Category: Regions

Mexico’s central bank left the country´s benchmark interest rate at 9.75 percent Friday, its highest level in over two years. The bank said inflation has been slowing but remains above the target range of 2 to 4 percent. The annual inflation rate was 4.3 percent in June, down from last year´s 5.2 percent. The central bank has increased interest rates 12 times since February 2004.

Mexican cement giant Cementos Mexicanos (Cemex) reported net profit of $733 million in the second quarter, up 197 percent year-on-year. Revenue was up 125 percent to $4.4 billion, largely on the back of Cemex´s integration with British cement maker RMC. The company´s net debt was $9.6 billion at the end of June, down $800 million in three months.

Hurricane Emily weakened further Thursday after slamming Mexico for the second time and knocking down trees and power lines in the city of San Fernando on the gulf coast. Officials in Mexico´s Tamaulipas state evacuated as many as 17,000 people from coastal areas while heavy rain pelted the state of Nuevo Leon, home to the nation’s third-largest city of Monterrey. Pemex estimates the storm cost the company at least $400 million in lost oil and gas production in the Gulf of Mexico.

Hurricane Emily knocked down trees and power lines in the city of San Fernando Wednesday, along Mexico’s Gulf coast, as the storm came ashore for a second time. The Mexican government alerted people in the states of Tamaulipas, Nuevo Leon, San Luis Potosi and Veracruz to possible flooding as the storm collides with the Sierra Madre Oriental mountains. Petroleos Mexicanos, Mexico’s state oil monopoly, said it evacuated about 500 workers from seven off-shore oil platforms in the Gulf of Mexico earlier this week. On July 17, Pemex evacuated more than 15,000 workers from oil platforms in the Campeche Sound, just east of the Yucatan Peninsula.

Citigroup unit Banamex, Mexico´s second largest bank, posted a net profit of $454 million in the second quarter, up 5 percent year-on-year. Profits from consumer banking operations jumped 57 percent to $368 million, while corporate and investment banking profits fell 59 percent to $76 million. Citigroup accounts for about 20 percent of all deposits and credits in Mexico, competing mainly with Spain´s Banco Bilbao Vizcaya Argentaria. Banamex accounts for seven percent of Citigroup’s global profit.

Mexican state run oil giant Petroleos Mexicanos (Pemex) is expected to register over $400 million in losses from the suspension of oil operations due to hurricane Emily. The disaster is expected to prevent the company from producing 2.85 million barrels of crude oil per day and 1.6 billion cubic feet of gas. Over 15,000 workers were transported from Pemex’s facilities in the open sea to the ports of Dos Bocas, Tabasco and Carmen. The hurricane weakened after pounding Mexico´s Yucatan Peninsula Monday but is expected to strengthen before hitting landfall again in southern Texas and northeastern Mexico.

Televisa, Mexico´s largest television network, filed a new lawsuit against its US partner Univision that demands more license payments. Emilio Azcarraga Jean, Televisa´s president, resigned from the board of Univision in May to protest the appointment of Ray Rodriguez as the company´s president of operations. Televisa has 9.3 percent of Univision`s stock and contributes around 70 percent of the network’s primetime programming.

Hurricane Emily moved into the Gulf of Mexico Monday after pounding the island of Cozumel and the Yucatan peninsula and forcing the evacuation of thousands of people on the Mexican mainland. The storm was forecast to strengthen as it moves out to sea and is expected to hit land again in northeast Mexico and southern Texas Tuesday night. Petroleos Mexicanos, Mexico’s state-owned oil monopoly, suspended production at offshore oil fields in the Campeche Sound, and evacuated more than 15,000 workers. The Campeche Sound pumped 83 percent of the country’s output, or 2.8 million barrels a day, in the five months through May.