ManattJones Global Strategies
September 14, 2009
News Briefs
August 31 through September 6, 2009
Volume VI, Issue 36

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



Energy

Pemex To Boost Power Supply To Ku-Maloob-Zaap
September 3, 2009
Pemex announced it has allocated USD 120 million to increase electricity supplies to seven drilling platforms at its largest oil field Ku-Maloob-Zaap. Pemex specified that it awarded the contract to build a power station and underwater cables to local company Demar Instaladora y Constructora (DIC). DIC beat bids from other firms, such as Carso Infraestructura y Construccion (CICSA) and the local units of Siemens and General Electric.

Abengoa To Build Cogeneration Plant For Pemex In Tabasco
September 1, 2009
Spanish energy firm Abengoa announced that it will build a USD 633 million, 300 MW steam cogeneration facility for state-run energy company Pemex’s Nuevo Pemex Gas Processing Complex (GPC), in the state of Tabasco. Abengoa said it obtained the contract to build the plant and operate it during the next 20 years, a concession that is expected to provide revenue of as much as USD 2 billion during the period. Pemex said that it will start its Electric Energy Cogeneration Program with the facility.

Ruling For Petroleos Mexicanos’ Law Is Published In The DOF
September 2, 2009
A ruling complementing legislation that was passed last year on Mexico’s energy sector and on state-run oil company Pemex was recently published in the country’s official gazette (DOF). The ruling includes changes to seven new laws that were passed for Pemex as part of a broader federal energy reform, featuring specifications regarding the schedule and funding for acquisitions Pemex would be eyeing as of now, as well as leasing and services to be contracted for productive activities. Meanwhile, Pemex announced the appointment of Marco Murillo Soberanis as the new corporate director at the firm’s administration, replacing Rosendo Villarreal Davila.

SENER: National Hydrocarbons Commission Issues Internal Ruling
August 30, 2009
According to the Energy Ministry (SENER), the National Hydrocarbons Commission (CNH) has issued its internal ruling to meet requirements deriving from the nature of its attributions, and observing the deadlines established by law. SENER said the document defines clearly CNH’s organizational structure, its governance organs’ legal powers and its decision-making process.

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Mining

U.S. Bankruptcy Judge Supports GMex’s Bid For Asarco
September 1, 2009
U.S. Bankruptcy Judge Richard Schmidt in Corpus Christi, Texas, recommended that Mexican miner Grupo Mexico (GMex) be allowed to regain control over bankrupt copper miner Asarco LLC, saying its USD 2.2 billion bid is more likely to fully repay creditors than that of rival suitor Sterlite Industries. Judge Schmidt issued the finding over objections from Asarco, its employees and some creditors who believed India-based Sterlite's USD 2.1 billion bid was the best way for the Tucson, Arizona-based company to emerge from four-year Chapter 11 bankruptcy proceedings. The outcome involves Asarco's three Arizona mining operations and a Texas refinery that were placed in bankruptcy protection in August 2005 when the company ran out of cash and faced hefty environmental liability and potential asbestos-related claims.

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Trade & Investment

SE Announces Plans To Substitute Chinese Imports
September 2, 2009
The Ministry of Economy (SE) said one of the main challenges it faces is reducing Mexico’s 30% trade deficit with China in order to enhance the domestic market and in a bid to reduce the country’s vulnerability to changes in the U.S. economy. SE said it will employ the Mexico Emprende program to support SMEs and funds from ProMexico, the governmental agency to boost exports, to substitute as much as USD 10 billion in Chinese imports.

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Banking, Insurance & Finance

CNBV: Banks' Nonperforming Loan Rates Improve In July
August 31, 2009
According to the National Securities and Banking Commission (CNBV), the nonperforming loan rate at Mexican commercial banks eased in July, slipping to 3.8% from 3.9% at the end of June. The CNBV said that banks' outstanding loans at the end of July stood at MXN 1.852 trillion, up 0.7% from the previous month. Past-due loans fell 1.4% from the end of June and performing loans rose 0.8%. Loan loss reserves edged up to 143% of total past-due loans from 142% a month earlier.

