Why So Many Shopping Malls Are Being Built in Mexico

02/13/2018 The Wall Street Journal

pexels-photo-374894.jpegOn a recent weekday afternoon in Iztapalapa, a hardscrabble neighborhood on the eastern outskirts of the Mexican capital, two sets of construction crews entered the final stages of work on a project that captures the current state of retail real estate here.

One crew hung doors, welded braces and finished floors for Parque Antenas, a brand new 1.1-million square foot shopping mall. Up above, workers hauled carnival rides and carousel parts for a rooftop amusement park the company said would be the world’s first atop a mall.

While U.S. malls are dying a slow, painful death, malls in Mexico are thriving.

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Mexico’s Cemex eyes capital raise for new investment

02/08/2018 Reuters

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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With 4th-Quarter Recovery, Mexican Economy Grew 2.1% in 2017

02/01/2018 The Wall Street Journal

Mexico CityMEXICO CITY–The Mexican economy staged a recovery in the fourth quarter, expanding at its fastest pace in a year as the country shook off the impact of natural disasters that contributed to a contraction in the previous quarter.

Gross domestic product, a measure of output in goods and services, expanded 1.0% seasonally adjusted from the third quarter and was up 1.8% from the fourth quarter of 2016, the National Statistics Institute said Tuesday.

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Mexico to Discuss Security With U.S. in Parallel to Nafta

12/11/2017 Bloomberg

Mexico’s top diplomatic and interior officials will visit Washington this week to discuss security cooperation with their U.S. counterparts at the same time that negotiators work to overhaul Nafta, according to four people familiar with the plans.

The visit by Mexican Foreign Relations Minister Luis Videgaray and Interior Minister Miguel Angel Osorio Chong to meet with Secretary of State Rex Tillerson and Homeland Security Secretary Kirstjen Nielsen on Thursday is a follow-up to meetings in May, according to the people, who asked not to be named before the agenda is made public. It’s aimed at coming up with strategies to combat transnational criminal organizations, the people said. The press office of the Mexican Foreign Ministry and the U.S. State Department declined to immediately comment.

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Mexico presidency hopeful eyes tax cuts to counter Trump reform

12/5/2017 Reuters

A Mexican presidential hopeful and governor of a wealthy border state said he would cut taxes to compete with lower rates in the United States if President Donald Trump’s fiscal reform passes Congress, hinting at a broader potential response in Mexico.

Jaime Rodriguez, the governor of Nuevo Leon who is seeking to become the first independent to take the presidency, said he would lower “many taxes” if successful.

“We’re going to compete,” he told Reuters on Monday. “If I make it and am able to be president, I would lower taxes,” he added, though he declined to give details.

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Mexico’s Carstens Urges Next President to Keep CPI Mandate

11/27/2017 Bloomberg

Outgoing Mexican central bank Governor Agustin Carstens warned Mexico’s next president that it would be very difficult and counterproductive to try to change Banco de Mexico’s exclusive inflation mandate.

Latin America’s second-largest economy will elect a new president in July 2018. After more than three decades of free-market technocrats, Mexicans could pick a leader who has threatened to implement changes to Mexico’s economic model, and could seek to give the central bank additional mandates such as employment or growth. Current front-runner and leftist firebrand Andres Manuel Lopez Obrador has recently acknowledged the importance of the central bank’s autonomy in helping to tame inflation.

In an interview with Bloomberg, Carstens said he’s confident that all of the presidential candidates will respect the central bank’s independence.

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Mexico Oil Exports Up, Economy Seen Bouncing Higher in Fourth Quarter

11/20/2017 NGI

Mexico’s economy contracted an annualized 0.8% in the third quarter, partly because of two major earthquakes, but economists are predicting a bounceback in the fourth quarter. Among other things, oil exports increased by almost 21% in the first nine months from the same period of 2016, and overall industrial production is rising.

The consensus growth forecast for 2017 held steady in October at 2.1%, according to the Federal Reserve Board of Dallas. Petroleum exports improved, and employment growth remained strong, economists said in a monthly update issued last week.

Manufacturing exports rose 6.6%, and oil exports were up 20.9% in the first nine months of 2017. Mexico’s industrial production, which includes manufacturing, construction, oil and gas extraction, and utilities, grew 0.3% in August.

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