|
Energy
Pemex To Invest MXN 5 Billion In Petrochemicals
January 22, 2010
Petroleos Mexicanos (Pemex) will receive a MXN 5 billion (USD 395 million USD) investment from the federal
government during 2010 in order to maintain and modernize its petrochemical plants in Mexico, according to an
announcement made by President Calderon during the inauguration of a sulfur extraction plant built by Mexichem in
the State of Veracruz, a USD 47 million investment.
Schlumberger CEO Sees Shift Toward Pemex—Managed Projects In Southern Mexico
January 22, 2010
U.S. oil field service company Schlumberger expects Mexico's state oil company Pemex to shift its efforts towards
works in southern Mexico with projects directly controlled by the company rather than contracting for integrated
project management. Pemex's Chicontepec project in Puebla and Veracruz states, where Schlumberger in the third
quarter began a contract to drill 500 wells, came under fire last year for failing to produce expected volumes.
back to top
Trade & Investment
Foreign Investment Falls 41% During 2009
January 19, 2010
Foreign direct investment in Latin America fell 41% in 2009 compared to 2008, a setback that is felt even more
forcefully in Brazil, where it reached 49, according to a study by the United Nations Conference on trade and
development (UNCTAD) published today. Mexico, second main destination for investments in the region, recorded a
41% drop to 13 billion.
Foreign Capital Influx Grows At Beginning Of 2010
January 22, 2010
During the first week of the year, foreign investors acquired more than 2 billion in government securities, while during
the same period last year they had only invested 1.52 billion, according to data from the Central Bank. Up to January
8, the balance of national securities held by foreigners totaled 332 thousand 577 million pesos, equivalent to USD
26.13 billion, a 24.2% increase over the same—day figure for the previous year.
Coca-Cola FEMSA To Invest 180 Md
January 20, 2010
For 2010, Coca-Cola FEMSA plans an investment of $ 180 million during 2010, mainly for infrastructure and new
products. The said investments will help support sales and maintain the company in its leadership position as the
main bottler in Latin America. FEMSA reported a 6.8% sales growth for 2009, generating a MXN 37 billion revenue.
back to top
Banking, Insurance & Finance
Pension Requirements Kick In At ISSSTE
January 18, 2010
For the first time, hundreds of thousands of Mexican bureaucrats will be required to comply with a minimum age
requirement in order to retire. On January 1, a transitional article of the ISSSTE that was approved in 2007 came into
force. The article sets out the conditions for retirement of workers who opted out from the individual accounts of the
Pensionissste regime. Bureaucrats who comply with years of service (30 for men and 28 for women) must be at least
51 or 49 years old, respectively, in order to receive 100% of their lifelong monthly pension. These minimum age requirements will be increased every two years till 2028, when minimal ages will be set at 60 and 58 years old.
According to estimates by the Ministry of Finance, the adjustment will allow a reduction of pension costs to go from a
figure close to 45% of GDP to about 30%.
Pension Assets Rise 22.7% In 2009
January 18, 2010
Mexico's pension fund managers (Afores) reported pension assets under management of MXN 1.151 billion (US$90+
bn) at the end of 2009, a 22.7% rise from the same period in 2008. Pension assets as of the end of December were
up 2.46% from a month earlier, according to statistics from pension regulator Consar. Afores experienced earnings
between 7.97% and 15.74% during 2009, turning around 2008 figures. The industry ended 2009 with 14 fund
managers, after the year saw Afore Profuturo GNP buy Scotia Afore and Afore Banorte-Generali acquire Afore Argos,
IXE Afore and Afore Ahorra Ahora.
HSBC Pours Hundreds Of Millions Into Mexico
January 20, 2010
Britain's HSBC Holdings has invested $700 million in its Mexican unit. The additional capital will allow HSBC Mexico
to provide more loans to consumers and businesses, upgrade their ATM network, change 5 million cards using
magnetic stripes to chip cards, and pay for the remodeling of 1,137 branches, to add to the 345 revamped in 2009.