PRI Suggests Banks Be Listed On BMV, Employing Afores’ Funds
September 3, 2009
The Institutional Revolutionary Party (PRI), which won the latest midterm congressional elections, issued an Economic Recovery Bill formed by 85 proposals and presented it during President Calderon’s third State of the Nation Report. The proposal includes listing Mexico’s banks on the Mexican Stock Exchange (BMV) and employing resources managed by pension fund administrators (Afores) to provide financial support for investment projects.

CNBV: Newly Created Banks Report Losses During 2Q
September 3, 2009
According to the National Banking and Securities Commission (CNBV), 9 out of the 42 banks that operate in Mexico reported losses during 2Q, mostly newly created institutions such as Banco Wal-Mart, Banco Facil, Banco Amigo, Volkswagen Bank, Bancoppel, Multiva, Famsa and Autofin.

CONSAR Tightens Regulation On Afore Accounts Migration
September 4, 2009
Pension fund regulator CONSAR announced it will tighten rulings on migration of workers’ pension savings from one pension fund administrator (Afore) to another, in a bid to control irregular operations. CONSAR noted it is reinforcing regulation, as former guidelines failed to prevent jagged accounts transfers, and specified that from now on, Afores will have to verify through telephone calls that all the account migration requests are authentic. CONSAR said the tightening of new rules focuses mostly on workers who have apparently had their accounts transferred once or more in the past five years.

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Business & Industry

IMEF: Manufacturing Index Rises To 51.5 In August
September 3, 2009
Mexico's Institute of Finance Executives (IMEF) said that its manufacturing index rose to 51.5 in August from 50.2 in July and was at its highest level in a year. As with the U.S. Institute for Supply Management indexes, readings of 50 and above point to expansion, while readings below 50 point to contraction. August was the second consecutive month in which the IMEF index was above 50. A sharp drop in U.S. demand for Mexican goods led the exportoriented manufacturing sector into a deep recession, with production down 15% in the first half of 2009. IMEF's nonmanufacturing index, which measures the performance of services, was also above the 50 threshold for a second month in a row, at 51.3 in August, compared with 50.1 in July.

Cummins Filtration To Consolidate Filter Facilities, Cut Jobs
August 26, 2009
Cummins Filtration, a subsidiary of U.S. diesel engine manufacturer Cummins, said that it is consolidating a "significant" portion of its North American filter assembly operations into its San Luis Potosi plant, in the Mexican state of the same name, over the next several months. Cummins specified that oil and fuel filter assembly operations at its plant in Lake Mills, Iowa, will be moved to San Luis Potosi beginning in November. Cummins Filtration currently employs about 330 people in San Luis Potosi.

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Housing, Real Estate & Mortgaging

Mexican Real Estate Family Cababie Faces Problems In The U.S.
September 2, 2009
According to court documents and people familiar with the matter, Mexican real estate family Cababie, of Mexican developer Grupo GICSA, is potentially on the hook for hundreds of millions of dollars as a result of personal guarantees they made on loans used to finance two major U.S. real estate investments. Last month the family's largest U.S. project, an 850-unit condominium in downtown Miami called Everglades on the Bay, entered Chapter 11 bankruptcy, the same day a foreclosure action was launched. The project defaulted in March on a USD 256 million construction loan from a group led by Bank of America that was guaranteed by GICSA and in part by the family. Separately, the Cababies personally guaranteed USD 300 million in loan payments to finance the USD 1.5 billion purchase in 2007 of 56 office buildings in Southern California from Arden Realty.

