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Energy
Pemex: Peso Depreciation Threatens 2009 Capex Plan
May 4, 2009
Pemex said that the devaluation of the country’s peso (MXN) currency is creating difficulties regarding sticking to its
USD 20 billion investment plan for 2009. The peso was recently trading at MXN 13.48 to the dollar, compared with a
record high against the U.S. currency of MXN 9.90 in mid-2008. The depreciation of the peso also caused the
company’s total debt to jump 25% on year during the first quarter to MXN 630 billion, mainly because 85% of Pemex’s
total debt is denominated in foreign currencies.
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Trade & Investment
China Bans Import Of Pigs, Pork From Mexico, U.S.
April 27, 2009
China has banned imports of live pigs and pork products from Mexico and three U.S. states after the influenza virus
outbreak hit both countries. The General Administration of Quality Supervision, Inspection and Quarantine said
shipments sent after April 26 will be returned to Mexico, Texas, California and Kansas, or destroyed.
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Banking, Insurance & Finance
Inbursa Plans To Open 100 Bank Branches In 2009 On Track
April 30, 2009
Mexican financial group Grupo Financiero Inbursa said it is moving forward with plans to open 100 branches this year
as part of its incursion into retail banking. Inbursa said it opened 30 new branches in the 1Q, which were included in
its plan to open 100 new branches in 2009. In October, Criteria Caixacorp, the investment arm of Spanish savings
bank La Caixa, acquired a 20% stake in the Mexican company with a view to develop a retail banking venture in
Mexico. Inbursa is owned by Mexican billionaire Carlos Slim. Inbursa had 124 branches and 565 ATMs at the end of
March.
GNP: Mexico’s Insurance Companies Provide Coverage For Influenza
April 26, 2009
According to a report by insurer Grupo Nacional Provincial (GNP), all health insurances in Mexico cover influenza
risks and the sector’s solvency to address eventual claims from over 1.08 million clients in main states affected by the
virus – the Federal District, the State of Mexico (Edomex) and San Luis Potosi – is ensured. In addition, the Mexican
Insurance Association (AMIS) said that at the end of 2008 the country’s insurance sector had reserves surpassing
MXN 405.3 billion.
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Business & Industry
Canirac: Mexico City Restaurants’ Sales Fall 70% On Influenza Outbreak
April 27, 2009
According to the National Restaurant Industry and Spiced Foods Chamber (Canirac), sales in the restaurant sector in
Mexico City fell 70% as a result of public fears and governmental measures to prevent the spread of the influenza
outbreak in the country. Nearly all the restaurants in the city were compelled to close their doors.
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Automotive
VW Suspends Puebla Facility Operations For Two Weeks
April 27, 2009
German automaker Volkswagen’s (VW) Mexico unit announced that it would halt operations at its facility in the state
of Puebla for two weeks as demand in international markets dropped. VW said the stoppage could be the last of the
year and specified that approximately 9,400 workers would be absent between April 27 and May 8. VW took U.S.
peer General Motors’ (GM) place as Mexico’s main automobile producer and increased exports to Europe. VW
produced 75,136 vehicles in 1Q.
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Construction & Infrastructure
Cemex Recovers USD 190 Million In ISR Taxes From SHCP
April 29, 2009
Mexican cement maker Cemex announced that it received USD 190 million from the Finance and Public Credit
Ministry (SHCP) in excess income (ISR) taxes it had contributed. The amount is equivalent to the company’s total
sales in Spain, its fourth largest market worldwide, or the combined EBITDA from its U.S., Africa, the Middle East,
Asia and Australia operations in 1Q 2009.
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Transportation
SCT: New Bidding Process For Pacific Roads Package Tender Begins
April 29, 2009
The Communications and Transport Ministry (SCT) announced the start of the second bidding process for the Pacific
roads package’s tender. SCT relaunched the tender package as bidding was declared void, since the minimum MXN
12.2 billion reference amount targeted was not reached in the first round. The package includes road projects in the
central-northwestern states of Jalisco, Nayarit and Sinaloa. Winning firms will build, operate, exploit and maintain the
projects during a 30-year period.