CNBV Seeking To Prevent Banks From Rescuing Stockholders
January 22, 2010
The National Banking and Securities Commission (CNBV) and the Finance and Public Credit Ministry (SHCP) plan to
limit the use of resources for related credit and loan operations to support entities from their own group. The initiative
seeks to cap financing awarded in favor of a bank’s holding group or subsidiaries and has created protest from the
sector who claim the move will further limit their lending capabilities.
Banco Inbursa Acquires Pure Leasing Majority Interest
January 19, 2010
The Mexican Stock Exchange announced that Carlos Slim’s Inbursa bank purchased 95% of Pure Leasing SA de CV,
a company specializing in leasing and structured finances, and thus now holds a MXN 480 million interest in the MXN
502 million lean to Templo Mayor de Chivas AC, the entity created to build the Chivas soccer team stadium, which is
said to be valued at MXN 1.6 billion.
back to top
Business & Industry
AHMSA Achieves Higher Than Estimated Production
January 19, 2010
Altos Hornos de México (AHMSA) concluded he 2009 with a total production of 2 million 990 tons of crude steel, a
figure which exceeds its original goal set for the year, based on prevailing domestic and international market demand.
Total shipments amounted to 2,784,000 tons.
back to top
Automotive
Auto Production Hikes
January 19, 2010
During the first two weeks of the year, the auto industry assembled 112,758 units, compared to the 35,369 produced
during the same period a year ago. Locally produced “"Top Ten" model sales accounted for 29.4% of total sales for
2009.
back to top
Housing, Real Estate & Mortgaging
BBVA To Drive Housing Development
January 18, 2010
BBVA Bancomer’s Hipotecaria Nacional mortgage division plans to allocate 1,982 credits this year for housing
developers in order to pick up the construction pace set prior to the global economic crisis. The said bridge loans will
allow developers to begin building some 132,400 homes. The plan also includes the granting of a total of 50,000
mortgages, requiring an investment of MXN 26.95 billion, representing approximately a 39% and 29% increase
against 2009 figures.
back to top
Retail
Retail Stores To Invest 57% Less Than Last Year
January 19, 2010
This year the commercial groups affiliated with the National Association of Supermarkets and Department Stores
(ANTAD) will carry out investments totaling USD 1.5 billion, 57% less than the investment made during 2009 (around
USD 3.5 billion). The investment will allow a 9% increase in sales for the commercial chains, with 50% of the
investments going to opening new stores, 20% to remodeling, 10% to logistics, 10% to training and 10% to theft
prevention enhancement. This later concept will absorb MXN 1.3 billion, 30% more than 2009.
back to top
Transportation
Ferromex To Invest 100 Million Dollars
January 19, 2010
Grupo Mexico’s railway subsidiary Ferromex announced plans to invest USD 100 million. Additionally, the company
spokesman indicated that the group is considering the construction of a dry port in Tule Hidalgo in order to take
advantage of the construction of the new PEMEX refinery. The company also announced that it will contest the
results of the tender for the construction and operation of the new specialized containers at terminal number II at
Manzanillo, which was awarded to the Philippine company International Container Terminal Services (ICTS). It was
also reported that the company continues its talks with the Communications and Transport Ministry (SCT) and rail
company Kansas City Southern de México (KCSM) in order to improve their relationship involving inter—rail traffic.
back to top
Telecommunications & Technology
Antipiracy Agreement Rejected
January 18, 2010
The Internet online community, as well as social network users of Facebook and Twitter, rejected the Anti—
Counterfeiting Trade Agreement (ACTA) initiative which will be considered by the Senate shortly. Senate President
Carlos Navarrete from the PRD requested a detailed report on the piracy trade agreement (ACTA) that the Mexican
government is negotiating with other countries.
Canitec Raises Warnings Against Telmex
January 19, 2010
Mexico's cable operator association Canitec has asked the antitrust authority CFC to block a potential merger
between local mobile giant América Móvil and fixed—line operator Telmex. On January 13, América Móvil launched a
USD 21 billion offer to take control of Carso, which controls Mexican fixed—line incumbent Telmex and Telmex
Internacional through a share swap. Telmex controls some 90% of the fixed line market and América Móvil over 70%
of mobile telephony through its local unit Telcel. The association warned against the risk of Telmex and Telcel
reaching agreements regarding disproportionately low interconnection rates that could distort competition.
