Mexican President Vicente Fox may veto a bill approved by congress to reduce taxes on state-owned oil monopoly Petroleos Mexicanos, said a presidential spokesman. Fox is concerned the bill, which Mexico´s finance ministry has estimated will lower Pemex’s annual taxes by $2.4 billion, will reduce tax revenue too much. In the first six months of this year taxes on Pemex accounted for 35 percent of the government’s $88 billion in revenue.
Category: Regions
Posted inDaily Brief
America Movil Buys Smartcom
Mexican wireless phone operator America Movil bought Chilean telecoms group Smartcom from Spain´s Endesa for $505 million. America Movil, owned by Mexican magnate Carlos Slim, said the purchase expands its client base in Chile by 1.7 million subscribers. The company has been snatching up companies throughout South America and now has 74 million cell phone subscribers throughout Latin America. In Mexico, the company operates under the brand Telcel and has 32.2 million clients.
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Pemex Reports Earnings
Mexico’s state-owned oil giant Petroleos Mexicanos (Pemex) posted a net profit of $179 million in the second quarter, with sales up 14 percent year-on-year to $20.9 billion. The company paid $12.9 billion in taxes to the Mexican government, up 16 percent. The average price of exported Mexican crude stood at a record high of $47.90 per barrel, higher than the $27 per barrel envisaged in the government´s budget.
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Codelco Boosts Price Forecast
Codelco, the world’s biggest copper producer, increased its forecast for the price of the metal to $1.45-1.50 a pound this year, up from $1.30 in March, saying output hasn’t kept pace with demand from China. Copper has averaged $1.48 a pound this year. Earlier this year CEO Juan Villarzu floated the idea of privatizing the state-owned company to allow it easier access to capital markets, but that idea was rejected by Chilean president Ricardo Lagos. Codelco is looking to ramp up production in the next few years.
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Mexico Sells Debt
Mexico sold $189 million of peso bonds set to mature in 2024 and priced to yield 9.70 percent. The country has reduced its annual inflation rate to 4.33 percent at the end of June from as high as 5.43 percent last November, raising investor confidence and helping yields on 20-year debt drop from as high as 11.18 percent in April of this year.
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WTO Rebuffs EU
The World Trade Organization rejected European Union plans to triple its
banana-import tariff in a victory for Latin American producers seeking to
maintain access to the world’s biggest banana market. The EU was planning
to introduce a flat tariff of $281 a metric ton next year in place of the
existing quota-based import system. Led by Ecuador, the world’s biggest
banana exporter, seven Latin American governments earlier this year
collectively opposed the EU’s planned single tariff. The 25-nation EU buys
3.8 million tons of bananas a year
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Morales Shoots for the Presidency
Bolivia’s second-largest party, the Movement Toward Socialism, proclaimed
its leader, coca farmer and indigenous leader Evo Morales, as its candidate
for presidential elections scheduled in December. Morales, who lost a
run-off to Gonzalo Sanchez de Lozada in the 2002 elections, has led protests
that have toppled two presidents since 2003. He urges greater state control
of Bolivia’s minerals, forestry and natural gas reserves, South America’s
second-largest.
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America Movil Lifts Subscriber Growth
America Movil, controlled by Mexican billionaire Carlos Slim, raised the number of clients it expects to add this year as expanding economies boost cell phone sales across Latin America. CEO Daniel Hajj said the company will sign up 22 million new subscribers in 2005, up from the company´s previous prediction of 17 million. Colombia and Brazil helped America Movil add a record 7.4 million clients in the second quarter, more than any other carrier in the Western Hemisphere.
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Grupo Modelo Reports Earnings
Mexican brewing giant Grupo Modelo´s net profit rose 30 percent in the second quarter to $370 million. Total sales rose 3.5 percent to $1.25 billion while domestic revenues were up 5.2 percent. Grupo Modelo produces popular beers Corona, Pacifico and Negra Modelo.
Posted inDaily Brief
America Movil Lifts Subscriber Growth
America Movil, controlled by Mexican billionaire Carlos Slim, raised the number of clients it expects to add this year as expanding economies boost cell phone sales across Latin America. CEO Daniel Hajj said the company will sign up 22 million new subscribers in 2005, up from the company´s previous prediction of 17 million. Colombia and Brazil helped America Movil add a record 7.4 million clients in the second quarter, more than any other carrier in the Western Hemisphere.