ManattJones Global Strategies
October 26, 2009
News Briefs
October 12 through October 18, 2009
Volume VI, Issue 42

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



Energy

SENER: CFE To Take Over Electricity Service In Mexico City
October 14, 2009
The Energy Ministry (SENER) said it will leave the state-run Federal Electricity Commission (CFE) in charge of power distribution in and around Mexico City following the recent shutdown of the Luz y FuerzaSE$ del Centro utility (LyFC). SENER said the decision by President Calderon guarantees that electricity service will remain in state hands. Citing annual losses running into USD billions and lack of efficiency, Calderon decreed the shutdown of LyFC, which distributed electricity in Mexico City and parts of the central states. Calderon stressed that electricity will not be privatized. The government had been considering creating another state company to replace LyFC, which employed 44,504 people.

SHCP: Compensation To SME’s Electricity Workers To Cost MXN 20 Billion
October 12, 2009
According to the Finance and Public Credit Ministry (SHCP), the compensation that will be awarded to workers from the Electricians’ Union (SME) after President Calderon recently issued a decree shutting down the Luz y Fuerza del Centro utility (LyFC) will cost approximately MXN 20 billion. The figure is MXN 4 billion higher than the originally allocated amount in order to make the transition process smoother. SHCP added that the government is mulling whether to create a new utility to rehire as many as 10,000 electricians or if LyFC’s operations will be adhered to the larger state-run Federal Electricity Commission (CFE).

Over 150,000 Protesters Force Dialogue After Closure Of LyFC
October 12, 2009
An estimated 150,000 protesters affiliated with as many as 50 different organizations flooded Mexico City’s Zocalo square to protest the government’s disbanding of the Luz y Fuerza del Centro utility (LyFC). The massive demonstration forced the federal government to agree to engage in talks with the electricians union (SME). In addition, workers at the SME and their supporters agreed not to pay for the electricity service until President Calderon’s decree is repealed.

LyFC Closure Eases Tax Pressure; Funds To Be Destined For Development
October 12, 2009
According to the Finance and Public Credit Ministry (SHCP), the recently announced closure of the inefficient state power utility Luz y Fuerza del Centro (LyFC) is expected to create important public savings and could ease the government’s plans to soften its tax-hike proposal. In addition, the Labor and Social Development Ministry (SEDESOL) said that over MXN 42 billion destined to LyFC will now be allocated for the social development program Oportunidades. SEDESOL noted that the amount almost doubles the annual budget provided to the National Autonomous University of Mexico (UNAM).

DOC: Mexico Becomes Third Crude Oil Supplier To The U.S.
October 12, 2009
According to the U.S. Department of Commerce (DOC), Mexico has become the third-largest crude oil provider to the U.S., after only Canada and Venezuela and surpassing Saudi Arabia for the first time. DOC’s figures indicate that Mexico’s exports of crude oil have grown in the past two years despite a reduction in Pemex’s income generated by such sales. DOC said that last year Mexico obtained over USD 37 billion from exports of crude oil to the U.S., 22.3% more than what was earned in 2007. However, the DOC said Pemex’s income related to crude oil trade with the U.S. dropped 49.5% this year when compared to 2008 figures’ falling to USD 13.5 billion from USD 26.8 billion. In a related matter, Pemex said it will leave the constants for pricing its crude exports to the U.S. unchanged in November.

Pemex CEO Reaffirms Commitment To Chicontepec, Says Field Is Vital To Mexico’s Future
October 12, 2009
Juan Jose Suarez Coppel, head of state-run oil company Pemex, reaffirmed the firm’s commitment to continue developing the Chicontepec basin’s oilfields as part of its long-term efforts to raise crude production. Suarez Coppel added that the development of Chicontepec is vital to the country’s future and must not be abandoned. His comments came after the recently formed oil watchdog, the National Hydrocarbons Commission (CNH), said that it was in the process of submitting its recommendations to Pemex so that the latter halts new contracts at Chicontepec. CNH said that there is a very much lower-than-expected output at the basin’s oilfields due to a lack of adequate exploitation techniques and that oil extraction there should be suspended temporarily. CNH was set up to oversee Mexico’s oil and gas exploration and production.