Volaris To Fly To Los Angeles, Oakland From Toluca And Guadalajara
April 27, 2009
Mexican low-cost airline Volaris announced that it will inaugurate two U.S. destinations in July. Volaris said it will fly to
Los Angeles and Oakland from the Mexican airports of Toluca and Guadalajara, in the State of Mexico (Edomex) and
the state of Jalisco, respectively, as part of its recently entered alliance with U.S. peer Southwest Airlines. Volaris
seeks to fly to 12 international destinations by 2013.
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Telecommunications & Technology
Cofetel Proposes SCT Impose Sanctions On Telmex
April 27, 2009
The Federal Telecommunications Commission (Cofetel) proposed that the Communications and Transport Ministry
(SCT) begin an administrative procedure to impose sanctions on Telmex for failing to consolidate the Local Service
Areas (ASL) program, which includes 70 areas and which was reactivated on April 4, as well as for failing to act
according to other ASL-related governmental regulations. The program seeks to eliminate long-distance calls
between neighboring areas by changing prefixes and area codes of dialing numbers. Telmex has opposed the
program, as such operations represent an important part of its earnings.
Telmex 1Q Net Down 15% To MXN 4.76 Billion
April 27, 2009
Telmex announced that its first-quarter net profit from continuing operations fell 15%, due to declining sales and a
higher tax bill. Net profit from continuing operations was MXN 4.76 billion, or MXN 0.26 per local L shares, compared
with MXN 5.57 billion, or MXN 0.29 per share, in 1Q of 2008. Sales fell 3.6% on the year to MXN 30.02 billion as
weak local and long-distance revenues offset a 32% jump in Internet sales, while earnings before interest, taxes,
depreciation and amortization (EBITDA) dropped 7% to MXN 14.09 billion.
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Hospitality & Tourism
SECTUR: Private Investment In Tourism Amounts To USD 4.6 Billion In 2008
April 26, 2009
The Tourism Ministry (SECTUR) announced that private investment in Mexico’s tourism sector amounted to USD 4.6
billion in 2008, which is equivalent to a 34% increase when compared to figures from 2007. SECTUR said that private
investment in the country’s tourism sector since the beginning of the current administration in 2006 amounts to USD
20 billion, which represents 40% of the Calderon Administration’s target. States that receive most of the international
investment in the tourist sector include Quintana Roo, Nayarit, Baja California and Sinaloa.
Mexican Tourism Worries Increase On Influenza Fears
April 27, 2009
According to the Mexico City Hotel Association, the country’s tourism industry was in crisis even before the
government announced the presence of the influenza virus a few weeks ago and began taking measures to address
the epidemic. The industry has been grappling in recent months with fears that Mexico’s drug war has made the
country too risky to visit. The association reported a 20% drop in domestic tourism to the capital over recent weeks
and said the effects of the crisis on international visitors were still being assessed.
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Economy
SHCP Estimates 1Q GDP Shrank 7% On Year
May 1, 2009
The Finance and Public Credit Ministry (SHCP) said that it expects the country’s gross domestic product to have
contracted about 7% in 1Q from a year earlier. GDP fell 1.6% year-on-year in the fourth quarter of 2008 amid a
deepening of the global financial crisis and a recession in the U.S. Mexico’s economy grew 1.3% last year, down from
3.3% in 2007. Meanwhile, the central bank (Banxico) slashed its forecast for economic growth this year and expects
GDP to have fallen between 7% and 8% in the first quarter, and to contract between 3.8% and 4.8% for the full year.
The National Statistics Institute (INEGI) is scheduled to release GDP data for 1Q on May 20.
SHCP: March Fiscal Deficit At MXN 30.272 Billion
May 1, 2009
The Finance and Public Credit Ministry (SHCP) announced that the government ran a fiscal deficit of MXN 30.272
billion in March. Mexico posted a MXN 38.3 billion budget deficit in 1Q 2009, while the government plans to run a
deficit of 1.8% of gross domestic product this year to help offset the effects of the global financial crisis.
INEGI: Mexico’s Major Economic Indicator Down 10.8% In February
April 28, 2009
According to the National Statistics Institute (INEGI), Mexico’s comprehensive economic activity indicator saw a yearon-
year decline of 10.8% in February. The figures indicated the manufacturing sector continued to suffer, with a yearon-
year decline of 13.2%. The farming sector witnessed a drop of 7.1% and the trading and services sector suffered a
decline of 9.6%.
