ManattJones Global Strategies
May 18, 2009
News Briefs
May 4 - May 10, 2009
Volume VI, Issue 19

Energy | Trade & Investment | Banking, Insurance & Finance | Business & Industry | Automotive |
Housing & Mortgaging | Construction & Infrastructure | Retail | Transportation | Telecommunications & Technology |
Media & Entertainment | Farming & Agriculture | Hospitality & Tourism | Economy | Border & Migration | Politics |
Justice, Safety & Crime | Health & Science | Sports | Arts & Culture | Other


Energy

Mexico Expands Findings Of Oil, Gas In Deep Gulf Waters
May 8, 2009
Pemex Exploracion y Produccion (PEP) said it is succeeding in expanding its oil and gas discoveries in the deep waters of the Gulf of Mexico and is ramping up rapidly to widen production. Drilling activity will increase from two wells currently to as many as ten wells in 2011, and five rigs will be working in deep Mexican waters of the gulf by 2012. The Lakach and Tamil–1 heavy oil and natural gas discoveries can be commercially developed, as a cluster of deepwater oil fields near the Tamil well could eventually produce up to 250,000 barrels a day (b/d) of heavy crude oil. The company hopes that the new projects on land and in the gulf will eventually bring production back above 3 million b/d. Meanwhile, Mexico's Mezcla crude oil blend was sold at USD 56.38 per barrel, up USD 1.04 from its previous sale price.

CFE Awards USD 294 Million Contract To TransCanada To Build, Operate Gas Duct
May 7, 2009
The Federal Electricity Commission (CFE) has awarded Canadian energy firm TransCanada a USD 294.2 million contract to build and operate the Manzanillo–Guadalajara gas duct, running through the states of Colima and Jalisco. The gas duct will have the capacity to transport as much as 500 million cubic feet per day and will supply natural gas for 25 years to CFE's thermoelectric plants in Manzanillo and Guadalajara. Competitors that also bid to obtain the contract included Fermaca Pipeline del Pacifico and EMS Energy Services de Mexico.

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Trade & Investment

INEGI: 1Q Trade Deficit At USD 1.8 Billion
May 8, 2009
According to figures from the National Statistics Institute (INEGI), Mexico's trade balance in March registered a USD 160 million surplus, leading the 1Q total trade balance to a USD 1.8 billion deficit. Exports fell 25% to USD 18.71 billion, while imports sank 21% to USD 18.55 billion. INEGI said oil exports plummeted 62% in March to USD 1.9 billion, while manufacturing exports fell 17% to USD 15.78 billion. Consumer goods imports dropped 28% to USD 2.46 billion. Imports of intermediate goods, used in production processes, slipped 23% to USD 13.56 billion, and imports of equipment and machinery were down 7.5% at USD 2.54 billion.

SE Requests WTO Set Consultations With The U.S. On Meat Products' Labeling
May 8, 2009
The Economy Ministry (SE) requested the World Trade Organization (WTO) set a series of consultations with the United States regarding the labeling rules it applies to meat products and which Mexico considers to be discriminatory. Both Canada and Mexico had sought the consultations as the U.S. law on country–of–origin labeling (COOL) for agricultural and livestock products could be in violation of WTO rules. The COOL rules apply to beef, pork, chicken, fish and seafood, fresh fruit and vegetables, peanuts and pecans.

PSD Proposes Banning Chinese Imports
May 7, 2009
Legislators from the leftist Social-Democrat Party (PSD) proposed to retaliate against China's xenophobic measures against Mexicans amid the spread of the human influenza virus worldwide by suspending imports of products from that country. The PSD added that suspending purchases from China would also be a measure to protest that country's labor policies, which it believes to be slavery–like and which for the party consist of forced labor practices that violate human rights.

