Economy & Finance

Economy & Finance

Wal-Mart bank poised to challenge Banamex, Bancomer

El Semanario - Wal-Mart's recently opened bank might become a major competitor in the Mexican banking system, currently dominated by Bancomer and Banamaex, said Guillermo Babatz, president of the National Banking and Securities Commission.

VAT revenue to fall 17.5% by end of year

El Semanario - Revenue from the VAT tax will decrease by 17.5 percent by the end of the year because of declining oil prices said Juan Manuel Perez Porrua, chief of the revenue policy unit of the Ministry of Finance.

Peso depreciation has offset drop in exports

El Economista - The depreciation of the peso against the dollar has partially offset the drop in Mexican exports, but also puts pressure on inflation, according to BofA Merrill Lynch Global Research. Since August 2008, Mexico's currency has weakened 49 percent.

IMEF manufacturing index rises for fifth month

Dow Jones - The Mexican Institute of Finance Executives, or IMEF, said Tuesday its manufacturing index rose in October for a fifth straight month, showing a recovery is under way in the industrial sector. The IMEF manufacturing index was 52.9 in October, up from 51.7 in September and 49.5 in October 2008.

Inflation expectations slip in Banxico survey

Dow Jones - Private economists surveyed last month by the Bank of Mexico lowered their inflation expectations for 2009, while leaving unchanged their estimate that gross domestic product will contract 7.2 percent this year. The survey of 29 economists produced an average estimate that inflation would end 2009 at 4.23 percent, down from 4.29 percent in the September survey.  

Santander says downgrade possible

Bloomberg - Mexico’s sales-tax increase fails to resolve “medium-term” fiscal problems and raises the chance ratings companies will downgrade its credit rating and keep a negative outlook, Banco Santander SA said.


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.

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