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Construction & Infrastructure

Cemex Shareholders Approve Plan To Create USD 2 Billion In Shares For Offer
September 4, 2009
Shareholders of Mexican cement maker and building materials provider Cemex approved a plan to create USD 2 billion worth of shares and to hold a public offering and issue a convertible bond within two years. As part of a USD 15 billion debt restructuring agreed to in August, Cemex will face higher interest rates on its obligations and an additional USD 100 million fee if it does not raise USD 1 billion for its banks in a share offer by June. Cemex's shareholders voted to create 1.6 billion CPO shares, but it is unclear how much stock might be included in a public offer or a convertible bond issue.

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Retail

Wal-Mart De Mexico's August Same-Store Sales Up 5.6% On Year
September 3, 2009
Wal-Mart de Mexico (Walmex), the Mexican unit of U.S. retailer Wal-Mart, said its same-store sales rose 5.6% in August from the year-ago month due to an increased number of customers. Walmex noted that total sales rose 12.7% from August 2008, to MXN 22.57 billion. In addition, the company said it opened 23 stores in August and 3 so far this month, bringing its total number of stores and restaurants to 1,295. Walmex said it has spent MXN 1.37 billion so far this year to repurchase 35.9 million shares.

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Transportation

Aeromexico To Allow In-Flight Cell Phone Calls
September 4, 2009
Mexican airline Aeromexico announced it will allow passengers to use cellular phones on its planes after the Communications and Transport Ministry (SCT) cancelled Mexico’s Official Norm NOM-019-SCT3-2001, which prevented passengers from using the devices in-flight. The ruling was published in the official gazette (DOF) and noted that the use of mobile phones will be permitted only during some in-flight phases, and passengers are compelled to obey flight attendants if they announce halting the use of the phones is necessary. SCT said the ruling comes as new technology makes it possible to use the cell phones in-flight.

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Telecommunications & Technology

CFC Sets Caps For Upcoming Spectrum Auction
September 1, 2009
The Federal Competition Commission (CFC) announced it has set caps on the amount of spectrum a single wireless carrier can obtain as the government prepares to auction bandwidth in a bid to increase competition in the market. CFC said it is recommending that the Federal Telecommunications Commission (COFETEL) limit spectrum to 80 megahertz per carrier in the 800 MHz, 1700 MHz and 1900 MHz frequency bands. The CFC said its recommendation is aimed at encouraging new operators to enter the market without inhibiting growth of existing service providers. The cap will allow existing operators to increase their spectrum by at least a third.

SCT Creates 8,500 Communal Digital Centers
September 3, 2009
The Communications and Transport Ministry (SCT) announced the creation of 8,500 communal digital centers to provide broadband services to communities lacking access to information technologies (IT) in Mexico. In addition, SCT said it plans to provide broadband services to 160,000 schools and 30,000 hospitals from the country’s health system. SCT said it intends to offer the services through two dark fiber networks from the Federal Electricity Commission (CFE) after both entities entered an agreement earlier this year to tender the dark fiber packages.

Sony Sells 90% Stake, TV Plant In Mexico To Taiwan’s Hon Hai
September 1, 2009
Japanese electronics manufacturer Sony said it will sell 90% of its group-held stake in Sony Baja California, in the Mexican city of Tijuana, to Taiwanese peer Hon Hai Precision Industry in a bid to reorganize its LCD TV operations. The operation includes the sale of Sony’s main television factory in North America. The move is part of Sony's drive to cut costs and concentrate internal resources towards areas that contribute to product differentiation in its LCD TV business. The price of the sale was not disclosed.

Telmex To Market Cisco System’s TelePresence In Latin America
September 2, 2009
Mexican phone company Telefonos de Mexico (Telmex) said it plans to market and distribute U.S. supplier of networking equipment and network management for the Internet Cisco Systems' TelePresence videoconferencing system in Latin America. Telmex said that under the agreement, it will also set up public rooms in the region equipped with the technology where companies and individuals can hold videoconferences, renting the service by the hour. The plan involves Telmex, and Telmex Internacional (Telint), which operates across Latin America.

