Mexico’s Slim worried by leftist candidate opposing airport

04/16/2018 The Washington Post

carlos slimMexican billionaire Carlos Slim said Monday that he would be “concerned and afraid” if leftist presidential candidate Andres Manuel Lopez Obrador wins and cancels the new Mexico City airport project.

Speaking at a news conference, Slim strongly defended the $9.2 billion project, in which his companies have won major contracts.

Lopez Obrador, who is the front-runner in preference polls, has called the project too costly and is pledging to cancel it if he wins the July 1 presidential vote. He says the soil at the site of the project is prone to sinking and flooding.

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Airport Bonds Show That Mexican Traders Learning to Live With AMLO

04/11/1018 Bloomberg

amloInvestors in at least one corner of Mexico’s markets are making peace with Andres Manuel Lopez Obrador.

Green bonds backing the construction of Mexico City’s new $13.3 billion airport have been among the country’s best performing debt in the past few weeks as the presidential front-runner often referred to as AMLO pledged to make sure holders of $6 billion of notes would be protected even as he reiterated promises to shut the endeavor down if he wins.

That reassured traders who were already gaining confidence after the group behind the airport raised $1.6 billion last month in an initial public offering of a REIT-like securities tied to the project, a move that created a broader base of investors who would object loudly to any attempts to derail it. The debt had lost 11 percent this year before the Fibra E offering as Lopez Obrador, a left-wing former mayor who is trying to shake the perception that he’s hostile to business, solidified his lead in pre-election voter polls.

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Trump’s China Trade Focus Brings Mexico Stock Investors Respite

04/04/2018 Bloomberg

Pesos by Flickr user Aleiex
Photo by Flickr user Aleiex

Investors in Mexico’s beaten-down equity market got some more relief Wednesday as escalating trade tension between the world’s two largest economies took the spotlight off of U.S. President Donald Trump’s protectionist stance toward his country’s southern neighbor.

Mexican stocks jumped 1.7 percent, bucking losses in other global equity markets sparked by fear that tensions could escalate between the U.S. and China. The benchmark IPC Index has gained 3.6 percent in the past two days, the biggest gain since January 2017.

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U.S. Probes Mexico’s Cemex Over Payments Tied to Colombia Project

03/14/2018 The Wall Street Journal

CEMEXThe U.S. Department of Justice is investigating Mexico’s Cemex SA CX +0.97% B over payments made by the company related to a cement plant it is building in Colombia to determine whether they violated federal bribery laws.

Cemex, one of the world’s largest cement producers, said in a filing Monday that it had received a federal grand jury subpoena related to the Colombian project, located in the municipality of Maceo. Cemex represents 7.2% of Mexico’s benchmark IPC  index.

The company in late 2016 had previously disclosed a U.S. Securities and Exchange Commission investigation into the payments, seeking information to determine whether the payments had violated the Foreign Corrupt Practices Act.

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Mexico Holds Oil Bids Like There’s No Tomorrow Before Election

01/25/2018  Bloomberg
energy - gas pumpMexico is trying to lure as much oil investment as possible before the president who overhauled the country’s energy industry leaves.

 By the end of the summer, the country that until recently had a state monopoly on crude will have offered more than 100 permits to oil majors like Exxon Mobil Corp. in three auctions this year. The last bidding round, announced on Wednesday, will cover an area bigger than Delaware.
The pace of sales is unprecedented as the country prepares to say goodbye to the presidency of President Enrique Pena Nieto, who oversaw a complete makeover of the country’s energy laws to lure foreign investment into everything from oil fields to pipelines to refineries.

Mexico’s Peso Problems Are a Warning Sign for Global Investors

12/8/16 Bloomberg Markets

pesomexicanoThe world has never been so invested in Mexico, and so Mexico has never posed a bigger potential threat to the world. With a little more than six weeks before Donald Trump takes over with an agenda that could batter Latin America’s second-largest economy, Mexico is already showing signs of strain. Inflation is bouncing back, and traders bet it will only get worse; the peso has plummeted to record lows, and top analysts predict more pain; the government has lowered its growth forecast for four straight years, and Mexico is on the verge of a credit-rating cut just as Agustin Carstens gears up to leave the central bank after seven years at the helm.

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Wal-Mart de Mexico to Invest $1.3 Billion in Logistics

12/8/16 The Wall Street Journal

walmartMEXICO CITY— Wal-Mart de Mexico SAB, Mexico’s biggest retailer and private-sector employer, said Wednesday it plans to invest $1.3 billion in the country to expand and improve its logistics operations.

Much of the investment, which is in addition to the company’s annual capital expenditures on store openings and remodelings, will be made over the next three years, Chief Executive Guilherme Loureiro said in an event at the presidential residence. The plan involves the construction of new distribution centers and the upgrading of existing centers.

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