Pemex Announces Oil Discovery, Explores Commercial Viability
October 12, 2009
State-owned hydrocarbons company Pemex announced the discovery of oil in a deepwater well and said it is running tests to determine the commercial viability of the finding. Oil discovered in the Leek-1 well was found in waters deeper than 2,200 feet in the Gulf of Mexico. The firm’s executives said that the oil is lighter than most of Mexico’s crude. Pemex has drilled four wells in deep water this year, finding natural gas with the Holok well. Two other wildcats, Cox and Catamat, were dry holes. Two new deepwater drilling rigs will start working for Pemex in 2010, boosting exploration efforts.

Mezcla Crude Oil Blend Sold At USD 70.14 Per Barrel
October 12, 2009
Mexico’s Mezcla crude oil blend was sold at USD 70.4 per barrel (p/b), reaching levels unseen for the past 12 months when average pricing was USD 74 p/b. The increase in prices followed the international oil market upward trend.

back to top

Trade & Investment

INEGI: Gross Fixed Investment Falls 14.1% In July
October 12, 2009
According to the National Statistics Institute (INEGI), gross fixed investment (GFI) in Mexico fell 14.1% in July when compared to figures from the like 2008 month. INEGI also said that GFI fell 11.8% during the first months of this year when compared to the like 2008 period. In addition, total investment in machinery and equipment fell 28.9% at annual rates in July 2009.

back to top

Banking, Insurance & Finance

SHCP Issues Catastrophe Bonds For USD 290 Million
October 16, 2009
The Finance and Public Credit Ministry (SHCP) announced the issuance of catastrophe bonds for USD 290 million to insure against hurricanes or earthquakes. SHCP specified that the proceeds will be placed in a trust and transferred to the government’s natural disaster fund in the event of an earthquake or hurricane described in the terms. The three-year bonds include coverage of USD 140 million against earthquake damage, USD 100 million against Pacific Coast hurricanes and USD 50 million against Atlantic Coast hurricanes. If no disasters occur as set out in the terms of the agreement, the funds will be returned to investors at maturity. SHCP said the bonds will pay market yields, without specifying the rates.

Banxico Leaves Interest Rate Unchanged
October 16, 2009
The central bank (Banxico) left its benchmark interest rate unchanged at 4.5% as was expected and said future monetary policy would depend on economic growth and the final outcome regarding the tax plan being debated in Congress. Policymakers at the bank spent much of this year cutting interest rates to fight Mexico’s worst recession since 1932, but now they have their eye on an incipient recovery and a proposal by President Calderon to raise taxes. Banxico said future decisions will take into account the impact on inflation from the mentioned fiscal package and the evolution of economy.

CNBV: Large Banks’ Balance Sheets Healthy In August
October 13, 2009
According to the National Banking and Securities Commission (CNBV), Mexico’s largest banks kept their balance sheets on solid ground in August despite loan defaults and a deep recession that has weighed on their businesses. CNBV said all the banks maintained capital adequacy ratios in excess of 10%, a measure of capital that shows how prepared a bank is to weather losses. Nonperforming credit card debt was equivalent to 10.58% of Mexican banks’ credit card portfolios in August, down from 12.16% in July. When a bank’s ratio dips below 10%, CNBV requires it to come up with a plan to raise its capitalization.

Banxico Compels Banks To Make Fees More Transparent
October 12, 2009
The central bank (Banxico) announced new measures to make fees charged at automatic teller machines (ATMs) more transparent, in the latest move to limit banks, which critics say charge excessive prices. Banxico said that beginning next year ATMs will have to clearly indicate to customers the total fees to be charged for specific transactions at the time they are made. Also, at ATMs owned by banks other than the customer’s own bank, only one institution will be able to charge a fee. Currently, when Mexicans use ATMs at a bank other than their own, fees are often collected by both banks.

Senate To Issue Constitutional Controversy Plea Against Executive Branch’s Support Of Citi
October 14, 2009
Legislators at the Senate agreed to issue a constitutional controversy plea to the Supreme Court (SCJN) against the Executive Branch as it allowed Banamex, the Mexican subsidiary of U.S. banking group Citi, to operate in the country after the U.S. government acquired a share in that financial institution and since Mexican Law forbids foreign governments’ participation in the domestic banking system. Under the current circumstances, the SCJN will be in charge of defining the legal status of foreign financial institutions that operate in Mexico and that receive funds from their governments.

