Standard & Poor’s Lowers Mexico’s Outlook to Negative

08/23/2016 The Wall Street Journal

mexico cityMEXICO CITY—Standard & Poor’s on Tuesday lowered the outlook on Mexico’s sovereign debt rating to negative from stable, becoming the second ratings firm to do so this year on the belief that government finances could deteriorate in the coming years.

S&P affirmed Mexico’s triple-B-plus rating—two notches above the minimum investment grade—but said there was a 1-in-3 chance of a downgrade in the next 24 months. A deterioration of Mexico’s debt or interest burden could raise the vulnerability of public finances to adverse shocks, the firm said in a release.

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Mexico’s Cemex to slash debt faster as profit beats expectations

07/27/2016 Reuters

cemexMexico’s Cemex, one of the world’s largest cement producers, on Wednesday said it aims to cut debt over the next two years more than it previously planned as it reported that its quarterly profit unexpectedly surged by 81 percent.

Shares in Cemex rose more than 4.14 percent to 13.57 pesos by 1:25 p.m. local time.

The company said second-quarter net profit rose to $205 million, almost double analysts’ estimate of $107 million in a Reuters poll, boosted by its Mexico business and exchange rate gains.

Cemex also said it now aims to cut total debt by $3 billion to $3.5 billion in the next two years, up from a previous target of up to $2 billion. It aims to sell assets worth up to $2 billion, up from a previous goal of $1 billion to $1.5 billion.

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Mexico’s Special Economic Zones: White Elephants?

By Viridiana Rios, Global Fellow, Mexico Institute

expert I (2)In June 2016, Mexico enacted a federal law to create Special Economic Zones (SEZ) in four of the poorest regions of the country. The initiative aims to reduce the markedly unequal levels of economic development inside Mexico, with a set of wealthy, internationally connected northern states, and an agricultural south that seems mired in perpetual underdevelopment.

Mexico will create its first Mexican SEZ in the Pacific port of Lázaro Cárdenas, on the border of the states of Michoacán and Guerrero, and the other three will follow at the Isthmus of Tehuantepec (Veracruz and Oaxaca states), Puerto Chiapas (Chiapas), and the Coatzacoalcos Corridor /Ciudad del Carmen (Campeche). The goal is to have at least one “anchor firm” operating in each SEZ by 2018, the last year of the current administration.

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Governor Walker Aims to Strengthen Wisconsin-Mexico Trade

06/13/2016 Office of the Governor Scott Walker


shutterstock_182486318Madison –
Governor Scott Walker joined a Wisconsin delegation of representatives from the Wisconsin Economic Development Corporation (WEDC) and the Department of Agriculture, Trade and Consumer Protection (DATCP) on a business development mission to Mexico.

The purpose of the mission is to strengthen trade and investment ties between Wisconsin and Mexico. Mexico is Wisconsin’s second-largest export destination with the state’s exports to Mexico totaling nearly $3 billion in 2015.

“The overall objectives of this business development mission are two-fold,” said Governor Walker. “We want to attract new investment from Mexico into Wisconsin, while also encouraging Mexican companies with a presence in Wisconsin to maintain or expand their investments in the state.”

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Andres Oppenheimer: Obama’s TPP may reshape world trade

2/6/2016 Miami Herald

The formal signing last week of the world’s biggest trade and investment agreement — the Trans-Pacific Partnership, or TPP — went almost unnoticed in most countries, but it could soon start to change the world’s economic and political maps.

One of the reasons why the 12-country trade agreement’s Thursday signing ceremony in New Zealand drew little world attention was that neither President Barack Obama nor other leaders of participating countries attended the event, and chose to send their trade ministers instead…

…“The TPP does not aim to create divisions within Latin America, although it will accentuate the contrast between TPP member countries’ pursuit of export-oriented growth strategies, and the more closed economic models of countries such as Brazil and Venezuela,” says Christopher Wilson, of the Woodrow Wilson International Center for Scholars’ Mexico Institute.

Worst Earnings in Three Years Fail to Deter Mexico Investors

11/5/2015 Bloomberg
Share market prices shown on anMexico’s worst earnings in 13 quarters aren’t deterring investors betting that rising sales are a precursor to economic growth next year.

The IPC Index has climbed 6.2 percent in the last month, the second-best performance among the benchmark gauges in six Latin American markets. That’s because shareholders are focusing on the bigger picture: a resurgence in the domestic economy, Grupo Financiero Santander Mexico SAB and Bank of America Corp. say.

Average sales for Mexico’s companies currently on the IPC rose to the second-highest level since 2012 in the third quarter, according to data compiled by Bloomberg. Mexican consumers are spending more as wages rise and inflation drops to record lows because of new laws that reduced phone and TV service prices.

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Formula One Racing Returns To Mexico City

11/2/2015 Forbes 

2011_FIA_GT1_Silverstone_2After a $50 million dollar renovation at the Autodromo Hermanos Rodriquez racetrack, Mexico hosted its first Formula GP race since 1992. Mexican billionaire Carlos Slim, a longtime sponsor of Formula One, participated in a pre-race tour of the track. The extensive modifications to the track eliminated the notoriously challenging bumpy and banked peraltada turn, the site of spectacular passes and scary crashes in previous races. In an interview before the race, Mexican driver Sergio “Checo” Perez said ”I didn’t expect this type of support that people are giving all the time.” During the race the crowd screamed every time Perez passed and in the final lap the people packing the stands rose to their feet, cheering for the only Mexican driver in the race.

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