Foreign investment in Mexico’s financial markets rose 4.35 percent in September to $138.61 billion, the highest ever amount. A stronger peso and a surge in stock prices that led to the market index reaching a record high with a rise of 4.22 percent during the month helped the figure. Foreign investors own 45 percent of all stocks traded on the local exchange.
Category: Regions
Posted inDaily Brief
Labor Protests Block Coca-Cola Plants in Venezuela
Current and former workers blocked access to all four bottling plants owned in Venezuela by Mexico’s Coca-Cola Femsa to protest against contract irregularities and non-payment of social security obligations. The company denied the charges and publicly criticized legislators loyal to President Hugo Chavez for joining the illegal protest of as many as 15,000 people. The plant was able to keep working, although at a reduced capacity.
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Mexican Govt to Sell $183 Million in 30-Year Bonds Tuesday
The Mexican government will sell $183 million in 30-year bonds Tuesday, making it the only Latin American country with such an issue, a presidential spokesman said. The sale comes as Mexico moves to lower its foreign debt, replacing it with debt in pesos as its financial markets mature. The Mexican government now owes about $64 billion abroad, about two years’ worth of oil exports at current prices. The government may offer more long bonds soon if the sale goes well, a spokesman said, showing how far the country has come since the 1994 peso devaluation.
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Colombia and Chile Close in on Free Trade Agreement
Government officials from Chile and Colombia expect to close in on a free trade agreement at meetings this week in Barranquilla and sign it at the end of November when Colombian President Alvaro Uribe visits Chile. The agenda this week includes rules of origin, dispute resolution mechanisms and rules for awarding public contacts. The two countries started talks two weeks ago and the deal is expected to go through quickly as trade in most products between them is already open under earlier deals. Chile exports copper, fruit, wine, medicines to Colombia and has invested almost $1.6 billion in the Andean nation since 1990.
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Bolivia’s Morales Rules Out Extension For Oil Companies’ New Deals
Bolivian President Evo Morales said any foreign oil company without a new contract by the end of this week would be expelled from the country with YPFB, the state oil company, taking over their operations. Since coming to power Morales has said oil companies must hand over a larger share of their oil income to the government amidst booming oil prices. France’s Total and Brazil’s Petrobras are among companies operating in Bolivia. Brazilian Mines and Energy Minister Silas Rondeau plans to visit Bolivia this week for talks. The deadline is October 28, when a six-month negotiating period ends. Morales also said he has had to explain his decision to revoke the contracts to a number of world leaders this year.
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Panamanians Vote to Approve Canal Expansion, Exit Polls Say
Panamanians overwhelmingly approved a $5.25 billion plan to expand the Panama Canal and allow today’s super freighters to use the waterway, according to preliminary results from Sunday’s vote. Early returns show 79 percent of voters approved the plan in a poll seen as a vote of confidence for the government. The 92-year-old canal can no longer accommodate about a third of the world’s commercial cargo fleet, causing it to lose income. Opponents claim the money would be better spent on schools and hospitals. The government plans to finance the expansion by increasing tolls and issuing debt linked to canal income. This would not be public debt, officials have said.
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Mexican Incoming Government’s Finance Czar Calls for Smarter Taxes and Spending
Agustin Carstens, economic adviser to Mexican President-Elect Felipe Calderon, said the government needs to improve tax collection and spend cash more wisely to improve the economy and reduce poverty. Mexico has one of the worst tax collection rates in Latin America as successive governments have relied on oil income. Calderon takes office Dec. 1 and Carstens is widely tipped to become his Finance Secretary.
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Mexican Unemployment Rate Falls In September From August High
Mexico’s unemployment rate fell to 3.98 percent in September from 4.03 percent in August, according to the national statistics agency. Economists said the slight improvement comes as the economy gears up for the holiday season in industries related to tourism. Last year the economy grew 3 percent and little improvement is expected for 2006.
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Mexico’s Pemex Reports Record Foreign Oil Earnings, Volume Down
Petroleos Mexicanos, the state oil monopoly, reported record earnings from crude exports in the first nine months of the year of $27.3 billion as it shipped an average of 1.84 million barrels of oil a day. The state oil company, hampered by years of under investment, saw its export volume dip from 2.05 million barrels a day in January to 1.68 million barrels a day in September as overall production declined to 3.26 million barrels a day from 3.43 million barrels a day a year earlier. The company has earned $54.5 dollars for every barrel exported so far in 2006.
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Telefonica del Peru Reports 39.2 Percent Gain in Third Quarter Profit
Telefonica del Peru, a subsidiary of Spain’s Telefonica, reported a 39.2 percent increase in profits in the third quarter to $36.2 million. The company, which controls the fixed line market and competes principally with America Movil in the mobile phone market, said the increase was a result of the purchase of a competitor, Telefonica Empresas Peru.