Actinver To Consolidate Operations After Acquisitions
October 14, 2009
Mexican nonbank asset management firm Grupo Actinver said it is temporarily putting short-term commercial agreements aside to focus on consolidating its operations following two major acquisitions in the last three years. Actinver recently closed the purchase of Prudential Financial local asset management business, which included a bank and mutual fund operator, for an undisclosed amount. Actinver expects to receive government approval in the coming weeks to establish a financial group that will act as a holding for its bank, mutual fund operations and brokerage house.

Stock Exchange Gains 0.44%, Sets New Record High
October 15, 2009
Mexican Stock Exchange operator BMV benefited from a sustained 10-day-long upward trend and gained 0.44%, setting its main indicator—the IPC index—at a fifth straight record high of 31,017 points, approaching its highest ever record high of 31,095 points.

back to top

Business & Industry

INEGI: August Industrial Production Falls 7.3% On Year
October 12, 2009
According to the National Statistics Institute (INEGI), Mexico’s industrial output was down 7.3% from August 2008, led by a 10.8% drop in manufacturing and a 7.8% drop in construction. That was offset by a 3% rise in extraction industries as mine production rose 34.2% and oil output fell 4.2%. Utilities—water, electricity and gas—rose 1.5% from a year ago. The annual drop was larger than the 6.5% contraction registered in July. August was the 13th consecutive month of year-on-year declines in industrial production.

Gruma: Creditors Authorize Derivative, Loan Deals
October 14, 2009
Mexican tortilla and corn flour maker Gruma said its creditors have obtained the necessary authorizations to swap the company’s USD 738.3 million of derivatives liabilities into loans. Gruma also said the banks participating in a fiveyear, USD 197 million syndicated loan led by Mexico’s top bank, BBVA Bancomer, have also received the corresponding authorizations. Gruma said it expects to sign the final documentation for both transactions in the coming days.

Estafeta To Invest As Much As USD 25 Million In 2010
October 14, 2009
Mexican courier company Estafeta said it plans to invest between USD 20 million and USD 25 million next year in order to broaden its current infrastructure and consolidate growth, which it expects to be approximately 6%. Estafeta said it is confident next year will be better than 2009, when the firm expects to have grown about 2% due to the global economic downturn. Estafeta noted that 2010’s first infrastructure work will be a MXN 10 million expansion of its logistics center in the state of San Luis Potosi.

back to top

Automotive

AMIA, AMDA: Domestic Car Sales Fall 23% In September
October 12, 2009
According to the Mexican Automobile Industry Association (AMIA) and the Mexican Automobile Distributors Association (AMDA), domestic car sales in Mexico fell 23% in September when compared to the like-2008 month to 58,505 cars, down from 76,617. Meanwhile, AMIA said that September auto output was the highest since the beginning of the year at 146,295 units, which is, however, 23% less than what was registered in the like-2008 period. In addition, the associations noted that September car exports were the highest registered so far this year with 117,433 units, but remained 19% below exports reported in September 2008.

Chrysler Eyes Mexico To Produce Fiat’s Cinquecento Model
October 16, 2009
U.S. carmaker Chrysler, which entered into a strategic partnership with Italian peer Fiat, announced it might produce the latter’s Cinquecento (500) model—a vehicle rivaling BMW’s Mini Cooper—at its facility in Toluca, in the State of Mexico (Edomex). Chrysler said it is analyzing the possibility of assembling as many as 100,000 Fiat 500 cars in Mexico and is in negotiations with auto parts suppliers to ensure the provision of the required parts/components.

Nemak Extends Maturity On USD 1.3 Billion In Debt
October 13, 2009
Nemak, the auto parts subsidiary of Mexican conglomerate Alfa, announced that it has reached an agreement with banks to extend the maturity of its debt by three years. Nemak’s net debt, which was approximately USD 1.3 billion at the end of September, will now reach maturity in 2017. Nemak executives said that the transaction will provide them with greater financial flexibility to meet their future commitments. Nemak, which operates in 13 countries, had sales last year of USD 3 billion.

