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.

Read more…

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.

Read more…

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.

Heineken investing $480 mln to build brewery in Mexico

Reuters, 3/10/15

heinekenDutch brewer Heineken said on Tuesday it will invest 7.5 billion Mexican pesos ($480 million) to build a brewery in Mexico to supply U.S. and Mexican markets.

The brewery in the northern state of Chihuahua will produce five million hectoliters (132 million U.S. gallons) of beer per year, said Marc Busain, managing director of Heineken’sMexico unit Cuauhtemoc Moctezuma, but that could be expanded.

Read more…

Mexico’s Cemex Could Sell Part of Business to Pay Down Debt: CEO

Reuters, 2/10/15

mexican pesosMexico’s Cemex could sell part of its business in northern Europe, the Mediterranean and Asia as it seeks to pay down debt, the cement giant’s CEO told Reuters on Tuesday.

Fernando Gonzalez said the firm could also sell 5 to 10 percent of its subsidiary Cemex Latam Holdings, and set aside half of its earnings from asset sales to lower its debt burden.

Read more…

China’s CRCC Likely to Win in New Bidding for Mexico Train Project

By Gabriel Stargardter, 1/14/2015

755225_e72ed744d1_m(Reuters) – China Railway Construction Corp (CRCC) looks poised to clinch a contract to build a $3.75 billion Mexican high-speed train system even after its original winning bid was revoked when it became engulfed in a political scandal, say sources with knowledge of the bidding.

Mexico will on Wednesday reveal the fresh bid terms for the tainted train project linking Mexico City with the wealthy, industrial city of Queretaro, which was meant to be one of Mexican President Enrique Pena Nieto’s flagship infrastructure investments.

Read more…