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Energy
Gas Natural Sells Assets In Mexico Worth USD 1.2 Billion To Mitsui, Tokyo Gas
December 24, 2009
Spanish energy firm Gas Natural announced it sold electricity generation assets in Mexico to Japan's Mitsui & Co.
and Tokyo Gas Co. for USD 1.2 billion, completing an ambitious asset disposal plan to reduce debt. Gas Natural said
the deal would not generate significant capital gains but would give it a more balanced exposure to the Mexican
market, where the gas and electricity group is a leading player with 1,570 MW of installed capacity and 500 MW in
construction. Mitsui and Tokyo Gas will acquire 76% of a string of generation plants, financed through a capital hike to
be made in early 2010, and will have a call option on the remaining 24%.
INEGI: Pemex's Crude Oil Exports In November At 1.22 Million B/D
December 22, 2009
According to the National Statistics Institute (INEGI), state-owned oil company Pemex's crude oil exports amounted to
1.22 million barrels per day (b/d) in November, down from an average 1.5 million b/d for the year-ago month. INEGI
said crude oil exports in November were worth USD 2.65 billion, down from the USD 1.91 billion posted in the yearago
month as the price per barrel increased to USD 72.42 in November this year, up from USD 42.40 in 2008.
Losses From Illegal Oil Extraction By Drug Cartels Amount To USD 1 Billion
December 13, 2009
According to U.S. and Mexican law enforcement officials and Mexico's state-run oil company Pemex, drug traffickers
employing high-tech drills, miles of rubber hose and a fleet of stolen tanker trucks have siphoned more than USD 1
billion worth of oil from Mexico's pipelines over the past two years. Pemex reported losing USD 715 million worth of oil
to theft last year and added it discovered 396 clandestine taps. This year the firm projects it will lose at least USD 350
million. Officials said the oil is usually resold in the U.S. through sophisticated smuggling networks. Some U.S.
companies have purchased the oil while knowing it was stolen, according to U.S. court documents and interviews with
American officials involved in an expanding investigation of oil services firms in Texas.
CICSA Secures Contract To Build MXN 403 Million Gas Pipeline
December 16, 2009
Mexican construction firm Carso Infraestructura y Construccion (CICSA) announced it was awarded a MXN 403
million contract to build a pipeline for state-owned oil monopoly Pemex. CICSA said the 14.7-kilometer pipeline will
connect the Bateria Samaria II gas complex in the state of Tabasco with the Cactus gas processing station in the
state of Chiapas. CICSA is a unit of Grupo Carso, controlled by billionaire Carlos Slim.
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Trade & Investment
U.S. Approves "Buy America" Rules, Measure To Affect Mexican Exports
December 17, 2009
U.S. Legislators approved a new bill compelling firms to purchase U.S.-made materials for construction and
infrastructure works in a bid to boost that country's economy. The measure, which has been criticized and considered
as protectionist by several countries, will hurt severely some nations' exports. According to Mexico's National Iron and
Steel Chamber (CANACERO), Mexico exports about 90% of the steel it produces to the U.S. and, in 2008, it sold
between 5.7 million and 6.6 million tons of the metal to that country for approximately USD 6.9 billion.
INEGI: Mexico's November Trade Deficit At USD 195 Million
December 22, 2009
According to the National Statistics Institute (INEGI), Mexico posted a USD 195 million trade deficit last month, down
from a USD 2.96 billion deficit in November 2008. Mexico's exports rose 10% from November 2008 to USD 22.3
billion. It was the first time exports have grown from the year-ago month since September 2008. Petroleum exports
jumped 37% to USD 3.17 billion, manufacturing exports rose 6% to USD 18.25 billion, and exports of agricultural
products increased 19% to USD 729 million. Imports fell 3.2% in November to USD 22.49 billion. A 17% drop in
imports of consumer goods led the decline to USD 3.13 billion, followed by a 14% decline in imports of equipment and
machinery to USD 2.79 billion.
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Banking, Insurance & Finance
CONSAR: Pension Savings Rise To MXN 1.102 Trillion At The End Of November
December 17, 2009
According to pension fund regulator CONSAR, Mexican pension fund companies (Afores) reported compulsory
retirement savings of MXN 1.102 trillion at the end of November, up 35.2% from a year earlier. Total assets under
management, including voluntary savings, as well as Afores' regulatory capital, rose 36% on the year to MXN 1.124
trillion. The Afores are Mexico's largest institutional investors and were a key source of support for the local financial
markets during the global crisis. At the end of November, 67.7% of total assets were in government securities, 16% in
domestic private-sector debt, 8.1% in domestic equities, 4.3% in international debt, and 3.9% in international equities.
Amafore: Pension Funds Extend Local Investment Pact To May 2010
December 19, 2009
Mexico's Pension Fund Industry Association Amafore said its members will extend until the end of May 2010 an
agreement with the government to invest retirement savings in domestic assets. Amafore said its members decided to
renew the pact until May 31 given "the more stable behavior of the financial markets in recent months" as well as
"positive signs" of a recovery in the economy. Amafore said that during the five-month period, the parameter of
investment in foreign assets will be re-established in a gradual and ordered way as defined by current regulations".
Amafore first announced in March that its members would invest all new pension contributions and investment returns
locally during 2009 to support the economy and stabilize domestic markets roiled by the global financial crisis.
