(Corrects to say CIC will rely more on external managers in inefficient markets in eighth paragraph.)
Jan. 20 (mexico.) — China Investment Corp., the nation’s sovereign wealth fund, has had “early” talks for direct investments in Brazil and Mexico, Chairman Lou Jiwei said.
The sovereign wealth fund plans to increase direct investments this year and prioritizes such investments in developing markets, Lou said at a financial forum in Hong Kong today. CIC plans to be an “active, minority” shareholder in companies, instead of being involved in day-to-day operations, he said.
“In developing countries, the public capital markets are not as deep as developed countries,” Lou said. “We’re more interested in direct investments in developing countries.”
CIC, which held almost $300 billion in assets at the end of 2008, last year accelerated investments in resource-related companies, from U.S. power producer AES Corp. to Russia’s Nobel Oil Group, to hedge against rising inflation. Brazil is the second-biggest exporter of iron ore, while China is the largest buyer of the raw material.
“I believe CIC will continue to concentrate on resources, because it is the vehicle for China policy to secure resources for the country,” Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong, said in a Jan. 18 interview.
One World Ventures, Inc. (PINKSHEETS: OWVI) today announced the opening of its new facilities and offices in Mexico City, Mexico. “We’re excited about the continued growth and demand of our products in the expanding Latin American market,” said Stephen Prior, CEO of One World Ventures Inc. (OWVI). “The Latin American region represents a natural expansion of our growing business in the Americas. OWVI and Tutamen have experienced increased demand in the region and we are responding aggressively to support the Mexican community with sales, service, support and technical assistance.”
Latin America is a growing region where companies are developing well. Mexico is one of the biggest markets with a population of 110 million and as in many other countries in the region, Mexico’s GDP is growing fast. Demand for Solar products surviving off the grid is a priority. Tutamen has also submitted its new Street LED light products and Home LED products to the Mexican Government Technical offices for approval to sell to the Mexican Government.
About One World Ventures, Inc.
One World Ventures, Inc. is a holding company with management resourced in Asia and the United States that invests in technologies, communities and systems that facilitate trade, finance, communication and travel across international boundaries, cultures and languages.
Once Slim’s companies are combined, America Movil will have clients with a total of 250 million connections, making it one of the world’s largest telecom operators.
Telmex is by far Mexico’s largest fixed-line operator with more than 80 percent market share, but cable television companies have begun to grow in recent years by offering their own Internet and phone service. Mexican regulators have blocked Telmex from offering video services, which it says it needs to compete against Televisa.
By tying up his operators, Slim wants to offer customers bundled packages of fixed-line telephone, wireless, Internet and television.
Televisa and cable companies have said they are keen to offer similar packages and that they could bid for wireless frequencies in an upcoming government auction.
Mexican tequila production fell sharply last year after a bumper 2008, while exports were practically unchanged from a year earlier, according to the Agriculture Ministry in Mexico..
The ministry said in a weekend press release that tequila production last year was 249 million liters. That was 20% below the record 312 million liters that the tequila regulatory council reported for 2008.
Exports in 2009 were little changed from 2008 at 136.1 million liters, with exports of Mexican tequila made entirely from the agave plant up 3.9% to 37.3 million liters, the ministry said.
The country’s pension fund assets rose 22.8% in 2009 to MXN1.15trn (US$90.8bn), according to data released by the Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR). Mexico.
Average returns for the year for the pension fund managers, known as Afores, were 4.9%.
In March of last year, the pension funds agreed to invest primarily in local securities in order to boost the economy during the financial downturn. (Global Pensions; March 19, 2009)
The pension fund managers’ asset allocations reflect this move with 66.34% of total assets invested in government securities and 16.5% in domestic private sector debt. Nearly 9% is allocated to domestic equity, 4.15% to international debt and 4.02% in international equity, according to CONSAR.