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Banking, Insurance & Finance

SHF Signs Agreement With Commercial Banks To Provide More Liquidity To Sofoles
May 9, 2009
Mexican mortgage development bank Sociedad Hipotecaria Federal (SHF) announced that it signed an agreement with commercial banks to provide Special Purpose Financial Providers (Sofoles) with increased liquidity, as they are facing difficulties to meet their stock exchange obligations before set deadlines. Under the agreement, the lifetime of those companies' issuances' — expiring in 2009 and 2010 — would be extended and SHF would provide a warranty equivalent to 65% of the loans Sofoles must pay to institutional investors.

Scotiabank Mexico Sees Growth In Tough 2009
May 8, 2009
The Mexican unit of Canada's Bank of Nova Scotia, Scotiabank Mexico, said it believes it can increase its loan portfolio and market share this year, even as the country's economy faces its deepest recession since the mid–1990s. The bank said its performing loan book grew 7.4% year–on–year to MXN 93.87 billion at the end of March, led by a 17% increase in mortgages as Scotiabank took advantage of a pullback by rivals in that segment. Scotiabank said it is concentrating on the 150 most important markets that represent between 70% and 80% of the country's GDP.

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Business & Industry

IMEF Manufacturing Index Rises In April
May 4, 2009
Mexico's Institute of Finance Executives (IMEF) said that its manufacturing index rose in April for a third consecutive month, suggesting that the decline in activity could be stabilizing. IMEF's manufacturing index was 46.9 last month, up from 45.8 in March but below April 2008's reading of 52.8. IMEF said its nonmanufacturing index, which measures output in services, fell to 47.2 in April from 47.8 in March and from 51.3 a year ago.

Grupo Lala Acquires Dairy Farmers Of America
May 11, 2009
Mexican dairy producer Grupo Industrial Lala announced it acquired the 87.5% shares it did not already own in Dairy Farmers of America's company store, the National Dairy, for an undisclosed amount. Lala will expand its presence in the U.S. market with the acquisition. National Dairy has 18 plants and 79 distribution centers located in 13 U.S. states. National Dairy's workforce at the end of 2008 consisted of 4,700 employees.

Vitro Net Sales Fall 34.5% In 1Q, Losses Amount To USD 84 Million
May 4, 2009
Mexican glassmaker Vitro announced that net sales during 1Q fell 34.5%, leading the firm to lose USD 84 million when compared with the like-2008 period, when it made a USD 30 million profit from an increase in net sales. The company said the drop in sales was due to a weaker peso (MXN) and lower volumes. Export sales fell 37.6% while domestic sales fell 25.5%. The firm said it also lost sales due to the spin–off of container maker Comegua. Container sales fell an annualized 37.1%, while glass sales fell 31.5%. Even so, margins rose by 12.7% compared with the same period a year earlier.

CANIRAC: Restaurants' Influenza–Related Losses Amount To MXN 1.2 Million
May 6, 2009
The National Restaurant Industry and Spiced Foods Chamber (Canirac) said that the restaurant sector has lost about MXN 1.2 million due to the measures the government took to prevent the spread of the influenza virus in the country. In addition, reductions in restaurants' operational capacity have negatively affected the industry, which will need some time to recover from the crisis. Nevertheless, the government has also taken supportive measures to help the damaged sectors recuperate.

STPS: Over 48% Of Companies Ignored Government Agreement To Stop Activity
May 4, 2009
The Labor Ministry (STPS) said that approximately 1,206 companies out of 2,507 nationwide, or about 48%, ignored a cooperation agreement they had with the government to prevent the spread of the influenza virus and under which workers would stay home to avoid further contagion between May 1 and May 5. STPS said it will sanction establishments that disobeyed the government's measures with fines ranging between MXN 17,262 and MXN 328,800. Currently, businesses have reopened and activities are getting back to normal, with certain post-critical-time procedures to be followed by all citizens.

