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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Creamfinance Launching in Mexico

10/12/16 Business Wire

untitled.pngMEXICO CITY–(BUSINESS WIRE)–Creamfinance, the leading European consumer financial services provider, on Monday (10th of October) has officially expanded its footprint in Latin America, launching in Mexico. It is the first company’s launch in a different continent.

According to Matiss Ansviesulis, Co-Founder and CEO of Creamfinance, expansion in a different continent brings new opportunities. “Our launch in Mexico marks a significant milestone for the company as we enter into one of the largest, fastest-growing and most promising markets”, he explained. “We are eager to learn the specifics of the market and are ready to provide speedy & reliable service to the best of our ability”.

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Short Sellers Pile Into Mexico as It Lands in U.S. Crossfire

08/01/16 Bloomberg

An exchange-traded fund focused on the Latin American nation’s shares has the most bearish bets of any country, while hedge funds including Finisterre Capital in London are pouring into credit-default insurance on Mexican bonds. Societe Generale SA projects the peso will keep underperforming emerging-market peers as the country comes under attack in one of the most rancorous U.S. election campaigns in memory.

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Fitch: Mexico Better Than Brazil, Venezuela, Argentina…

06/29/16 Forbes 

Chichen_Itza_Temple_of_Kukulcan_SerpentWhen it comes to managing its debt, Mexico is better than Brazil, basket case Venezuela and Argentina, even as its new government is in the process of resuscitating the economy.

On Thursday, Fitch Ratings reaffirmed Mexico’s investment grade status of BBB+, a credit rating Brazil lost last year after getting it in 2008.

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Mexico’s star wanes as reforms underwhelm, Brazil rises

07/13/16 Reuters

Flag-Pins-Mexico-BrazilForeign investors in Latin America are warming to Brazil as a promising turnaround bet while souring on Mexico and its landmark energy reform that has yet to deliver.

Brazil has yet to recover from its worst recession in decades, inflation and interest rates remain among the highest in the region and it is saddled with a bloated public sector. In contrast, Mexico’s economy is growing at around 2 percent, has lower fiscal deficits and sounder public finances.

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Anger Management and Gun Control? New Ways to Reduce Violence in Latin America

3/29/16 Americas Quarterly

By Viridiana Rios, Mexico Institute Global Fellow

Reducing violence is not about controlling violent neighborhoods or even about controlling violent people. It is about inducing people to control themselves. That’s it. The best policing comes when no police are required.

The question is how to achieve this in Latin America, the most violent region in the world and home to countries like El Salvador, Honduras and Venezuela, each with homicide rates similar to war zones.

The answer may be unsettling. Many instances of large decreases in homicide rates in Latin America can be traced not to large-scale judicial or police reforms, but to changes in the behavior of gang members as a result of truces with their rivals. Homicides go down when rival drug gangs, in an effort to improve their business conditions, agree to reduce violence.

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Mexican economic growth hits five-month high in January

3/30/16 Reuters

mexican pesosMexico’s economy grew by 0.6 percent in January from December in seasonally adjusted terms, the fastest pace in five months, figures from the national statistics agency showed on Tuesday.

Growth was driven by a pickup in industrial activity, which advanced by 1.2 percent from the previous month, while the service sector expanded by 0.2 percent, the figures showed.

Compared with the same month a year earlier, Latin America’s second biggest economy grew by 2.3 percent, in unadjusted terms. That was a tenth of a point faster than the same month in 2015.

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