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Energy
Pemex: Oil Exports Revenue Falls 10% Between January And May
July 1, 2009
Pemex said that oil-export tax revenue totaled MXN 363.58 billion between January and May, 10.3% less than in the
like-2008 period. The drop occurred despite the government’s decision to hedge the price of crude exports at USD 70
a barrel for all of 2009. Net oil revenue in the first five months of this year totaled USD 23.18 billion, down 24% from
the January-May period of 2008.
Mexico’s Gas Exports To The U.S. Are Cheapest Among Top Five Suppliers
July 1, 2009
According to analysts, Mexico is among the top five natural gas suppliers to the United States, exporting the fuel at
the cheapest price when compared to the other four providers in an apparent bid to maintain its presence in one of
the world’s largest markets. For instance, Mexico sells natural gas to the United States at USD 0.66 per million BTU,
whereas Trinidad and Tobago sells the hydrocarbon to the United States at approximately USD 3.3 per million BTU.
Pemex Announces Tender For Gas Projects At Burgos Basin
July 2, 2009
Pemex announced it published two tenders in the official gazette (DOF) for domestic and foreign companies to drill
and develop new infrastructure at some nonassociated natural gas fields at the Burgos basin, located within the
states of Tamaulipas, Nuevo Leon and Coahuila. Works will take place at the Burgos VIII-B and Burgos VIII-C fields
and are slated to kick off in 3Q.
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Mining
CAMIMEX: Mexico’s Metals Industry Begins Recovery Following Crisis
June 29, 2009
According to Mexico’s Mining Chamber (CAMIMEX), the country’s mining industry has started to recover from drops
in nearly all metals’ prices due to the global economic downturn. CAMIMEX said that experts expect Mexico will
maintain its leading position in the industry and that they consider the country to be among the world’s top 10 metals
producers. CAMIMEX said that Mexican gold has been trading at an average USD 900 per ounce and that it sees
production increasing to between 50 and 70 tons this year, as well as reaching 100 tons in 2011, making Mexico one
of the world’s top 5 gold producers.
Grupo Mexico Could Ask Creditors’ Help To Regain Control Of Asarco
June 29, 2009
A U.S. bankruptcy court has allowed Mexican miner Grupo Mexico (GMex) to request help from its creditors in order
to regain control of its bankrupt U.S. copper miner Asarco LLC subsidiary, an option the miner could use, according to
analysts. GMex agreed to pay USD 1.46 billion in cash plus a USD 280 million note to regain control of Asarco and
called its proposal superior to two other offers. Details for all three plans were filed in U.S. Bankruptcy Court in
Corpus Christi, Texas. To achieve a higher payout than GMex’s offer, the other two plans require Asarco’s courtappointed
managers to win an appeals court case worth USD 7.48 billion against GMex’s U.S. holding company,
Americas Mining Corp. GMex’s rivals in the case are Sterlite Industries and Harbinger Capital Partners.
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Trade & Investment
UNCTAD; ECLAC: FDI Falls In Mexico At Increased Rates
June 30, 2009
According to figures by the United Nations Conference on Trade and Development (UNCTAD) and the Economic
Commission for Latin America (ECLAC), Mexico is among the world’s emerging countries in which Foreign Direct
Investment (FDI) has been falling at an accelerated pace. Figures from the mentioned organizations indicate that FDI
to Mexico fell 19.5% in 2008 when compared to 2007, whereas data for Brazil, Argentina, Colombia, Chile, India,
China and Russia showed increases in FDI to those countries by 30%, 23%, 17%, 16%, 60%, 11% and 17%,
respectively.
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Banking, Insurance & Finance
Ixe Grupo Financiero Completes Pension Fund Sale To Banorte
July 1, 2009
Mexican banking group Ixe Grupo Financiero announced that it has closed the sale of its pension fund unit to local
peer Grupo Financiero Banorte after receiving regulatory approval. Ixe said last month it had agreed to sell its
pension operations with MXN 5.47 billion in assets under management to Banorte for an undisclosed amount. The
deal will help Banorte’s pension unit gain scale in the industry, following regulatory changes early last year that
reduced the commissions that pension fund managers can charge their clients. Meanwhile, exiting the pension fund
industry will allow Ixe to focus on its commercial banking and brokerage operations.