NCR Opens USD 20 Million Thermal Paper Plant In Sonora
September 2, 2009
U.S. developer of technologic solutions for the financial sector National Cash Register Company (NCR) announced the opening of a USD 20 million thermal paper manufacturing facility in Nogales, in the state of Sonora, to be used by NCR’s ATMs in North America and other industries employing such products. The plant is expected to create 300 direct jobs and 225 indirect jobs in the short term.

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Media & Entertainment

SCJN Rules Taxes On Games, Bets And Raffles Are Constitutional
September 1, 2009
The Supreme Court (SCJN) ruled that the Special Tax on Production and Services (IEPS) Law is constitutional and said that it is therefore legal to charge taxes on betting parlors, casinos and games and raffles operations. The ruling comes as two firms from the sector had sought court protection against the IEPS and had said that the taxes and the Law violated constitutional rights on judiciary security, proportionality and fairness pertaining to contributions due to the nation.

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Hospitality & Tourism

Former UNAM Headmaster Criticizes Project To Regenerate Beaches At Cancun
September 1, 2009
Jose Sarukhan, former Headmaster of the National Autonomous University of Mexico (UNAM), criticized a project by the Ministry of Environment (SEMARNAT) to regenerate the beaches of the tourist resort of Cancun, which was damaged by a hurricane a few years ago, by extracting sand from neighboring tourist destinations Cozumel and Isla Mujeres. Sarukhan said Cancun’s hotel area should not be located where it currently is, and that the project is destined to fail. Meanwhile, former Environment Minister Julia Carabias said that modifying sand deposits’ natural movements will negatively and severely affect water trajectory as well as the entire region’s ecosystem.

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Economy

President Calderon: Mexico Needs Deep Modifications To Boost Economy
September 2, 2009
President Calderon said that Mexico should undergo major modifications in some areas, including economy, energy, telecommunications, the public sector and labor, in order to break cycles and structures that limit the country’s growth. He thus announced reforms proposals that are being worked on to improve the state of the nation and eliminate corruption. President Calderon also called on states and municipalities to participate in drafting and implementing a new culture of efficiency.

IMF: Mexico, Other States Will Not Renew Credit Lines
September 1, 2009
The International Monetary Fund (IMF) announced that Mexico, Colombia and Poland will not renew their respective flexible credit lines with the institution and added that a decline in loans will be perceivable in upcoming months, as capital markets are performing better. IMF said flexible credits are valid for one year and their main objective is to strengthen the economies most affected by the global economic downturn. Mexico’s flexible credit line with the IMF is for USD 47 billion.

Banxico: International Reserves Up To USD 76.3 Billion
September 1, 2009
The central bank (Banxico) announced that Mexico’s international reserves as of August 28 amounted to USD 76.3 billion, up USD 3.2 billion from what was reported a week earlier, mostly due to the reception of 2,337.2 Special Drawing Rights (SDRs)—equivalent to USD 3.6 billion—from the International Monetary Fund (IMF). Banxico said Mexico will be awarded an extra 224 SDRs shortly as part of a special extraordinary allocation. SDRs are potential claims on the freely usable currencies of the IMF members; they also have the ISO 4217 currency code XDR.

Banxico Governor: G-20 Believes It’s Not Yet Time To Drop Stimulus Policies
September 5, 2009
According to Guillermo Ortiz, Governor of Mexico’s central bank (Banxico), the Group of 20 industrialized and developing nations (G-20) believes it is not yet time to exit stimulus policies, with the risk of a double dip in the global economy and financial failure remaining. Ortiz said during an interview on the sidelines of the G-20 meeting of finance ministers in London that it would take time to reach agreements on cross-border resolution of financial institutions and "too big to fail" issues, and that the process required G-20 support. He added that he "very soon" expected the Bank for International Settlements' Basel Committee on Banking Supervision to come up with "concrete results" on capital, liquidity and leverage. Meanwhile, French President Nicolas Sarkozy said that by 2011 the G-8 group of most industrialized countries will be replaced with a broader group that includes Mexico, Brazil, Egypt, South Africa, Russia, China and India.