JBIC Praises Mexico's Measures During Critical Periods
December 14, 2009
Japanese government-owned public financial institution Japan Bank for International Cooperation (JBIC) praised
Mexico's management of financial crisis as the country recently made its first issuance in Japan's stock market,
known as Samurai market, in the last nine years. Mexico has issued bonds in the Samurai market in 12 occasions
since 1973. The Finance and Public Credit Ministry (SHCP) announced that Mexico issued JPY 150 billion in Samurai
bonds due 2019 with a 2.22% coupon earlier in December and noted that the JBIC provided guarantees to Mexico for
the same amount.
Citi Seeks Mexico Investors To Repay U.S. In Financial Rescue
December 16, 2009
U.S. banking group Citi said it has demanded its Mexico executives to seek and attract Mexican investors to
participate in an upcoming issuance of debt through T-DECS bonds on the U.S. stock market in a bid to secure funds
and pay back the U.S. government as much as USD 20 billion it had disbursed to save the financial institution from
bankruptcy.
BBVA Bancomer To Lend More In 2010; Banks Lent More In November This Year
December 17, 2009
According to a top executive from Spanish-Mexican bank Grupo Financiero BBVA Bancomer, the company expects
to post solid growth in lending next year as the economy recovers from a deep recession. The executive said that
credit will grow in a dynamic way at Bancomer in 2010 and that they will seek double-digit growth in all of their
portfolios. Bancomer said small business and mortgage loans alone should grow more than 20% next year.
Meanwhile, the National Banking and Securities Commission (CNBV) said that Mexico's banks reported MXN 1.925
trillion in loans on their books at the end of November, nearly unchanged from a year ago as the country slowly
recovers from a deep recession. In a positive sign, loan balances expanded 1% over the previous month, led by
growth in mortgage and commercial loans.
Banorte Acquires Argos Pension Assets
December 21, 2009
Mexican banking group Grupo Financiero Banorte said it has acquired the pension fund assets of life insurer Seguros
Argos after receiving regulatory approval from pension fund regulator CONSAR and the Federal Competition
Commission (CFC). Banorte said its pension fund subsidiary, Banorte-Generali, acquired more than 22,000
retirement accounts and about MXN 600 million in assets. This is Banorte's third acquisition in the pension industry
this year.
Auto Insurer Qualitas Sees Sales Recovery In 2010
December 17, 2009
Mexican auto insurance company Qualitas Compañia de Seguros said it expects to post modest sales growth in 2010
after a recession-hurt business this year. Qualitas said its premiums will probably grow in low single digits as a
recovery in the economy boosts domestic vehicle sales in the second half of 2010. New car sales are a key growth
driver for insurance companies in Mexico, where there is no federal mandate for auto insurance, and the few states
that do require coverage do not enforce it. About two-thirds of sales are financed by banks and non-bank lenders who
require that a vehicle carry insurance during the life of the loan.
CNBV Finds Irregular Activities In 12 Financial Institutions
December 21, 2009
The National Banking and Securities Commission (CNBV) said that during 2009 it found 12 finance companies that
committed fraud against their clients or that had several irregularities. CNBV said that the companies are Grupo
Inmobiliario VERHOME (INVERGROUP); MXBK Group (MEXBAKN Financiera); W.M. Adiversors; Yakey MX;
InverBan; Sues Consultores y Asociados; CAPITAL INSTITUTE (CAPITALBANK); Ipulsora Zion; FOREX MexForex;
Construcciones Mauri (Sitma Grupo Inmobiliario); Fondos de Inversión DOT (Fondos de Inversion.com.mx) and
Saforin. In related matters, the Association of Mexican Banks (ABM) said that its 2009 estimates of fraud in credit and
debit cards might amount to some USD 60 million.
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Business & Industry
INEGI: October Industrial Production Down 5.2%
December 14, 2009
According to the National Statistics Institute (INEGI), Mexico's industrial production fell 5.2% in October from the yearago
month. The annual decline was led by a 9.9% drop in construction. Manufacturing production fell at an annual
rate of 5.9% in October – its best showing since the like-2008 month and grew a seasonally adjusted 2.43% from
September. Extraction industry output grew 1.3% from the year-ago month, as a 25% increase in mining production
offset a 3.4% drop in oil output. Utilities – including water, electricity and gas – rose 4.1%. Mexico's industrial
production fell 8.9% year-on-year in the January-to-October period, led by a 13% plunge in manufacturing output and
a 7.7% drop in construction.
GModelo Sues Constellation Brands In The U.S.
December 15, 2009
Mexican brewer Grupo Modelo (GModelo) said it was suing a unit of U.S. wine and spirits maker Constellation Brands
in a dispute over marketing at U.S. joint venture Crown Imports LLC. GModelo said the conflict is related to
Constellation's refusal to fund marketing efforts at Crown, which GModelo has since made up for. Details on the
amount GModelo was seeking in a Manhattan court were not disclosed. GModelo and Constellation Beers share
Crown Imports, the exclusive U.S. importer of Modelo's Corona Extra, Modelo Especial, Corona Light, Pacifico and
Negra Modelo brands as well as St. Pauli Girl and Tsingtao beers in the U.S.