Telecom Tax Said To Slow Penetration Of Mobile Telephony
January 18, 2010
Additional taxation on telecommunications services introduced by the Mexican government this year will slow growth
in penetration of mobile telephony as operators transfer the additional costs to the consumer, according to the
Competitive Intelligence Unit. As part of its 2010 budget plans, Mexico's government introduced a 3% excise tax on
telecom and upped VAT by 1%, bringing a total taxation of 19%. Currently Mexico has a mobile penetration of 76%,
behind countries such as Argentina, Venezuela and Chile, which have penetration bordering on or over 100%. Mexico
had been seeing a trend toward a drop in prices in recent years, even though prices are still above those of most of
Mexico's main trading partners, which include the U.S., Canada, France and Spain. Analysts have criticized the tax,
saying it is contradictory with President Felipe Calderón's 2007-12 national development plan, which aims to improve
coverage, quality and competitiveness.
back to top
Farming & Agriculture
Mexico Exports 136.1 Million Liters Of Tequila In 2009
January 17, 2010
During 2009, tequila production in Mexico amounted to 249 million liters, of which 136.1 million were marketed
throughout 120 countries, according to the Tequila Regulatory Council (CRT). Production of tequila in the
municipalities of Jalisco, Michoacán, Nayarit, Guanajuato and Tamaulipas has experienced steady growth, and an
existing inventory of 318 million agave plants will supply raw materials to 150 tequila producing factories, which sell
product through 924 certified brands.
back to top
Hospitality & Tourism
Accor To Invest USD 24 Million
January 18, 2010
French company Accor will invest USD 24 million this year to open four executive class hotels to service the cities of
Cancún, Hermosillo, Coahuila and Chihuahua, targeting the businessmen, family, sports groups and convention
segments which represent great opportunities for development. Currently the group operates six other establishments
in Mexico.
back to top
Economy
Social Impact Of Crisis Is Less Than In 1995: CEESP
January 17, 2010
The global crisis has been devastating to the Mexican economy, but socially it has not been as bad as the 1995
crash, according to the Private Sector Economic Studies Center (CEESP). The report indicates that during the 1995
crisis 815,000 formal jobs were lost, while only 171,000 were lost in 2009, and even when adding jobs lost during
2008, the figure is at 201,000.
Mexicans Lose 20% Of Buying Power In 2009
January 19, 2010
According to Bank of America Merrill Lynch (BofAML) estimates, GDP per capita in Mexico fell some 20+ percent in
2009. This drop is the result of a 6.8% contraction in real GDP (a reduction greater than experienced in the 1995
crisis due to the peso devaluation (- 6.2%)), a strong depreciation of the peso against the dollar, and an inflation rate
of 3.6%. According to Mexico City’s Economic Development Ministry, the "basic basket" has risen 60% during the first
two weeks of the year, with some produce products having risen up to 143%.
back to top
Politics
PAN Bets On Coalitions For 2010 Elections
January 20, 2010
After its defeat in the 2009 midterm elections, the PAN will now move toward negotiating alliances with left—wing
parties PRD, PT, Convergencia (DIA) and Nueva Alianza as it heads into this year’s local elections, setting aside
ideological identity and favoring electoral results. The move attempts to stop the tide favoring the PRI, and includes
possible coalitions for the PAN in at least half of the 12 governor elections to be held in 2010. PRD leaders say the
said potential alliances are necessary in order to put an end to several authoritarian governments in several states
under PRI rule. The said potential alliances have drawn heavy criticism from constituents within all of the involved
parties as well as strong reactions from the PRI, which threatens to retaliate by exercising its majority position in the
legislature.