Moody’s Issues Warning About HSBC Mexico, Eyes Credit Cards
July 1, 2009
Moody’s Investor Service said it placed the ratings of HSBC’s Mexican unit under review, warning that its credit card
portfolio could lead to higher-than-expected losses. Moody’s said it could downgrade HSBC Mexico’s bank financial
strength rating, currently "C," considered adequate, along with other local debt and deposit ratings. Banks rated "D,"
the category of ratings below "C," "display modest intrinsic financial strength, potentially requiring some outside
support at times." HSBC Mexico said that it sold USD 300 million in 10-year bonds on the local market. The bonds,
which were placed 3.5% over Libor, consist on the bank’s third issuance under a MXN 15 billion program. The
issuance was rated Aaa.mx by Moody’s Investor Service and AAA(mex) by Fitch Ratings.
Consupago Securitizes Loans To Government Workers
June 30, 2009
Mexican finance company Consupago is planning to securitize MXN 1 billion in personal loans to government
workers, one of the first placements of its kind in the country. Fitch assigned a preliminary rating of "AAA(mex)" to the
issue by the firm, whose main stakeholder is U.S. consumer credit firm Sherman Financial Group, but warned that
high interest rates charged to clients create risks of a backlash from the government. Consupago makes loans to
government employees, charging annual interest rates equivalent to 80% and deducting monthly payments directly
from their salaries.
Banco Compartamos Eyes Strong Lending Growth
July 2, 2009
Mexican microfinance bank Banco Compartamos said it expects its second-quarter lending to have risen more than
20% despite a steep recession. Rather small when compared with Mexico’s leading retail banks, Compartamos
normally lends to one- or two-person businesses. Clients typically borrow around USD 370, at interest rates of about
75%, to purchase supplies or capital, such as sewing machines or tables. In 1Q, Compartamos expanded its loan
portfolio by 42%, with MXN 288 million in net profit. Compartamos plans to issue a bond for as much as MXN 2 billion
in July with a maturity of at least three years, locking in financing to fuel growth.
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Business & Industry
CONCAMIN: Manufacturing Industry Loses USD 25 Billion On U.S. Recession
June 29, 2009
According to Mexico’s Confederation of Industrial Chambers (CONCAMIN), Mexico’s manufacturing industry was
severely affected by the U.S. recession, leading it to lose as much as 25 USD billion in exports, which fell 26% during
the first five months of the year when compared to the like-2008 period. CONCAMIN added that the drop was the
worst registered since the North American Free Trade Agreement (NAFTA) entered into force and that the
manufacturing industry’s investment plans and ability to provide employment are also suffering from the economic downturn in the United States.
SE: Government Purchases To Micro Firms Will Amount To MXN 17 Billion
June 29, 2009
The Ministry of Economy (SE) announced that government purchases to national small and micro businesses within
the next three months, as part of the Federal Government’s Purchases Program, will amount to MXN 17 billion. SE
said that companies to benefit from the project must be at least 50% Mexican. SE said the amount is 20% higher than
compared to the former administration’s like program. SE also said that criteria to classify SMEs will now take into
account sales figures, in addition to the number of employees a company features.
Bimbo Prepays USD 135 Million In Debt
June 29, 2009
Mexican bakeries firm Grupo Bimbo announced that it prepaid USD 135 million of a USD 900 loan taken out to help
fund its acquisition in January of Weston Foods, the U.S. baking arm of Canada’s George Weston. In addition, Bimbo
recently sold MXN 10 billion in bonds on the local debt market with which it paid off a USD 600 million bridge loan that
was part of the financing to acquire Weston Foods. Bimbo said it continues prepaying its financial obligations to reach
a long-term debt amortization profile, aligning its debt payments with expected cash flow generation.
Mabe Acquires BSH Continental For USD 35 Million
July 1, 2009
Mexican home appliances manufacturer Mabe announced that it acquired Brazilian peer BSH Continental
Electrodomesticos, a unit of German conglomerate BSH Bosch und Siemens Hausgeräte, for USD 35 million,
expanding its market share in Brazil to 25% and making Mabe the second-largest home appliances provider in that
country. Mabe said that it financed the operation through a shareholders’ capital increase and loans it plans to pay
within five years.
