ManattJones Global Strategies
March 15, 2010
News Briefs
March 1 through March 7, 2010
Volume VII, Issue 10

Energy | Mining | Trade & Investment | Banking, Insurance & Finance | Automotive | Construction & Infrastructure | Retail | Transportation | Telecommunications & Technology | Hospitality & Tourism | Economy | Border & Migration | Politics | Justice, Safety & Crime | Health & Science | Arts & Culture | Other



Energy

Pemex Programs Investments Of US$19.1 Billion For 2010
March 2, 2010
Petroleos Mexicanos (Pemex), announced an investment program for 2010 of US$19.1 billion, 84% of which will go to exploration and production projects, while the remaining 12% have been earmarked for refining. Recently, the state oil company reported that its crude oil production rose in January to a nine-month high, at an average of 2,615 million oil barrels per day.

Pemex To Pump 60,000 Barrels Of Oil At Chicontepec
March 3, 2010
Petroleos Mexicanos said it aims to almost double crude production to 60,000 barrels of oil a day at the onshore Chicontepec field by year-end as it seeks to boost output. The company may drill 505 wells at Chicontepec this year, down from 794 wells in 2009, according to Carlos Morales, Pemex's head of exploration and production. Pemex plans to spend Mex$20.7 billion (US$1.6 billion) in 2010 to develop Chicontepec, which stretches across Puebla and Veracruz states in central and eastern Mexico. Last year the company invested about Mex$27.1 billion on the project that is under review after falling short of production targets. Pemex said it discovered enough new proven oil and gas reserves to replace 74.9% of its 2009 production, up from a replacement rate of 72% in 2008.

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Mining

Arianne Resources Begins Drilling
March 2, 2010
Arianne Resources Inc. announced the start of its diamond drilling campaign on the El Rey gold and silver property, located in Sinaloa, Mexico. Phase one of the campaigns will be more than a thousand meters and will verify the known extensions of the mineralized zones. In 1998, 20 RC drill holes were done by Exploraciones El Dorado (Mexico) and have demonstrated the gold potential of the property.

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Trade & Investment

U.S. To Ban Some Mexican Shrimp Imports
March 3, 2010
United States will ban imports of some Mexican shrimp after determining the country's commercial fishermen are endangering sea turtles. Mexico's fishing regulatory agency and its environmental protection agency say in a joint statement Wednesday that the ban will start April 20th. They say the impact on shrimp exports will be minimal because the ban goes into effect when the season for shrimp fishing is closed in most federal waters. The statement says Mexico has begun taking steps to ensure fishermen follow rules outlined by the U.S. to prevent the accidental capture or death of sea turtles so Mexico can be re-certified before the next fishing season starts. Losses resulting from the potential ban could affect 350 thousand jobs and US$262.9 million in income, according to the National Fishing Chamber.

Grupo Carso Has New Investment Fund
March 2, 2010
Grupo Carso, in a partnership with entrepreneur Jaime Chico Pardo, created an investment fund called "Energia y Salud, S.A." (Enesa), which will look for opportunities in the heath and energy sectors. Seed capital of Mex$3.5 billion is composed by 60% percent from Grupo Carso and the 40% remaining from Mr. Chico Pardo, who will serve as President and CEO of the fund. Initial investments consider participation in companies such as Selmec, Hubard and Bourlon, Optima Energia and healthcare-related Laboratorios Polanco and Laboratorios Clinicos Puebla.

NAFTA Surface Trade Numbers Improve
March 4, 2010
Trade using surface transportation between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 10.5 percent higher in Dec. 2009 than in Dec. 2008, with a value of $58.5 billion, according to the Bureau of Transportation Statistics (BTS). The increase was the first over the same month of the previous year since Sept. 2008, but the value of trade in December still remained 4 percent below the value in Dec. 2007. The value of U.S. surface transportation trade with Canada and Mexico in December was up 12.3 percent compared to Dec. 2004, and up 36.6 percent compared with Dec. 1999, a period of 10 years. Imports in December were up 37 percent compared with Dec. 1999, while exports were up 36.2 percent. U.S.-Mexico surface transportation trade totaled $23.0 billion in December, up 15 percent compared with December 2008.

