Mexico’s Banorte to buy Interacciones in cash-and-stock deal

10/25/2017 Financial times

pesomexicanoBanorte, Mexico’s third-biggest bank by assets, has agreed to buy Grupo Financiero Interacciones in a cash-and-share deal to create Mexico’s second-biggest financial institution, behind Spanish-owned BBVA Bancomer. The merged bank, to be called GFInter, will be the biggest controlled by Mexican capital in a country where many of the big banks are foreign. It will also be a leader in infrastructure financing, Banorte said in a statement. Banorte will pay for the deal with 13.7bn pesos in cash, representing half the value of the offer, and 109.7m Banorte shares. To fund the operation, Banorte will issue shares equivalent to some 4 per cent of the shares currently in circulation, it said in a statement. The deal is expected to close next year, pending regulatory approval.

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Mexican peso pops on news Nafta talks to extend to 2018

10/17/2017 Financial Times

pesomexicanoThe Mexican peso added to its gains while the Canadian dollar traded flat against the buck after US, Mexican and Canadian officials said there were “significant conceptual gaps” in discussions to update Nafta, stretching negotiations into 2018.

The peso strengthened as much as 1.5 per cent against the buck to MXN18.74, while the loonie also clawed back ground to trade flat on the day.

Juan Francisco Caudillo at Monex noted the peso had shed 9 per cent in the past three weeks and the Canadian dollar had also been under pressure, but the dollar’s upward trend “remains intact” despite today’s breathers for both currencies.

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Mexico finance minister says NAFTA uncertainty hitting peso

10/16/2017 Reuters

mexican pesosMEXICO CITY Mexico’s Finance Minister Jose Antonio Meade said on Monday that the peso’s recent depreciation reflects uncertainty about the NAFTA renegotiation process and questions about how quickly the U.S. Federal Reserve will normalize rates.

“The exchange rate reflects different kinds of uncertainties, many of which we cannot control, such as the normalization process of interest rates in the United States,” said Meade, speaking at an event in Mexico City.

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Mexico warns U.S. against ‘protectionist war,’ peso weakens

10/06/2017 Reuters

NAFTA_logoMEXICO CITY – Mexican officials warned on Thursday that U.S. proposals in ongoing NAFTA negotiations would result in protectionism and higher prices rather than free trade, as concerns about the future of the deal helped drag the peso to four-month lows.

Negotiators from Canada, Mexico and the United States are due to begin a fourth round of talks to renegotiate the North American Free Trade Agreement (NAFTA) in Washington next week.

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Mexico Peso Slumps on Nafta Concern, Zavala’s Potential Split

10/05/2017 Bloomberg

pesomexicanoThe Mexican peso slid to a four-month low as speculation rose that Nafta talks will be delayed and local journalists said the former first lady would split from the nation’s largest opposition party, potentially boosting the chances of leftist Andres Manuel Lopez Obrador.

The peso’s slide shows local markets haven’t fully priced in the possibility of a delay in Nafta, Finamex analysts wrote in a note to clients. Lopez Obrador, known as Amlo, has put markets on edge by seeking to reverse a landmark reform that allowed broader participation by private companies in the energy industry. Signs that former First Lady Margarita Zavala is leaving the National Action Party could strengthen his hand.

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Mexico’s peso weakens after Trump says he may kill NAFTA

08/23/2017 Reuters

pesomexicanoMEXICO CITY (Reuters) – Mexico’s peso weakened more than 1 percent in early trading on Wednesday, reacting to U.S. President Donald Trump’s comments casting doubt on the future of the North American Free Trade Agreement (NAFTA).

Initial talks to re-negotiate the trade pact between Mexico, the United States and Canada ended in Washington this weekend with no sign of a breakthrough, and further discussions are due in Mexico City in September.

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Mexico seen ending hiking cycle on bet inflation near peak

8/10/2017 Reuters

pesoAfter a string of interest rate hikes, Mexico’s central bank is expected to hold borrowing costs steady on Thursday on signs that a spike in consumer prices is close to peaking and following a recovery in the peso currency.

The Banco de Mexico is expected to leave unchanged its benchmark rate 7.00 percent in its 1 p.m. [1800 GMT] announcement, according to 18 analysts surveyed by Reuters.

The central bank hiked rates in its previous seven meetings, taking the rate to a more than eight-year high.

One member of the board voted to hold rates at the last meeting, and analysts expect the bank will now signal a pause after raising its main rate by 400 basis points since the end of 2015 to counter repeated slumps in the peso.

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