OECD Agrees To Strengthen Tax Forum During Meeting In Mexico
September 3, 2009
Delegates to a conference of the Organization for Economic Cooperation and Development (OECD), which was held in Mexico, agreed to turn the Global Forum on tax-information sharing—a loose grouping of 84 nationsinto a more powerful institution that could crack down on tax cheating internationally. The delegates approved a plan for the Global Forum to have its own staff and an annual budget of approximately USD 4 million. The Forum would review whether members are aiding one another in cases involving tax evasion internationally. In particular, the Forum would examine whether members are living up to their obligations under tax-exchange agreements. The Global Forum selected Australia as chairman of the group, and China, Germany and Bermuda as vice chairmen. The meeting was originally going to take place in the state of Baja California but moved to Mexico City ahead of Hurricane Jimena.

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Border & Migration

XXVII Border Governors Conference Held In Nuevo Leon
September 5, 2009
The XXVII Border Governors Conference (BCG), the largest binational venue to discuss and resolve some of the most important border issues affecting the U.S. and Mexico, was held in the city of Monterrey, in the Mexican state of Nuevo Leon, and was hosted by Governor Jose Natividad Gonzalez Paras. At the end of the meeting, which focused on security, illegal arms and drugs’ border flow and people smuggling, the Governors from both countries signed a joint declaration to formalize efforts, as well as other Memorandums of Understanding (MOU). The Ten Border States represent the world's most important and dynamic binational region—with a joint economy that ranks third in the world.

SSA Offers Health Insurance For Migrants' Families
September 5, 2009
The Health Ministry (SSA) announced plans to launch a pilot program to encourage migrants working in the U.S. to sign up their families in Mexico for the Mexican government's low-income health insurance program. SSA said the program will start in the U.S. state of Colorado and will eventually be extended to other states, mainly through Mexican consulates. The "Seguro Popular" insurance program offers low-cost coverage to people not covered by other plans. SSA said the program was part of a plan to achieve full health coverage for Mexicans by 2012.

Hilda Solis Supports Movement To Defend Mexicans’ Labor Rights In The U.S.
September 3, 2009
According to a communiqué issued by Mexico’s Embassy in the U.S., the United States’ Secretary of Labor Hilda Solis expressed support for a campaign launched in 14 U.S. cities to defend the labor rights of Mexicans working in that country. The campaign seeks to inform Mexicans working north of the border about their rights, to ensure they receive fair and decent treatment and to prevent U.S. employers from being abusive, avoiding paying the workers or threatening them with deportation.

Cardinal Rivera Demands Coherence, Respect For Migrants’ Rights In Mexico
September 3, 2009
The Archbishop of Mexico City, Cardinal Norberto Rivera Carrera, demanded coherence from Mexico’s authorities and citizens during a discourse regarding immigration and said the latter should respect the rights of immigrants in Mexico, as Mexico’s society and authorities demand Mexicans’ rights abroad, mostly in the U.S., be respected.

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Politics

President Calderon Presents Third State Of The Nation Report
September 3, 2009
President Calderon presented his third State of the Nation Report listing a series of events that have affected Mexico over the past year, including the global economic crisis, the A/H1N1 influenza virus pandemic, rising drug violence, drought and plummeting oil production, among others. Calderon used his address to make a strong defense of his battle against drug traffickers and organized crime, ending with a call for cooperation from the opposition-dominated Congress to take on the country's mounting problems. Calderon is besieged on many fronts, and there have been few signs that the opposition will heed his request for cooperation. The Institutional Revolutionary Party (PRI), now the largest force in the legislature, is led by politicians who rose in the years before 2000, when the party had a monopoly on power. President Calderon also presented a 10-point plan to improve his administration but provided few concrete details. The 10-point plan was based on five broader core themes, which are the rule of law and security, a competitive and employment-oriented economy, equal opportunities, sustainable development and effective democracy and responsible foreign policy.

