Mexico Said to Consider Tax Cut for Private Equity Investors

08/25/16 Bloomberg

Mexico is evaluating ways to aid private equity investors and spur growth in the industry, including a reduction in the tax that funds pay to list companies on the stock exchange, according to four people with knowledge of the proposals.

The government may give funds incentive to take companies public by reducing the tax on sales through initial public offerings to 10 percent, in line with the capital gains rate, from the 35 percent regular income tax rate, according to the people, who asked not to be named discussing proposals that haven’t been made public.

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Despite fears, Mexico’s manufacturing boom helps some U.S. workers

08/25/16 The Seattle Times

Industrial PlantSAN LUIS POTOSI, Mexico——Enrique Zarate, 19, had spent just a year in college when he landed an apprenticeship at a new BMW facility in San Luis Potosi, Mexico. If he performs well, in a year he’ll win a well-paid position, with benefits, working with robots at the company’s newest plant.

Within a decade or so, most of the BMW 3 series cars Americans buy will probably come from Mexico, built by people like Zarate.

“When you start with such little experience, and get such a big salary, it’s unbelievable,” said Zarate, whose father is a taxi driver and mother is a housewife.

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Mexico Malaise Threatens to Tarnish Pena Nieto’s Ratings Legacy

08/26/16 Bloomberg

A US cable claimed Televisa gave the Mexico State governor Enrique Peña Nieto wide coverageMexican President Enrique Pena Nieto’s track record of winning ratings upgrades is in serious jeopardy.

On Tuesday, S&P Global Ratings revised the country’s outlook to negative and said there’s at least a one-in-three chance of a downgrade in the next two years if Mexico’s debt increases more than forecast. It marked the second time in the past five months that a major ratings company lowered the nation’s outlook. The trend has been mirrored in the swaps market, where Mexico is seen as less creditworthy than peer Peru, as well as lower-rated Panama.

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Open city

08/20/16 The Economist

LGBT Rights Mexico.JPGOMAR GARCÍA CERVANTES, an aspiring novelist, was brought up in the state of Veracruz but moved to Mexico City 16 years ago. As a gay man, he is happier there than anywhere else. Mexico City has grown only more welcoming since he moved there. In November last year the mayor, Miguel Ángel Mancera, signed a declaration proclaiming its gay-friendliness. Gay marriage has been legal in the city since 2010; under a law passed in 2014, people can change their legal sex simply by applying to alter their birth records. Hate crimes against gays are almost unheard of, says Alejandro Brito of Letra S, a gay-rights activist group.

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Explaining Mexico’s Consumer Paradox

08/24/16 The Huffington Post 

Pesos by Flickr user AleiexThe disassociation between consumer confidence and consumer spending habits over the past two years has been one of the Mexico’s most interesting economic puzzles. The economy remains stuck in a three-year slowdown (GDP contracted in the second quarter by a sequential 0.3%), tighter fiscal and monetary conditions are in place as a result of low oil prices and a weak peso, and the string of corruption and impunity scandals surrounding the political class (and particularly the ruling PRI) appears to have no end in sight, even despite the passage of anti-corruption legislation.

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Arrest of Alleged Cartel Operative Shows Mexico Drug Interests in Spain

08/24/16 InSight Crime

crime and drugsAn investigation by Spanish authorities has uncovered an alleged cocaine trafficking network headed by a Mexican citizen linked to several different drug cartels, shedding light on the “franchise model” Mexican crime groups use to traffic drugs to Europe.

On August 23, EFE reported it had obtained access to a Spanish police report alleging Juan Manuel Muñoz Luévano — also known by the aliases “El Mono” and “El Ingeniero” — headed a trafficking ring that brought cocaine into Spain through the port of Valencia, Spain’s second busiest seaport and the sixth busiest in Europe.

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Mexico Oil Regulators Approve Bidding Process for 12 Exploration Blocks

08/23/16 The Wall Street Journal

oil wellMEXICO CITY—Mexican oil regulators on Tuesday approved a bidding process for a dozen exploration and production areas containing mostly natural gas, the sixth auction since the country opened the industry to private and foreign investment.

The auction includes 12 onshore blocks, nine in the Burgos basin of northern Mexico and three in the south of the country. Contracts are for 30 to 40 years, including exploration, development and production periods.

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