Economy & Finance

Economy & Finance

Fox calls budget bill a "Band-Aid" solution

 Bloomberg - Mexico’s budget bill is a “Band- Aid” solution that won’t contribute to long-term economic growth and competitiveness, former President Vicente Fox told reporters Tuesday in Washington.

Mexican Customs plans to reduce tariffs

El Semanario - The Ministry of Finance announced it will reduce the tariff gap between Mexico and the United States to attract investment and reduce production costs of goods assembled in Mexico. In 2008, U.S. Customs charged an average tariff of 3.8 percent, while Mexican Customs charged 10.4 percent.

Electricians union plans mega-protest

El Semanario - The Mexican Electricians Union called for new demonstrations on Nov. 11 to protest President Felipe Calderon's dissolution of Luz y Fuerza del Centro (LyFC) and the loss of 44,000 jobs with interruptions to service and a mega-march.

Mexican beer brewers are bubbling - Mexico's beverage industry continued to fizz beyond expectation in the third quarter despite the economic recession. While all major companies did well, Grupo Modelo, the maker of Corona, was expected to be the winner, analysts said.

PRI coordinator defends budget despite political cost

El Economista - The PRI coordinator in the Chamber of Deputies, Francisco Rojas, defended the tax package despite its  political costs because states would not be able to provide services in 2010 without the tax increases.

PRD senator calls tax package "stupid"

El Economista - PRD Senator Pablo Gomez said that the 2010 tax package approved by the Senate is "the stupidest" of the past 30 years, because far from solving problems, it creates new for the country.

2 ratings agencies want to see final budget

Reuters - Standard & Poor's and Fitch Ratings both told Reuters on Monday that even with a somewhat watered-down Mexican fiscal reform package, they need to see a final budget before making any changes to the country's sovereign rating.

Peso weakens as analysts await budget

Reuters - Mexico's peso weakened slightly on Monday despite strong U.S. factory data as ratings agencies said they need to see the country's final budget before deciding if the country gets a downgrade. The peso dipped 0.11 percent to 13.2125 per U.S. dollar.

New business tax credits will cost nearly $1 billion

Reforma - Senate amendments, ratified by the Camara de Diputados, that give deferred tax status to 422 businesses will eliminate collection of about 11.87 billion pesos ($904.22 million), reveals an analysis by Reforma, based on Ministry of Finance figures.

Gomez-Mont calls for responsibility in budget spending

El Economista - Secretary of the Interior Fernando Gomez-Mont said he hopes that consensus, serenity and responsibility will guide expenditures under the budget approved for 2010.

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