5 Killed at BPM Festival in Mexico

1/16/2017 New York Times

policemanMEXICO CITY — Five people were killed early Monday at a crowded nightclub in the popular Caribbean tourist destination of Playa del Carmen, Mexico, when an armed man who had been denied entry opened fire inside the club, prompting a gun battle and a stampede, officials said.

Four of the victims, including three members of the security team that had blocked the gunman’s entry, were hit by bullets, and the fifth victim was trampled in the resulting pandemonium, the authorities said.

The shooting occurred at the Blue Parrot nightclub, which was hosting the final night of the BPM Festival, an international electronic music event that draws fans from around the world.

The gunman entered the club around 2:30 a.m., but was turned away at the door because he was carrying a weapon, said Miguel Ángel Pech, the state attorney for Quintana Roo State, on the Yucatán Peninsula. The man then opened fire, and as patrons threw themselves to the ground or rushed for the exits, security guards at the club “repelled” the attacker, Mr. Pech said, adding that the guards were apparently armed.

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General Motors CEO Mary Barra Says Donald Trump’s Threats Won’t Change the Company’s Plans

1/17/2017 Fortune
gmMary Barra, the CEO of General Motors, isn’t letting Donald Trump change her company’s plans.

Speaking to reporters at a GM event in Detroit, Barra said GM’s small-car production will stay in Mexico, since manufacturing and plant investments are not easily changed, the Wall Street Journal reports. “This is a long-lead business with highly capital-intensive investments—decisions that were made two, three and four years ago,” Barra said.

Barra’s comments come after the President-elect threatened the company with a “big border tax” for importing some Chevrolet Cruze compact cars from a plant in Mexico. But those models represent less than 5% of the Cruze cars sold in the U.S. The rest are manufactured at GM’s Lordstown, Ohio, factory.

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Corona has a Trump-Mexico problem

1/17/2017 CNN Money

Photo by Flikr user LyfetimeCorona is going through a serious Trump hangover. Just one day after Donald Trump was elected president, the U.S. company that distributes Corona took a 7% dive in the stock market — and it hasn’t recovered.

Constellation Brands’ stock remains down 10% since the election, seriously missing out on Wall Street’s big Trump rally. The post-election slump is largely driven by fears that Trump’s aggressive stance towards Mexico will ricochet against Constellation’s portfolio of Mexican beer brands Corona, Modelo and Pacifico.

Constellation (STZ) is the largest imported beer company in the U.S., so it makes sense that shareholders are concerned about Trump’s threats to tear up NAFTA, slap big tariffs on Mexican imports or install a “border tax.”

Trump’s immigration rhetoric or policies could also hurt the beer company’s customer base. Constellation could lose 1.5 million to 2 million consumers if undocumented workers voluntarily leave the U.S. due to heightened enforcement fears, Evercore ISI analyst Robert Ottenstein estimates.

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German Automakers Push Back Trump’s Warning Over Mexican Plants

1/16/2017 Bloomberg

Washauto06_bmw_325_AudeVivereGerman carmakers pushed back Donald Trump’s threats of import duties on the autos they make in Mexico, pointing to extensive production expansion in the U.S. in recent years.

BMW AG, which the president-elect singled out in an interview with German newspaper Bild on Sunday, sought to defuse potential tensions by stating that its largest factory is in South Carolina and that cars made at a planned, smaller factory in Mexico will be exported globally. Trump said BMW will face a 35 percent import duty on vehicles it exports to the U.S. from Mexico.

“We take the comments seriously, but it remains to be seen if and how the announcements will be implemented by the U.S. administration,” Matthias Wissmann, president of German auto industry association VDA, said in an e-mailed statement. The U.S. Congress will probably show “substantial resistance” against the duty proposals, he said.

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In Latin America, Mexico The Only Real ‘Loser’ Under Trump

1/17/2017 Forbes

Latin America 3In just four days, Donald Trump goes from PEOTUS to POTUS.  Latin America is not impressed. They’ll get over it.

While most of the knee-jerk reactions of fear and loathing have subsided south of the Rio Grande, Trump is widely seen as a negative by those who live there. The only country really in Trump’s crosshairs is Mexico. And even with that hanging over them, the World Bank is forecasting Mexico’s economy to rise over the next three years so long as the U.S. economy gets a boost from Trump’s corporate tax cuts and other fiscal stimulus measures.

Nevertheless, Mexico will face the brunt of Trump’s wrath. The country is dependent on the U.S. not only for duty free exports, but also for the billions of dollars in remittances it receives from Mexican citizens working in the U.S. Remittances are one of the largest sources of foreign capital coming into the country. Trump has threatened to tax those payments if Mexico doesn’t play ball on trade and immigration. The new sheriff of Washington holds all the cards when it comes to Mexico.

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Trump Trade, Tax Talk Hits Dollar As Mexico Warns On Tariffs

1/17/2017 Investor’s Business Daily

Share market prices shown on anThreats of a trade war intensified over the weekend, as President-elect Donald Trump said the dollar “is too strong” and warned BMW that it would face a 35% tariff on imports to the U.S. from a plant it’s building in Mexico.

Trump’s words help sink the U.S. dollar index by 1% vs. other major currencies on Tuesday. Meanwhile, gold prices rose 1.6% to $1,215 an ounce and the 10-year Treasury yield slipped as low as 2.33%, the lowest level since November 29. Following similar threats of a “big border tax” aimed at Ford, General Motors, and Toyota, Mexico’s economy minister Ildefonso Guajardo indicated the country was preparing to strike back.

“It is clear we need to be prepared to immediately neutralize the impact of such a measure,” he said in a Friday interview on Mexican TV. Guajardo added that Trump’s plan to counter the competitive advantage of low-cost countries with tariffs would lead to a global recession.

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Mexico’s president warns that if Trump wants to talk trade, he’ll have to talk security, too

1/13/2017 Los Angeles Times

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Mexican President Enrique Peña Nieto has warned that Mexico will push back if U.S. President-elect Donald Trump attacks Mexico on trade or other fronts — using its cooperation on crucial issues such as immigration and security as leverage.

While he didn’t mention Trump by name, much of Peña Nieto’s address to a gathering of Mexican ambassadors on Wednesday was directed at the incoming U.S. president, who in a news conference earlier in the day had vowed yet again to tax imports from Mexico and to force Mexico to pay for construction of a massive border wall.

Trump’s threats helped send the Mexican peso plummeting to a record low Wednesday, when it briefly fell below 22 per U.S. dollar.

In his speech, Peña Nieto said conversations with the U.S. about taxes or trade deals would also include conversations about U.S.-Mexico collaboration on immigration and security.

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