back to top

Construction & Infrastructure

IDEAL, CICSA Secure Pacific North Highway Package With MXN 3.22 Billion Bid
October 16, 2009
The Communications and Transport Ministry (SCT) announced it has awarded Mexican infrastructure concerns IDEAL and CICSA, owned by billionaire Carlos Slim, the concession to a major toll-road package in the state of Sinaloa, in the North Pacific coast region. Under the concession, known as the Pacific North highway package, the firms will operate an existing 181.5-kilometer toll road connecting the state capital of Culiacan to the coastal resort town of Mazatlan. Slim’s companies bid MXN 3.22 billion for the package, easily surpassing the MXN 1.7 billion offer made by construction firm ICA and the MXN 210 million bid placed by Spain’s OHL Concesiones. Under the contract, IDEAL and CICSA will also have to build a 22-kilometer highway bypass around Culiacan and a 38-kilometer bypass around Mazatlan. SCT said that total value of works is estimated between MXN 3.7 billion and MXN 4 billion.

Conagua Awards Zapotillo Contract To La Peninsular, Rejects ICA’s Complaint
October 16, 2009
The National Water Commission (Conagua) announced that it awarded a contract to infrastructure firm La Peninsular Compañia Constructora to build, along with Spain’s FCC, the El Zapotillo dam in the state of Jalisco. Conagua added that the Public Function Ministry (SFP) rejected construction firm ICA’s request to suspend the tender. ICA believes Conagua awarded the contract to La Peninsular due to political interests and that influence peddling was present in the process. However, Conagua said that the ICA-Constructora Cota consortium’s proposal was rejected because it failed to meet technical and engineering requirements to minimize the geological impact of the project.

back to top

Retail

ANTAD: Retailers’ September Same-Store Sales Flat On Year
October 13, 2009
According to the National Retail Association (ANTAD), its members’ same-store sales were flat in September compared with a year ago as sales at supermarkets were offset by a drop in consumer purchases of clothing and general merchandise. Total sales, which include stores opened in the past year, rose 6.7% from September 2008 to MXN 63.7 billion. ANTAD, which represents 17,136 retailers, including 2,815 supermarkets, noted that same-store sales fell 1.3% in September 2008. ANTAD’s same-store sales were unchanged in the first nine months of 2009 from the year-ago period, while total sales rose 6.9% to MXN 594.6 billion.

back to top

Telecommunications & Technology

SCT Awards New Restricted TV Authorizations, Concessions
October 12, 2009
The Communications and Transport Ministry (SCT) announced that in an effort to boost competitiveness in Mexico’s telecommunications sector, ensure legal certainty to investors, attract investors, and improve services provided to Mexicans, it has concluded reviewing and deciding on 225 procedures. The measures include awarding or denying authorizations to operate, concessions, time extensions as well as the assignment of frequencies, among other measures. As part of that effort, SCT said that in the past weeks it awarded nine restricted TV concessions and other authorizations.

Calderon: Authorizations To Migrate From AM To FM Will Be Issued Shortly
October 12, 2009
President Calderon said that authorizations for radio operators to migrate from AM to FM frequencies in the first region of the country, comprising the states of Tabasco, Campeche, Yucatan and Quintana Roo, will be announced shortly. Calderon said his administration is seeking to remain on schedule for the second phase of migration and that the current one will be concluded before the original deadline.

CFC Finds Telmex Dominant In Long-Distance Market
October 14, 2009
The Federal Competition Commission (CFC) has ruled that fixed-line carrier Telefonos de Mexico (Telmex) is a dominant operator in the provision of wholesale telecommunications services for the long-distance market. The CFC said in a statement published in the Official Gazette (DOF) that its decision was approved by the agency’s five commissioners in a four-to-one vote earlier this month. Telmex controls approximately 85% of the country’s fixed phone lines with 17.4 million lines in service at the end of June. Telmex officials declined to comment on the ruling. Telmex can file an administrative appeal of the findings with the CFC or take the matter to court.

Wal-Mart, America Movil Unit To Launch Mobile Telephony Services In The U.S.
October 14, 2009
U.S. retailer Wal-Mart Stores announced that it will launch the new Straight Talk low-cost mobile telephony service in the U.S. this month through a cooperation agreement with prepaid cell phone provider Tracfone Wireless, subsidiary of mobile telephony giant America Movil, owned by Mexican billionaire Carlos Slim.