Alsea Places MXN 300 Million In Local Three-Year Notes
December 15, 2009
Mexican restaurant operator Alsea said it placed MXN 300 million in three-year notes on the local debt market. The
notes pay a coupon of 2.15% above the 28-day interbank TIIE rate. Alsea said the placement is part of a plan
approved in October by the company's board of directors to issue as much as MXN 700 million in debt. Alsea added
that proceeds from the placement will be used to prepay existing liabilities, reducing the cost of its debt. Alsea also
said it purchased 19.9% of the equity of the Domino's Pizza brand in Colombia and 9.9% of the Burger King brand in
the same nation. Alsea now owns a 95% stake in both companies.
Arca Inaugurates USD 27.5 Million Expansion At Culiacan Plant
December 15, 2009
Mexican Coca-Cola bottler Embotelladoras Arca said it has put into operation the USD 27.5 million expansion of its
plant in Culiacan, in the state of Sinaloa. Arca said that the expansion will increase the plant's annual production
capacity by 30% to more than 62 million unit cases. Arca noted that current additions to the facility, which could be
further expanded in the future, created 180 new jobs.
Gruma: Venezuela Government To Temporarily Take Over Unit
December 24, 2009
Mexican food maker Gruma said that the Venezuelan government is temporarily taking over at least one its
subsidiaries and that national guard troops arrived at several of the company's other Venezuelan plants. Gruma said
that a Venezuelan government office told it the state will administer Monaca, one of the firm's two Venezuelan
subsidiaries, for 90 days because one of Monaca's stakeholders is tied to a local banking scandal. Venezuela has
shut eight small private banks since November and arrested several top bankers in what President Hugo Chavez
says is a clean-up of the financial system aimed at stamping out financial corruption.
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Automotive
AMIA: Nissan's Tsuru Remains As Most Sold Car In Mexico As Of November
December 15, 2009
According to the Mexican Automotive Industry Association (AMIA), Japanese automaker Nissan's Tsuru continues to
be the most sold car in Mexico and 5,285 units were sold only in November, more than any other model
manufactured either by Nissan or a rival firm. The figure represents, however, an 8.5% drop when compared with
November 2008. AMIA said that up until the end of November, Nissan had sold 48,302 units, down 22.2% from the
figure that was reported during the first 11 months of 2008. The second most acquired vehicle in Mexico is
Volkswagen's Jetta.
Metalsa Acquires Dana Holding's Structural Products Business
December 15, 2009
Mexican vehicle frame and structures supplier Metalsa announced it agreed to acquire the global structural products
business of U.S.-based Dana Holding for USD 150 million. Under the deal, Metalsa, a unit of Grupo Proeza, will
acquire 10 Dana manufacturing facilities in Latin America, the U.S. and Australia that produce components for light
and commercial vehicles.
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Housing & Mortgaging
INIF 14 Accounting Regulation May Affect Shares Of Mexico's Home Builders
December 17, 2009
According to analysts and experts, the new INIF 14 accounting rule, which no longer allows homebuilders to record
revenues until they have completely transferred control of the property to the homebuyers, could affect negatively the
firms. The new regulation takes effect in January. The current regime allows booking of revenue before construction
of the home is fully completed. As a result, delayed payments are likely to figure more heavily in quarterly financial
statements next year, with analysts and sector executives expecting earnings to fall between 20% and 30% on a
year-over-year basis. Experts say shareholders' equity might also drop between 20% and 25% in 2010.
Executives: Private Sector Lenders Aim For 180,600 Home Loans In 2010
December 14, 2009
According to top industry executives, Mexico's private sector lenders could make up to 180,600 home loans for MXN
93.2 billion next year as the mortgage industry recovers from a sharp downturn in 2009. Executives noted they
estimate that of the 840,000 mortgages expected in 2010, banks and home finance companies will account for 23%
of loans and 42% of loan amounts. The executives also said banks and home finance companies will probably
finance the construction of about 70% of the 550,000 new homes expected to be built in 2010. Meanwhile,
government-run housing fund Infonavit expects to make between 475,000 and 525,000 mortgage loans in 2010.
Homex Sees MXN 2.1 Billion Cash Flow In 2010
December 15, 2009
Mexican homebuilder Homex said that it sees free cash-flow generation of around MXN 2.1 billion for next year and
that it will limit its international expansion to Brazil for now. The Culiacan-based company said it expects revenue
growth between 12% and 14% next year as the Mexican economy recovers from a deep recession.
Casas Geo Sees 2010 Revenues Up Between 8% And 11%
December 18, 2009
Mexican homebuilder Casas Geo said that it expects its revenues to rise between 8% and 11% in 2010 due to growth
in the lower-income housing market. Geo also said it expects its EBITDA margin to be between 21% and 23% in
2010.
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Construction & Infrastructure
IDEAL Secures MXN 9.39 Billion Atotonilco Wastewater-Treatment Plant
December 25, 2009
The National Water Commission (CONAGUA) said that it awarded a consortium led by Mexican infrastructure firm
IDEAL a 25-year contract to build and operate a MXN 9.39 billion wastewater-treatment plant in northern Mexico City.
The plant, which will be located in the town of Atotonilco, in the state of Hidalgo, will increase to nearly 60% from 6%
the treatment of sewage waters produced by the Mexico City metropolitan area. Five other firms, including a
subsidiary of Mexican construction firm Empresas ICA, formed the winning consortium. Meanwhile, Spanish
construction firm OHL, which was outbid by IDEAL, said it will appeal the decision awarding the latter the contract.