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Automotive

GM To Move Production To Mexico
May 8, 2009
U.S. automaker General Motors (GM) announced it will move some of its U.S. production to Mexico, China and South Korea as it restructures and seeks to reduce costs. According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double. The proportion of GM cars sold domestically and manufactured in those low–wage countries will rise from 15% to 23% over the next five years, because while paying a U.S. autoworker with benefits costs about USD 54 an hour, a South Korean worker earns about USD 22 an hour, a Mexican worker earns less than USD 10 an hour and some Chinese workers can earn as little as USD 3 an hour. The measure has been strongly criticized

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Housing & Mortgaging

Scotia Bank's Scotia Capital Sees Mexican Homebuilders As Defensive Option
May 7, 2009
Scotia Capital, the global corporate and investment banking and capital markets businesses of Canadian financial group Scotia Bank Group, said it has initiated coverage of four Mexican home construction companies, including Homex, Geo, Urbi and ARA, seeing the sector as defensive but not immune to the credit crisis. Scotia said it expects mortgage loans to fall 10% from 2008, while lower employment and consumer confidence will probably affect demand for the middle–income and residential sectors. On the other hand, valuations are already low, and extensive existing land banks should allow builders to increase cash-flow generation this year despite difficult market conditions.

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Construction & Infrastructure

CFC Close To Finishing Probe On Cement Giants
May 7, 2009
The Federal Competition Commission (CFC), which is in the final stages of an investigation of possible price collusion by building materials companies, said that the country's four largest cement makers — Cemex, Holcim–Apasco, Cementos Moctezuma and Cruz Azul — might have been operating as an oligopoly since 1982. CFC notified the probe's — which started in mid–2006 — and said they have 30 days to respond. CFC said the four mentioned firms have fixed and manipulated prices, segmented the market and regions to their convenience and distributed it to their clients. The firms, which rejected the accusations, are preparing their statements and answers to CFC's findings.

Cemex Reshuffles Management To Repay Debt
May 5, 2009
Mexican cement maker Cemex announced that it is reshuffling its management team as it seeks to pay off its debt load and struggles with slumping global sales. Cemex said its current North American head, Francisco Garza, will take over the company's operations across all of the Americas. Planning and finance chief Hector Medina will handle financial and legal issues and give planning tasks to Fernando Gonzalez, currently head of Europe, Middle East, Africa, Asia and Australia. Juan Romero, in charge of South America and the Caribbean, will become president of Europe, Middle East, Africa, Asia and Australia. The changes will take effect beginning May 15. Cemex is renegotiating USD 14.5 billion in bank debt due between 2009 and 2011.

Compañia Para El Desarrollo Mexicano Seeks To Import Russian Cement
May 8, 2009
Mexican construction materials firm Compañia para el Desarrollo Mexicano (CDM) is filing a lawsuit against Cemex for alleged monopolistic practices amid a probe launched by Mexico's Federal Competition Commission (CFC) against the fourth–largest cement producers in the country. In 2004 CDM had brought 24,000 tons of Russian cement in the Mary Nour ship and could not sell the merchandise, as a judge forbade it, forcing the firm to keep the ship stranded for a year at the port of Tampico, in the state of Tamaulipas, with the cement. CDM is seeking again to enter the market and have Cemex declared an actor with substantial power in the Mexican cement market and that it damaged CDM's operations.

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Retail

Walmex April Same-Store Sales Rise 9.1%
May 6, 2009
Walmex, the Mexican unit of U.S. retailer Wal–Mart, said its same–store sales rose 9.1% in April from the year–ago month. Walmex added that total sales last month rose 17.1%, to MXN 21.14 billion. The company opened 11 stores in April and 2 stores so far this month, bringing its total stores and restaurants to 1,230. The company said it has spent MXN 404 million so far this year to repurchase 12.2 million shares. Walmex had a net profit of MXN 3.46 billion on sales of MXN 61.66 billion in 1Q.

Comerci Extends Standstill For 5th Consecutive Time
May 4, 2009
Mexican debt–ridden retailer Comercial Mexicana (Comerci) announced it reached an agreement with its creditors to extend negotiations on its debt until May 20 amid governments' measures to prevent the spread of the influenza virus worldwide. This extension would be the most recent of five standstill agreements Comerci has reached with loaners, which suspended legal proceedings against the company for failing to pay its dues. Comerci faces counterparty claims of USD 2.2 billion in derivatives losses.

