Markets & Data
BofA predicts interest rate will remain unchanged
Bloomberg - Bank of America Merrill Lynch said Mexico’s central bank will probably keep interest rates unchanged through the end of 2011, while rate cuts are possible if the U.S. economy deteriorates. The company cut its 2011 economic growth forecast to 3.3 percent from 3.6 percent.
www.bloomberg.com/news/2010-09-02/mexico-central-bank-may-have-room-for-2011-rate-cut-bofa-says.html
Drug war creates "medium risk," says Mexico
Bloomberg - Mexico’s increasing violence poses a risk to the nation’s credit rating in the “medium term” and may threaten economic growth, Mauro Leos, an analyst at Moody’s Investors Service, said. Moody’s probably won’t downgrade the country before President Felipe Calderon’s term ends in 2012.
Peso falls, touches weakest point this year
Dow Jones - Mexico's peso lost ground against the dollar Tuesday, reaching its weakest intraday level of the year, pressured by continuing investor jitters about the U.S. economic recovery. The peso closed at 13.2075 to the dollar, compared with Monday's 13.14 close.
January-June deficit is up to $11.54 billion
Dow Jones - Mexico notched a public-sector deficit of 151.62 billion pesos ($11.54 billion) in the first seven months of 2010, up from 143.87 billion pesos in the year-ago period. Excluding investments by state oil monopoly Pemex, the deficit was 19.42 billion pesos.
Frida and Diego are on new 500-peso bill
El Universal - The Bank of Mexico on Monday put into circulation a 500-peso bill designed to thwart counterfeiters that is adorned with the portraits of Mexico's reknown artists Diego Rivera and Frida Kahlo.
Stocks, peso, bonds fall on U.S. worries
Dow Jones - Mexican stocks fell Monday, along with the peso and local government bonds as disappointing U.S. economic data added fuel to investor concerns about the recovery. The stock market's IPC index fell 1.2 percent or 373 points to 31,383. The peso closed at 13.14, its weakest level since May.
Stocks, peso sink on economic jitters
Dow Jones - Mexico's stocks fell and the peso slumped against the dollar Thursday, as a drop in claims for U.S. unemployment benefits failed to soothe growing fears that a U.S. slowdown will hurt Mexico's economy. The IPC index fell 0.7 percent, or 235.73 points, to close at 31217.99. The peso closed at 13.0565 to the dollar, compared to 12.9985 at Wednesday's close.
New report examines telecommunications market
Official Spin - A new report published today, Friday, provides a detailed analysis of Mexico's telecommunications market. It examines the current and future state of the fixed-line and mobile markets with an eye to significant regulatory changes that have taken place recently.
Peso bonds drop the most in 18 months
Bloomberg - Mexico’s peso bonds fell the most in 18 months on concern the U.S. economic recovery might stall, reducing appetite for the nation’s debt. The bonds have fallen for four straight days, the longest streak in three months.
Puerto Vallarta has yet to see tourists return
Informador.com.mx - Puerto Vallarta has yet to experienced a recovery in tourism so far this year, registering a pace of growth that is four percentage points behind last year. July ended with a 64.4 percent hotel occupancy, compared with the 68 percent recorded last year.
