but withdrew from the deal in October because of falling metals prices, said it was still eyeing Asarco but an agreement could only be reached at a substantially reduced price.
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Trade & Investment
INEGI: October Trade Gap Biggest Since The 90s
November 25, 2008
According to the National Statistics Institute (INEGI), Mexico’s trade deficit surged in October to its widest since at least 1991, hit by falling oil output, increased gasoline imports and manufacturing exports, which led to higher pressure on the peso (MXN). The deficit was a much higher than expected USD 2.74 billion, the third month in a row imports outpaced exports by more than USD 2 billion. In addition, Mexico’s current account deficit surged to USD 5.002 billion in 3Q.
President Calderon Cautions Against NAFTA Reform
November 23, 2008
President Calderon warned against a reform of the North American Free Trade Agreement (NAFTA), saying it would have devastating economic effects for both Mexico and the U.S. Calderon said that "all studies, without exception" have found that NAFTA has led to higher investment and employment in both countries. U.S. President-elect Barack Obama has expressed concern about NAFTA, which went into force almost 15 years ago, and said he may consider renegotiating the deal.
Argentine, Mexican Presidents Sign Agreement To Boost Trade
November 24, 2008
Argentine President Cristina Fernandez and President Calderon signed trade agreements during the latter’s official visit to Argentina. Fernandez also urged interaction and joint efforts with Mexico in order to lessen the negative consequences of the ongoing international financial crisis. Fernandez said Argentina will cooperate with Mexico in combating drug trafficking. She also expressed appreciation of the antidrug campaign in Mexico.
Banxico: Portfolio Investment To Mexico During 3Q Plummets
November 24, 2008
According to the central bank (Banxico), portfolio investment to Mexico practically disappeared during 3Q. Figures provided by Banxico indicate that investment plummeted and that USD 4.1 billion were withdrawn from the Mexican capital market between July and September. Investment during 3Q had a negative balance of USD 24 million. In addition, the National Statistics Institute (INEGI) said that Mexico’s exports’ sales fell for the first time in two years by 3.5% due to a 7.7% fall on oil exports and a 2.8% reduction of non-oil exports.
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Banking, Insurance & Finance
Mexico Keeps Interest Rate Steady For Third Month
November 28, 2008
The central bank (Banxico) held its key interest rate steady as seven-year high inflation overshadowed fears that the global credit debacle will throw the Mexican economy into recession. Banxico’s decision to hold its reference interest rate at 8.25% for the third straight month was widely expected by economists. Banxico is expected to cut interest rates deeply next year to help the economy, which is taking a hit from the sharp slowdown in the United States.
BBVA Bancomer To Issue MXN 3 Billion In Notes
November 26, 2008
Spanish-Mexican bank BBVA Bancomer plans to issue as much as MXN 3 billion in debt next month despite tight credit markets. The 12-year nonpreferred, nonconvertible subordinated notes by BBVA Bancomer will be placed on December 11. Experts say Mexico’s banking sector is healthy compared to banks in other parts of the world that have been hammered by the global financial crisis.
Inbursa Purchases Citigroup Shares
November 25, 2008
The brokerage unit of Mexican financial group Grupo Financiero Inbursa, controlled by billionaire Carlos Slim, has acquired between 26 million and 29 million shares worth approximately USD 150 million of Citigroup’s Mexico City-traded shares. It was unclear whether Inbursa was buying the shares for Slim, but a spokesperson for him said Inbursa bought the stock on behalf of its "investment funds and clients."
Bank Of New York Mellon’s New Banking License Enhances Mexico Operations
November 24, 2008
Global asset management and securities servicing firm Bank of New York Mellon has received a banking license in Mexico that will enhance the company’s on-the-ground capabilities in the country. The license has been granted to The Bank of New York Mellon Institucion de Banca Multiple. The company will initially focus on serving the needs of debt issuers in Mexico who require corporate trust and agency services.