Banxico: March Remittances Fall 0.5% To USD 2.1 Billion
April 30, 2009
According to the central bank (Banxico), remittances from Mexicans living abroad slipped 0.5% in March from the
year-ago month to USD 2.1 billion. March saw 6 million transfers of an average USD 350 each. For the first quarter,
remittances fell 4.9% from the year-ago period to USD 5.48 billion as Mexicans living abroad – mostly in the U.S. –
felt the effects of the global economic crisis. Despite the drop in dollar amounts, Banxico said the peso value of the
transfers rose 23% from the first quarter of 2008 as the local currency fell to record lows against the dollar in the
period.
Mexican Peso, Stocks Fluctuate On Influenza Outbreak Situation
April 27, 2009
Mexico’s peso weakened sharply and stocks sank due to worries that the influenza virus outbreak could further
hobble Mexico’s battered economy. Airport operators and retailers were among the hardest hit. The peso (MXN)
slumped 4.09% to 13.85 per U.S. dollar, while the IPC stock index tumbled 4.83% to 21,491. Nevertheless, the peso
has recovered as well as the IPC stock index as governmental measures to help contain the outbreak and central
bank auctions for USD 300 million at an average rate of MXN 13.7629/USD supported the Mexican currency and led
to the fluctuations.
DF Chamber Estimates Losses From Influenza At USD 57 Million A Day
April 28, 2009
Mexico City’s (DF) Chamber of Trade, Services and Tourism estimated that canceled events and closure of movie
theaters, night clubs, museums and other establishments to prevent the spread of the influenza virus cost Mexico City
at least USD 57 million a day. The Chamber said the figure represents a 36% drop in revenue generated by tourism
and services in DF. The estimate was made before the city government expanded the shutdown to include
restaurants.
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Politics
Key Midterm Congressional Campaigns Kick Off In Mexico
May 3, 2009
Politicians kicked off their campaigns for congressional midterm elections amid the influenza virus outbreak that killed
several Mexicans. Politicians from the ruling National Action Party (PAN) have expressed hopes that President
Calderon’s handling of the epidemic will help the party gain hold of an opposition-controlled Congress. The July 5
vote is crucial for Calderon’s expectations of pushing his legislative agenda through a hostile Congress, which is
divided between the country’s three leading parties. The elections include the lower house, as well as some state
governors.
El Salvador Awards Decoration To Chiapas Governor
April 28, 2009
The government from El Salvador has awarded the National Order “José Matias Delgado” decoration to Juan
Sabines, the Governor of the Mexican state of Chiapas. El Salvador’s Foreign Affairs Minister Marisol Argueta de
Barillas presented Sabines with the Gran Cruz for his efforts in the defense of Central American migrants.
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Justice, Safety & Crime
Authorities Arrest Gulf Drug Cartel Leader On Most-Wanted List
April 29, 2009
Authorities said that police arrested suspected Gulf Cartel armed wing Zetas leader Gregorio Sauceda Gamboa, one
of Mexico’s 24 most-wanted drug traffickers. Federal police said Sauceda Gamboa was detained in the border city of
Matamoros, in the state of Tamaulipas. Authorities have offered rewards of up to USD 2.1 million for each suspect in
the mentioned list. Police said that they also seized 5 rifles and more than 4,500 rounds of ammunition in the raid that
netted Sauceda Gamboa.
Seven Police Agents Perish In Attack In Tijuana
April 28, 2009
Authorities announced that seven police officers were assassinated in about an hour’s time in what the government
described as a coordinated effort that followed months of relative calm in the city of Tijuana, in the state of Baja
California. Three officers were injured and municipal police detained several people after the attacks. Further details
were not provided.
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Health & Science
WB Lends USD 205 Million To Mexico To Address Influenza Outbreak
April 27, 2009
The World Bank (WB) awarded Mexico a USD 205 million loan to purchase medical supplies and research
paraphernalia so that the country can better address the current sanitary crisis deriving from the influenza virus
outbreak. The WB and the Finance and Public Credit Ministry (SHCP) jointly announced the agreement and specified
that the funds will be delivered in two tranches, the first USD 25 million to be delivered immediately, and the second
USD 180 million within two to three weeks.