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Automotive
Assemblers Will Wait Before Investing In Mexico; Car Production To Fall
July 2, 2009
According to analysts from IHS Global Insight and experts from the automotive sector, vehicle assemblers might wait
until 2015 or later before deciding on new major plant investments in Mexico due to the idle capacity currently present
in the NAFTA region. Analysts added that there are over 30 assembling facilities belonging to leading automakers,
some of them working at 33.3% of total capacity or that have implemented ongoing technical stoppages programs to
better address the sharp drop in the demand for automobiles in North America. IHS also said that Mexico’s May car
exports could indicate a drop in auto production this year to 1.2 million units, 40% less than in 2008.
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Housing & Mortgaging
Infonavit Sells MXN 2.6 Billion In Mortgage Bonds
July 2, 2009
Federal government-run housing fund Infonavit announced that it sold MXN 2.6 billion in mortgage-backed securities
in its second issuance this year. Infonavit said that demand for the inflation-indexed UDI-denominated bonds
(Cedevis) exceeded MXN 4.8 billion, or about 1.9 times the amount offered. The estimated interest is an annual 5.7%,
slightly higher than the 5.65% of its first issuance for MXN 2 billion in May but lower than the 5.9% that Cedevis paid
in December. Infonavit has sold MXN 40.8 billion of its Cedevis in 20 placements since it first went to market in 2004,
making it the largest issuer of mortgage bonds in Mexico.
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Construction & Infrastructure
Cemex Acquires Port Terminal In Louisiana; Seeks To Reschedule Debt
June 29, 2009
Mexican cement maker Cemex announced that it has agreed to acquire a port terminal in Louisiana from Spanish firm
Uniland to ship and unload cement for an undisclosed amount. Uniland had purchased 75% of U.S. cement company
Gulfland Cement in 2006 but was compelled to sell its Louisiana operations as it was affected by a drop in demand
for cement in Spain. In a separate matter, Cemex said that it asked its creditors to extend its USD 14.5 billion bank
debt to 2014. The main component of the plan is a credit facility that would run through 2014, moving debt maturities for 2009-2011 substantially into the future. Cemex said that it expects the refinancing, along with asset sales, cost
cutting and access to capital markets, to strengthen its capital structure and give it greater flexibility and more diverse
sources of financing.
Cemex Says Will Seek Legal Action Over Failed Austrian Sale
July 3, 2009
Mexican cement maker Cemex said it is considering legal action against Austrian builder Strabag over a failed asset
sale in Austria and Hungary. Strabag dropped its plan to buy Cemex units for EUR 310 million as it failed to obtain
Austrian antitrust officials’ approval by a June 30 deadline. Cemex said it has notified Strabag in writing that it
considers the withdrawal notice invalid.
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Retail
Comerci Announces Advances In Debt Talks; Receives Proposal
June 30, 2009
Mexican debt-ridden retailer Comercial Mexicana (Comerci) announced that it received a restructuring proposal from
bank and bond creditors on how to restructure the company, which defaulted on its debt last year following the global
credit crisis. Comerci said in June that it had agreed in principle with most key creditors on the terms to repay its debt,
although a final deal had not been reached. Comerci said that the proposal from banks and holders of bonds issued
in Mexico and the United States is "an important advance" in its negotiation process. Comerci also said it has
responded to derivatives claims by Barclays, Merrill Lynch, and Goldman Sachs, which had sued it in a U.S. court.
Famsa To Seek MXN 1.2 Billion Capital Increase
July 2, 2009
Mexican retail and banking group Grupo Famsa announced that it will ask investors to approve a capital increase of
MXN 1.2 billion at a shareholders’ meeting July 17. Famsa said its controlling shareholder has indicated his intention
to contribute at least MXN 600 million in fresh capital. Famsa added that the proceeds of the capital increase, which
involves the issuance of new A-class common shares, will be used for working capital and to reduce debt.
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Transportation
ASA To Award MXN 800 Million Loan To Aeromexico; Mexicana
June 30, 2009
State-run airport operator Aeropuertos y Servicios Auxiliares (ASA) announced that it has started procedures to
award Mexican airlines Aeromexico and Mexicana financial aid for as much as MXN 800 million. The funds are part of
a MXN 1.7 billion "fuel credit" that was awarded by development bank Bancomext to ASA to allow it to defer jet-fuel
charges.
