July 2011

33 Mexican soldiers inadvertently drive into Texas

SAN ANTONIO EXPRESS-NEWS - Thirty-three Mexican soldiers were processed for removal Tuesday afternoon after “inadvertently” crossing to the U.S. side of the Donna-Rio Bravo International Bridge.


Stocks close lower on U.S. debt-ceiling worries

Dow Jones - Mexican stocks closed lower Tuesday as markets grew increasingly concerned about the consequences of a possible default or downgrade of U.S. debt. The IPC index fell 0.4 percent to 35,341 points.


International airlines increase flights into Mexico

BNO NEWS - Mexico is developing into a key aviation hub of North America as international airlines are increasing their capacity into the country, especially in areas not as much affected by drug-related violence.


ODESIA terminates activities in Mexico

Marketwire - ODESIA Group Inc., an international corporation specializing in business-intelligence solutions, announced that after a review of its Mexican subsidiaries, the Montreal company is stopping its activities in Mexico.


Judge okays extradition for "Survivor" producer

CNN - A federal magistrate judge signed an order Tuesday certifying that requirements have been met for former reality TV producer Bruce Beresford-Redman, 40, to be extradited to Mexico for trial on charges of murdering his wife.


Toyota is seeking engine factory site in Mexico

Bloomberg - Toyota Motor Corp., the world’s largest automaker, is looking for a site for a new engine factory in Mexico, said Ana Maria Vallarino, the company’s spokeswoman in Mexico. It has a Tacoma pickup factory in Tijuana.


5.9 earthquake strikes in Gulf of California

CNN - An earthquake with a preliminary magnitude of 5.9 struck Tuesday in the Gulf of California, off the coast of the Baja California Peninsula in northwestern Mexico. No damages or injuries have been reported from the quake.


Mexico's dollar bonds post longest rally in 40 months fueled by debt cut

By Andres R. Martinez, Ye Xie and Sandrine Rastello

Mexico's dollar bonds are posting the longest stretch of gains in 40 months as exports rise and the country benefits from demand for safer assets amid a deepening European debt crisis.

The 0.8 percent rally in Mexican notes in the past 30 days pushed the streak of monthly advances to five, the longest since March 2008, according to JPMorgan Chase & Co.'s EMBI+ index.

The country's bonds returned 6.7 percent this year through yesterday, compared with gains of 5.6 percent for Russian notes and 2.4 percent for Turkish debt during the same period. The yield on Mexican bonds dropped 30 basis points, or 0.30 percentage point, this year to 4.66 percent.

Concern the U.S. might default and that Europe's crisis will spread to Italy and Spain is pushing investors to buy the bonds of countries whose debt load has more "sustainability," said Vitali Meschoulam, head of Latin America strategy at Morgan Stanley.

In Mexico, general government gross debt will fall to 42.4 percent of gross domestic product this year, while the ratio in advanced economies including the U.S., Italy and Spain will reach 101.9 percent, according to the International Monetary Fund.

"The trends that you are seeing in countries like Mexico are going to continue in terms of debt sustainability not coming into question," Meschoulam said. "They look significantly on better footing than a lot of other counterparts, even in the developed world."


Groups fail to come up with enough funds for Mexicana

El Economista - All the groups vying to rescue Mexicana Airlines from bankruptcy have failed to show the capital gains that will allow the company to restructure, said Gerardo Badin, conciliatory administrator of the airline.



Attorney General decides to probe Osuna, other Cofetel board members on Telmex application for TV service

Sentido Comun

Allegations that the Federal Communications Commission acted improperly to help Telefonos de Mexico modify its concession title to offer its pay television through its telephone network took a new turn when the Attorney General's Office said it will investigate the former president of that body, Héctor Osuna, and other officials for possible criminal negligence.

The PGR's decision came after the National Telecommunications Industry, the association of television companies and television networks, filed a criminal complaint against Osuna and other former Cofetel officials.

"This business chamber notes the striking deviations and possible actions and omissions that might constitute a crime performed by Hector Osuna and other Cofetel officials to benefit Telmex these acts," said the association, known as Canitec.

The group alleges that Cofetel officials delayed a negative ruling on Telmex's request. By delaying the response, the request was approved, an action the group claims was fictitious and illegal.

Its lawyer says there was not enough time for Cofetel to thoroughly assess Telmex's application, that the full Cofetel board did not vote on the request and that, with no negative rujling, Telmex erroneously assumed its application had been approved.

In the end, Secretary of Communications and Transport Dionisio Perez-Jacome, the ultimate authority on the matter, denied the Telmex request.