Headlines from Mexico

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1. The President’s Office decided to cancel the traditional gala dinner hosted by the Mexican government on September 15 at the National Palace, according to official sources. The decision to cancel the gala was made due to the austerity measures adopted by the administration of President Enrique Peña Nieto.

Read more: CNN México, Excelsior

2. The Head of the Secretary of Interior, Miguel Angel Osorio Chong, announced on Wednesday a series of appointments in the Secretary: Humberto Roque Villanueva as the new Sub-Secretary for Population, Migration and Religious Affairs; Felipe Muñoz Vázquez as the executive of the National Public Security System. Arturo Escobar y Vega will take charge of the Undersecretariat of Prevention and Citizen Participation.

Read more: CNN México, Excelsior, AristeguiNoticias, El Universal

3. The Mexican Senate received the proposal by President Enrique Peña Nieto to ratify Agustín Carstens as governor of the Bank of Mexico (Banxico) for a term of six years.

Read more: Forbes México, El Economista

4. The leader of the PRI Senators, Emilio Gamboa, stated that the parties in the Senate are close to releasing a document urging the PGR to create two  special prosecutor offices for the case of Ayotzinapa. If necessary he will convene the coordinators tomorrow or Monday morning.

Read more: Milenio 

5. Members of the Interdisciplinary Group of Independent Experts (IMCI) for the case of Ayotzinapa, formally submitted the final report of their investigation to the President of the National Human Rights Commission (CNDH), Luis Raúl González Pérez.

Read more: La Jornada

Investor Insight: How Strong Is Mexico’s Economy?

9/8/2015 Forbes

mexican pesosOn September 2, Mexico’s President Enrique Peña Nieto gave his annual state of the union address at the regal Palacio Nacional in Mexico City’s historic center. The speech tacitly acknowledged Mexico’s government’s struggles to improve public security and kick-start meaningful economic growth. Peña Nieto, after all, had seen his approval rating plummet to 35% this past year as scandal after scandal, including the abduction of 43 student teachers, the cancelation of a major public works contract, and the escape of cartel boss Joaquin “El Chapo” Guzman tarnished the country’s image. “Our country was deeply hurt by a series of cases and terrible events…[that] have damaged the mood of Mexicans as well as their confidence in government institutions,” Peña Nieto explained in his speech.

Read more…

Texas Gov. Abbott to Visit Mexico to Mend Fences, Talk Trade Amid Strained Ties

8/25/2015 The Dallas Morning News

Greg_Abbott_by_Gage_SkidmoreGov. Greg Abbott is expected to visit Mexico City on Labor Day weekend, his first trip abroad as governor, and will lead a delegation of Texans eager to move forward amid turbulent times between once-solid neighbors, The Dallas Morning News has learned.

The agenda is still being fleshed out for the first trip to Mexico by a Texas governor since 2007, but people familiar with the matter say the visit is aimed at mending fences and underscoring the economic, cultural and political integration between Texas and its southern neighbor, an important trading partner.

Read more…

Oil’s latest casualty: Mexico

8/20/15 CNBC World Economy

energy - oil barrels“Another disappointing year” looms for Mexico, with growth hit by the rout in the oil price and falling crude production, amid concerns as to the impact of the upcoming U.S. Federal Reserve interest rate hike.

The country will post its second quarter gross domestic product (GDP) figure later on Thursday and will be closely watched especially after the Mexican central bank lowered its growth forecast for 2015 for a fourth time last week, to between 1.7 percent and 2.5 percent.

The oil rout has hurt Mexico, whose top export is crude petroleum. Light crude hit a six-and-a-half-year-low on Thursday of $40.21 and a dip below $40 seems possible for the first time since 2009.

Read more…

Nissan In Mexico: Japanese Automaker Exports 5 Millionth Car From Its Mexican Manufacturing Base

8/18/2015 International Business Times

To give you a sense of just how fast Mexico is becoming a major automotive manufacturing hub, consider this: For its first three decades of sending its Mexican-made cars abroad, Nissan exported roughly 33,000 cars and trucks every year. But since 2002, that number has topped 307,000 units annually, a nearly tenfold average annual increase.

On Monday, Nissan announced that a red NP300 pickup truck became its 5 millionth Mexican-made export since the Japanese automaker began sending its vehicles from Mexico to the United States in 1972. That’s up from 4 million in 2013, which means the export pace has accelerated to about a half-million cars annually in the past two years.

Read more…

Mexico and Colombia join ‘fragile five’ emerging markets

8/13/2015 Financial Times

120px-Philippine-stock-market-boardColombia and Mexico are now members of the “fragile five” group of emerging market nations, replacing India and Brazil, according to analysis by JPMorgan Asset Management.

The Latin American duo, alongside Turkey, South Africa and Indonesia, are seen as the countries most overdependent on potentially skittish foreign investment flows.

The original “fragile five” were worst hit during the taper tantrum of 2013, when foreign investors fled emerging markets. The vulnerability of four of the five (South Africa, Turkey, India and Indonesia, but not Brazil) had been identified by JPMAM before the sell off.

Read more…

Mexico’s businesses are on the edge of a debt crisis

08/11/15 Business Insider

Pesos by Flickr user AleiexIn the emerging markets, private-sector debt has become a doozie: In 2014, EM non-financial corporate debt reached a record high of 83% of GDP, up from 67% in 2009. The problem is that part of this debt is denominated in a foreign currency.

Between 2015 and 2017, some $645 billion of non-financial corporate debt will mature in emerging markets, with USD-denominated bonds accounting for around $108 billion, warns the Institute of International Finance. And with non-performing loans already rising while the dollar strengthens, some EM banks, particularly those that have increased their foreign-currency lending, could face serious challenges.