Southwest Air Says It Is Still Committed To Volaris Partnership In 2010
July 1, 2009
U.S. low-cost airline Southwest Airlines said that it is still committed to code sharing with Mexican peer Volaris in the
second half of next year, marking its first step toward offering international destinations. The timetable for the pact
with Volaris has moved back from the early 2010 schedule originally envisioned, after Southwest had indicated earlier
this year that plans to code-share with Canada’s WestJet were on hold, citing unspecified priorities. Volaris started
daily flights from its hub outside Mexico City to Los Angeles last week—its first U.S. flight—and plans to add services
to Oakland, California, at a later date.
SCJN Denies Protection To Ferromex Against Railway Services Law
July 2, 2009
The Supreme Court (SCJN) said it has denied protection to Mexican railway company Ferromex after the latter
sought to avoid paying certain railway service fees that concessionaries must contribute, which are established in the
Railway Service Law and its corresponding rulings and which are determined by the Communications and Transport
Ministry (SCT). In a separate matter, the Federal Competition Commission (CFC) declared the merger between
Ferromex and Ferrosur illegal and ordered its dissolution in late June.
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Telecommunications & Technology
CFC Rules Telmex Is Dominant In Two Markets
July 1, 2009
The Federal Competition Commission (CFC) declared Telmex dominant in the markets for local call traffic and leasing
of dedicated lines. CFC said that its findings are the result of investigations into conditions in the fixed-line telephony
market, but do not presume anticompetitive practices on the part of the company or imply sanctions. The CFC said it
expects to conclude two other probes of the fixed-line market and two investigations of mobile telephony in the
coming months. Telmex’s spokespeople declined to comment.
Competition In Mexico’s Broadband Market Begins To Broaden
July 1, 2009
According to analysts and some companies’ executives, Mexico’s broadband market will experience an increase in
competition in coming years. Experts say there are between 7 million and 7.5 million computers in Mexico that do not
use broadband connection services yet as well as an increasing demand for mobile broadband services that are
attracting an important number of companies from the sector. Experts say that broadband services will account for
13% of mobile services revenue in upcoming years.
Pay TV Operators Enter Price War
July 1, 2009
According to analysts, Mexican pay TV providers have entered a price war, offering discounts as high as 40% when
compared to rival’s tariffs in order to increase their client base. The increased competition began in 2008 when Dish,
a joint project involving the MVS-Echostar and Telmex strategic alliance, introduced new strategies to draw their
competitors’ clients. Data from the Federal Telecommunications Commission (Cofetel) indicated that Dish had 442
clients in December 2008, a figure that skyrocketed to 26,989 in March 2009.
CFC, Electricity Workers Union, Seek To Enter Telecommunications Market
July 2, 2009
The Federal Electricity Commission (CFC) and the Electricity Workers Union (SME) announced that they requested a
concession from the Communications and Transport Ministry (SCT) to operate a telecommunications network through
CFC’s 1,110 km of fiber-optic cable. SME said the project has already been approved by the Energy Ministry
(SENER) and that it could lead to substantial technical, operative and financial improvements in state-run electricity
firm Luz y Fuerza del Centro’s (LyFC) operations, among others.
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Media & Entertainment
Televisa Seeks To Obtain 60% Stake In Spanish TV Company
June 30, 2009
According to press reports, Mexican media conglomerate Grupo Televisa sent representatives to Spain to negotiate
the purchase of a 60% stake in a newly created firm resulting from the merger of Spanish TV companies La Sexta
and La Cuatro. Televisa already has a 40% share in La Sexta and is apparently seeking to expand its presence in
that market by securing the mentioned 60% participation in the brand new firm. However, press reports also said the
transaction could be difficult to achieve, as Spanish media company Prisa, which owns La Cuatro, is also seeking a
60% stake.
Slim To Exercise Buy Option In The New York Times
July 1, 2009
Mexican billionaire Carlos Slim said that he will exercise his buy option to acquire shares in U.S. newspaper The New
York Times Company, but specified he is not interested in entering that sector and that he will not increase his current
7% participation in the firm.
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Economy
Banxico: Economy Could Shrink 6.3% In 2009; Carstens: Mexico Should Not Be Downgraded
July 1, 2009
According to analysts surveyed by the central bank (Banxico), Mexico’s economy will probably shrink 6.3% this year
as a severe U.S. recession dents the country’s exports. The findings, from a poll conducted in late June, show a
gloomier outlook for what was already expected to be Mexico’s deepest economic contraction since at least 1995.
