Ford Motor Co of the US is reportedly planning to invest $9 billion in Mexico as it shifts production away from the US. An expansion of its operations in Mexico will save an estimated $1.8 billion a year, as the ailing company restructures to stave off competition from abroad. However, such a move will play badly in the US in the face of the downsizing being carried out by Ford in North America.
Category: Regions
Posted inDaily Brief
Alfa Snaps Up Stock
Mexican conglomerate Alfa bought back 2.99% of its shares from a 5.98% holding sold Wednesday by a group of its shareholders. The deal, worth $76.8 million, was financed using money from the company’s buyback fund.
Posted inDaily Brief
Banistmo Debuts On Latibex
Panamanian financial group Banistmo made its debt yesterday, Wednesday, on Latibex, the Madrid-based index of Latin American stocks. The share price rose 1.99% during the day to reach $40.6 but fell back to close at $40. Banistmo is the thirty-third company to be quoted on Latibex, and the first from Panama. It operates in Panama, Colombia, Honduras, Nicaragua, Costa Rica, El Salvador and the Bahamas.
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Colombia Lifts Capital Controls; Ponders Market Reform
Following the disastrous losses of the Colombian stock market in recent days, the government may consider amending regulation to avoid a repeat of the extreme drops experienced. On Tuesday, the government decided to lift capital controls on foreign portfolio investments in a bid to attract capital from abroad. The Colombian stock market has lost 39% of its value since the start of the year, with the greatest falls seen this month on concerns of imminent interest rate hikes in the US. Yesterday, Wednesday, the IGBC recovered to end the day up 6.52% on 6,562.28
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Colombia Improves Budget Deficit
Colombia’s government has said its 2006 budget deficit will be equivalent to 1.5% of GDP, slightly better than the 2% forecast. This compares with a balanced budget last year. The main contributing factor to the improved figures was the price of crude and the revenues of state-run Ecopetrol. The government is forecasting a deficit equal to 1.7% of GDP in 2007.
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Ecuador Banking Profits Up 61%
The profits of Ecuador’s banking sector were up 61% in the first quarter of this year against the same period in 2005. Earnings at the 25 banks rose from $59.1 million to $95.3 million according to government figures. Top of the list was Banco del Pacífico with $19.3 million. Overall, assets as at end April totaled $10.7 billion; liabilities reached $9.7 billion.
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Bolivia Seeks New Frontiers
Bolivia has announced a bold energy integration plan with neighbor Paraguay as it seeks out new markets for its natural gas. The plan calls for around $2 billion to be invested in gas pipelines and industrial plant to supply Bolivian gas for domestic use in Paraguay. Companies interested in participating in the project are being invited to put their names forward to both countries ahead of a tender process. Bolivia currently exports its gas to Argentina and Brazil only.
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Mexican Inflation At 3%
Consumer prices in Mexico fell 0.45% in May, taking annual inflation down to 3%, from 3.2% as at end-April, according to Central Bank figures. Headline inflation was driven down by declines in food and energy prices. However, stripping out food and energy left core inflation up 0.15%.
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MexDer First Foreign Member To Start Trading Soon
The Mexican Derivatives Exchange’s (MexDer) first foreign member – Timber Hill of the US – is likely to start trading soon on the Mexican exchange following regulatory approval. The company plans to trade futures contracts based on Mexico’s benchmark stock index. Owned by Interactive Brokers, Connecticut-based Timber Hill is the largest equity options market-maker in the US. In March this year Timber Hill became the first foreign company to be granted “remote membership” of the exchange after regulatory changes at MexDer allowed for the entrance of foreign players. MexDer is keen to lure other international firms that trade Mexican derivatives over the counter to become remote members and instead trade via the exchange.
Posted inDaily Brief
Gazprom Studies Bolivia Investment
Russian energy giant Gazprom says it is studying the possibility of investing up to $3 billion in Bolivia to work with state-run YPFB to develop various energy projects. Those on the table include exporting natural gas to Mexico and the US as well as exploration of new fields.