Authorities said OHL failed to provide several documents and that its proposal had technical deficiencies.
Promotora Ambiental To Acquire Servicios Urbanos De Puebla
December 17, 2009
Mexican waste collection firm Promotora Ambiental announced it has agreed to acquire rival company Servicios
Urbanos de Puebla, which operates in the city of Puebla, in the state of the same name, for an undisclosed amount.
Promotora Ambiental said Servicios Urbanos de Puebla has a contract to collect household and industrial waste until
2022 and is expected to generate revenue of about MXN 82 million this year. Waste collection in Puebla is currently
divided between Servicios Urbanos de Puebla and Promotora Ambiental.
Apasco Places MXN 950 Million In Four-Year Debt
December 17, 2009
Mexican cement maker Apasco announced it placed MXN 950 million in debt in the Mexican stock exchange. The
titles, maturing in 2013 and with a yield 1.7% above the 28-day interbank TIIE rate, will provide Apasco funds to be
used in lowering its current debt load and to enhance the firm's financial capabilities, mostly in the infrastructure
sector.
U.S. Judge Rejects Lawsuit Filed By Texas Against Cemex
December 22, 2009
Mexican cement maker Cemex announced that a U.S. judge rejected a lawsuit filed by the state of Texas against the
company. The lawsuit demanded the latter pay USD 558 million for the rights to extract minerals. However, judge
Carlos Villa replied that minerals are not reserved for state exploitation and, therefore, Texas cannot demand to be
paid any consideration for their extraction.
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Retail
Wal-Mart De Mexico's Eduardo Solorzano To Head Latin America Operations
December 18, 2009
Wal-Mart de Mexico (Walmex), the Mexican unit of U.S.-based retailer Wal-Mart, said that Chief Executive Officer
Eduardo Solorzano has been promoted to CEO of Wal-Mart Latin America and will be replaced by current Chief
Operating Officer Scot Rank. The management changes come as Walmex prepares to acquire Wal-Mart
Centroamerica from its parent company and regional investors for about USD 2.7 billion in a mostly stock deal.
Solorzano, who has been chief executive for the past five years, will also become chairman of the board at Walmex.
His responsibilities at Wal-Mart Latin America will include Mexico and Central America, Argentina, Brazil, Chile and
Puerto Rico. Meanwhile, Walmex shareholders approved plans to acquire Wal-Mart Centroamerica and merge the
two into a 1,929-store giant of supermarkets, restaurants and clothing stores. With the shareholder approval, Walmex
expects to purchase the Central American operations no later than March 31.
INEGI: October Retail Sales Fall 4.6% On Year
December 1, 2009
According to the National Statistics Institute (INEGI), retail sales in Mexico during October declined from September
and from the year-ago month amidst continuing weak demand for big-ticket items such as cars and computers. INEGI
said retail sales fell 4.6% from October 2008 and 0.46% from the previous month in seasonally adjusted terms. While
durable goods led the drop, sales of food and clothing also declined. On the other hand, sales of health-care products
increased. Retail sales fell 5.3% in the first 11 months of 2009 compared with the year-ago period. INEGI added
employment in the retail sector was down 3% in October from the year-ago month.
ANTAD: Retailers' November Same-Store Sales Down 2.2% On Year
December 14, 2009
Mexican Retail Association ANTAD said that same-store sales at its member establishments fell 2.2% in November
from the year-ago month, hurt by a negative calendar effect. ANTAD said total sales at the stores it represents grew
3.8% from November 2008 to MXN 71.9 billion. Same-store grocery sales fell 1%, while clothing sales slid 4.7% and
general merchandise dropped 2.9%. November's decline in same-store sales contrasted with a 0.1% rise during the
first 11 months of the year. ANTAD said last month had one fewer Saturday than November 2008, which likely had a
negative effect on sales.
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Transportation
Mexico City Awards Contract To CAF To Provide Trains For Subway's Line 12
December 15, 2009
Mexico City warded an MXN 18 billion, 15-year contract to Spain's railway firm Construcciones y Auxiliar de
Ferrocarriles (CAF) to lease and provide maintenance to 30, 7-car trains for the city's new subway line 12. The new
deal will consolidate the firm's presence in Mexico as main supplier of subway trains.
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Telecommunications & Technology
America Movil Eyes USD 850 Million Investment In Mexico In 2010
December 14, 2009
Mexican mobile telephone giant America Movil announced plans to invest around USD 850 million in its domestic
operations during 2010, noting that it invested a like amount during 2009. Mexico is America Movil's largest market,
where its Telcel unit had a 72% market share at the end of 3Q, with 58.4 million subscribers. America Movil, which
operates in 18 countries in the Americas, reported 194.3 million wireless subscribers at the end of September.
SEGOB Awards Axtel, Unysis Contract For Systems For Biometric ID Card
December 15, 2009
The Ministry of Interior (SEGOB) announced it awarded Mexican telcos Axtel and Unysis de Mexico a contract to
provide the computing infrastructure to record the biometric data of Mexican citizens featured in a new identity card,
amidst the new National Service of Personal Identification (SNIP).
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Media & Entertainment
COFETEL Authorizes TV Azteca To Provide Hi-TV Pay TV Services
December 16, 2009
The Federal Telecommunications Commission (COFETEL) allowed Mexican broadcaster TV-Azteca to
commercialize its Hi-TV pay TV services and compete with satellite TV and Cable TV providers Sky, Cablevision,
Dish and Megacable. COFETEL enabled TV Azteca to enter the pay TV market, as it does not violate the Federal
Radio and Television Law.
