U.S., Canada raise concern over Mexico energy, investment climate

07/07/2021

Source: Reuters

MEXICO CITY/WASHINGTON, July 7 (Reuters) – Trade ministers from the United States and Canada expressed concern on Wednesday about Mexico’s energy policies, as they met with their Mexican counterpart to mark the one-year anniversary of a regional trade pact.

U.S. Trade Representative (USTR) Katherine Tai told reporters during a joint news conference that the United States is closely following Mexican President Andres Manuel Lopez Obrador’s approach to the oil and power sectors, and seemed to suggest underlying differences.

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Mexico’s Clip hits unicorn status after SoftBank investment

06/20/2021

Source: Reuters

Mexican payments startup Clip on Thursday said its valuation has jumped to nearly $2 billion after a recent investment led by SoftBank Latin America Fund and Viking Global Investors LP, putting it in a small but growing club of Mexican “unicorns.”

The company was the first in Mexico to receive funding from SoftBank’s Latin America fund in 2019. The latest investment round amounted to $250 million, Clip said.

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Goldman Traders Caught in Mexico Stalemate Chasing $400 Million From Texas Freeze

05/17/2021

Source: Bloomberg

(Bloomberg) — It’s a Wall Street nightmare. You score hundreds of millions of dollars on a trade and you just can’t get paid.

That’s what Goldman Sachs Group Inc. faces in a transaction pitting its traders against Mexico’s dominant power company, championed by none other than President Andres Manuel Lopez Obrador, according to people with knowledge of the matter. At issue: roughly $400 million the Wall Street bank believes it’s owed from a natural-gas trade that went wild when a deep freeze hit Texas in February.

In private discussions with Goldman Sachs, state-owned utility Comision Federal de Electricidad has blamed rogue traders, ejected staff and even hinted that the side lacking financial sophistication in the trade was, perhaps, the Wall Street bank, the people said.

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U.S., Canada, flag concerns over investment with Mexico

05/17/2021

Source: Reuters

The United States and Canada urged Mexico to respect foreign investments during trade discussions on Monday, officials said, while Washington also raised issues over Mexican farm produce.

The talks came at the start of the first meeting of the United States-Mexico-Canada Agreement (USMCA) Free Trade Commission, which centers on the trade accord that last year replaced the North American Free Trade Agreement (USMCA).

Virtual talks were held bilaterally between Mexican Economy Minister Tatiana Clouthier and her counterparts U.S. Trade Representative Katherine Tai and Mary Ng, Canada’s Minister of Small Business, Export Promotion and International Trade.

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Mexico vs Brazil: Populist presidents confound investors

04/07/2021

Source: Reuters

NEW YORK (Reuters) -When a left wing populist and a far-right lawmaker rose to power in Latin America’s two largest economies, investors thought they knew who was going to show them the money.

But more than two years and a costly pandemic later, disillusioned investors are now busy shifting from a Brazil that once promised compelling reforms and privatizations into a Mexico expected to benefit from a U.S. economic rebound.

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MercadoLibre to double workforce amid e-commerce boom, hike Mexico investment

04/06/2021

Source: Reuters

MEXICO CITY (Reuters) -Argentina-based e-commerce giant MercadoLibre Inc is planning to double its workforce this year and invest $1.1 billion to expand its warehouse space and services in Mexico, spurred on by a pandemic-driven boom in online shopping.

The investment figure is nearly triple the $420 million MercadoLibre spent last year in Mexico, a rapidly growing market where it is battling to stay ahead of global giant Amazon.com Inc and other rivals.

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Mexico unveils $14 billion investment plan to speed up ailing economy

05/10/2020

Source: Reuters

MEXICO CITY (Reuters) – Mexico’s government presented an almost $14 billion infrastructure investment plan on Monday as President Andres Manuel Lopez Obrador seeks to repair rocky relations with business leaders and lift the struggling economy.

The package, mostly privately financed, is the first clear sign of corporate bosses’ readiness to invest under Lopez Obrador since the coronavirus pandemic this spring plunged Latin America’s second-biggest economy into its biggest slump since the Great Depression.

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Oil companies swap stakes in Mexico as government holds off on auctions

energy - oil pumps

12/04/19 – Reuters

By Marianna Parraga, Adriana Barrera

With Mexico’s government insisting that energy companies increase oil and gas output before it auctions off more of the country’s vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.

The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor’s flagship energy reform that has seen no new licensing rounds since 2018.

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Mexico entered recession in early 2019, dealing blow to president

AMLO 6

11/25/19 – Reuters

By Dave Graham

Mexico’s economy entered a mild recession during the first half of 2019 and was flat in the third quarter, revised data from the national statistics agency showed on Monday, handing a setback to the plans of President Andres Manuel Lopez Obrador.

The updated figures showed the economy contracted by 0.1% quarter-on-quarter in seasonally-adjusted terms during both the first and second quarters of 2019 after also shrinking by the same margin in the last three months of last year.

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Amid climate worries, Mexico doubles down on fossil fuels

energy - oil pumps

11/01/19 – Reuters

by Oscar Lopez

On the same September day that activist Greta Thurnberg gave a fiery speech in New York demanding world leaders tackle climate change, Mexico’s president was touting achievements of a wholly different kind: increasing funding for oil production.

“We’re investing in refineries. It hasn’t been done for a long time,” President Andres Manuel Lopez Obrador told reporters at a news conference in Mexico City.

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