July 2012
Minera Frisco swings to profits in 2nd quarter
Dow Jones - Mexican mining firm Minera Frisco said it posted a second-quarter net profit of 299 million pesos ($22 million), up from a year-ago loss of 325 million pesos, on better sales, lower financing costs, and exchange-rate hedges.www.foxbusiness.com/news/2012/07/25/mexico-frisco-swings-to-2q-profit-on-lower-financing-costs/
Baja Mining secures $90 million for Mexico project
Reuters - Baja Mining Corp, which is grappling with cost overruns at its flagship Boleo project in Mexico, said it secured an interim funding of $90 million, giving the project a new lifeline.
HSBC fortifying efforts to avoid money laundering
Forbes - HSBC, which faces probes into money laundering in Mexico, announced that it is in the process of strengthening its anti-money-laundering controls. The company reportedly is nearing a settlement with the U.S. Justice Department.
Retailer Chedraui posts lower 2nd Q profits
Reuters - Mexico's third-biggest retailer, Grupo Comercial Chedraui, on Wednesday reported a 5.8 percent drop in its second-quarter profit as higher financing costs offset a pickup in revenue. Chedraui has 221 stores in Mexico and the United States.
www.reuters.com/article/2012/07/25/mexico-chedraui-idUSL2E8IPLER20120725
Pilot program begun to boost analyst coverage
Bloomberg - Chemical distributor Grupo Pochteca and paper maker Bio Pappel are among the 20 companies taking part in a Mexican stock exchange pilot program to broaden analyst coverage and boost trading on the bourse.
Stocks come off recent highs on soft global data
Dow Jones - Mexican stocks fell moderately Wednesday, coming off of recent highs, as global economic data weighed on sentiment, including weaker-than-expected June housing sales in the U.S. The IPC index lost 0.6 percent to 40,435 points.
Peso rises on speculation on Europe rescue
Bloomberg - Mexico’s peso rose for the first time in a week on speculation Europe’s permanent bailout fund will be strengthened, boosting demand for higher-yielding assets. The peso climbed 0.3 percent to 13.6655 per dollar.
www.bloomberg.com/news/2012-07-25/mexico-peso-rises-on-speculation-europe-rescue-may-be-fortified.html
Aeromexico places $11 billion order with Boeing for 100 airplanes
Submitted by mexbiznews on Thu, 07/26/2012 - 4:18amBy Cyntia Barrera, Elinor Comlay and Veronica Gomez
Reuters
Mexico's largest airline Aeromexico on Wednesday placed an $11 billion provisional order with Boeing, in what the company said was the biggest aircraft investment by a Mexican airline in that country's history.
The order is for 90 737 MAX 8 planes and 10 787-9 Dreamliners, Aeromexico said in a statement that did not provide specifics on financing arrangements.
The deal could allow Aeromexico to overhaul its existing fleet of 110 aircraft over the next decade, a trend among carriers worldwide as they seek to reduce fuel bills.
Airlines need to place orders far in advance in the expectation that it will put them in a better position to face eventual increased demand.
"This is an important order for Aeromexico's expansion plans in the next few years, although at first glance it seems very aggressive," said Vector Casa de Bolsa analyst Marco Montanez.
"This will definitely help them roll out new routes and take advantage of operating efficiencies - fuel and maintenance savings - over the medium and longer term," he added.
Aeromexico, which went public last year, said the Dreamliners will begin arriving in the summer of 2013 and the 737 MAX 8 aircraft will be delivered starting in 2018.
www.reuters.com/article/2012/07/26/uk-mexico-boeing-idUSLNE86P00W20120726
Mexico's new president faces long grind on poverty
Submitted by mexbiznews on Thu, 07/26/2012 - 3:49am
By Gabriel Stargardter / Reuters
More than 12 million Mexicans have joined the ranks of the poor in the last six years, making poverty a top issue in the July 1 presidential vote.
The election winner, Enrique Pena Nieto, has said he will bring jobs, education and clean water to wide swaths of the country where poverty is a stubborn reminder of successive governments' failure to unlock Mexico's full economic potential.
He has made firm commitments: The day his campaign began, he pledged to lift 15 million people out of poverty. However, few of his words reached the residents of San Simon Zahuatlan, Mexico's second poorest municipality.
www.reuters.com/article/2012/07/25/us-mexico-poverty-idUSBRE86O1PY20120725
HSBC pays $27.5 million fine in money laundering probe
The Economic Times - British bank HSBC on Wednesday said its Mexico unit had paid a fine totalling 379 million Mexican pesos ($27.5 million) to Mexico's banking regulator for breaching anti-money laundering controls.