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Justice, Safety & Crime

DOS: U.S. Releases USD 214 Million In Aid For Mexico’s Drug Fight
September 2, 2009
According to the U.S. Department of State (DOS), the U.S. has released USD 214 million as part of the Merida Initiative aid package to help Mexico fight drug trafficking, including funds for five helicopters for the military to be delivered by year's end. U.S. Assistant Secretary for International Narcotics and Law Enforcement David Johnson said the helicopters will be the first to be sent to Mexico under the Merida Initiative. Johnson added other USD 214 million of the package have been spent or committed. The funds have gone to training Mexican federal investigators and providing technology such as X-ray machines to check for contraband at border crossings.

President Calderon Vows Crackdown On Drug Trade, Corruption
September 3, 2009
President Calderon defended his campaign against drug traffickers and issued a rare public warning that his administration will weed out an entrenched web of corruption between politicians and members of organized crime. In a 75-minute State of the Nation Report, delivered at the National Palace, Calderon called for reforms halfway through his six-year term, exhorting a divided Congress to work toward turning Mexico into a more competitive, progressive and secure nation. The Report indicated the administration has made strides in its nearly three-year-old drug war, which has killed more than 11,000 people since Calderon became president in 2006, noting that the government has hit trafficking groups hard with major seizures of narcotics, weapons and cash and more than 24,000 arrests through June.

U.S., Mexico Enter Agreement To Improve Security Telecommunications Network
September 4, 2009
The U.S. and Mexico entered an agreement to create a transborder communications network that will help police on both sides of the border address crime and violence. The U.S. Department of Homeland Security (DHS) and Mexico's Public Security Ministry (SSPF) are working out the details. Meanwhile, an official from the U.S. Department of State (DOS) said secure voice, data and video channels, costing about USD 7 million on the U.S. side, are expected to be online within three years, adding that secure networks will allow federal, state and local police to "coordinate a broad array of law enforcement activities." Some Mexican and U.S. police agencies already cooperate, but the system will standardize communication for the whole 2,000-mile border. Ambassador Pascual: U.S. Must Stop Flow Of Arms To Mexico September 4, 2009 Newly appointed U.S. Ambassador to Mexico Carlos Pascual said at the close of the annual U.S.- Mexico Border Governors Conference that the United States must stop the flow of weapons smuggled south across the border to improve binational security. Carlos Pascual said while referring to arms purchased in the U.S. and sold to drug gangs in Mexico that the U.S. "cannot continue to arm the cartels." Pascual also called for a solution for millions of undocumented workers in the U.S.

David T. Johnson: U.S. Must Help Mexico Strengthen Institutions
September 4, 2009
According to David T. Johnson, Assistant Secretary at the U.S. Bureau of International Narcotics and Law Enforcement Affairs, Mexico’s drug cartels’ power and presence remain an important challenge for both Mexico and U.S. national security. Johnson said during a meeting with Mexico’s Foreign Affairs and Public Security Ministers Patricia Espinoza and Genaro Garcia Luna, respectively, that the U.S. should continue helping Mexico strengthen and modernize its institutions.

Merida Initiative Binational Office To Be Inaugurated In December In Mexico City
September 4, 2009
The U.S. Embassy in Mexico announced that an office whose main purpose will be to follow up the Merida Initiative binational antidrug effort’s progress will be inaugurated in December in Mexico City. The Embassy’s communiqué added that the U.S. will deliver five new helicopters and other equipment worth USD 7 million to Mexico before year’s end.

DEA, Foreign Agencies Train 9,000 Mexican Police Officers In San Luis Potosi
September 5, 2009
According to authorities and official sources, the U.S. Drug Enforcement Agency (DEA) and other countries’ security agencies will be training as many as 9,000 Mexican new-generation federal police officers as part of a 12-week program in the Mexican state of San Luis Potosi, in a bid to strengthen cooperation and improve Mexico’s security forces’ performance through international expertise.