Influenza Virus Boosts Large Supermarket's Sales
May 5, 2009
Mexican retailers Soriana and Comercial Mexicana (Comerci), as well as Walmex, the Mexican unit of U.S. retailer Wal–Mart, reported increased sales as the influenza virus hit the country. Retailers attributed the sales' increase to a positive calendar effect and the government alert against influenza, which caused panic purchases.

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Transportation

U.S. Airlines Cut Service To Mexico
May 4, 2009
Most of the largest U.S. airlines temporarily cut service to Mexico as influenza fears keep many U.S. travelers from venturing south of the border. Continental Airlines said it would cut by half the number of seats it sells to fly to Mexico. US Airways, another major U.S. carrier to Mexico, said it would reduce its May and June departures to Mexico by 38% beginning May 10. Delta Air Lines also said it would reduce its Mexico service to match declining demand, but it didn't indicate how deep the cuts would be.

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Telecommunications & Technology

Telmex, Telcel To Compete In Selling PCs In Mexico
May 5, 2009
Mexican fixed and mobile telephony providers Telmex and Telcel, both owned by billionaire Carlos Slim, will compete in the PCs selling market as Telmex already provides computers and since Telcel is about to sign a contract with HP and Dell to sell netbooks. Sources say the contract is intended to make PCs available for Latin American clients whose purchase power is lower than in wealthier states. According to analysts, each firm would be the other's most important rival, as they would be the largest computer providers in the region.

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Media & Entertainment

Televisa To Pay MXN 5.2 Billion In Dividends
May 5, 2009
Mexican broadcaster Grupo Televisa announced that shareholders have approved a dividend payment of about MXN 5.2 billion. Televisa said it will pay an extraordinary dividend of MXN 1.40 per local CPO share and a regular dividend of MXN 0.35 on May 29. Televisa also has assets in satellite TV, telecommunications, cable TV, publishing and gaming.

Bill Gates Raises Stake In Televisa
May 7, 2009
According to the U.S. Securities and Exchange Commission (SEC), billionaire Bill Gates raised his stake in Mexican broadcaster Televisa and has so far acquired 5% of the company's CPOs. SEC information stated that Casacade and a fund from the Bill & Melinda Gates Foundation paid USD 15.1 million for 1.1 million Global Depositary Shares (GDS).

Hugh Jackman To Cheer Up Mexican Influenza Victims With New X-Men Movie
May 10, 2009
Australian actor Hugh Jackman has promised to cheer up victims affected by the influenza virus in Mexico by having a special screening of his new movie X-Men Origins: Wolverine here. The movie was set to debut in Mexico City on April 29, but it had to be cancelled after the outbreak of the virus, which has claimed dozens of lives in the capital. Jackman, 40, has chosen May 26 for the screening of the film. Jackman was quoted as saying “My thoughts and prayers have been with all of those that have suffered directly or indirectly from the swine flu in Mexico,”

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Farming & Agriculture

Mexico, Canada, U.S. Join To Demand Lifting Of Measures Against Pork Meat Trade
May 7, 2009
Mexican, Canadian and U.S. Economy and Trade Ministers Gerardo Ruiz Mateos, Stockwell Day and Ron Kirk, respectively, have jointly requested that restrictions on pork meat and products exported by their countries to other states be lifted. Stockwell Day said that banned imports of pork meat from North American states by a dozen countries in fear of the influenza virus were based on nonscientific reasons and that they are damaging the three North American economies.

Mexican Pork Meat Producers' Influenza-Related Losses To Reach MXN 500 Million
May 7, 2009
According to the National Council of Pork Meat Producers, the Mexican pork meat industry's losses due to the influenza virus outbreak in the country could total about MXN 500 million when the 30–day contingency phase is over. Officials from the council said Mexican pork meat exports, production and sales have been severely affected by measures taken to prevent contagion of the virus, although authorities have confirmed that the outbreak did not start at a pig farm and that the disease is called a human virus and not a swine virus. Mexican consumers have replaced pork meat with chicken and beef, causing a 50% drop in domestic pork meat purchases.