Legislators Take Measures To End Pension Fund Crisis
November 25, 2008
The recent pension fund system crisis in Mexico has led legislators to revise the private pension accounts system to prevent pension fund managers (Afores) from investing the workers’ money in high-risk foreign investment instruments. The Senate called pension fund regulator’s (Consar) director to explain what led to losses amounting to some MXN 60 billion in pension funds. Some sources indicate that losses could amount to MXN 100 billion. Meanwhile, legislators have also encouraged Afores to lower the commissions they charge.
Mexico’s Overdue Notes Rise 3.31%, Delinquent Accounts Rise 8.1% In October
November 27, 2008
According to the National Banking and Securities Commission (CNBV), overdue notes in Mexico rose 3.31% in October and consumption credit delinquent accounts were up 8.1%. CNBV said it is the first time overdue notes, which amounted to MXN 62.7 billion, have reached that level since 2005. Delinquent account issues started being direr since June of this year when they rose to 2.82% and then were up 3% in September.
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Business & Industry
Siemens To Open 14th Plant In Mexico
November 24, 2008
German conglomerate Siemens announced that it will inaugurate its 14th plant in the country in the first months of 2009. The facility will be located in the state of Queretaro and its production will aim at supplying the electric industry in the North American Free Trade Agreement (NAFTA) region.
Lala Starts Operations In Guatemala
November 25, 2008
Mexican milk and dairy products manufacturer Grupo Industrial Lala announced it has begun operating in Guatemala as part of a broader expansion plan starting in 2009. Lala already has a presence in the United States and Guatemala will be the second foreign country it operates in. Lala has a 54% market share of Mexico’s dairy market.
Fleetwood Enterprises Closes Mexico Plant, Fires 115 Employees
November 25, 2008
U.S. motor homes maker Fleetwood Enterprises announced it will close its manufacturing plant in the state of Baja California, and that it will fire 115 workers after demand for its products dropped. Fleetwood said it will move its production to three plants it owns in Ohio. Fleetwood also plans to close 8 of its 24 plants in the United States.
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Automotive
Mexico To Restrict Imports Of Used U.S. Cars Through 10% Tax
November 24, 2008
The government said it will soon publish a decree in the official gazette (DOF) by means of which a 10% tax will be charged on used cars imported from the U.S. and Canada in order to prevent junk vehicles from flooding the country. The tax will begin being charged as of January and will be applied on vehicles that do not have a certificate of origin issued by the car’s manufacturer indicating that at least 62.5% of the vehicle’s components are from either the U.S., Mexico or Canada.
Posco MPPC Invests USD 23 Million In San Luis Potosi
November 26, 2008
Korean supplier of steel for the automotive industry Posco MPPC announced it has inaugurated a USD 23 million facility in the state of San Luis Potosi. The plant has a capacity to process 170,000 tons of steel per year. This is the second Posco plant in the state and supplies automakers such as General Motors (GM).
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Construction & Infrastructure
ICA Secures MXN 9.5 Billion Contract To Build Mexico City Tunnel
November 26, 2008
Mexican infrastructure consortium Constructora Mexicana de Infraestructura Subterranea (Comissa), led by local infrastructure company Ingenieros Civiles Asociados (ICA), announced it has obtained a MXN 9.5 billion contract to build a traffic distribution tunnel east of Mexico City. Comissa is formed by infrastructure firms Carso Infraestructura y Construccion (CICSA), Construcciones y Trituraciones (Cotrisa), Constructora Estrella (Cesa) and Lombardo Construcciones (Lombardo).
Grupo Carso To Construct USD 800 Million Complex
November 27, 2008
Mexican construction company Carso, which is owned by billionaire Carlos Slim, will build a USD 800 million complex featuring the firm’s headquarters, a museum, a mall and three towers. The project, called “Plaza Carso”, will be built on a 50,000 square meters area in the Granada neighborhood, in western Mexico City (DF). Works are scheduled to begin in 2009 and end in 2010.