Televisa Eyes 24-Hour News Channel For 2010
December 21, 2009
Mexican broadcaster Televisa announced plans to launch a 24-hour cable news channel next year. This would be
Televisa's second attempt to run a 24-hour news channel after shutting its Noticias ECO initiative in 2001 because of
low profitability. ECO aired Spanish-language news round the clock for 13 years and its satellite footprint covered the
Americas, Europe and northern Africa. Televisa's new project will compete with Milenio TV, a one-year-old 24-hour
television venture from privately owned Milenio newspaper group that has gathered a strong cable following with its
no-frills 30-minute news segments.
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Farming & Agriculture
Research: U.S. Employs Dumping Practices On Mexico
December 15, 2009
According to new research at the Global Development and Environment Institute at Tufts, the U.S.'s generous
subsidies allow farmers to sell their products to Mexico at below-market prices. Despite protests by weathered
farmers who periodically march down Mexico City's main avenue, the government has not responded with tariffs.
Quite the contrary, under the North American Free Trade Agreement, (NAFTA) the Mexican government quickly
opened up to U.S. agricultural imports to take advantage of lower food prices. Critics say Mexican agricultural
subsidies have been channeled to favor large well-capitalized farmers at the expense of peasant farmers, who
receive money only compensating for U.S. dumping, rather than helping them be more competitive.
FDA Opens Office In Mexico City
December 15, 2009
The U.S. Food and Drug Administration (FDA) announced it opened its Mexico City post, making it the health
regulator's third post in Latin America and 10th international post. The health regulator said its Mexico City post will
work with Mexican government officials to harmonize regulations and guidance standards, and work on other
collaborative initiatives. The FDA's other posts in Latin America are located in Santiago, Chile, and San Jose, Costa
Rica.
Calderon Proposes Leasing Of Cooperatives Land To Entrepreneurs
December 14, 2009
President Calderon proposed, in a bid to eradicate a long lasting series of lawsuits and legal disputes over land
ownership between members of cooperatives and entrepreneurs, the creation of co-investment associations that
allow the creation of funds in the short and long terms to support peasant communities. The Agrarian Attorney
General's Office said it has registered as many as 667 investors that have entered co-investment deals with peasants
in the tourism, agro-industrial, infrastructure, mining and environmental sectors, by means of which peasants lease
their land for investment projects.
California Orange Growers Concerned About Citrus Greening Disease In Mexico
December 15, 2009
California orange growers said they see ominous news in a recent report saying Mexico agriculture officials
discovered 51 trees infected with the citrus greening disease in the western Mexico coastal states of Nayarit and
Jalisco. The discovery shows that the tree-killing disease is working its way toward California's USD 1.6 billion citrus
industry. It has already ravaged the citrus industries in Florida, Brazil and other prime orange-growing regions and
poses a major threat to California growers, according to agriculture officials. Citrus trees can be infected for several
years before displaying symptoms.
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Economy
Standard & Poor's Downgrades Mexico Sovereign Rating One Notch
December 14, 2009
U.S. rating agency Standard & Poor's (S&P) downgraded Mexico's sovereign rating by a notch, saying that despite
recent tax increases it expects the country to face fiscal challenges in coming years. S&P changed the outlook to
stable from negative. The one-notch downgrade to BBB from BBB+ leaves Mexico a notch above the minimum
investment grade and was widely expected after Fitch Ratings also cut Mexico in November, also to BBB from BBB+.
The Finance and Public Credit Ministry (SHCP) said in a statement that the government is committed "to addressing
structural weaknesses pointed out by the ratings agency." SHCP said two fiscal reforms and a state workers pension
reform testify to the commitment to strengthening public finances.
Banxico Survey Of Economists: 2010 Inflation Seen At 5.04%
December 18, 2009
According to a survey of economists made by the central bank (Banxico), forecasts for Mexico's 2010 inflation
increased in December due to the impact of higher consumption taxes. According to the monthly poll, economists and
analysts said they expect inflation to rise to 5.04% in 2010 compared with a forecast of 4.86% in the prior month's
poll. Mexican consumers will pay higher consumption taxes starting January under a revenue package approved by
lawmakers in October. Banxico has said the tariffs will have a one-time impact on prices, but analysts nonetheless
see the tax regime putting upward pressure on inflation.
Mexico's Unemployment Amongst OECD Member's Lowest
December 18, 2009
According to the Organization for Economic Cooperation and Development (OECD), the unemployment rate in
Mexico was 5.8% in October, and although 1.8% higher than compared with the like-2008 figure, Mexico's
unemployment rate was among the organization's members' lowest. OECD noted that during October, Mexico,
Germany, Japan, Korea and Ireland were the member states with the lowest unemployment rates. Meanwhile, the
National Statistics Institute (INEGI) said that manufacturing employment rose for the second consecutive month in
October after nearly two years of steady losses. INEGI said manufacturing employment was up 0.92% from
September in seasonally adjusted terms. It had risen 0.09% from August to September after 20 consecutive months
of decline. IPC At Highest Level In More Than Two Years
December 24, 2009
Mexican stocks rose to their highest level in more than two years despite holiday-thinned volume, as the peso (MXN)
firmed on fresh positive U.S. economic data pointing to a strengthening recovery. The benchmark IPC stock index
gained 0.30% and reached 32,548.53 points driven by mining stocks. Its all-time closing high was 32836.12 points on
October 18, 2007.