U.S. Lawmakers Launch Push To Repeal NAFTA
March 4, 2010
A small group of U.S. lawmakers planned to offer legislation to withdraw from the North American Free Trade Agreement in the latest sign of congressional disillusionment with free-trade deals. The bill spearheaded by Rep. Gene Taylor, a Mississippi Democrat, would require President Barack Obama to give Mexico and Canada six months notice that the United States will no longer be part of 16 year-old trade pact. The move comes as Obama says he wants to resolve problems blocking congressional approval of long-delayed trade deals with South Korea, Panama and Colombia. The strongest opposition to those agreements comes from Obama's fellow Democrats. The United States also will begin talks later this month with Australia, New Zealand, Singapore, Chile, Peru, Vietnam and Brunei on a regional free-trade agreement in Asia Pacific.

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Banking, Insurance & Finance

Caja Madrid Could Sell Su Casita Stake; Banorte And Others Interested
March 4, 2010
Spanish savings bank Caja Madrid is considering selling its stake in Mexico's Hipotecaria Su Casita. Caja Madrid purchased 25% of the non-bank mortgage lender for US$63million in 2004 and then raised the stake in 2006 to 40% by paying another US$45million. Caja Madrid is Su Casita's largest shareholder. Su Casita and other Mexican mortgage lenders suffered a sharp drop in lending and a big increase in non-performing loans last year due to the global financial crisis and the country's deep recession. Banorte and Banco del Bajio are currently looking at Su Casita's books.

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Automotive

GM To Recall 9,700 Pontiacs In Mexico
March 02, 2010
General Motors Co. said that it would recall 1.3 million Chevrolet and Pontiac compact cars sold in the U.S., Canada and Mexico to fix power steering motors that could fail. The recall affects 2005 and 2006 Pontiac G4s, and 2007 through 2010 Pontiac G5s sold in Mexico, a total of 9,698 units. The automaker said the vehicles were still safe to drive and never lose their steering, but they might be harder to steer when traveling under 15 mph. The automaker will fix older models first because it usually takes 20,000 to 30,000 miles of driving for the condition to develop.

Mexico Authorizes Japanese Cars Imports
March 05, 2010
The Mexican Ministry of Economy authorized the import of 36,171 Japanese cars free of duties. The measure was taken as part of the Economic Association Strengthening Agreement held between the two countries. Under the agreement, Mexico will import, free of duty, Japanese cars that accounted for 5 percent of all the cars sold in Mexican territory the previous year. Statistics from Mexico's Association of Automotive Industry indicated that in 2009 754,918 cars were sold in Mexico, a drop of 26.4 percent compared with 2008.

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Construction & Infrastructure

Banobras Receives US $1 Billion To Finance Infrastructure
March 1, 2010
The Export-Import Bank of the United States (Ex-Im Bank) and the National Development Bank for Public Works and Services (Banobras) of Mexico signed a memorandum of agreement for Ex-Im Bank to provide up to $1 billion in financing for Mexico's National Infrastructure Program (NIP). Ex-Im Bank will initially support up to $1 billion to further Mexico's NIP and will work with Mexico to identify specific projects to be covered by the financing. Mexico launched its NIP to improve and expand infrastructure in the transportation, energy and utility sectors and to address bottlenecks in infrastructure capacity. The program includes hundreds of highway, airport, railway, seaport and telecommunications projects, as well as energy projects including electricity and renewable energy technologies such as water, wind power and water treatment systems.

Tunnel To Stop Metro Flooding
March 2, 2010
During President Calderon's visit to Tonanitla, State of Mexico, where the East Drainage Tunnel is being constructed, the President stated that the construction of the massive drainage project will be a "definitive" solution to flooding in the Mexico City metropolitan area. Calderon said that the unusually heavy rains in early February overwhelmed the city's water management system, causing the Rio de los Remedios and Canal de la Compañia, used to move wastewater, to overflow, and spilling sewage and rainwater into thousands of homes and flooding streets in parts of the DF and its suburbs. The massive Mex$15 billion public project—the largest in Mexico and among the biggest hydrologic projects in the world—will span between 60 and 70 kilometers, at a depth of 30 to 150 meters. At a diameter of seven meters, the tunnel will move an average of 150 cubic meters of wastewater per second. When finished in mid-2012, the tunnel won't only double the drainage capacity of the Mexico Valley Basin but will also send wastewater to the country's biggest treatment plant, which is also under construction. The Mex$13 billon Atotoniclo plant in Tula will be able to treat 23 cubic meters per second, but during the rainy season capacity will expand to 35 cubic meters per second. It will be used in conjunction with five other plants, and treated water will be able to be used in agriculture. The treatment plant is expected to be finished in mid-2012 as well.