Cemex Seeking New Plant In The U.S.
November 25, 2008
Mexican cement maker Cemex is seeking a new plant at Las Cruces, New Mexico, in order to participate in the construction of the first commercial space dock in the U.S. Cemex said it has submitted a request before New Mexico’s Environment Department to obtain a permit for its cement manufacturing plant.
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Retail
Slim Boosts Stake In Saks
November 26, 2008
Mexican billionaire Carlos Slim recently purchased USD 23.1 million of New York luxury retailer Saks’ shares, as the firm’s stock traded near its lows for the year. Slim, through his housing firm Inmobiliaria Carso reported buying more than 7.5 million Saks shares, bringing his family’s stake in the company to 25 million shares, or 17.6%. The shares were purchased at average prices ranging between USD 2.87 and USD 3.57 each. Slim is the largest holder of Saks.
Comerci Sells Stake In Credit Business For USD 9 Million
November 26, 2008
Mexican retailer Comercial Mexicana (Comerci) said it sold its 50% stake in credit business Prestacomer to partner Paribas Personal Finance in a USD 9 million deal. Comerci is seeking court protection from creditors as it evaluates how to pay off a USD 2 billion debt. Prestacomer, a venture between the retailer and a unit of French bank BNP Paribas, grants credit for customers to shop at Comerci stores. Comerci said it will present a debt restructuring plan soon.
Best Buy To Start Mexico Operations, To Offer Credits Through Banamex
November 28, 2008
U.S. electronics retailer Best Buy announced the beginning of its operations in Mexico through several stores located in Mexico City (DF) and the city of Guadalajara, in the state of Jalisco. In addition, Best Buy said it has entered a strategic alliance with the Mexican unit of U.S. bank Citigroup, Banamex, to offer credits to clients. Credits will range between MXN 4,000 and MXN 200,000.
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Transportation
Mexicana Updates Corporate Image, Consolidates Market Position
December 1, 2008
Mexican airline Mexicana de Aviacion has changed its corporate image as part of a comprehensive strategy to consolidate its position in the domestic market. The new image will differentiate the brand visually to make it more competitive and differentiate it in terms of service, innovation, dynamism and flexibility. Mexicana has also developed a new loyalty program and has upgraded its on-line services.
Aeromexico Connect Reaches Three Year Agreement With Pilots Union
November 29, 2008
Mexican low-cost subsidiary of Aeromexico, Aeromexico Connect, said it has reached a three-year agreement with its pilots’ union to increase salaries by one percentage point above the inflation rate. In addition, the agreement creates permanent savings that do not affect the incomes of the pilots as well as temporary savings to contribute to the strengthening of the company’s finances in 2009. Earlier this week, Aeromexico resolved a dispute with the union representing its flight attendants with an agreement that will allow it to save MXN 200 million a year.
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Telecommunications & Technology
Mexico Weighs Foreign Investment In Fixed-Line Telephony
November 28, 2008
The Lower House’s Economy Commission has approved a preliminary ruling for the reform of the Foreign investment Law, which would loosen the current 49% limit on foreign investment in the fixed-line telephone industry. The bill, however, must still be debated by the full house. Telmex controls 90% of land lines in Mexico. The House did not specify whether the bill would allow 100% foreign investment.
Telmex Obtains 100% Coverage In Peru
November 28, 2008
Peruvian Transports and Communications Ministry (MTC) has broadened Mexican fixed-line telephony giant Telmex’s coverage to 100% of the country’s territory. Telmex will have to operate according to investment programs designed for the new areas. Telmex’s concession in Peru is for 20 years.
CANITEC To Submit Lawsuit Against Telmex-MVS Alliance
November 28, 2008
The National Cable Television Industry Chamber (CANITEC) said it would submit a complaint at the Federal Telecommunications Commission (Cofetel) against the recent alliance between Telmex and satellite TV provider MVS. CANITEC said the complaint cannot be annulled and that they have asked the Telecommunications and Transport Ministry (SCT) to revoke Telmex’s concession.