New Finance And Public Credit Minister Ratifies Deputy SHCP Cabinet Members
December 24, 2009
Mexico's newly appointed Finance and Public Credit Minister Ernesto Cordero ratified the country's three deputy
ministers in their posts. President Calderon named Cordero earlier this month to replace Agustin Carstens, who will
become governor of the Bank of Mexico (Banxico) in January. The Finance and Public Credit Ministry (SHCP) said
that Cordero ratified Alejandro Werner as Deputy Finance Minister, Dionisio Perez-Jacome as Deputy Minister for
Spending, and Jose Antonio Meade as Deputy Minister for Revenue.
Mexico City's Congress Approves Series Of Tax Increases, 2010 Budget
December 24, 2009
Mexico City's Congress (ALDF) approved a series of tax increases, including a 50% raise on the subway ticket, a
2.5% hike on salaries and a 5.5% increase on the "predial" tax on property, among others. In addition, ALDF
approved a MXN 129.4 billion budget for 2010, MXN 1 billion more than what was requested by Mexico City's Mayor
Marcelo Ebrard.
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Border & Migration
CNDH: 5,000 Migrants Have Died On Way To The U.S. Since 1994
December 18, 2009
According to Mexico's National Human Rights Commission (CNDH), more than 5,000 Mexican migrants have died in
deserts, rivers and mountains trying to reach the U.S. since 1994. The CNDH said governments must do more to
protect migrants from robbers, smugglers and others who seek to exploit them. CNDH added that on average, three
migrants perished every two days in 2007 and 2008 in the U.S.-Mexico border region. Meanwhile, the National
Statistics Institute (INEGI) said that more than 280,000 Mexicans emigrated in the first six months of 2009 – a 25%
drop over the same period last year.
Anzalduas International Bridge Opens; U.S. Expand Facilities At Tijuana Crossing
December 15, 2009
The new Anzalduas International Bridge linking south Texas and Mexico has opened, becoming the first new land
port of entry on the southern U.S. border in 10 years. The Anzalduas Bridge began processing travelers between
Mission and Reynosa, Mexico at 6 a.m. on December 15. The new route, three miles west of the existing Hidalgo-
Reynosa International Bridge, bypasses downtown Reynosa, in the Mexican state of Tamaulipas, and is expected to
cut about 30 minutes off the drive to Monterrey, in the Mexican state of Nuevo Leon. Meanwhile, the U.S. government
announced it will add six northbound lanes, among other changes, at the Tijuana border crossing, the busiest border
crossing between Mexico and the U.S. The targeted completion date is September 2015.
Fewer Immigrants Returning Home Translates Into Lost Remittances
December 17, 2009
The struggling economy in both the U.S. and Mexico and drug-related violence in the latter are expected to keep
away many of the approximately 1 million expatriates who normally return annually for the holidays. In addition to
staying away, immigrants are sending less money home through remittances, and civic leaders are concerned about
the sharp decline such phenomena will represent for the domestic economy. The government announced this month
that money sent from abroad through remittances plunged 35.8% in 3Q from a year earlier to USD 1.6 billion from a
record USD 2.6 billion in 2008.
U.S. Firm Provided Bogus Visas To Undocumented Immigrants
December 15, 2009
U.S. authorities said that International Personnel Resources, a Pennsylvania staffing company, gamed the nation's
visa program by obtaining hundreds of work visas under names culled from a Mexican phone book and supplying the
paperwork to illegal immigrants placed in landscaping and other seasonal jobs. Assistant U.S. Attorney Kevin R.
Brenner said International Personnel Resources had dozens of clients, many of them landscapers, builders and golf
courses in the Mid-Atlantic region. In some cases, undocumented workers were sent home and given stockpiled visas
to re-enter the country and return to their jobs. International Personnel Resources would coach them to tell
immigration officials that they had never been in the country illegally. The workers came from Mexico and Central and
South America.
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Politics
President Calderon Proposes Major Political Reform
December 15, 2009
President Calderon proposed runoff elections in future presidential contests and re-election for many officials in
Mexico's most radical political reform attempt in decades. The proposal would still limit presidents to a single, six-year
term, but it would relax Mexico's ironclad ban on re-election of other officials. It also would allow independent
candidates to run for public offices and would permit citizen initiatives. But reforms would require a string of tough-topass
constitutional amendments and are, according to analysts, likely to come under fire from established parties who
could see their power eroded by the changes. Under the proposed reform, the winner of presidential elections would
have to receive more than half of the votes to avoid a runoff with the next-highest vote obtainer.
Guillermo Ortiz: U.S. Proposed Mexico Break Relations With Cuba In 1994
December 18, 2009
Guillermo Ortiz, the outgoing Governor of the Bank of Mexico, said that the U.S. government proposed that Mexico
break relations with Cuba in 1994 in exchange for further financial aid amidst Mexico's economic and liquidity crisis.
Ortiz said the U.S. was aware of Mexico's financial needs during former President Ernesto Zedillo's administration to
meet its international commitments and proposed the rupture of relations with the Island. Ortiz said the U.S. also
agreed with Mexico to delay the publication of sensitive political information, such as the arrest of Zedillo's
predecessor Carlos Salinas de Gortari's brother Raul.