China Offers Aid To Mexico In Wake Of Influenza, Then Quarantines Mexicans
May 2, 2009
The government of China offered humanitarian aid worth USD 5 million to Mexico amid the influenza virus outbreak.
President Calderon personally attended the reception of the aid at the airport and thanked China in the name of the
people of Mexico. Nevertheless, discriminative measures from the Chinese government against Mexicans it held in
quarantine prompted the Mexican government and people to protest the lack of subtlety and harsh diplomatic
measures from China. The Mexican government sent a chartered plane to Asia to pick up the quarantined Mexicans.
China denied that its measures were inappropriate, discriminatory, or repressive and has lifted the quarantine.
Japan Sends Medical Supplies Worth JPY 100 Million To Mexico
April 30, 2009
Japan announced that it sent medical supplies worth JPY 100 million in emergency assistance to Mexico, which has
been hit hard by the new strain of influenza virus. Several countries, such as Spain, have expressed solidarity with
the Mexican people and have sent humanitarian help; however, Mexico’s diplomatic relations with other nations have
been affected as governments from countries such as China, Argentina, Cuba, Ecuador, Peru, and Singapore have
taken discriminatory measures against Mexican citizens.
Sanofi-Aventis Donates 236,000 Influenza Doses To Mexico
April 27, 2009
French pharmaceutical firm Sanofi-Aventis donated 236,000 doses to Mexico to treat patients infected with the
influenza virus after the outbreak of the disease in the country. In addition, the firm said the construction of its plant to
manufacture vaccines against the virus is going forward and advancing at a rapid pace. Investment for the production
of the vaccines is estimated at EUR 100 million. Other drug producers that can manufacture the treatments for the
influenza virus, such as Roche Holding and GlaxoSmithKline, are seen as the main economic actors to benefit from
the epidemic.
Supermarkets Urge Consumers Not To Make Panic Purchases
April 29, 2009
Mexico’s supermarkets urged consumers not to engage in panic buying in response to the influenza virus outbreak
that has killed several people in the country. The National Association of Self-Service and Department Stores, which
represents the largest supermarkets in Mexico, issued a statement after citizens began bulk buying in stores due to a
circulating email warning that supermarkets and gas stations were going to close. The supermarkets continued
operating during normal working hours.
U.S. Company Says It Warned About Influenza Epidemic On April 2
April 27, 2009
U.S. biovigilance firm Veratec said it had warned the World Health Organization (WHO) about the presence of the
influenza virus and the outbreak that occurred in the municipality of Perote, in the state of Veracruz. Veratec said 60%
of the municipality’s population had symptoms indicating the presence of the virus and offered a warning about the
imminent outbreak if the problem was not controlled. Meanwhile, legislators from the opposition Democratic
Revolution Party (PRD), experts, journalists, and other citizens criticized authorities for failing to act sooner to control
the influenza outbreak.
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Sports
Influenza Fears Force Cancellation Of Mexico Games
April 28, 2009
Fears and measures to control the influenza outbreak in Mexico forced the cancellation of the remainder of the CONCACAF under-17 championship in Tijuana, in the state of Baja California, and other soccer games nationwide. CONCACAF also postponed the second leg of the Champions League finals between Cruz Azul and Atlante FC until May 12.
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Other
Earthquake Rattles Mexico City
April 29, 2009
The U.S. Geological Survey (USGS) confirmed that the epicenter of the earthquake that shook Mexico City was in the
state of Guerrero, where the coastal resort of Acapulco is located, roughly 220 kilometers from Mexico City. The
USGS put the magnitude at 5.6, downgrading it from an initial reading of 6.0. USGS personnel said that the
earthquake’s depth made serious damage less likely as its epicenter was 25 miles deep, and that there was some
distance between it and the surface of the ground. In Mexico City, the temblor caused tall buildings to sway and sent
office workers into the streets.
Mexicans Put Faith In Christ Amid Influenza Outbreak
April 27, 2009
A centuries-old statue of Jesus Christ believed to protect against disease was carried through the streets of Mexico
City for the first time in more than a century as the influenza virus outbreak killed several in the country. Roman
Catholic worshipers, many in surgical face masks for fear of infection, paraded the revered six-foot statue around the
capital’s central Zocalo square. The icon had not been removed from its altar in the capital’s main cathedral since a
virulent outbreak of cholera killed thousands of people in the mid-1800s.
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