November 2011

Mexican direct foreign investment falls 16 percent in first nine months from year earlier

By Nacha Cattan
Bloomberg

Mexico received 16 percent less foreign direct investment in the first nine months of 2011 than a year earlier, Economy Ministry data shows.

Foreign direct investment, or FDI, totaled $13.5 billion in the first nine months of this year, the ministry said in a report on its website Wednesday. Mexico registered $15.6 billion in investment during the same period last year, according to ministry data. The Ministry revised 2010’s FDI figure to $19.8 billion from $17.7 billion, the report showed.

Foreign direct investment, which last year almost matched the $21.3 billion Mexico received from remittances, is expected to reach $20 billion this year, according to Promexico, the country’s investment promotion agency.

Today’s report shows Mexico might not reach that goal, said Gabriel Lozano, a Banco Santander senior economist in Mexico City.

“I don’t see any investment project that could give it a boost,” Lozano said in a telephone interview. While 2011 numbers are lagging, investment is “volatile” and there is also a chance it could surpass expectations, he said.

Mexico received $2.55 billion in FDI in the third quarter of this year, the ministry’s report said.

www.businessweek.com/news/2011-11-24/mexico-fdi-fell-16-in-first-9-months-from-year-earlier.html

Shamis withdraws effort to rescue Mexicana Airlines

Sentido Comun - Mikhael Shamis, who planned to inject funds to bail out troubled Mexicana Airlines, said he has decided to not continue the project because of not finding favorable conditions, thus becoming the fourth rescuer to bail out.

www.sentidocomun.com.mx/breves.phtml

Mexico probes drug cartel link to financing elections

Fox News Latino - Federal prosecutors in Mexico plan to open an investigation into a recorded telephone conversation in which a suspected drug cartel boss allegedly threatens people in a western Mexican town to vote in favor of one candidate.

latino.foxnews.com/latino/news/2011/11/23/mexico-investigates-drug-election-financing-link/

Late-season hurricane weakens off Baja

Bloomberg - Hurricane Kenneth’s top winds dropped to Category-2 strength hundreds of miles southwest of Baja California, the National Hurricane Center said. The storm is no threat to land and forecast to weaken to a tropical storm Wednesday.

www.businessweek.com/news/2011-11-23/late-season-hurricane-weakens-in-pacific-off-western-mexico.html

Third tunnel in week found under US-Mexico border

Reuters - Border police in Nogales, Arizona, uncovered a well-equipped drug smuggling tunnel from Mexico, the latest in a spate of illicit passageways found under the border in recent days.

www.reuters.com/article/2011/11/23/us-usa-mexico-tunnel-idUSTRE7AL2TS20111123

U.S. gives Mexico fourth Black Hawk helicopter

Fox News Latino - The United States will deliver a fourth Black Hawk helicopter to Mexico next month as part of an effort to bolster that country's capabilities under the Merida Initiative. Mexico received three Black Hawks from the United States in September.

latino.foxnews.com/latino/news/2011/11/22/us-gives-mexico-another-black-hawk-helicopter/

Study links Arizona wild fires to migrants

Reuters - A U.S. study released Tuesday links many wildfires in the Arizona-Mexico border region to illegal immigrant activity, a finding that Arizona Senator John McCain said backs up comments he made blaming border crossers for some of the blazes.

www.reuters.com/article/2011/11/22/us-usa-wildfires-immigrants-idUSTRE7AL1V320111122

First Lady Margarita Calderon visits Philippines

PhilStar.com - Mexican First Lady Margarita Calderon arrived in the Philippines Wednesday morning for a two-day special visit. Caldern's visit will be capped by a cultural gala hosted by Senator Edgardo Angara.

www.philstar.com/Article.aspx

Mexico signs trade pact with 5 Central Am nations

Associated Press - Mexico has signed a free trade pact with five Central American countries that will cover a regional trade flow that currently amounts to about $48 billion per year. The accord will substitute and broaden bilateral trade pacts.

www.washingtonpost.com/business/worldbusiness/mexico-signs-free-trade-pact-with-5-central-american-nations/2011/11/22/gIQA61FMmN_story.html

Zacks downgrades Telmex to "underperform"

Localized USA - Telefonos De Mexico was downgraded by equities research analysts at Zacks Investment Research from a “neutral” rating to an “underperform” rating in a research note issued to investors on Wednesday.

localizedusa.com/2011/11/23/telefonos-de-mexico-tmx-shares-downgraded-to-a-underperform-rating-by-zacks-investment-research-analysts/