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Hospitality & Tourism

Resorts Report Losses On Influenza Virus; Tourism Industry Severely Affected
May 6, 2009
The Tourism Director of the Los Cabos resort, in the state of Baja California Sur, said the city is losing around USD 650,000 a week as the new A/H1N1 influenza strain frightens visitors. The resort has suffered cancellations that emptied 3,200 hotel rooms, even though Baja California Sur has not yet reported a single case of the virus. Other Mexican resorts have also felt the damages resulting from the influenza outbreak, and tourism authorities in the country believe a domino effect will continue striking the industry, on which the government relied to compensate for falling remittances. In addition, reports indicate that tourism has fallen 96% at beach resorts.

Mexican Airports' Operations Are Affected By Flu Outbreak
May 6, 2009
State–run airport operator Aeropuertos y Servicios Auxiliares (ASA) said that airlines canceled 120 flights at its airports between April 23 and May 4 amid the influenza outbreak. Other Mexican airport operators have also been severely affected by a number of countries banning flights from Mexico to avoid the spread of the virus, and some major airlines are reducing capacity to the country amid low passenger demand.

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Economy

SHCP Confirms Mexico Is In Recession
May 8, 2009
Finance and Public Credit Minister Agustin Carstens has confirmed that Mexico has entered economic recession and said his office estimated that gross domestic product (GDP) will have contracted 7% during 1Q, saying the official figure will be posted on May 20. Carstens added that the country's economy shrank 1.6% during 4Q 2008.

Mexico Estimates Influenza Cost Economy USD 2.2 Billion
May 5, 2009
Finance and Public Credit Minister Agustin Carstens said the A/H1N1 influenza outbreak cost the Mexican economy at least USD 2.2 billion. Carstens said the government will implement a USD 1.3 billion stimulus package, aimed primarily at small businesses and the tourism industry, the sectors hardest hit by the epidemic. The government will temporarily cut health insurance payments for small businesses and reduce taxes for airlines and cruise ships. Tourism, the country's third–largest source of foreign income, has taken a serious blow, with hotel occupancy at half its normal rate. In addition, the number of unemployed due to the influenza outbreak is estimated at 45,000.

Banxico Survey: 2009 GDP Expected To Fall 4%
May 4, 2009
Economists surveyed by the central bank (Banxico) cut their economic growth outlook for Mexico this year, forecasting a 4% contraction in gross domestic product (GDP). The April estimate was down from a 3.3% drop seen in the March survey. The latest estimate is in line with what Finance and Public Credit Minister Agustin Carstens said he expects as a result of the global downturn and the measures taken in Mexico to confront the outbreak of influenza, including a five–day suspension of nonessential economic activity from May 1 through May 5.

INEGI: Consumer Confidence Rises To 82.1 In April
May 7, 2009
According to the National Statistics Institute (INEGI), Mexico's consumer confidence rose in April for the second month in a row, but was still far below the year–ago levels as the country's economy shrank. The consumer confidence index rose to 82.1 points in April from 79.4 points in March. It was at 97.8 in April 2008. Consumers were most optimistic about the future economic situation of their households. They were least optimistic about their ability to make expensive purchases.

Annual Inflation Reaches 6.17%
May 7, 2009
According to figures by analysts, Mexico's consumer prices rose 0.35% in April, leading inflation to 6.17%, 0.13% higher than the March figure, which stood at 6.04%. Meanwhile, underlying inflation in April was 0.38%, leading the year's figure to 5.81%, down from the 5.83% posted in March.

Tellez Takes Office At BMV
May 5, 2009
Former Communications and Transport Minister Luis Tellez, who resigned after a scandal caused by the airing of some compromising recordings earlier this year, took office as the new president of Mexico's Stock Exchange's (BMV) Board and Direction. Tellez, an economist, also served as Energy Minister under President Ernesto Zedillo and was managing director of private equity firm The Carlyle Group's Mexico offices.

