Airport Bonds Show That Mexican Traders Learning to Live With AMLO

04/11/1018 Bloomberg

amloInvestors in at least one corner of Mexico’s markets are making peace with Andres Manuel Lopez Obrador.

Green bonds backing the construction of Mexico City’s new $13.3 billion airport have been among the country’s best performing debt in the past few weeks as the presidential front-runner often referred to as AMLO pledged to make sure holders of $6 billion of notes would be protected even as he reiterated promises to shut the endeavor down if he wins.

That reassured traders who were already gaining confidence after the group behind the airport raised $1.6 billion last month in an initial public offering of a REIT-like securities tied to the project, a move that created a broader base of investors who would object loudly to any attempts to derail it. The debt had lost 11 percent this year before the Fibra E offering as Lopez Obrador, a left-wing former mayor who is trying to shake the perception that he’s hostile to business, solidified his lead in pre-election voter polls.

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Trump’s Border Dustup Looms Over Nafta Push: Balance of Power

04/03/2018 Bloomberg

nafta_logoAfter spending the past several weeks stoking fears of a global trade war, Donald Trump’s administration is racing to close a Nafta deal with Canada and Mexico. But, inevitably, there’s a catch: the president’s renewed focus on illegal immigration.

The White House will host cabinet ministers in Washington to try to achieve a breakthrough on a preliminary trade agreement to announce at a summit in Peru next week, Eric Martin reports.

America’s eagerness to strike a deal on its biggest trade pact comes as U.S. stocks tumbled, falling in seven of their past 10 trading sessions on concern over Trump’s plan to slap duties on Chinese goods. That, after new tariffs on steel and aluminum imports, could spark escalating rounds of protectionism.

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Howard Buffett Says Weak Mexican Border Is Helping Fuel Drug Epidemic

04/02/2018 Bloomberg

buffett.jpgHoward Buffett, son of one of the world’s richest men, has been running the sheriff’s department in his rural Illinois county for the past several months.

It’s led him to a revelation about the relationship between two big challenges for America: border security and a drug epidemic. He’s attempted to detail some of the causes of the problems and how to address them in a book that’s due out Monday.

“There is no way that you can take this problem and put it in a sound bite and be fair,” Buffett said in a phone interview, discussing his book, “Our 50-State Border Crisis.” “One of the biggest reasons I wrote this book was because I think most people in this country have not made the connection between border security” and the tens of thousands of people who died last year of drug overdoses.

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Mexican Government Raises $1.6 Billion in Shares of New Airport Trust

03/26/2018 The Wall Street Journal

airportThe Mexican government’s airport company raised around $1.6 billion to partly finance the construction of the new Mexico City airport, a megaproject that the country’s leading presidential candidate threatens to cancel if he wins the July election.

Grupo Aeroportuario de la Ciudad de Mexico, which runs Mexico City’s existing airport and holds the license to develop and operate the new airport, sold shares for 30 billion Mexican pesos in a type of trust known locally as a Fibra E. With the proceeds from the trust, $6 billion in bonds, a revolving credit line and budget funds, financing so far is approaching $10 billion.

Uber Rival Hiring in Mexico as Didi Seeks Latin American Ramp Up

03/22/2018 Bloomberg

uber2Brazil’s ride-hailing app 99 is gearing up to start operations in Mexico, expanding outside of its home market for the first time.

“We’ve started to look at Mexico, study it, but we’re not operational yet,” 99’s head of legal, policy and communication Matheus Moraes said in an interview at the company’s Sao Paulo headquarters. “We have people and spots open there, we’re just making sure the product works well before launching.”

The company could be up and running in Mexico by June, Moraes said.

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Trump’s Protectionism Has Mexico Looking South to Latin America for Trade

03/19/2018 World Politics Review

belgium-antwerp-shipping-container-163726.jpegEarlier this month, the United States, Canada and Mexico concluded the seventh round of talks to amend the North American Free Trade Agreement, once again failing to agree on terms to update the 24-year-old pact that U.S. President Donald Trump promised to renegotiate. Trump’s threats to pull the U.S. out of NAFTA if he doesn’t get what he wants, on top of his other protectionist trade policies, have pushed Mexico to diversify its trade relationships, including with its neighbors in Latin America. In an email interview, Duncan Wood, the director of the Mexico Institute at the Wilson Center in Washington, discusses the costs of Mexico moving away from the U.S. economically and what this shift could mean for Mexico and the region.

WPR: How are trade relations between Mexico and Latin America changing as a result of Trump’s economic policies, especially in light of the threat to the future of NAFTA?

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Mexico’s Cemex eyes capital raise for new investment

02/08/2018 Reuters

CEMEX
Client: Cemex Location: Dominican Republic Operations Date: November 2007 Photo: Mark Green/mgp2.com

Mexican cement maker Cemex aims to raise capital for potential investments by issuing shares, it said on Thursday, adding that it does not anticipate making more divestments to reduce debt.

Cemex Chief Executive Fernando Gonzalez said in a conference call with analysts that the company would not use new capital to pay down debt.

The Monterrey-based company, which is fighting to regain its investment-grade credit rating, posted a fourth-quarter net loss of $105 million on Thursday.

In the fourth quarter it reduced its debt plus perpetual notes by $209 million to a level 13 percent lower than end-2016.

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