Mexico FDI rises to record high in first quarter

5/25/16 Reuters

mexico-statesMay 23 Foreign direct investment (FDI) in Mexico rose 4.3 percent to $7.896 billion, the Economy Ministry said on Monday, adding that it was a record high for the first quarter.

The increase in FDI, which was above the $7.5 billion in last year’s first quarter, includes $2 billion that Teva Pharmaceutical Industries paid to acquire Rimsa, a Mexican pharmaceutical firm. Teva struck the deal in October.

The United States accounted for about 29 percent of the country’s total FDI in the first quarter, followed by Israel, Spain, Germany and South Korea. (Reporting by Anna Yukhananov)

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AT&T (T) to Launch Roaming Plans in Canada and Mexico

5/19/16 Nasdaq

NASDAQ_studioU.S. telecom behemoth AT&T, Inc. recently announced plans of launching new bundled roaming options in Canada and Mexico, effective May 20.

Notably, customers switching to the carrier’s new Mobile Share Value 15 GB and superior plans will be able to avail of unlimited calls, text messaging and data allowance in Mexico as well as between the country and the U.S.

Moreover, new and existing customers on the AT&T Unlimited Plan can make use of voice, messaging and data in Canada, U.S. and Mexico by activating the AT&T Roam North America and Roam North America Data plans on their smartphones and tablets, respectively.

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The Real Reason Why Mexico Hates Donald Trump

4/19/16 Forbes

Donald_Trump)If you believe the Mexican government and its former president are worried about the plight of their poor workers toiling away on American farms, think again. They are worried about one thing: money.

Say what you will about FORBES’ No. 324, but he scares the Bank of Mexico more than he scares Mexicans.

The Associated Press was the first to point out just how important Mexican immigrants, both legal and illegal, are to the health of the Mexican economy. Last year, Mexicans in the U.S. wired $24.8 billion to family members. That’s more than Mexico’s economy brought in from oil revenue and is nearly half of what a country the size of Brazil brings in from foreign direct investment (FDI).

Former Mexican president Vicente Fox and current leader Enrique Peña Nieto can shout all they want about Donald Trump’s controversial border fence proposal. But their unvoiced concern is how U.S. immigration policy impacts for their biggest source of foreign capital.

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Mexico foreign direct investment races ahead as Brazil sputters

8/25/15 Financial Times

social classMexico and Brazil dominate foreign direct investment flows into Latin America, but their FDI prospects could be heading in opposite directions. While Mexico is making hay with China’s declining cost competitiveness in manufacturing, Brazil is slipping behind.

In 2014, Mexico attracted 366 greenfield investment projects totalling an estimated $33bn and Brazil 322 projects at $18bn, according to fDi Markets, an FT data service. Together they mopped up nearly 60 per cent of capital expenditure on new projects or expansions of existing facilities in Latin America and the Caribbean last year.

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Mexico and Colombia join ‘fragile five’ emerging markets

8/13/2015 Financial Times

120px-Philippine-stock-market-boardColombia and Mexico are now members of the “fragile five” group of emerging market nations, replacing India and Brazil, according to analysis by JPMorgan Asset Management.

The Latin American duo, alongside Turkey, South Africa and Indonesia, are seen as the countries most overdependent on potentially skittish foreign investment flows.

The original “fragile five” were worst hit during the taper tantrum of 2013, when foreign investors fled emerging markets. The vulnerability of four of the five (South Africa, Turkey, India and Indonesia, but not Brazil) had been identified by JPMAM before the sell off.

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The Latin American Foreign Investment Boom: Recent Trends and the Evolution of Multilatinas

multilatinasBy Adrián Blanco Estévez

Latin American companies—both public (state-owned enterprises) and private—have been growing in size and presence abroad, through operations that range from modest representation offices to acquisitions of first-world corporations. The phenomenon of “multilatinas” comprises the growing number of companies that gradually began to invest abroad in the 1990s, but surged forward with a huge wave of investment starting in 2000. In fact, 2010-2012 marked the highest levels of FDI outflows from Latin America in the region’s history.

Mexico is no stranger to the birth of multilatinas. Mexico, along with Brazil and Chile, leads the way in terms of presence of multilatinas, and is the second most important country in the region in terms of FDI outflows, accounting for virtually all outflows from Central America. Additionally, Mexico is the leader among the Latin American countries in terms of investment in the United States. Thus, with 18 multilatinas and 24.5 percent of total FDI outflows from Latin America, the surge in foreign investments by major Mexican companies is clear

This publication, The Latin American Foreign Investment Boom: Recent Trends and the Evolution of Multilatinas, analyzes the multilatina phenomenon in order to define its characteristics today, including political, institutional, economic, and financial factors that explain these companies’ birth, develompent, and transformation into global players.

Download the publication here.

What Does Mexico’s Oil Industry Reform Mean For Investors?

Forbes, 12/16/2013

Ancient Mayan pyramid, KukulcanLast week Mexico’s Congress approved a bill to end a seven-decade long state oil monopoly. In coming years foreign companies could invest as much as $20 billion a year in Mexico’s oil sector, thanks to new rules that will allow production sharing.

Although the energy reform bill, spearheaded by Mexico’s President Enrique Peña Nieto during his first year in office, has been vociferously opposed by Mexico’s left, the bill has the backing of Peña’s centrist PRI party as well as the right-of-center party of former President Felipe Calderon. Together the PRI and the PAN had enough votes to push the bill through Congress, where it was approved 353-134.

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