Conagua Seeks Private Sector Participation In Projects Worth US$2.8 Billion
March 3, 2010
National Water Authority—Conagua presented a series of hydraulic infrastructure projects at a conference in Spain this week in a move to secure private investment for projects worth up to US$2.77 billion. Over 100 firms, including major players OHL, Abengoa, Isolux, Aqualia and Azvi, attended the conference, which was organized by Mexico's national development bank, Banobras. Conagua presented projects worth EU720 million to be tendered in 2010, and projects worth EU1.3 billion for 2011, of which the private sector will contribute up to 70%, the authority reported on its website. Projects were in the sanitation, potable water treatment, desalination, and hydroelectric power sectors, Conagua said in a release. The initiatives included the 140km El Zapotillo-Leon potable water pipeline, 264km Falcon-Matamoros pipeline, Baja California desalination plant, and Hermosillo wastewater treatment plant, among others.

Aguascalientes Evaluating US$380 Million Suburban Train Project
March 4, 2010
The state of Aguascalientes is evaluating a US$380mn suburban train project which involves building a 47km suburban rail line connecting the northern and southern parts of the state, passing through San Francisco de los Romo, Rincon de Romos and Pabellon de Arteaga municipalities. The train would pass through the historic center of Aguascalientes, making use of an existing rail line that was the first ever to be built in Mexico. The initiative also involves integration and restructuring of the state's existing transport systems, as well as commercial and urban development around the train's 11 stations. The state government is likely to begin preparing international tenders for civil works and a 30-year concession to operate the system's rolling stock in July this year, Vivanco said.

Mexico's ICA Shares Up
March 2, 2010
Shares of construction company ICA rose sharply (4.06%), driven by solid quarterly revenue growth and participation in big infrastructure projects. The company posted a 574 million-peso loss in the quarter that ended in December because of higher taxes. Revenue in the period rose 13 percent from a year earlier. ICA executives have indicated that they expect up to US$12 billion in civil and industrial construction projects will be available through tenders in the next year and a half.

GEO To Launch Prefab Homes Unit
March 3, 2010
Construction firm GEO will begin production of prefabricated home units in Tijuana in April. The project, which will initially have a 6 thousand-unit annual capacity, could grow to 12,000. The second production facility to be set in the State of Morelos will be on-line by mid-2011 and there are plans for units in Guadalajara and Monterrey. Overall investment for the GEO's Alfa project is US$120 million.

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Retail

Wal-Mart Mexico Unstoppable, Up 4.5% In Same Store Sales
March 4, 2010
Wal-Mart Mexico S.A.B. de C.V. total stores sales amounted to Mex$20,828 million in February 2010, a nominal increase of 11.2% over the same month, last year sales. Same stores sales, for units that have been in operation for over a year showed growth of 4.5% when compared with February 2009 results. Total customers serviced increased by 5.4% when compared with last year same month figures although the average ticket purchase fell by 0.8%. During February the giant retailer opened three new units.

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Transportation

Lawmakers Press Obama To Fix Mexico Truck Spat
March 3, 2010
A group of 56 lawmakers urged President Barack Obama's administration to quickly resolve a dispute with Mexico over cross-border trucking that has damaged bilateral trade. The plea came nearly one year after Mexico slapped retaliatory duties on a long list of U.S. exports, including fruit and industrial goods, worth an estimated $2.4 billion. Mexico took the action after U.S. lawmakers, citing safety and security concerns, canceled funding for a test program begun by the Bush administration that allowed Mexican long-haul trucks to circulate in the United States. The United States agreed to open its market to Mexican trucks as part of the North American Free Trade Agreement, but the U.S. Teamsters union and many of its supporters in Congress have fought implementation of the pledge. The most recent spending bill does not bar funding for the cross-border trucking program. But the lawmakers complained they still have not seen any plan from the Obama administration for ending the dispute.

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Telecommunications & Technology

SCT Grants Extensions To 12 Mobile Concessions
March 1, 2010
The Ministry of Communications and Transportation (SCT) decided to grant 12 extensions to mobile concessions for Telcel, Telefonica and Iusacell, as well as one for trunking services for Nextel for 15 rather than for 20 years. These concessions operate in the 800 MHz band, and the companies will have to pay a grand total of Mex$43,839,903. Operators will also have to comply with the payment due to use of rights to exploit the said spectrum for a total of Mex$2,900 million annually. The Ministry stated that renewals will go into effect until the operators comply with the corresponding payments.