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Media & Entertainment
PRD Senators Demand That SEGOB Revoke Gaming Permits
November 24, 2008
Senators from the leftist Democratic Revolution Party (PRD) demanded that the Interior Ministry (SEGOB) revoke the permits awarded to betting parlors by former Interior Minister Santiago Creel on the grounds that they make profits out of Mexicans’ impoverishment. PRD legislators said that SEGOB awards permits to the best bidder and promotes corruption in the betting and gaming sector.
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Hospitality & Tourism
Tamaulipas Seeks To Promote Health Tourism
November 25, 2008
The Tourism Ministry of the state of Tamaulipas announced that it will seek to strengthen and diversify the states’ spectrum of health services it provides in order to broaden the supply of such services to local and foreign visitors. The announcement was made during the first International Forum of Opportunities and Perspectives in The Health Tourism Sector.
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Economy
Banxico: Current Account Deficit Broadens In 3Q
November 25, 2008
According to the central bank (Banxico), Mexico’s current account deficit surged to USD 5 billion as growth in gasoline imports outpaced increases in oil exports and foreign demand for manufactured goods fell. The accumulated 2008 deficit through the third quarter was equivalent to 1.2% of GDP. In the second quarter, Mexico had a current account deficit of USD 2.018 billion.
Inflation Surges In Early November
November 24, 2008
According to the central bank (Banxico), Mexico’s inflation rate jumped in early November to a seven-year high, raising pressure on it to hold off on interest rate cuts despite a sharp slowdown in the economy. Consumer prices rose a much higher-than-expected 6.18% in the twelve months through November 15, up from the 5.78% increase through the end of October.
OECD: Mexico To Escape Recession, But Economy Will Slow
November 25, 2008
According to the Organization for Economic Cooperation and Development (OECD), the Mexican economy will grow by only 0.4% next year and by 1.8% in 2010, basing that forecast on the likely impact of the U.S. recession and a decline in oil revenues for the country. OECD said that what looks to be a sharp slowdown in the U.S. will reduce exports to Mexico’s main trading partner and has already reduced the flow of remittances from Mexican emigrants north of the border.
APEC Leaders Commit To Quick Economic Measures
November 24, 2008
The U.S., Mexico, China, Japan and 17 other economies in Asia and the Americas promised fast and decisive action to prevent a severe global economic downturn. With recession gripping parts of the world and financial markets in chaos, leaders at the 21-member Asia-Pacific Economic Cooperation forum (APEC) said the slowdown is one of the most serious economic challenges they have ever faced.
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Border & Migration
Government Seeks New Plans To Deal With Migrants As Remittances Decline
November 24, 2008
As the U.S. economic crisis worsens, remittances sent by Mexicans in the U.S. to their families in Mexico have declined, reaching record lows over the summer. The government has prepared to face the reduction in income with initiatives to solidify ties to its citizens abroad, especially with the U.S.-born children of Mexican immigrants whose allegiance to their homeland weakens with each new generation. The executive director of the Institute of Mexicans Abroad said that they are trying to take a much more proactive stance with these communities, with the recognition that they might not be coming back.
Mexicans In U.S. Return Home For Holidays With Less Money, Products
November 28, 2008
Nearly one million Mexican migrants living in the U.S. are expected to head home for the holidays, but relatively few are expected to bring back the same amounts of gifts and money they used to amid the current U.S. crisis. Many are simply moving back after losing their jobs in the U.S. In addition, greater border security, the U.S. crackdown on its undocumented population and the economic downturn has discouraged would-be migrants from heading north, legally and illegally.