back to top

Media & Entertainment

Televisa, TV Azteca To Increase Revenue With Qualification To 2010 World Cup
October 13, 2009
According to analysts, Mexican broadcasters Televisa and TV Azteca will increase their revenue for the rest of the year and during the first half of 2010 due to publicity services in their open TV operations related to the South Africa soccer World Cup next year as Mexico’s national soccer team’s qualification to participate in the event was confirmed recently. Publicity services associated with transmission of World Cup games might represent between 2% and 4% of the media giants’ total revenue, or some MXN 900 million.

back to top

Farming & Agriculture

SAGARPA, SEMARNAT Authorize Sowing Of Transgenic Corn
October 16, 2009
The Agriculture, Livestock and Rural Development Ministry (SAGARPA) and the Environment Ministry (SEMARNAT) announced that they awarded two permits—out of 35 requests—allowing the cultivation of the first genetically modified corn, a rather unpopular measure that has drawn protests from environmentalists and others that say that it could ruin the nation’s native crop. The government said that the genetically modified crops are in an experimental phase and will be planted on plots controlled by authorities and isolated from other crops. The new crops also will be planted in states that do not grow native corn. However, the protesters and global environmental organization Greenpeace said they fear the genetically modified corn could harm the nation’s 55 varieties of native corn, adding that two scientific studies have determined that transgenic corn has already contaminated some native Mexican cornfields. Greenpeace asked Mexico for an immediate moratorium on the use of the transgenic corn.

Growing Demand For Mexican Avocado In Foreign Markets Raises Domestic Prices
October 16, 2009
According to the Association of Avocado Producers and Packers of the state of Michoacan (APEAM), a growing demand for Mexican avocados in the U.S., Japan, Europe, Canada, China and Central America explained by the product’s outstanding quality has led its price to nearly double for domestic consumers.

back to top

Hospitality & Tourism

IHG To Build 59 Hotels In Mexico During The Next Three Years
October 14, 2009
U.S. hotel chain the InterContinental Hotels Group (IHG) announced plans to expand its presence in Mexico through the opening of 59 new hotels in the next three years with an estimated USD 549 million investment. IHG said it seeks to become the largest hotel operator in Mexico and that the planned openings will add 6,000 new rooms to its current capacity in the country. IHG said that it expects to close the year with a 13% growth when compared to 2008.

back to top

Economy

Banxico: Foreign Reserves Up USD 938 Million To USD 79.24 Billion
October 13, 2009
The central bank (Banxico) announced that Mexico’s foreign reserves rose by USD 938 million at the beginning of the month to USD 79.24 billion as it acquired dollars from state oil monopoly Pemex. Pemex sold Banxico USD 750 million, while other operations increased reserves by USD 188 million. At last update, foreign reserves remained USD 6.2 billion lower than at the end of 2008. On October 1, Banxico suspended a mechanism by which it had been selling USD 50 million a day into the exchange market to counter volatility in the peso. The bank still offers USD 250 million when the peso depreciates 2% from the previous session.

GlobeScan: Mexico, Japan Rank Last In Consumer Confidence
October 13, 2009
U.S. public opinion and stakeholder research firm GlobeScan said in a report that Mexico occupied the penultimate position, only ahead of Japan, in a consumer confidence study in 22 countries. GlobeScan said that Mexico obtained 48.2 points in its index and Japan 45.1. The study revealed that 69% of those surveyed in Mexico believe they are worse off than they were last year in economic terms, 23% said their situation is unchanged and only 8% considered themselves to be in a more comfortable economic position.

back to top

Border & Migration

Ambassador Pascual: Border Security Issues Affect Business In The Area
October 15, 2009
According to U.S. Ambassador to Mexico Carlos Pascual, security concerns at the Mexico-U.S. border are severely affecting business in the area. Pascual said that a skyrocketing homicide rate due to turf battles between drug cartels at the border area is impacting in a very negative way labor conditions of workers at the maquiladoras as well operations of SMEs from the services sector.