Televisa Wins ISSSTE Telecomm Bid
March 2, 2010
Grupo Televisa S.A.B. de C.V won the ISSSTE tender for a national private telecommunications network that has been criticized by some industry experts to have been designed to include technology that is exclusive to Bestel, a subsidiary of the network group. Critics also indicated that the bidding was unnecessary as Telmex had won a bid three years ago to install a similar network valued at Mex$1,100 million, and an upgrading of this contract, rather than a new system, should have been tendered. The bid awarded to Televisa for Mex$2,080 million was also 25.19% more expensive than the Telmex offer of Mex$1,600 million.

Axtel Lauches Skype Type Service
March 4, 2010
Now Axtel users can make and receive calls from their mobile devices and personal computers with the release of their voice over Internet service which is said to be similar to that used by Skype. Axtel, the second largest fixed line operator in Mexico, launched its "Axtel Conmigo" service which allows mobility for their fixed-line customers through the use of smart phones or personal computers with internet access.

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Hospitality & Tourism

Cancun, Mexico's Spring Break King, Recovers From Swine Flu, Drug Violence
March 2, 2010
Mexico's spring break king—Cancun—is rebounding quickly from last year's triple blow to its tourism industry caused by the country's swine flu epidemic, drug violence and a global economic crisis. Those worries couldn't compete this year against Mexico's cheap airfare from the United States and Canada and phenomenal package deals that include popular all-you-can-drink enticements. February saw 85 per cent of its 28,000 rooms filled, a sign of Cancun's speedy recovery from 2009, when one million fewer visitors came than in a typical year. The relatively high occupancy seen in February is expected to go even higher in March when more universities are on spring break. Tourism officials say they expect about 25,000 spring breakers to descend this season on Cancun's newly rebuilt beaches and turquoise blue ocean, compared with the 20,000 spring breakers who visited last year. Recently, President Calderon spoke of the strategic importance of Playa del Carmen and Cancun while referring to a Mex$1 billion program undergone to recuperate 14 kilometers of beaches that had been affected by hurricane Wilma in 2005.

NH Hoteles Sells Three Properties In Mexico For US$57 Million
March 3, 2010
NH Hoteles is strengthening its liquidity in a US$57M operation in Mexico that involves the sale of three companyowned hotels that are currently operated under franchise agreements as Hilton-brand hotels, the cancelation of the management contracts for the Krystal vacation hotels operated by the company in Cancun, Puerto Vallarta and Ixtapa and the sale of the Krystal brand NH Hoteles has 11 urban hotels in Mexico, the segment it plans to fortify by opening two additional hotels in Mexico City and Queretaro during 2010.

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Economy

Mexico Finance Ministry May Increase 2010 GDP Forecast Again
March 3, 2010
Mexico's government may increase its 2010 economic growth forecast for a second time this year if the country's recovery continues, the U.S. maintains its fiscal stimulus throughout the year, and budget and growth concerns in Europe subside, said the chief economist for the Finance Ministry. Mexico's government raised its growth forecast to 3.9 percent from 3 percent last month. Last month's report showing the first gain in retail sales in more than a year indicates that domestic demand is improving after plummeting last year amid the country's worst recession since 1932. Other indicators of domestic demand such as construction activity and available credit may pick up by midyear, he said. Mexico's economy contracted 6.5 percent last year as the recession in the U.S., which buys about 80 percent of Mexico's exports, crippled manufacturing and job growth in Latin America's second-largest economy. Industrial production fell for 19 straight months beginning in May 2008 before rising in December, and retail sales dropped for 15 months before increasing 1.6 percent in December.