Authorities: Gunmen Murder 17 At Drug Rehabilitation Center
September 3, 2009
Officials announced that gunmen broke into a drug rehabilitation center and shot 17 people dead in Ciudad Juarez, in the state of Chihuahua. Authorities said they arrested Jose Rodolfo Escajeda, one of the bloodiest hit men in Chihuahua and a leader of the powerful Juarez Cartel, who is believed to have led the attack at the clinic. He is on the U.S. Drug Enforcement Administration's (DEA) most-wanted list for marijuana and cocaine smuggling into the U.S. Escajeda is also believed to be behind the killing earlier this year of two American members of a Mormon community in northern Mexico. Authorities said they are investigating reports that the centers have turned into hideouts for drug smugglers being sought by police and hitmen from rival gangs. Federal Public Security Minister Genaro Garcia Luna said rehab clinics were also being used as recruiting and training centers by drug cartels.

Hitmen Murder Top Police Officer In Michoacan
September 2, 2009
Authorities announced that gunmen killed Jose Manuel Revueltas, the deputy police chief in the state of Michoacan, in a suspected drug gang attack. Revueltas, appointed only weeks ago, was intercepted by heavily armed men in two vehicles as he drove down a busy avenue in Morelia, the state capital, a few blocks from police headquarters. Revueltas and his two bodyguards were shot dead in the intense gunfire that also killed a man traveling on a bus. Revueltas was a close aide of Michoacan's left-wing Governor Leonel Godoy.

Attorney: Convicted Contractor Marco Morales Expects Extradition To U.S.
September 4, 2009
The attorney of Marco Morales, a contractor convicted in a U.S. City Hall corruption scandal more than a decade ago, said that his client could be extradited to the U.S. shortly after losing his final appeal against extradition from Mexico. Morales pleaded guilty in 1996 to bribery and mail fraud as part of the wide-ranging Operation Silver Shovel probe. Morales said he bribed Anthony Pucillo, a former high-ranking U.S. Transportation Department official under Chicago’s Mayor Richard Daley. Morales fled to Mexico in 1997 instead of reporting to prison as his plea agreement specified. He successfully challenged an initial extradition attempt in 2004, but U.S. officials tried again in 2006.

Gunmen Abduct U.S. Antidrug Official
September 4, 2009
According to authorities and eyewitnesses, a group of approximately 12 gunmen broke into the La Rumba night club in the city of Monterrey, in the state of Nuevo Leon, and abducted U.S. antidrug official Jorge Jogar Hobbs Flores. Witnesses said the armed men fired several shots, forced people to stay on the ground and took Jogar Hobbs away with them. The army arrived later and set a perimeter to try to capture the assailants, but the operation was unsuccessful.

U.S. Sanctions Six Mexicans Allegedly Linked To Meth Trade
September 4, 2009
The U.S. Treasury Department announced it has imposed sanctions on six Mexicans linked to a pharmaceutical company that allegedly diverted precursor chemicals to a methamphetamine trafficking gang. The measure freezes any assets they have in the U.S. and bars Americans from doing any business with them. The U.S. Embassy in Mexico and the Treasury Department announced the decision in separate statements, noting that the six include two executive officers of Productos Farmaceuticos Collins, which the U.S. says is part of a network that supplies pseudoephedrine to the Amezcua Contreras cartel.

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Health & Science

Mexico Prepares For Winter A/H1N1 Influenza Re-Outbreak; Sets Example
September 1, 2009
Mexico said it is preparing for an A/H1N1 influenza virus re-outbreak, studying what was effective and what failed last spring when it banned everything from dining out to attending school in an effort to control the pandemic. As the Northern Hemisphere flu season begins, the rest of the world is also studying Mexico's experience, looking for measures to replicate and costly mistakes to avoid. Authorities from other countries have noted that public awareness; rapid diagnosis, treatment and quarantine; and a near-compulsive outbreak of hand-washing were most definitely successful measures to control the spread of the disease. However, travel bans, school closures and overuse of antibiotics and masks were perceived by many as failures. Meanwhile, representatives of the World Bank (WB) in Mexico announced there are currently ongoing negotiations to award an aid package to Mexico for as much as USD 480 million to contain the second wave of influenza.