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Border & Migration

Passport Requirement For U.S. Citizens Returning Home From Mexico Starts In June
May 7, 2009
Starting June 1, U.S. citizens entering the U.S. by land or sea from Canada, Mexico, Bermuda and the Caribbean will need a passport or another single document that denotes both identity and U.S. citizenship. Currently, U.S. citizens can use separate documents to prove identity and citizenship, such as a driver's license and a birth certificate. A passport is already required for air travel. The new rules are part of the Western Hemisphere Travel Initiative, an antiterrorism measure. U.S. passports for adults are valid for 10 years; the term is 5 years when issued to someone 15 or younger.

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Politics

Obama Celebrates Cinco De Mayo With Mexican Ambassador Sarukhan
May 4, 2009
U.S. President Barack Obama celebrated the Cinco de Mayo Mexican holiday at an event in the East Room of the White House with Mexico's Ambassador to the U.S. Arturo Sarukhan. Cinco de Mayo celebrates the Mexican troops' defeat of the French on May 5, 1862, at Puebla. Obama called it a “decisive victory” that inspired a sense of pride that Mexicans feel today.

Calderon Suggests He Might Suspend Cuba Trip After Havana Barred Mexico Flights
May 8, 2009
President Calderon suggested he might cancel a visit to Cuba tentatively set for next month because Havana suspended flights to and from Mexico in reaction to the influenza outbreak blamed for more than 40 deaths in this country. That possible cancelation of the president's trip to Cuba “could be one of the unforeseen consequences of decisions that have no technical basis,” Calderon said. After Mexico decreed a health alert on April 23 due to the outbreak of the A/H1N1 virus, several Latin American countries began canceling flights to that nation, and the first to do so was Cuba.

Mexico Objects To Singapore's Travel Restrictions On Mexicans
May 4, 2009
The Mexican Embassy in Singapore has objected to that country's decision to impose a temporary visa requirement for Mexicans visiting the country. Mexico's Ambassador in Singapore, Juan Jose Gomez, said there was no need for such a measure to be taken. The Singapore government started imposing visa requirements for all Mexican nationals who wished to enter the country, in response to the A/H1N1 flu outbreak in Mexico. Singapore is scheduled to lift the visa requirement on May 12.

Spanish People, Argentine Expatriates Support Mexico Amid Influenza Crisis
May 7, 2009
Spanish intellectuals, artists and politicians gathered in Madrid to shout “We're all Mexicans” in solidarity with Mexico as it grapples with the deadly influenza epidemic. At the event, Mexico's Ambassador to Spain, Jorge Zermeño, said that his country “is already returning to normality,” and he recalled that the World Health Organization (WHO) had recommended not imposing travel restrictions because of the A/H1N1 virus. “We think it's very regrettable that some countries have cancelled flights to Mexico in a unilateral way and that they are displaying discriminatory attitudes against Mexican citizens.” Meanwhile, a group of Argentinean citizens demonstrated in front of Argentina's Embassy in Mexico to protest their President Cristina Fernandez de Kirchner's measures against Mexico in alleged prevention of contagion from the influenza virus.

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Justice, Safety & Crime

Lower House Approves Law On Crimes Against Humanity, Genocide
May 6, 2009
The Lower Chamber of Congress has passed a new law categorizing crimes against humanity and genocide as those committed as part of a generalized or systematic aggression against civilians; as a State policy, State's agents' actions or organized armed groups under a responsible command that would exercise control over a determined territory, allowing them to undertake military operations or give them power favoring impunity over their actions. Genocide was categorized as a crime consisting of murdering one or more members of an ethnic group, direly damaging their physical or mental health, among others.

