Investing in Mexico: not all about oil

September 18, 2014

09/17/14 Financial Times

gas pipeline and gaugeOil and gas prospects are obviously at the front of Mexico’s investment prospects – the country’s energy reform is expected to attract as much as $50bn in foreign investment in 2020. But there’s more, the government says. And not just in the increasingly high-tech manufacturing industry that Mexico has embraced – it is the world’s fourth exporter of cars and first of flat-screen TVs, and its aerospace industry has rocketed. No, Mexico is targeting a range of other areas that are either untapped or could be developed further: think organic agriculture, halal products to serve the world’s 1.2bn strong Muslim market; the development of smart cities; shipbuilding; videogames; and medical tourism.

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Peña Nieto Lures Foreign Funds Not Local Money: Corporate Mexico

July 9, 2014

7/9/14 Bloomberg

international currencyTwo years after Mexico President Enrique Peña Nieto won election on a promise to boost growth, foreign investors are buying his vision. Their Mexican counterparts increasingly are doubting it.

Mexicans cut their holdings of the nation’s equities by 45 percent in the past year and are now the most bearish relative to foreigners since at least 2010, based on data for BlackRock Inc. exchange-traded funds. Global investors raised holdings during the same period. Peña Nieto’s approval rating has fallen to less than 40 percent from 55 percent in the first quarter of last year, according to polling agency GEA-ISA.

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Mexico Bond Risk Set to Drop Below Chile for First Time

June 4, 2014

BusinessWeek, 06/04/14

120px-Flag_of_Mexico_(1)Mexico is on the verge of overtaking Chile as the safest destination for bond investors in Latin America.

It cost 0.03 percentage point more this week to protect Mexico’s bonds against default than debt from Chile, which is rated four levels higher at AA- by Standard & Poor’s. The premium is now the smallest in CMA Ltd. data going back a decade and down from a record 2.94 percentage points in 2008.

Mexico’s sweeping constitutional laws that jettisoned its 75-year state oil monopoly and boosted tax revenue are helping to close the gap with Chile, the region’s most creditworthy nation.

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Mexico courts foreign investment with energy reform

December 13, 2013

Financial Times, 12/12/13

energy - oil barrelsAfter being banished to an auditorium when leftist  deputies hijacked the chamber, Mexico’s lower house of Congress passed historic  energy reforms on Thursday designed to lure billions  of dollars in investment to a sector shackled to the state for 75 years.

Cheers of “Mexico, Mexico” were met by chants of “traitors, traitors” from  critics of the reform at the culmination of a rowdy session, which was switched  to a crowded auditorium after opponents padlocked the chamber and blocked it  with chairs in a bid to derail voting.

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Mexico Open to Airport Expansion as $5 Billion Cost Seen

December 11, 2013

Bloomberg, 12/11/2013

airplane on runwayPresident Enrique Pena Nieto may expand the congested Mexico City airport, the busiest in Latin America, on government-owned land east of the capital, his top transportation official said.

Construction could begin as soon as 2014, Communications and Transportation Minister Gerardo Ruiz Esparza told reporters yesterday in Mexico City. Investment in Benito Juarez International Airport would amount to about $5 billion, according to an estimate by Luis Zarate, head of a trade group for builders.

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Despite reforms, Brazil and Mexico lack energy investment

December 6, 2013

Financial Post, 12/4/2013

Oil barrelsBoth Brazil and Mexico’s traditional and renewable energy sectors are expected to grow, if they can continue to make positive policy reforms and attract the necessary investment. In 2012, Latin America and the Caribbean claimed only 6% of the world’s investment in renewable energy – the majority of which went to Brazil and increasingly Chile – but analysts at the Inter-American Development Bank claim that the region is the “new frontier“ for clean energy investment.

If the region is to live up to these high expectations, its energy-rich countries must raise capital to the tune of $430 billion to fully develop its clean energy resources. They must continue to pass reforms that will make private investment more lucrative, and thus more attractive, to hesitant energy companies – who have the capital and the expertise the region needed to develop their shale and deep-sea reserves, as well as their green energy.

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Energy Reform Necessary to Maintain Mexico’s Moment, Michoacan’s Vigilante Groups and Mark Zuckerberg “Hacks” for Immigration Reform – Weekly News Summary: November 22

November 22, 2013

coffee-by-flikr-user-samrevel1The Mexico Institute’s “Weekly News Summary,” released every Friday afternoon summarizes the week’s most prominent Mexico headlines published in the English-language press, as well as the most engaging opinion pieces by Mexican columnists.

What the English language press had to say…

This week’s press had interesting reports on the Mexican economy. The New York Times published an article describing how dozens of foreign companies are investing and filling in new industrial parks along central Mexico. As a result, middle-class housing is popping up and new universities are waving in classes of students eager to study engineering, aeronautics and biotechnology, signaling a growing confidence in Mexico’s economic future and what many see as the imported meritocracy of international business. On a similar note, the Wall Street Journal noted that even though Latin America has been a laggard among developing markets this year, some advisers are convinced the resource-rich region is poised for a turnaround. But instead of investing once again in Brazil, portfolio managers are finding smaller markets in Mexico and Chile as better bets to tap into Latin America’s long-term growth. Finally, the Economist claimed that to implement and to boost sustaining growth, a bold energy reform is needed. Without it, Mexico’s moment may prove to become fleeting one.

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