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Justice, Safety & Crime
U.S. Sanctions Drug Lords, Provides More Aid To Mexico
December 15, 2009
The U.S. Treasury Department said in a statement it had labeled Mexican nationals Agustin Reyes Garza and Hector
Contreras Novoa as "specially designated narcotics traffickers" due to their support of the Sinaloa drug cartel's
activities. The action bans Americans from doing business with them and companies they control and seeks to freeze
any assets they may have under U.S. jurisdiction. The Department added it will give Mexico some USD 527 million in
anti-drug aid next year. In addition, the U.S. Embassy in Mexico recently delivered 5 Bell helicopters to the Mexican
government and plans to give three UH-60 helicopters and 4 fighter planes in 2010.
U.S. Ambassador Pascual: Cartels' Risk To U.S. Not Just A Border Issue
December 12, 2009
According to U.S. Ambassador to Mexico Carlos Pascual, Mexico is facing a strong and growing threat from
transnational criminal organizations, leaving the U.S. little choice but to assist its southern neighbor or risk an
increasingly grave threat to its own security. Mr. Pascual warned that the security implications for the U.S. go far
beyond its cities bordering Mexico, noting that "the big challenge isn't just the challenge of the U.S. border cities, but
the linkages between hundreds of cities across the United States and Mexican cartels, and that is what we have to
interrupt and block". In October, at least 84 people were arrested in the Dallas area, nearly a third of the 300 arrested
nationwide under Operation Coronado, which targeted La Familia operations in the U.S.
U.S., Mexico To Open First Joint Office In Mexico City To Fight Crime
December 17, 2009
The U.S. and Mexico announced they will open in Mexico City the first joint office to fight drug trafficking in the
framework of the Merida Initiative anti-drug cooperation effort between the two countries. U.S. Ambassador to Mexico
Carlos Pascual said that the office, which will feature around 45 U.S. staff members and 25 Mexican counterparts, will
start working by April 2010, at the latest. The office will be in charge of defining the joint strategies to fight drug
trafficking and organized crime.
Mexico's Navy Officers Kill Drug Lord Arturo Beltran Leyva In Cuernavaca
December 17, 2009
Mexican Navy special forces killed Arturo Beltran Leyva, one of the country's top drug lords, in a shootout in the
central city of Cuernavaca, in the state of Morelos, securing a decisive and crucial victory in President Calderon's
three-year-old clampdown on narcotics trafficking. The death of Beltran Leyva, who called himself "The Boss of
Bosses" and was one of Mexico's three most-wanted drug lords, came after a four-hour battle at a condominium
complex in Cuernavaca. Six other suspected drug traffickers died, including one who committed suicide. One
Mexican Navy officer was killed and two sailors were wounded by grenades thrown by traffickers. The elimination of
Beltran Leyva is Mexico's most important success against a top drug lord since the 2003 arrest of Osiel Cardenas,
leader of the Gulf drug cartel. President Calderon congratulated Mexico's Navy officials for their success and service
to the country. Meanwhile, the Attorney General's Office (PGR) warned of further and more brazen violence as a
counterattack by criminal rings, such as Beltran Leyva's own enforcement arm, called the Fuerzas Armadas de
Arturo, (Armed Forces of Arturo) is expected. Beltran Leyva was buried in a low-key ceremony at a family crypt in the
northwestern city of Culiacan, deep inside Mexican drug trafficking territory in the state of Sinaloa.
Gunmen Kill Navy Hero's Family After Leader Of Cartel Is Killed By Elite Soldiers
December 17, 2009
More than a dozen hit-men from the Zeta drug gang burst into a house in the state of Tabasco and shot dead the
grieving mother, brother, sister and aunt of elite Mexican marine Melquisedet Angulo Cordova, who was feted as a
national hero for having died in a recent battle that killed top drug lord Arturo Beltran Leyva. The killings represent an
unprecedented and grisly escalation of Mexico's fight against powerful drug gangs. Until now, family members of drug
gangs or the soldiers and cops who fight them were largely considered off limits. Mexican gangs have started to
target the families of rival drug lords, but never on a scale like this. Press reports and analysts said the killings are
also a huge embarrassment for President Calderon and the Mexican military. However, General Rafael Gonzalez,
Attorney General of the State of Tabasco said four associates believed to be linked to the Zeta hit-men and who had
indirect roles in the attack had been detained, but the killers remained at large. The Zetas are the armed wing of the
Gulf drug cartel, allied to the cartel that bears Beltran Leyva's last names.
U.S. CPB: Cash Seizures Increase Fourfold On Arizona-Mexico Border
December 26, 2009
According to the U.S. Customs and Border Protection (CBP), seizures of money bound mostly for Mexico's violent
drug cartels more than quadrupled this year on the Arizona border, and government officials are crediting beefed-up
screening at checkpoints. Inspectors intercepted USD 1.1 million heading into Mexico in fiscal 2008. This year they
netted USD 4.9 million. CBP said the seizures reflect a new focus in the smuggling clampdown and the U.S. efforts to
help Mexico fight its drug war. Until this year U.S. inspections on the border primarily targeted incoming traffic from
Mexico while ignoring vehicles headed south. But federal authorities intensified outbound screening amid reports a
year ago that weapons smuggled from the U.S. were providing most of the firepower in Mexico's drug wars.