Authorities Arrest 25 Tijuana Officers In Cartel Bust
May 8, 2009
Authorities reported the arrest of 25 police officers and 2 civilians in Tijuana, in the state of Baja California, on organized crime charges for alleged drug gang ties. The suspects are accused of helping alleged Arellano Felix cartel leader Teodoro Garcia, one of Mexico's 24 most wanted drug suspects. They were jailed at a federal prison in the Pacific Coast state of Nayarit. Further details were not provided.

Authorities Arrest 39 Belonging To Fuel–Theft Ring
May 7, 2009
Authorities reported that combined efforts from Mexico City's Attorney General's Office (PGDF) and the Federal Attorney General's Office (PGR) led to the arrest of 39 people in Mexico City allegedly belonging to a fuel–theft ring. Theft occurred in the state of Veracruz and then criminals stored the fuel at the Teoloyucan municipality, in the state of Mexico (Edomex).

Authorities Discover 11 Corpses In Guerrero
May 4, 2009
Authorities announced the finding of 11 corpses at different spots in the state of Guerrero. Police said the bodies of five men and two women, with apparent torture marks, were wrapped in plastic bags and had been thrown off a bridge. The remaining bodies were found at the bottom of a ravine. Reasons for the crimes are still unknown, but some police officers are being interrogated and some clues point to a bar fight and a settlement of accounts.

SSPF's Black Hawk Helicopter Performs Emergency Landing
May 9, 2009
Authorities announced that a Black Hawk helicopter from the Federal Public Security Ministry (SSPF) performed a brutal emergency landing in the state of Morelos. The aircraft was flying as part of its normal operations when it experienced aggressive turbulence, forcing it to land. There were no reported casualties and unofficial sources said there were six injured persons.

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Health & Science

WHO Denies All Influenza Cases Come From Mexico
May 5, 2009
The World Health Organization (WHO) denied that all the influenza cases in the world were exported by Mexico and said that there were also cases traced back to the U.S. WHO added that people travel across the globe and cases are expected to originate in countries other than North America. WHO said the most affected population sector is youth, as they travel more and the outbreak occurred during a holiday period.

Mexico: A/H1N1 Influenza Casualties At 56
May 9, 2009
Health authorities said the number of confirmed influenza cases in Mexico continues to rise but at a much slower pace and added that the number of deaths had increased to 56 at last count. Schools have reopened and businesses and other centers are operating normally but with some post–critic period rules.

U.S. Influenza Cases Surpass Mexico's; Mexico Sets Epidemic Control Example
May 8, 2009
According to the U.S. Centers for Disease Control and Prevention (CDC), the number of influenza cases in the U.S. has increased to 1,639 and surpassed that of Mexico, where 1,364 cases were confirmed at last count. CDC also said that the measures Mexico took to address the virus outbreak are an example for the international community and added that the country has always been transparent and cooperative.

Mexico City Lowers Alert Level On Influenza
May 4, 2009
Officials lowered their influenza alert level in Mexico City and have allowed cafes, museums and libraries to reopen. World health officials weighed raising their pandemic alert to the highest level. Mexican officials declared the epidemic to be waning, announcing the conclusion of a five–day closure of nonessential businesses that was called to stop the spread of the new virus. Mexico's Foreign Affairs Minister has condemned Argentina, Peru and Ecuador for urging their residents to stay away from the country at the center of the A/H1N1 outbreak. Global health experts, however, said it was too early for countries to lower their guard, but there were no imminent plans to raise the pandemic alert level.

SSA, Cofepris Tell IMPI Local Firms Do Not Require Licenses For Influenza Drugs
May 5, 2009
The Health Ministry (SSA) and the Federal Commission for the Protection Against Sanitary Risks (Cofepris) announced that they told the Mexican Institute of Industrial Property (IMPI) that national laboratories won't need to bid for licenses to produce generic versions of the Tamiflu and Relenza drugs, used to treat influenza, amid the outbreak of the virus.