Just a month earlier, economists had forecast a 5.5% decline in gross domestic product for this year. Economists now
see a sharper contraction during the 2Q than in the previous poll, though the forecast for 4Q is for a more moderate
decline than previously seen. Meanwhile, Finance and Public Credit Minister Agustin Carstens said that international
ratings agencies have no reason to cut Mexico’s credit rating, as the country’s finances are on solid ground. Carstens said Mexico will continue with fiscal prudence to avoid a downgrade in the country’s rating. Fitch Ratings rates
Mexico’s sovereign debt BBB+, although it recently said the country has limited room to respond to the ongoing global
crisis and pressures on its public finances are likely to increase next year as oil prices aren’t expected to recover.
SHCP: Mexico May Budget Deficit At MXN 33.92 Billion
June 30, 2009
According to the Finance and Public Credit Ministry (SHCP), Mexico posted a MXN 33.92 billion government budget
deficit in May, down from April’s surplus, which stood at MXN 62.264 billion. SHCP added that the total budgetary
balance for the first five months of the year is a MXN 10 billion deficit. SHCP expects to run a deficit equivalent to
approximately 2% of gross domestic product (GDP) this year. SHCP had announced a MXN 35 billion budget cut in
May due to the fall in tax revenues. The cut amounts to a little more than 1% of this year’s MXN 3.045 trillion budget.
SHCP noted that the drop in contributions is due to the global economic downturn and the A/H1N1 influenza virus
outbreak.
Banxico: Remittances To Mexico In May Down 20% To USD 1.9 Billion
July 1, 2009
According to the central bank (Banxico), remittances to Mexico from Mexican citizens living abroad fell 20% in May
from the year-ago month. Banxico said Mexicans sent home USD 1.9 billion in May, compared with USD 2.37 billion
in May 2008. The drop was slightly higher than April’s 19%, and the biggest decline on record going back to 1995.
After rising for years to a record USD 26.1 billion in 2007, remittances fell 3.6% last year and were down 11% to USD
9.16 billion in the first five months of 2009.
BMV Ranks 11th In Global Performance Ranking
July 28, 2009
According to a stock exchange global performance ranking recently published by the Financial Times Stock
Exchange, Mexico’s Bolsa Mexicana de Valores (BMV) occupied the 11th place as the IPC index rose 2.4%,
increasing gains by 16.4% since the beginning of the year. According to the ranking, BMV performed best among
Latin America’s stock exchanges.
States’ Revenue Falls Sharply In First Five Months Of The Year
June 30, 2009
Official figures revealed that states’ revenue from the funds distributed by the federal government to each one of them
fell sharply during the first five months of the year as the federal administration announced a budget restructuring in
May. A report by the Finance and Public Credit Ministry (SHCP) said that the total amount paid to Mexico’s states by
the federal government fell to MXN 158 billion in the first five months of 2009 when compared to the like-2008 period,
when the funds amounted to MXN 193.3 billion.
INEGI: Manufacturing Employment Falls 8.4% In April
July 1, 2009
According to the National Statistics Institute (INEGI), employment in the manufacturing sector fell 8.4% in April when
compared to results from the like-2008 period, the worst loss registered in that area since 1995, when the drop was
9.1%. INEGI said employment rates in the manufacturing sector have been falling steadily for the past 20 months.
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Border & Migration
OECD: 315,000 Mexicans Enter The U.S. Illegally Each Year
June 30, 2009
According to the Organization for Economic Cooperation and Development’s (OECD) International Migration Outlook
2009, 315,000 Mexicans enter the United States illegally each year and add to the 6.5 million Mexicans already living
there. OECD noted that the U.S. immigration authorities’ strategies to control the illegal immigration of Mexicans to
their country have barely reduced the flow of illegal aliens entering the United States.
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Politics
Mexico Withdraws Ambassador In Honduras, Offers Asylum To Officials
June 29, 2009
Mexico condemned the recent coup d’état in Honduras, recalled its Ambassador in that country and offered protection
to some officials who needed it, particularly Honduran Foreign Minister Patricia Isabel Rodas. Soldiers broke into the
official residence of Honduran President Manuel Zelaya and forced him to board a plane to Costa Rica. Mexico was among the many nations and institutions that condemned the coup and Zelaya’s forced exile to Costa Rica.
WB: Mexico’s Results In Worldwide Governance Indicators Are Poor
June 30, 2009
According to World Bank’s Worldwide Governance Indicators (WGI), Mexico obtained poor results, below passing
scores in more than half of the categories. WB evaluated 211 nations’ governance and Mexico’s grades were deficient
in stability and absence of violence; rule of law; government responsibility, accountability, citizen participation and
corruption control. Mexico only obtained acceptable grades in regulatory quality and governmental effectiveness.