PRD Legislators Begin Reconciliation With Catholic Church
January 19, 2010
PRD senators and deputies began reconciliation efforts with the Catholic hierarchy after weeks of verbal confrontation
due to the law that allows same—sex marriage and the ability of gays to adopt children recently approved by the
left—wing—controlled Mexico City Assembly. At the meeting of PRD legislators headed by their Senate leader,
Carlos Navarrete, and the Permanent Council of Mexican Bishops agreed to return to dialogue as the means to
resolve any disputes, and identify topics of common interest or agreement in order to address any existing
discrepancies that may exist. He said the conclave with the Catholic hierarchy was an ideal opportunity to define that
only through communication can differences be resolved in a different environment, without reaching levels of
relationship difficulties between the PRD and the Catholic Church.
back to top
Justice, Safety & Crime
Mexican Drug Traffickers Sign Agreement With Colombia's FARC
January 20, 2010
The Revolutionary Armed Forces of Colombia (FARC), a paramilitary group considered terrorist by the Colombian
government, has become a major cocaine supplier for Mexican cartels. According to documents from the Colombian
military intelligence the deal was discussed at a meeting between FARC leader Raul Reyes, and an agent of a
Mexican cartel in a forest hideout in mid—2007. According to Colombian government officials the pact eliminated
intermediary groups and has given the FARC a chance to double profits by selling directly to the Mexican cartel, which was also strengthened at a time when it is under pressure from the offensive ordered by Mexican President
Felipe Calderón. Colombia produces more than 90% of the cocaine entering the United States.
Cartels Arrange Into Two Blocks
January 24, 2010
The Mexican territory is disputed among eight organized crime groups that have now formed two large blocks
competing head to head, according to a report prepared by the Ministry of Defense, which had been confidentially
distributed among several government agencies. On the one side, a group headed by Joaquín Guzmán Loera, El
Chapo, who controls the Sinaloa cartel, has teamed up with the remnants of the Millennium cartel of the Valencia
family, an offspring of the Tijuana cartel led by Teodoro García Simentel "El Teo" and the Familia Michoacana cartel.
The group operates in drug trafficking, specializing in synthetic drugs in addition to cocaine and marijuana. The other
block is formed by the Beltran Leyva cartel, the Carrillo Fuentes criminal organization or Juárez cartel, the Zetas and
the Arellano Félix organization or Tijuana cartel.
Nearly 3.5 Tons Of Ephedrine Seized At Manzanillo
January 18, 2010
A total of 612 fire extinguishers containing approximately three tons of ephedrine were secured at the customs office
in Manzanillo, Colima, according to a joint statement by the Tax Administration Service (SAT), the Attorney General's
Office (PGR) and the Ministries of Navy and National Defense. The detention occurred on Saturday when containers
were inspected by maritime customs personnel using x-ray equipment.
Monterrey Leads In Auto Thefts
January 18, 2010
The year 2009 was the second consecutive year the city of Monterrey led in terms of number of vehicles stolen
nationwide. Insurance industry statistics indicate that Monterrey ended the year with 3,919 stolen cars, a 26%
increase over the number registered in 2008, a per day average of 10.7 units, the highest in the country.
back to top
Health & Science
"Epidemic" Alert Due To Obesity
January 22, 2010
Over half of the Mexican population is obese, setting off an "Epidemic" alert, which is further aggravated by the fact
that it seems to be growing at an alarming rate with children, according to Health Minister Dr. José Ángel Córdova. In
only seven years, obesity in children ages 5 to 11 has increased 77%. The official warned that if this trend continues,
by the year 2015 obesity could represent a financial burden exceeding MXN 100 billion, of which 70,000 would fall
into medical expenses. He also recalled that the most frequent causes of death in Mexico are directly associated with
problems involving obesity and overweight, especially diabetes, cardiovascular problems and cancer.
Slim To Invest USD 65 Million In Genomic Research
January 19, 2010
Mexican business leader Carlos Slim Helú announced the launch of a major research project in genomic medicine
that will help accelerate progress in public health in Mexico and around the world. The project will be carried out by
the Carlos Slim Institute of Health in partnership with the Broad Institute of MIT and Harvard and the National Institute
for Genomic Medicine of the Mexican Secretariat of Health. The major goal is to understand the genomic basis of
cancer in worldwide populations and of Type 2 diabetes in Mexican and Latin—American populations. The project,
called Slim Initiative for Genomic Medicine, will last three years and will receive USD 65 Million in support from the
Carlos Slim Institute of Health. It will leverage the Broad Institute’s expertise and capabilities in the most advanced
technologies in genomic sequencing.