IADB Awards Loans For USD 12 Million To Develop Private Hospitals
May 7, 2009
The Inter–American Development Bank (IADB) has awarded loans for as much as USD 12 million to Mexican healthcare company Centro Medico Puerta de Hierro for the construction of two hospitals. The credits combine a main loan and a subordinate loan which will be settled in pesos (MXN) within a 12–year period or less.

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Sports

Mexican Soccer Clubs Told To Limit Capacity; New Health Measures Set For Games
May 8, 2009
Mexico's top–flight soccer clubs will be allowed to fill their stadiums to half their normal capacity as the country gradually relaxes controls aimed at curbing the spread of swine flu. Clubs have also been told to provide sanitary hand gel at stadium entrances under guidelines issued by the Mexican Football Federation (FMF). The latest nine first division games were played behind closed doors in an effort to combat the influenza virus, costing the clubs thousands of dollars in lost gate receipts. Clubs had been told to leave a free seat between supporters, barring families who could sit together, and to discourage fans with respiratory problems from attending, among eight guidelines issued by soccer authorities.

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Arts & Culture

Mexican Poet Wins Spain's Most Prestigious Poetry Prize
May 7, 2009
Mexican poet Jose Emilio Pacheco was announced as the winner of the Queen Sofia Poetry Prize, Spain's most prestigious literary award in that genre. The prize, which is accompanied by a EUR 42,100 cash award, recognizes a living author's complete body of work and contribution to the shared cultural heritage of the Ibero–American community. The 69–year–old Pacheco's poetry oeuvre is universal in scope and has been included since the 1950s in the main Latin American poetry anthologies. The poets considered for this prize are nominated by academic, university and cultural institutions in Spain, Portugal, the United States, Brazil and Latin America.

Mexican Documentary Wins First Prize At Spanish Festival
May 8, 2009
Mexican movie Los que se Quedan (Those Who Stay) by Juan Carlos Rulfo and Carlos Hagerman won the first prize in the documentary feature film creation category at Madrid's Documentary International Festival. The full–length movie deals with emigration of Mexicans to the U.S. and that phenomenon's repercussion in Mexican towns people leave from.

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Other

Mexico Reopens Universities, Schools Nationwide
May 4, 2009
President Calderon announced the reopening of universities and schools, citing ebb in the influenza outbreak. President Calderon said teachers and parents disinfected classrooms, and health officials will inspect schools to make sure they are safe. Government–run day care centers also opened their doors on May 11. Mexico shut down schools across the country on April 27 to contain the spread of the virus.

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*If you would like a full version of any of the articles included in this issue, please contact us so we can furnish you with the original. Please feel free to contact us at your convenience if you need further information or advice on a topic of your interest.

 

Sources

AlBawaba, Associated Press, Bloomberg, Calibre Macroworld, Comisión Federal de Competencia, Companies' Press Releases, Compranet, Diario Oficial de la Federación, Dow Jones Newswires, El Economista, EFE, Excelsior, Federal Information & News Dispatch, El Financiero, La Jornada, Los Angeles Times, Milenio, The New York Times, Presidencia de la República, Reforma, Reuters, El Semanario, Stock Exchange Announcements, United Press International, El Universal, Virus Weekly, The Wall Street Journal, The Washington Post, The Washington Times, Xinhua News Agency.

Contacts

Editor
Rene Herrera

rherrera@manattjones.com
+52-55-5281-8297

Mexico City
Juan Casillas
jcasillas@manattjones.com
+52-55-5281-8297

John Bruton
jbruton@manattjones.com
+5255-5281-8297

Washington, D.C
Jessica Blystone
jblystone-mj@manatt.com
+1-202-585-6527

PLEASE NOTE: This newsletter summarizes recent developments and articles from other publications. It is not meant to express any opinion or advice, legal, consultative or otherwise. COPYRIGHT 2009 by ManattJones Global Strategies, LLC. All rights reserved. ManattJones Global Strategies, LLC, 11355 West Olympic Boulevard, Suite 100, Los Angeles, CA 90064. Phone: (310) 231.5660 Fax: (310) 312.4224; Web site: http://www.manattjones.com.

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