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Justice, Safety & Crime
President Calderon Vows To Clean Up Corruption
November 30, 2008
President Calderon pledged to clean up corruption within his administration and vowed his government would never negotiate with drug lords. Promising to continue the battle against organized crime, no matter how violent it gets, Calderon said he would push President-elect Barack Obama to do his part north of the U.S.-Mexican border. Calderon has long said the U.S. must do more to fight drug use and stop the illegal flow of weapons south from the U.S. Obama has said he will do both.
Mexico Tells U.N. That Army Will Slowly Leave Crackdown On Drug Traffickers
November 28, 2008
Mexico said in the government’s human rights progress report to the United Nations (U.N.) that the army will eventually leave the fight against drug trafficking. But officials did not disclose an exact date for the start of the withdrawal. Mexico argues it must use soldiers in its nationwide crackdown on the drug trade because police are still too corrupt to take over the battle.
Argentina, Mexico To Cooperate In Drug War
November 24, 2008
Argentinean President Cristina Fernandez and President Calderon signed cooperation agreements in the struggle against drug trafficking and transnational crime during Calderon’s official visit to Argentina. The cooperation pact against organized crime was signed at a time when an Argentine judge is investigating a network that supplied chemical precursors to Mexican drug cartels. In addition, the Argentine Federal Police arrested three people accused of collaborating with the largest provider of ephedrine to Mexican drug cartels.
Peru Invites Mexican Police To Fight Cartels
November 27, 2008
Peruvian President Alan Garcia said he is inviting Mexican police to go to Peru and help battle drug traffickers, which have invaded that country’s cocaine trade. Garcia said that Mexican cartels have captured or are trying to capture the Peruvian market. In response, Mexican authorities said Mexico will send a high-level mission to Peru to strengthen bilateral cooperation in the fight against transnational organized crime, including drug trafficking.
Sonora Governor: Mexico Should Ask The U.S. To Control Arms Flow
November 25, 2008
Eduardo Bours Castelo, the governor of the state of Sonora, said during a meeting of the Organization of American States (OAS) that Mexico should ask the U.S. to control arms flow into the country. Bours said that drug trafficking problems are enhanced because of the lack of concrete actions to prevent drug traffickers from acquiring firearms from the U.S.
Authorities: Security Plan Has Reduced Kidnappings
November 28, 2008
Authorities assured that kidnappings in Mexico have dropped by 18% and murders by 7% since governors, mayors and federal officials signed in August a national security accord to battle rising crime. According to data presented by public security system chief Monte Alejandro Rubido, the average number of kidnappings fell to about 72 a month since the deal was signed, down from more than 90 per month in the first eight months of the year.
Mexico City Awards MXN 1.7 Billion “Safe City” Project To Telmex-Thales
November 26, 2008
Mexico City Mayor Marcelo Ebrard said it will award a MXN 1.7 billion project dubbed “Safe City” and “Bicentennial Project” to local telco Telmex and French peer Thales. The project calls for the installation of 8,000 cameras across the city and a security platform to be developed between now and December 2009. The cameras will be linked to 16 command centers. Telmex’s rival in the project tender was Spanish Indra.
Government: Nearly 49% Of Mexico’s Cops Fail Evaluation
November 28, 2008
According to a government report submitted to Congress, roughly half of the 56,000 Mexican police officers that were evaluated this year were judged unfit to ensure public safety. Of the total number tested—representing 17.3% of Mexico’s 375,000 federal, state and municipal police officers—only 41.7% were deemed fit for duty. The document was delivered in response to questions submitted by lawmakers following President Calderon’s state of the nation report in September.
Seven Found Slain Near School In Ciudad Juarez, Nine Beheaded In Tijuana
November 25, 2008
The bodies of seven men were found near a school in Ciudad Juarez, in the state of Chihuahua, all of them apparently murdered by hired killers. Officials said that the bodies were found near a soccer field and a few meters from a private school. The victims, whose bodies showed signs of torture, were lined up in a row and appeared to have been forced to kneel before being shot in the back of the head. In addition, nine decapitated men were found in a vacant empty lot in Tijuana, in the state of Baja California. The heads were discovered in plastic bags near the bodies.