Survey: 15% Of Latinos In California Approve Of Schwarzenegger Administration
October 15, 2009
According to a recently published poll, only 15% of the Latino population in California approves of Governor Schwarzenegger’s administration. The study by California’s Field Institute surveyed 5,000 Californians and indicated that 8 out of 10 Latinos are dissatisfied with the performance of the Schwarzenegger administration during the past year. Only 5% of those surveyed said they were undecided. Ethnic groups that showed more support for Schwarzenegger were Anglo-Saxons (32%) and Asians (25%).

back to top

Politics

U.S. Reaffirms Importance Of U.S.-Mexico Bilateral Relationship
October 17, 2009
The U.S. Embassy in Mexico issued a statement during the commemoration of the 100th anniversary of the meeting between U.S. President William Howard Taft and Mexican counterpart Porfirio Diaz to reaffirm the importance of the bilateral relationship and friendship between the two countries. The communiqué said that the U.S. and Mexico have one of the closest bilateral relationships in the world, that they share values and common aspirations of freedom, prosperity, security and sovereignty. In 1909, then U.S. President William Howard Taft and Mexico’s President Porfirio Diaz met in the cities of El Paso, Texas, and Ciudad Juarez, in the Mexican state of Chihuahua, marking the first encounter between the leaders of the two countries.

SCJN Holds Governor Of Oaxaca Responsible For Protest Abuses
October 15, 2009
The Supreme Court (SCJN) ruled that Ulises Ruiz, Governor of the southern state of Oaxaca, is responsible for rights abuses during 2006 protests that paralyzed the colonial capital city and left at least a dozen people dead. The ruling has no binding consequences for Ruiz but carries moral weight. A similar ruling in 1996 prompted the resignation of the Governor of the state of Guerrero over the massacre of 17 farmworkers. Leftist groups battled with authorities in the city of Oaxaca for five months in 2006. The conflict started as a teachers’ strike and quickly ballooned into a broader movement to demand Ruiz’s resignation over allegations that he rigged his electoral victory. SCJN ruled that Ruiz bore "plain responsibility" for the conflict. Ruiz said he respects the ruling but disagrees with it and added that he has no intention of resigning.

back to top

Justice, Safety & Crime

U.S.-Mexico Group Urges New Ban On U.S. Assault Weapons
October 14, 2009
The Binational Task Force on the United States-Mexico Border, a group featuring former officials from both Mexico and the U.S.—including two former U.S. Ambassadors to Mexico—said that the U.S. should reinstate a Clinton-era ban on assault weapons to prevent such guns from reaching Mexican drug cartels. The group also said the U.S. should do more to stop the smuggling of firearms and ammunition into Mexico by stepping up investigations of gun dealers and more strictly regulating gun shows. The Binational Task Force on the United States-Mexico Border listed the assault weapons ban as a step the U.S. should take immediately to improve security in both countries. The 10- year ban expired in 2004.

SSA: Cocaine Consumption In Mexico Increases Twofold In 6 Years
October 16, 2009
According to the Health Ministry’s (SSA’s) 2008 national addictions survey, the use of cocaine doubled in Mexico over the last six years, partly because the drug became more available in the country. The overall use of illegal drugs, however, increased only slightly. The report said 2.4% of Mexicans aged between 12 and 65 used cocaine in 2008, compared to 1.2% in 2002. The consumption of all illegal drugs rose to 5.7% of the population from 5%. The report said the states of Quintana Roo, where the Gulf resort of Cancun is located, and Tamaulipas, across from Texas, have the highest use of illegal drugs—just over 11% of their populations.

U.S. Judge Denies Probation To Zhenli Ye Gon
October 16, 2009
U.S. Judge Anthony Facciola, who is in charge of the extradition process of Chinese-Mexican businessman Zhenli Ye Gon to Mexico on drug trafficking and other charges, refused to put him on probation and decided to keep him imprisoned as there would be a possibility for Ye Gon to flee the country.

Top Arellano Felix Drug Cartel Figure Pleads Guilty In San Diego
October 16, 2009
Jesus "Chuy" Labra, a suspected top figure in Mexico’s Arellano Felix drug cartel, pleaded guilty to a drug charge in a U.S. federal court, nearly ending a nine-year legal battle that saw the cartel’s power fade at the hands of authorities and rivals. Jesus "Chuy" Labra pleaded guilty to one count of conspiracy to possess with intent to distribute at least 100 kilograms of marijuana and at least 100 grams of cocaine. Defense attorney Guadalupe Valencia said money laundering and racketeering charges against Labra will be dropped. U.S. District Judge Larry Alan Burns is set to drop the additional charges and sentence Labra to between 5 and 40 years in prison on January 4. Valencia said defense attorneys plan to ask for a 5-year sentence.

