Mining and metals giant Grupo Mexico (G-Mex) reported net earnings of $251 million for the first quarter of 2005, a 51 percent increase year-on-year. G-Mex’s consolidated earnings for the quarter were $1.25 billion, up 43 percent. The company is currently planning a three-for-one share split to boost its liquidity on the Mexico City stock exchange.
Category: Regions
Posted inDaily Brief
Mexico: Rates Held Steady
Banco de Mexico today left the amount commercial banks must borrow overnight at higher rates unchanged at $7.2 million daily. The central bank’s board said Friday that the pace of annual growth in consumer prices slowed to 4.4 percent in March from 5.4 percent in November. Core inflation, which excludes energy and food prices, slowed to 3.6 percent from 3.8 percent.
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TFM Issues Notes
Mexican railway concessionaire TFM, a subsidiary of US railroad operator Kansas City Southern (KCS), has placed $460 million of its 9.38% senior notes due 2012. The proceeds of the sale will be used to refinance 11.8% debentures that will mature in 2009. The sale was restricted to non-US, qualified institutional buyers.
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Gutierrez Ousted
Ecuador’s President Lucio Gutierrez was ousted by Congress Wednesday, the third leader to be removed since 1997, amid allegations he stacked the Supreme Court with allies and helped clear an ex-president of corruption charges. Lawmakers voted 60 to 2 to replace Gutierrez, then swore in Vice President Alfredo Palacio as president. Gutierrez was arrested at the Quito airport and held at a military base. The political tumult pushed down Ecuador’s bond due 2012 to a seventh-month low, and spurred declines in debt sold by neighboring Peru and Colombia.
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Fujimori Promises Return
Former Peruvian President Alberto Fujimori, who has been living in exile in Japan since 2000, said he is working to return to Peru and wants to run in the country’s presidential election next year. Fujimori is wanted in Peru for alleged crimes committed during his presidency, including involvement in the military’s killing of civilians and misappropriation of public funds. In February, Peru’s constitutional court upheld the Peruvian parliament’s 2001 resolution to ban Fujimori from public office for 10 years.
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Pemex Cuts Exploration Investments
Mexican state-run oil giant Petroleos Mexicanos (Pemex) will cut exploration investments this year by 25 percent to $1.5 billion. The company expects to maintain investments in exploration within the range of $1.5 billion and $2.0 billion over the next few years. Pemex has 17.7 billion barrels of proven reserves.
Posted inDaily Brief
Fox Wins Energy Ruling
In a victory for Mexican President Vicente Fox, Mexico’s Supreme Court ruled the president had the right to allow private companies to generate electricity in the country. The lower house of Congress had asserted that only the government had the right to generate electricity and was seeking to annul all concessions awarded to private companies. The ruling comes as Fox steps up calls for Congress to open the economy to private investment in energy.
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Pemex Issues Debt
Mexico’s state oil company Pemex auctioned a round of short-term bonds worth $44 million on the Mexico City stock exchange last week. The 28-day fixed-rate bonds pay a 9.78 percent fixed annual interest rate. Credit ratings agency Standard and Poor’s assigned its mxA-1+ rating to the issue, Fitch its F1+ (mex) rating and Moody’s its MX-1 rating.
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Telmex to Sell MCI Shares
Mexico’s dominant fixed-line telecom company Telmex, owned by Carlos Slim, has agreed to sell its shares in MCI to Verzion Communications. Telmex has 8.1% of the company. The agreement was reached after more than two months of negotiations between MCI, Qwest Communications and Verizon.