Mexico, France And Spain Jointly Build World’s Largest Telescope
September 1, 2009
The Astronomy Institute from the National Autonomous University of Mexico (UNAM), Mexico’s Engineering and Industrial Center (CIDESI), France’s Laboratoire d'Astrophysique-Observatoire Midi-Pyrenees (LAOMP), Spain’s Complutense University of Madrid and the Canary Islands’ Astrophysics Institute (IAC) are jointly building the EUR 104 million world’s largest telescope in the Canary Islands. The device has a 50-meter-diameter antenna and will operate a complex optic device developed by scientists from the three countries and named "Frida" after Mexican artist Frida Kahlo.

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Sports

Mexico Beats Costa Rica 3-0 In CONCACAF Qualifying Game
September 5, 2009
Mexico’s national soccer team, which was playing as a visitor in Costa Rica, beat that country’s team 3-0 in one of the most successful recent CONCACAF qualifying games Mexico has played to participate in the South Africa 2010 World Cup. Mexico’s most important figures during the game were rookie Giovani Dos Santos, Andres Guardado Guillermo Franco and Cuauhtemoc Blanco.

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Arts & Culture

SEP Signs Agreement With CUNY To Certify Mexican Workers
September 5, 2009
The Public Education Ministry (SEP) announced it signed an agreement with the City University of New York (CUNY) to certify experienced Mexican workers in the hotel industry. SEP added that it will provide USD 100 million to support the certification in a bid to benefit as many as 10,000 Mexican immigrants in the New York area. SEP expects Mexicans in New York to welcome the measure, as it will simplify their insertion in the labor market. The agreement is part of the broader governmental "Integral Strategy to Support Migrants."

SEP Mulls Correcting History Textbooks On National Heroes’ Excommunication
September 5, 2009
The Public Education Ministry (SEP) announced it is mulling correcting history textbooks regarding national heroes and priests Miguel Hidalgo’s and Jose Maria Morelos’ excommunication. SEP said that they are analyzing the possible measures to be taken to correct allegedly erroneous historic facts and following demands by the Catholic Church to specify that Hidalgo and Morelos were not excommunicated at the moment of their death.

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Environment

U.S., Mexico Urge G-20 To Increase Climate Aid
September 1, 2009
The U.S. and Mexican governments urged G-20 nations meeting this month to embrace significant aid to help developing countries cut carbon emissions with technology as part of a global fight against climate change. The countries recommended that financial flows be increased significantly in the near term beyond existing levels, with an expectation of continued and substantial growth in the future. Mexico and the U.S. also presented the advantages of having all but least developed countries contribute aid.

Hurricane Jimena Downgraded To Tropical Storm, Hits Mexico Resorts
September 2, 2009
Hurricane Jimena weakened into a tropical storm as it pushed across Mexico's Baja California peninsula, ripping off roofs and toppling power poles after skirting the area’s main resorts. The once-massive Category 4 hurricane brought welcome rainfall to a drought-stricken state after making landfall in the afternoon between Puerto San Andresito and San Jaunico, a sparsely populated area of fishing villages on the Pacific coast of the peninsula.

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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

AFP, Associated Press, Canada Newswire, The Canadian Press, Comisión Federal de Competencia, Companies’ Press Releases, Compranet, Diario Oficial de la Federación, Dow Jones Newswires, El Economista, EFE, Excelsior, Exonline, El Financiero, The Houston Chronicle, La Jornada, Los Angeles Times, McClatchy, The New York Times, Presidencia de la República, PRNewswire, Reforma, Reuters, San Antonio Express News, San Diego Union Tribune, El Semanario, Stock Exchange Announcements, Tribune Business News, United Press International, El Universal, The Wall Street Journal, The Washington Post, 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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