At Least Three Chinese Automakers Eyeing Expansion in Mexico

January 13, 2020

Source: The New York Times

Audi Produktion Ingolstadt ? Karosseriebau /Im Karosseriebau fertigen 1.800 Mitarbeiter und 2.800 Roboter die Karosserien fuer fuenf Fahrzeugvarianten.

MEXICO CITY — At least three Chinese automakers are preparing to produce vehicles in Mexico or expand existing operations, the Mexican ambassador to China said on Monday, in what would be a boost to one of the Latin American country’s top export industries.

Jose Luis Bernal, Mexico’s ambassador to China, said that over the past year and a half his office has seen more interest from Chinese firms looking to make cars in Mexico.

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USD/MXN – US Dollar Breakdown vs Mexican Peso, Watch 2019 Low

January 7, 2020

Source: DailyFX
By: Paul Robinson

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USD/MXN HIGHLIGHTS:

  • USD/MXN big-picture triangle broke to end 2019
  • A drop through 18.7433 need to give conviction

To end 2019, USD/MXN broke out of the three-year-long triangle it had been building as a result of declining volatility. The break so far has held minimal velocity which could change quickly if last year’s low at 18.7433 is broken. The lack of momentum could also mean we are in for a ‘fake-break’.

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Mexican president voices regret on growth, but says economy fairer

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12/03/19 – Reuters

By Dave Graham

Mexico’s president conceded on Sunday that economic growth has fallen short of his expectations, but said that wealth is now more fairly distributed as he celebrated a year in office riding high in opinion polls, in defiance of mounting problems.

A year ago, veteran leftist Andres Manuel Lopez Obrador assumed the presidency pledging to raise economic growth to 4% per year. Instead, the economy has stagnated and slipped into a mild recession during the first half of the year.

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Mexico stands by Lopez Obrador, poll says, even as violence soars, economy crumbles

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12/01/19 -The Dallas Morning News

By Alfredo Corchado

As Mexican President Andrés Manuel López Obrador marks his first year in office on Sunday, Mexicans’ romance with the left-leaning populist leader remains strong.

But a new poll conducted by Mexico City’s Reforma newspaper, co-sponsored by The Dallas Morning News and The Mission Foods Texas-Mexico Center at Southern Methodist University, shows signs of fading enthusiasm as the nation faces weariness over shocking violence and slowing economic growth.

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Mexico entered recession in early 2019, dealing blow to president

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11/25/19 – Reuters

By Dave Graham

Mexico’s economy entered a mild recession during the first half of 2019 and was flat in the third quarter, revised data from the national statistics agency showed on Monday, handing a setback to the plans of President Andres Manuel Lopez Obrador.

The updated figures showed the economy contracted by 0.1% quarter-on-quarter in seasonally-adjusted terms during both the first and second quarters of 2019 after also shrinking by the same margin in the last three months of last year.

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IMF approves smaller $61 billion credit line for Mexico

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11/25/19 – Reuters

By Andrea Shalal, Anthony Esposito

The International Monetary Fund said on Monday its executive board had approved a smaller two-year lending arrangement for Mexico worth $61 billion, replacing the current flexible credit line of about $74 billion.

It said the new arrangement would bolster market confidence at a time when trade uncertainty, a sharp pullback in capital from emerging markets and increased risk premiums posed continued external risks to the Mexican economy.

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IMF Says Mexico Credit Line May Be Cut From Current $74 Billion

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11/20/19 – Bloomberg

By Eric Martin and Patrick Gillespie

The International Monetary Fund’s board plans to vote on Mexico’s request to renew its flexible credit line, possibly for less than the current $74 billion, before it expires next week.

Mexico is interested in reducing the size now that there’s greater certainty around its trade relationship with the U.S., Alejandro Werner, the IMF’s Western Hemisphere director, said in an interview Wednesday at Bloomberg’s headquarters in New York. Werner said he expects the board’s decision before the current agreement expires Nov. 28.

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Mexico Has a Productivity Problem

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11/18/19 – Bloomberg

By Eric Martin

Walk down the side-streets just off Mexico City’s iconic Paseo de la Reforma boulevard, and you’ll see dozens of examples of something that is holding back growth: the informal economy.

Workers on the taco carts or shoe-shine stands don’t pay taxes, foregoing the benefits of a social safety net. And they often sit idle for most of the day.

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Mexican Economy Barely Grew in Third Quarter

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10/30/19 – The Wall Street Journal

By Anthony Harrup

Mexico’s economy barely grew in the third quarter amid weakness in industrial production and a slowdown in services, keeping the economy on track this year for its weakest performance in a decade.

Gross domestic product, a measure of output of goods and services, expanded 0.1% in seasonally adjusted terms from the second quarter, the National Statistics Institute said Wednesday. Industrial production shrank 0.1%, services were unchanged and agricultural production grew 3.5%.

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Stripe Open For Business In Mexico