Mexico City Puts 1,300 Overweight Police On A Diet
October 15, 2009
Nora Frias, Mexico City’s Public Safety deputy secretary for citizen participation, announced that the city’s government has decided to put its 1,300 heaviest police officers on a diet, concerned about rapidly expanding waistlines in the force. Frias said that the measure comes since at least 70% of the 70,000-member force is overweight. The diet program will start with the officers with the most serious weight-related health problems; they will be given blood and cholesterol tests to determine a personalized diet plan for each.

back to top

Health & Science

Worse A/H1N1 Influenza Cases In Canada, Mexico Are Detailed
October 12, 2009
According to recently published health studies, rapidly worsening breathing problems in the sickest swine flu patients in Mexico and Canada present a frightening worst-case scenario and could foreshadow what U.S. doctors face as winter flu season sets in. In the global outbreak’s first wave, many critically ill patients in both countries were obese, although their death rates weren’t higher than others. Many in both countries also were younger than those typically hard-hit by seasonal flu, as has been found in the United States Patients studied worsened quickly after being admitted to hospitals. Most survived after intensive, lengthy treatment, although the death rate in Mexican patients studied—41%—was much higher. The reports were published in the Journal of the American Medical Association. Meanwhile, Mexico’s National Center of Epidemiology Watch and Disease Control (CENAVECE) said that Mexico is far behind the countries with most A/H1N1-related deceases, although the contagion rate remains high when compared with other nations.

Mexican Pharmaceutical Company Silanes Announces Opening Of Spanish Unit
October 12, 2009
Mexican pharmaceutical company Laboratorios Silanes announced the opening of its new unit in Spain, for which it allocated EUR 2 million to be spent in the next three years in research and development of medicines against diabetes, obesity and high blood pressure.

back to top

Sports

Obama Highlights Contribution Of Hispanics In NFL’s Performance
October 12, 2009
U.S. President Barack Obama highlighted the talent and contribution of Hispanic football players to the U.S. National Football League (NFL) and said they are a living example of perseverance, proving to the world that there are no limits when people work hard. Obama said just before the start of the New York Jets-Miami Dolphins game that players such as Mark Sanchez and Greg Camarillo, with Mexican origins, are examples of teamwork that have made the United States a better country.

back to top

Arts & Culture

INAH, History Channel Enter Strategic Partnership
October 13, 2009
The National Anthropology and History Institute (INAH) and the History Channel announced that they entered a strategic partnership by means of which they seek to jointly produce better programs. Under the deal, INAH will have the possibility to own rights on the content and will receive a certain amount of money generated from international sales. The funds will be destined to research and diffusion. INAH will be in charge of research, while the History Channel will concentrate on technical details and production. The first joint programs will be Mariachi, El Asesinato de Madero, Unidos por la Historia and Exploracion Maya.

UNAM Celebrates 100th Anniversary Of Creation, 80th Anniversary Of Autonomy
October 13, 2009
The National Autonomous University of Mexico (UNAM) started celebrating the 100th anniversary of its creation with several cultural, academic, and sports activities that will last until 2011. In addition, UNAM started a series of conferences to commemorate the 80th anniversary of the institution’s autonomy.

Cervantino Festival 2009 Begins In The State Of Guanajuato
October 13, 2009
The international arts festival Festival Internacional Cervantino (FIC) held in the Mexican state of Guanajuato every year kicked off with a performance from Quebec’s Theatre Sans Fil. This edition of the FIC is dedicated to science and will feature thousands of artists from different disciplines and several countries.

President Obama Celebrates Fiesta Latina At The White House
October 14, 2009
President Obama celebrated the "Fiesta Latina" in the White House with performances of several Latino musicians, such as Gloria Estefan, Marc Anthony, Jose Feliciano, Los Lobos, the New York bachata band Aventura, the Mexican singer Thalia, the reggaeton singer Tito El Bambino and the percussionist Pete Escovedo. The program featured a deliberately chosen, international assortment of styles. Meanwhile, a moment of the celebration that drew further attention was when Thalia sang "Amor a la Mexicana" ("Love Mexican Style"), stepping off the stage to beckon President Obama to dance and thanking Michelle Obama for letting him join her.

back to top

 

*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.

Subscribe Unsubscribe Technical Support

Los Angeles | Washington, D.C. | New York | Mexico City | São Paulo | Sacramento | San Francisco | Palo Alto | Albany | Orange County
ManattJones Global Strategies, LLC