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Health & Science
SSA To Invest Over MXN 6 Billion In Infrastructure In 2009
November 28, 2008
Health Minister Jose Angel Cordova Villalobos announced that the Ministry plans to spend over MXN 6 billion next year for the construction and remodeling of health infrastructure works. The resources will also be used to purchase more medical equipment to be added to the 800 clinics and hospitals that started operating over the last two years.
SSA Guarantees 2009 Medicines Supply, Secures MXN 5 Billion In Savings
November 27, 2008
Health Minister Jose Angel Cordova Villalobos said he guarantees the supply of medicines for 2009 as they succeeded in consolidating purchases and added that the Ministry saved as much as MXN 5 billion. Cordova Villalobos said the Ministry negotiated prices with 17 laboratories, of which seven agreed to award the government discounts.
Senate Passes Right-To-Die Bill
November 26, 2008
The Senate has approved a right-to-die bill that would allow terminally ill patients to refuse further treatment. The senate voted for the bill that had already been approved by the Lower House. The bill must now be signed into law by President Calderon. The measure was unanimously approved by the senate with one abstention. The bill, however, does not legalize mercy killing or assisted suicide.
SSA To Launch Screening For Human Papillomavirus HPV
November 27, 2008
The Health Ministry (SSA) has announced it is launching the first phase of a program that will offer testing for human papillomavirus (HPV), the primary cause of cervical cancer, to low-income women age 35-65. The cost of the testing will be covered by the Ministry. In the first phase of the screening program, which is beginning this month, more than 200,000 women in the lowest-income 125 counties are being offered the papillomavirus test along with the traditional Pap smear.
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Arts & Culture
Argentina, Mexico To Restore Siqueiros’ Mural In Buenos Aires
November 25, 2008
Mexico and Argentina pledged to restore Mexican muralist David Alfaro Siqueiros’ mural in Buenos Aires. The mural, called Ejercicio Plastico, has been corroded by time and environmental conditions but restoring works have already begun. The mural was presented jointly by Argentinean President Cristina Fernandez and by President Calderon during the latter’s official visit to the South American country.
Ownership Fight Sends Mexican Art Collection Into Hiding
November 27, 2008
A legal battle over works by Mexican artists Frida Kahlo, Diego Rivera, Jose Clemente Orozco and their contemporaries has led to their removal from a museum in Cuernavaca, in the state of Morelos. The paintings belonged to Jacques Gelman, a Russian-born producer of Mexican films who died in 1986. After several legal procedures, the ownership of the works is at stake as a relative of Gelman has been fighting for a greater share. As a result, the current owner hid them, while the dispute continues.
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Other
Mexico City Opens World’s Largest Ice Skating Rink For Christmas
November 30, 2008
Mexico City has opened the largest ice skating rink in the world for the second straight winter, with a five-hour show including performances by Mexican pop groups, children’s choruses singing Christmas carols and professional skaters who went through their fluid and graceful movements on the ice for the crowd. Mayor Marcelo Ebrard was the official designated to cut the ribbon inaugurating the skating rink, which is 32,000 square meters (338,000 square feet) in size and this year received a certificate from Guinness World Records verifying that it is the largest in the world.
Japanese Man Flies To Mexico, Camps At Airport
November 28, 2008
A Japanese man who flew into Mexico City’s airport (AICM) as a transit passenger 12 weeks ago is refusing to leave, but his reasons for staying remain a mystery and his government is taking a hands-off approach. Hiroshi Nohara, in his 40s and from Tokyo, has remained in the airport transit lounge since September 2. He has a valid visa to Mexico and a return ticket home but refuses to budge. Nohara has become a sort of celebrity, with airport staff and other transit passengers plying him with free food and drink, as well as stopping to take his picture and autograph.
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