Environment
SACM Will Spend USD 120 Million To Improve Potable Water Services
January 19, 2010
Mexico's federal district (DF) water utility SACM will spend MXN 1.36 billion (USD 121 million) to improve potable
water services in the capital during 2010, according to city mayor Marcelo Ebrard. Measures include rehabilitating
deep wells and potable water plants, replacing domestic water connections, and increasing rainwater collection and
treatment. The utility will also replace potable water pipelines in the city. It is estimated that 82% of the city's 12,000
km network is old and in need of maintenance or renewal.
Other
Mexican Rescuers Return From Haiti
January 18, 2010
A group of 39 rescuers and Mexican officials involved in relief efforts in Haiti returned home after completing their
work. The party arrived at the Mexico City International Airport on Navy aircraft. Among the entourage were ERUM
rescue brigades belonging to the Federal District Police, Civil Protection of Nayarit, Mexico City and the Interior
Ministry, as well as elements of the Red Cross and Navy dogs. Several rescuers criticized and complained of the
UN’s disorganization on—again, off—again rescue policies. The Foreign Affairs Ministry indicated that 58 Mexicans
living in Haiti are still missing, while 43 have returned home and 37 have been contacted but have decided to stay for
now. The Mexican Red Cross has sent over 2,800 tons of relief aid and supplies.
UNESCO Warns Of "Educational Poverty"
January 18, 2010
During the last year, over 700,000 children and youngsters abandoned grade and middle schools studies and a
significant number of them joined the labor force in order to work to help their families living in extreme poverty,
according to the National Adult Education Institute (INEA). This group of Mexican children will be part of what the
United Nations Educational, Scientific and Cultural Organization (UNESCO) has defined as the "lost generation" who
have no chance of receiving education that allows them to exit poverty. Mexico currently has an 89% schooling
coverage for people 15 and under.
back to top
|
Sources
A1GP News, AFP, AFX News Limited, Ámbito Financiero, Arizona Republic, Asia Africa Intelligence Wire, Associated
Press, The Australian, Barclays, Baltimore Sun, Birmingham Post & Mail Ltd, BBC Monitoring Americas, Bloomberg,
Borsen Zeitung, Broad Institute, Business Digest, Business Information Systems, Business News Americas, Business
Wire, Cadillac News, Calibre Macroworld, Capital, Canada Newswire, The Canadian Press, Casa Isidora Newsletter,
CCH, CCNMatthews, Central America Data, The Chicago Tribune, The Christian Science Monitor, Cincinnati
Business Courier, China Daily, Cinco Días, Comisión Federal de Competencia, Comisión Federal de Mejora
Regulatoria, Companies' Press Releases, Compranet, Comtex News Network, CNN, Copley News Service,
Corporate Mexico, CNW, Corporate Mexico, Crain's Detroit Business, La Crónica, La Crónica de Hoy, El Cronista
Comercial, The Dallas Morning News, Daily News Tribune, Debtwire Latin America, The Detroit News, Diario de
Chihuahua, Diario Ciudad Juarez, Diario La Estrella, Diario Oficial de la Federación, Die Welt, Dow Jones Newswires,
El Economista, EFE, ENP Newswire, Euroinvestor, Excelsior, Exonline, Federal Information & News Dispatch,
Financial Times, FinancialWire, El Financiero, Expansión, Finsat, Frontera NorteSur, Global Information Network,
Global Insight Daily Analysis, The Guardian, Hindustan Times, Hispanic Business, The Houston Chronicle, Hungarian
News Agency; Industria National de Autopartes, Japan Economic Newswire; IMF; Mexico: Selected Issues;
December 2005, India eNews; Informa Martime Trade and Transport, InfoSel Financiero, InfoWorld Media Group,
Inside INdiana Business.
|