Latin American Remittances To Stabilize In 2010—IDB Report
March 04, 2010
The amount of money sent home by Latin American and Caribbean workers abroad, known as remittances, should stabilize this year after a 15% fall in 2009, the Inter-American Development Bank said. A quick recovery to past levels, however, is unlikely as economic growth remains weak in the U.S, Spain and Japan, the bank's Multilateral Investment Fund said in a report. "The signs of stability in the last months could provide a basis for an estimate of stabilized remittance levels, or even the beginning of a new period of single-digit growth in the near future," the report said. Remittances to the Latin American and Caribbean region dropped to $58.8 billion last year—below the 2006 level. Mexico is the largest recipient of remittances in the region at $21.2 billion last year. Poorer countries are more dependent on remittances overall, the report said. "In countries like Haiti, Guatemala, Honduras, Nicaragua and El Salvador, these flows still represent more than 10% of their gross domestic product." Mexico was also able to cushion the blow of the remittance drop since the dollars sent home were buying more pesos last year, after the Mexican currency depreciated.

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Border & Migration

Mexico Accuses 10 Immigration Agents And 3 Airline Workers Of Chinese Migrant Trafficking
March 2, 2010
Mexico's interior department says prosecutors have detained 10 Mexican immigration agents and three airline workers at Cancun's international airport on suspicion of trafficking Chinese migrants. The department says in a statement that the agents, along with the two Mexicana Airlines employees and a worker of Livingston Air, allegedly allowed Chinese citizens into the country with false passports. A statement issued by the department says the arrests are part of an investigation that resulted in the detention of 26 immigration agents at Cancun's airport in January.

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Politics

PAN Leader Nava Acknowledges Agreement He Had Previously Denied
March 7, 2010
Cesar Nava, President of the Partido Accion Nacional (PAN), had to contradict his original statement by acknowledging he has signed an agreement with the President of the Partido Revolucionario Institucional (PRI), Beatriz Paredes, by which the PAN agreed not to form electoral alliances for next year's elections in the State of Mexico with parties with political platforms contrary to the PAN's. Nava indicated that he had signed the agreement in exchange for the PRI's support of the budget initiative discussed in Congress in October of 2009. According to Nava, the PRI's flagrant non-compliance of the said conditions by not supporting the budget as it had been sent by President Calderon invalidated the agreement and, thus, Nava had not been obliged to report the said pact before the party's National Executive Committee. Both Nava and Paredes have been seriously criticized by opponents within their own parties for having signed an agreement behind the parties' backs and have among themselves launched accusations in and out of Congressional sessions.

Calderon Doing Poorly As 44% Disapprove Of His Administration
March 1, 2010
The effects of the economic crisis in the pockets of Mexicans has reduced approval rates for Felipe Calderon's administration with 44.2% of people giving the President's mandate a failing grade. According to the survey by Consulta Mitofsky, the level of disapproval rose from 40.2% in the quarter from September to November 2009 to 44.2% in the quarter from December to February this year. The study indicated that the Presidential approval rate has dropped for the fourth consecutive quarter, accumulating a 13% point loss in one year. The pollsters indicated that "[i] t is safe to say that the decline in public approval is directly related to the 2009 economic crisis which during the last quarter (December-February) has translated into a greater number of households with unemployment, price increases and new taxes, conditions under which it is unthinkable to raise approval levels." The poll also revealed that during the latest quarter under review, seven out of ten Mexicans believe that the main problem is the economy, with one in four indicating the main problem is related to security.

Senators Rebuke US Conditions On Drug War
March 3, 2010
The Mexican Senate reproached the United States government for conditioning its funding to Mexico in their joint fight against drug trafficking. Senate Coordinator Carlos Navarrete, of the left wing Democratic Revolution Party (PRD), expressed his disapproval of conditions or requirements related to the decision making of the Mexican government in terms of its efforts involving the narcotic offensive. The president of the Senate's Justice Committee, Alejandro Gonzalez Alcocer, of the National Action Party (PAN), said that it is unacceptable that the United States conditions its support to Mexico, when the latter country itself is part of the problem. According to the U.S. government, the aid for Mexico will be destined for the training of civil police forces so that they can carry out tasks that are currently the responsibility of the Mexican Army, including the disbanding of drug cartels and confiscation of drugs.

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Justice, Safety & Crime

US Government To Provide Aid For Mexico's Demilitarization
March 2, 2010
The U.S. government will deliver, within the next few years, millions of dollars in equipment to contribute to the demilitarization of the fight against drug trafficking and the training of thousands of police, customs and security officers, according to the annual International Narcotics Control Strategy Report (INCSR). This aid aims to prepare civil police forces to undertake security tasks and disband drug cartels. The report says that once the army resumes its traditional role, an increase in the confiscation of marijuana and opium is expected. The United States commended the actions of the Mexican government, led by President Felipe Calderon, against drug trafficking, but it urged the implementation of the approved judicial reforms in order to complement bilateral actions. The United States is currently weighing "new ways" of reducing drug demand in its territory and stopping the flow of weapons and money that nourishes drug trafficking and violence in Mexico. The report also says that Mexico is still key in money laundering. According to official data, drug trafficking generates an annual income of between $15 and $30 billion, and this is just in sales in the United States alone.