Gunmen Fire At Restaurant With Mexican Attorney, U.S. Mayor Inside
December 23, 2009
Mexican Gunmen sprayed bullets at a restaurant where General Jesus Torres, Attorney of the state of Coahuila, and
Chad Foster, mayor of U.S. city Eagle Pass, across the border from Piedras Negras, were eating. Police officers at
the scene said both were unharmed. A woman leaving the building was killed. Foster was dining with Mexican
officials after a ceremony for Jose Manuel Maldonado, the newly elected Piedras Negras Mayor who takes office in
January. Torres was rushed out of Piedras Negras and authorities stepped up security at his family's home in the city
of Saltillo. Police scoured the city for the attackers but did not release the names of any suspects or speculate on the
motive.
Experts: Drug Cartels Fight Authorities And One Another
December 23, 2009
According to experts, the new breed of drug cartel capos knows more about battle than business and contributes to
an increasingly bloody and devastating war in Mexico, fighting not only authorities but also themselves. Experts say
cocaine, marijuana and methamphetamine gush into the U.S., but Mexico's largest criminal organizations are taking a
beating, and their futures have tumbled into uncertainty: they are fighting one another for control of lucrative
smuggling routes, as well as taking on the 35,000 military personnel deployed by President Calderon.
U.S. Agent Pleads Guilty To Filtrating Information To Drug Traffickers
December 13, 2009
According to a newspaper, former U.S. agent Richard Padilla Cramer pleaded guilty to providing information on the
U.S. Immigration and Customs Enforcement (ICE) and the U.S. Drug Enforcement Administration (DEA) to Mexican
drug traffickers in Miami. Cramer filtrated the information while on duty at ICE's office in the U.S. Consulate in
Guadalajara, in the state of Jalisco.
Mexico Finds Links Between Animal Activists And Car Burnings
December 16, 2009
Authorities said that investigators have found evidence linking an animal rights group to homemade bombs that
burned seven vehicles in Mexico City. The symbol of a local version of the Animal Liberation Front was found painted
near the attacks in a residential neighborhood in southern Mexico City. An anarchist symbol was also found. The
assailants apparently tossed bottles filled with flammable liquids at cars and trucks. Police have detained three youths
who say they are 17 years old. Vasquez said that animal rights activists may have committed other recent small bomb
attacks against Mexico City businesses, including some auto distributors.
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Health & Science
SSA: A/H1N1 Influenza Under Control In Mexico
December 16, 2009
The Health Ministry (SSA) assured that the A/H1N1 influenza virus is under control in Mexico, as dire cases have
been kept at a low rate and decreasing, but noted that definitive announcements regarding the situation of contagions
cannot be made and that the government is prepared for any eventual re-outbreak in the winter season. In addition,
SSA praised the deep cooperation with U.S. authorities such as the Center for Disease Control and Prevention (CDC)
through flows of information and lab and logistics support.
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Environment
Mexico City To Host 2010 Climate Change Summit
December 26, 2009
Mexico, who will host the next climate change summit in Mexico City next year, said it will push for a binding
international agreement to cut greenhouse gas emissions. According to a statement issued by the Environment
Ministry (SEMARNAT), Mexico seeks to accomplish what the recent Copenhagen conference failed to do: get
developed and poorer nations to agree to a 50% emissions cut by 2050, as compared to 2000 levels. A historic U.N.
climate conference ended earlier this month with only a nonbinding accord – after two weeks of debate and frustration
– that was short on concrete steps against global warming. The agreement brokered by U.S. President Barack
Obama with China and others set up the first significant program of climate aid to poorer nations.
Norway, Mexico Launch Joint Model For Climate Funding
December 14, 2009
Norway and Mexico launched at the Copenhagen summit a joint model to establish a Green Fund to finance climate
actions in developing countries. The two said resources for funding climate actions in developing countries are
currently inadequate, and Norway and Mexico are tabling proposals to increase the predictability of funding available
for climate mitigation projects. The proposal includes the United Nations' setting aside a certain percentage of total
allowances for international auctioning to finance climate actions in developing countries and encouraging funding to
be drawn according to each country's emissions, gross domestic product and population.
Mexico City's Mayor To Preside World Mayors Council On Climate Change
December 16, 2009
Mexico City's Mayor Marcelo Ebrard was elected as new Chair of the World Mayors Council on Climate Change in
December 2009 in Copenhagen. He will be supported by Mayor Jürgen Nimptsch from Bonn, Germany in his capacity
as Vice Chair. Both cities are shining examples of cities' bold action to tackle climate Change. In Mexico City, one of
the world's largest megacities, Mayor Ebrard launched the Climate Action Plan coordinating numerous amibitious
changes. Bonn, as host of the UN Climate Change Secretariat and ICLEI - Local Governments for Sustainability,
facilitates the search of global solutions.
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Other
ALDF Legalizes Same-Sex Marriage
December 21, 2009
Mexico City's legislators made the city the first in Latin America to legalize same-sex marriage, a change that will give
homosexual couples more rights, including allowing them to adopt children. Leftist Mayor Marcelo Ebrard of the
Democratic Revolution Party (PRD) is widely expected to sign the measure into law. Mexico City's left-led assembly
has made several decisions unpopular elsewhere in this deeply Roman Catholic country, including legalizing abortion
in the first 12 weeks of pregnancy.
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