President Calderon acknowledged that Mexico is living in difficult times but said he believes the WB’s report’s
methodology failed to provide an accurate perception of the reality in Mexico.
Obama, Harper To Attend North American Leaders Summit In Mexico
June 30, 2009
Officials from U.S. President Barack Obama’s and Canadian Prime Minister Stephen Harper’s offices said the leaders
will visit Mexico in the second half of August to attend the North American Leaders Summit 2009, to take place in the
city of Guadalajara, in the state of Jalisco.
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Justice, Safety & Crime
SHCP: Mexico To Preside Over FATF For 2010-2011 Term
July 1, 2009
The Finance and Public Credit Ministry (SHCP) announced that Mexico will preside over the Financial Action Task
Force on Money Laundering (FATF), also known by its French name Groupe d’action financière sur le blanchiment de
capitaux (GAFI), for the 2010-2011 term. SHCP said the approval for Mexico to preside over the organization is an
international recognition of its efforts in fighting and preventing money laundering and the financing of terrorists.
Tamaulipas, FBI Sign Agreement To Share Information, Combat Crime
July 1, 2009
The state of Tamaulipas and the U.S. Federal Bureau of Investigation (FBI) announced that they signed an agreement
to share information and create joint databases to search for missing persons, minors, fugitives and stolen vehicles.
The agreement also includes the exchange of professionals and criminalists to address crimes such as kidnappings
and other felonies.
Spain Captures Mexicans, Colombians And Spanish In Drug Operation
July 1, 2009
Spain announced that its Civil Guard arrested several drug traffickers from Mexico, Colombia and Spain belonging to
a drug-smuggling group that imported and distributed cocaine in Spain. Spanish authorities specified that they busted
31 people, more than ten of them Mexican, in the cities of Madrid, Valladolid, Seville and Barcelona. The operation
also led to the seizure of EUR 2 million, 570 kg of cocaine, seven vehicles, documents and other paraphernalia
employed in money laundering activities.
Press Reports: Drug-Related Deaths Continue To Rise
July 2, 2009
According to press reports and tallies, drug-related murders continue to rise and are becoming more violent and
aggressive, and June has been labeled as the most brutal month in the current administration. A tally by local
newspaper El Universal indicated that in the first six months of 2009, 3,247 people died in drug-related incidents, an
average of 18 per day. Total death toll during President Calderon’s administration has reached 11,728 casualties, and
the criminality rate in the first six months of the year skyrocketed by 67% when compared to the like-2008 period.
International Press: Drug Crackdown Affects Dealers In Canada
July 2, 2009
According to international press reports, Mexico’s government crackdown on drug cartels is moving indirectly outside
Mexico’s borders, forcing dealers in Canada to battle each other for market share and dominance. Reports indicated
that since March, drug-related violence in Canada has escalated, infiltrating towns and communities with little or no
connection to drug dealers or gangs. According to the Los Angeles Times, drug dealers are sparing no one in and
around Vancouver, the city that will host the 2010 Winter Olympics. Canadian authorities said they trace the violence
to the recent government crackdown on cocaine traffickers in Mexico, which has squeezed profit margins for cocaine
north of the U.S. border.
Judge Orders Detention Of 94 Police Officers With Drug Links
June 29, 2009
A federal judge ordered the extended detention of 94 police officers in the state of Hidalgo, charging them with protecting the Zetas, the armed wing of the Gulf drug cartel. The ruling applies to 85 members of the municipal police
force in Pachuca, the state capital; six agents of the Hidalgo AG office; the police chief in the town of Mineral de la
Reforma; the regional boss of the Federal Investigations Agency (AFI) and a civilian official. Authorities say they
suspect the 94 detainees of abetting abductions and extortion carried out by Los Zetas.
Prosecutors Free Three Mayors Held For Alleged Drug Ties
June 30, 2009
Federal prosecutors released three of the ten Mexican mayors arrested in May in an unprecedented sweep of elected
officials accused of protecting a drug cartel. The mayors of the western towns of Coahuayana, Buenavista and Aquila,
in the state of Michoacan, were let go after spending more than a month in prison. The Attorney General’s Office
(PGR) did not provide details on the reasons for their release or specify whether the investigation on them would
continue. Officials could not be reached for further comment. Seven other mayors arrested in the sweep of 30 officials
in Michoacan remain in prison and have been charged with protecting members of La Familia drug cartel.