Mexican Drug Cartels Active Nationwide, Obama Administration Officials Say
March 02, 2010
Assistant Secretary of State for International Narcotics and Law Enforcement Affairs David Johnson said that Mexican drug cartels are being targeted inside the United States more than along the border with Mexico, echoing remarks last week by Homeland Security Secretary Janet Napolitano that cartels are operating throughout the country. Testifying at a Feb. 24 hearing on the Department of Homeland Security 2010 budget before the Senate Homeland Security and Governmental Affairs Committee, DHS Secretary Janet Napolitano said Mexican drug cartel operations are widespread in the United States. "These cartels are big. They're organized. They have fingers that reach into hundreds of American communities," Napolitano said at the hearing. According to an April 2008 National Drug Intelligence Center report, Mexican drug cartels are operating in 195 U.S. cities. "Mexican DTOs [Drug Trafficking Organizations] are the most pervasive organizational threat to the United States," the report said. "They are active in every region of the country and dominate the illicit drug trade in every area except the Northeast." The report praises Mexico for its efforts in fighting drug cartels, which were responsible for thousands of deaths in the country in 2009.

DPS Issues Warning On Travel To Mexican Border Cities
March 04, 2010
The Texas Department of Public Safety on Thursday warned spring breakers not to travel to Mexican border cities currently plagued by drug gang infighting. Intelligence on both sides of the border say sporadic gunbattles have been breaking out among warring factions vying for control over drug transport routes leading to Texas. While the numbers are unclear, some deaths have been confirmed, and there have been attacks and kidnappings at police stations in Mexican border cities. Experts predict a prolonged period of violence. The violence prompted the U.S. Department of State last week to close a consular office in Reynosa opposite the McAllen area. And, in what has become an annual ritual, the department also reissued a travel alert advising of dangers in northern Mexico.

DEA Claims Three Cartels Agree To Battle Zetas
March 7, 2010
According to a report by the DEA, The Gulf, Sinaloa and La Familia Michoacana (LFM) cartels are considering a pact to side against the Zetas drug cartel. According to the report, the said cartels have inflicted daily attacks on the Zetas in order to take away routes and reduce their power in the northern region of the country. Some degree of tension between Los Zetas and the Gulf cartel has existed ever since the Zetas formally split from the control of the Gulf cartel in Spring 2008, though the groups continued to work together when their interests aligned. The rupture in this relationship and the new alliances precipitated from the break will have a profound impact on the cartel and drug trafficking landscape of all Mexico.

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Health & Science

Mexico Detects First Mutation Of H1N1 Virus
March 4, 2010
Mexican officials have confirmed the first mutation of the AH1N1 flu virus in a girl who survived the infection. Health Minister Jose Angel Cordova said that the case was the first confirmed mutation of the H1N1 flu virus, though there were 423 other suspected cases. The girl was treated two months ago at a hospital in Mexico City for a respiratory illness and then returned with a case of severe pneumonia, from which she recovered. Cordova called on anybody with risk factors that could make them more susceptible to the virus to be vaccinated, warning that "these viruses can mutate at any time" with serious consequences. Officials said 1,088 people have died in Mexico from the virus since the pandemic first emerged in the country in April 2009. Nearly 16,000 people have died worldwide from the strain after it spread into 212 countries and territories. The World Health Organization said last month it was too early to declare that the peak of the global flu pandemic had passed as infections were still rising in regions such as western Africa.

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Arts & Culture

Mexican Author And Scholar Carlos Montemayor Dies
March 2, 2010
Carlos Montemayor, 62, a Mexican author and guerrilla movement scholar, died in Mexico City, from stomach cancer. A historian and linguist whose academic work centered on indigenous culture and rebels, Montemayor was sympathetic to the armed Zapatista uprising in 1994 in the southern state of Chiapas. In 2008, Montemayor joined a commission to mediate between the government and the leftist People's Revolutionary Army, or EPR, over the group's claims that two of its members were taken by security forces in the state of Oaxaca. His best-known novel, War in Paradise, is a fictional account of a real-life guerrilla movement led by Lucio Cabanas in southern Guerrero state in the 1970s, and the government's campaign against it. War in Paradise is considered the definitive book on Mexico's "dirty war," a 1960s and '70s crackdown against rebels and suspected sympathizers in which hundreds of people died or disappeared.

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Other

Catholic Church Slams Mexico City's Leftist Mayor
March 07, 2010
Mexico's Roman Catholic Church has published its harshest criticism to date of leftist Mexico City Mayor Marcelo Ebrard, accusing his administration of botching issues ranging from crime to public transit. The church has often disagreed with Ebrard's Democratic Revolution Party. An editorial published Sunday on the Archdiocese of Mexico's Web site accused Ebrard of "following the line set down by foreign groups" in approving legalized abortion and samesex marriages. Ebrard is viewed as a top contender in the 2012 presidential race, and some leftists have accused the church of supporting more conservative rivals. Mexican law prohibits the church from becoming involved in electoral politics.

Authorizations Requested For Navy To Join Military Exercise
March 5, 2010
President Felipe Caldero requested the Senate's permission to allow Mexico's Navy to take part in naval exercises at the invitation of the United States and Argentina. The request was turned over to the Naval and Foreign Affairs Committees. The invitation is to participate in the "Unitas LI Atlantic phase" event to be carried out May 17 to 25 in Argentina. The other is to participate in the "Unitas Pacific 2010" exercise, which will take place from June 1 to August 26 in Chile and Peru.

UNAM Modernizes National Astronomical Observatory
March 7, 2010
Through scientific collaboration agreements with France, China, Spain, Taiwan and the U.S., the National University's (UNAM) Institute of Astronomy (IA) works on four projects to stimulate joint international research, develop human resources and modernizing the National Astronomical Observatory (NAO) in the San Pedro Martir Sierra, in Baja California. Located at 2,830 meters, the site is one of the highest and darkest in the country, conditions that allow for astronomical observations with little interference.

Mexican Priest's Alleged Son Admits Seeking Money
March 5, 2010
A man who says he is the abused son of the founder of a conservative Roman Catholic religious order acknowledged Friday he asked the group for money to keep quiet. Jose Raul Gonzalez said he asked The Legionaries of Christ for $26 million because the Rev. Marcial Maciel had promised him and his brothers a trust fund when he died and as financial compensation for Maciel's alleged sexual abuse. Gonzalez's mother, Blanca Lara Gutierrez, had said that Maciel led a double life for almost 20 years, having two children with her, adopting another and abusing two of the three. It is one of the most damaging allegations yet against Maciel, who before his death had been the subject of a Vatican probe into multiple allegations he sexually abused seminarians. Legion leaders last year acknowledged that Maciel had a daughter in Spain, but they have not directly accepted allegation by several seminarians that he molested them. Maciel died in 2008 at age 87, more than a year after Pope Benedict XVI disciplined the ailing priest by sending him to "a reserved life of prayer and penance, renouncing every public ministry." Founded by Maciel in 1941, the Legion became one of the most influential and fastest-growing orders in the Roman Catholic Church. The order says it has more than 800 priests and 2,500 seminarians worldwide, along with 50,000 members of the associated lay group Regnum Christi.

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

 

Sources

AFP, Associated Press, BBC Monitoring Americas, Bloomberg, Business Digest, Business Information Systems,
Business News Americas, Business Wire, CCH, The Chicago Tribune, The Christian Science Monitor, Compranet,
Comtex News Network, CNN, Corporate Mexico, La Crónica, The Dallas Morning News, Daily News Tribune, 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, El Financiero, Exim Bank, Expansión, Frontera NorteSur, Global Information Network, The Guardian, The Houston Chronicle, InfoSel Financiero, La Jornada, Los Angeles Times, Reforma, El Semanario, Mexico Today, Gold Resource, ProMexico, Ineos Fluor, Mexichem, Conagua, Reuters, ECU Silver Mining , TeleGeography, NAD Bank, CFE, The News, Market Wire, Latin American Advisor, The New York Times, Earth Times, San Diego Union Tribune , Washington Post, Portal Presidencia, Hospitality.net

Contacts

Editor
Carla Reyes

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

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

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

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

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

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