PGR: Law Enforcement Officers Seize Large Amount Of Chemicals For Drugs
July 2, 2009
The Federal Attorney General (PGR) said authorities seized 4.2 tons of piperonal—a chemical used in producing
synthetic drugs—that arrived at the port of Manzanillo, in the state of Colima, from China. PGR’s agents, customs
service officers and navy sailors found the shipment of chemicals while inspecting a container that had been
abandoned in the customs zone at the port. Manzanillo is frequently used by organized crime groups to smuggle
drugs into Mexico from Asia and South America. The port also serves as a base for smuggling drugs into the United
States via the Pacific.
Drug Cartels Target Outspoken Priests
July 2, 2009
Recent press reports indicate that Mexican drug traffickers are attacking priests and preachers who denounce cartel
violence, shattering clerics’ untouchable aura and breaking honor codes in the world’s second-biggest Catholic
country. Gunmen killed a Catholic priest and two seminary students as they left a church in southern Mexico in early
June. The Mexican Bishop’s Conference said that around 1,000 Catholic priests face constant threats from drug
gangs across Mexico and that as many as 400 have been directly warned to silence their criticisms of narco-violence
and extortions or be killed. In the most recent such act, gunmen abducted and murdered a Mormon leader in the state
of Chihuahua who also headed a protest group against kidnappings and violence.
Authorities: 14 Bodies Found In Mass Grave
July 2, 2009
Authorities announced that police uncovered a mass grave in the state of Guanajuato with the remains of 14 or 15
people believed to have been executed by the Zetas, the Gulf drug cartel’s armed wing. The remains found in
Guanajuato were so badly burned that officials were not immediately able to identify the number of victims, and it may
be difficult to identify the dead. Guanajuato prosecutors said the corpses were piled into a single pit discovered a day
after a shootout between police and suspected Zetas in the town of Apaseo el Alto. In the shootout, 12 gunmen were
killed, 12 were captured and one police officer was wounded.
U.S. Approves Extradition Of Suspect In Mexican Kidnapping Case
June 30, 2009
Miranda Wallace, mother of Hugo Alberto Wallace Miranda who was kidnapped and murdered in Mexico, announced
that a U.S. judge authorized the extradition to Mexico of Brenda Quevedo, an alleged member of the kidnapping ring
that assassinated her son and who was hiding in the United States. Quevedo still has a 30-day period to appeal the
extradition sentence.
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Health & Science
Mexico Hosts A/H1N1 Influenza Summit
July 2, 2009
Mexico hosted a two-day international meeting on the A/H1N1 influenza virus in the Caribbean resort of Cancun, in
the state of Quintana Roo. Attendants of the summit included World Health Organization (WHO) Director Margaret
Chan and health ministers from several countries. In her opening speech, Mrs. Chan praised Mexico for the openness
and speed with which it implemented health measures and gave a speech on information sharing and lessons
learned from the deadly outbreak of the new pandemic. President Calderon thanked foreign officials for their visit,
which he described as "a gesture of friendship and solidarity" to Mexico.
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Other
Mexico City’s Zoo Witnesses Birth Of Antelopes Extinct In The Wild
June 29, 2009
Mexico City’s Chapultepec Zoo witnessed the birth of the two baby scimitar oryxes, a species of antelope that is
extinct in the wild. With the double birth, the Mexican zoo now has seven scimitar oryxes, declared extinct in their
natural habitat in 2007 by the International Union for Conservation of Nature. This African antelope gets its name from
its long, ringed horns that grow up to 1.5 meters (almost 5 feet) in length and curve backwards in the shape of a
scimitar blade.
Latino Immigration To The U.S. Boosts Soccer’s Groundswell, Potential Market
June 30, 2009
According to some immigration analysts and sociologists, Latino immigration has boosted and shaped the grass roots
of U.S. soccer youth play, leading to memorable games like the U.S.-Brazil’s FIFA Confederations Cup’s final. A trend
that could translate into huge increases in TV ratings and gate receipts, or into deep and palpable margins, a potential
market that will eventually pervade as U.S. soccer quality improves and the National team gains international
presence, boosted by the merger of talents from different ethnic groups.
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