Mexican pension funds have also been investing in infrastructure. Last week, infrastructure manager Macquarie announced seven pension funds have invested MXN3.42bn in the Macquarie Mexican Infrastructure Fund, representing 66% of the total assets under management. (Global Pensions; January 15, 2009)
Australia’s Macquarie Group has collected $408 million in the first phase of its Mexican infrastructure fund, The Wall Street Journal reports. The vehicle, Macquarie’s first in Latin America, will invest in at least five infrastructure projects.
Macquarie has put $58.9 million in the fund, while the government infrastructure fund, Fonadin, invested over $78.6 million. Seven Mexican pension funds have contributed a combined $267.3 million. Macquarie expects the fund to reach around $786 million.
Mexican rescuers and their dogs walk past a destroyed university after Tuesday’s earthquake in Port-au-Prince January 16, 2010. Thousands of Haitians flocked out of Port-au-Prince on Saturday in a swelling exodus from the earthquake-shattered city where aid is not reaching the streets fast enough for the homeless, hurt and hungry.
Humanitarian aid sit on a pier next to Mexican hospital cargo ship “Huasteco” in the port of Veracruz before heading to Haiti, January 14, 2010. planeloads of food and medicine streamed in to Haiti on Thursday to aid a traumatized nation still rattled by aftershocks from the catastrophic earthquake that flattened homes and government buildings and buried countless people.
Mexican medics apply first aid to Josyanne Petidelle after she was pulled from the rubble and thought dead in Port-au-Prince, Friday, Jan. 15, 2010. The 19-year-old was resuscitated minutes after she was rescued, three days after being trapped.
Recent events have only added fuel to the fire. Last fall, the government leaked word that in the southeastern state of Chiapas, agents had found a cache of 500 grenades, along with machine guns, rifles and thousands of rounds, squirreled away on a ranch. The intended plan, according to authorities: a mobilization of rebel forces to overthrow the state government on the bicentennial ceremonies in September 2010.
Diego Osorno is a 29-year-old journalist for Mexican daily newspaper Milenio who also writes a blog that chronicles subversive elements of Mexico, from former drug traffickers to anarchists. “Without a doubt this is a very, very important moment for the guerrillas,” he said. “They’re going to take advantage of the mysticism of the year. Expect big propaganda displays.”
Even if it’s not from one of the big-name guerrilla groups, Mr. Osorno said he’ll be looking for signs of unrest in Mexico this year. And they might not be obvious until retrospect, he says.
Take the 1910 Mexican Revolution, for example. History books say it began on the Texas border just a month after Mexico celebrated the republic’s centenary. But hundreds of miles south in the capital, few seemed concerned that year about the distant insurrection led by Francisco I. Madero, a spiritualist who supposedly received the go-ahead for his rebellion from ghosts during a séance.
The real bloodshed didn’t break out until Mr. Madero was assassinated in 1913, leading to the rise of tumultuous figures like the sombrero-wearing Emiliano Zapata and Pancho Villa, a highway-bandit-turned-national-hero.
“It wasn’t until then [1913] that you realized what was going on was actually a revolution,” says Mr. Osorno.
from: online.wsj.com
America Movil SAB from Mexico, Latin America’s largest wireless carrier, fell the most in 10 months after announcing plans to take over its sister fixed-line companies in a deal valued at more than $20 billion.
The company, controlled by Mexican billionaire Carlos Slim, said yesterday that it would offer stock worth about 215 billion pesos ($17 billion) for a holding company that controls South American carrier Telmex Internacional SAB. America Movil would then offer as much as 82.5 billion pesos in cash, or less in stock, for the rest of Telmex, also controlled by Slim.
Brazil is America Movil’s second-largest unit, with 42.3 million subscribers at the end of September. Slim’s companies in the country compete with wireless and landline companies controlled by Madrid-based Telefonica SA, which also has mobile- phone operations in Mexico and throughout Latin America. Tele Norte Leste Participacoes SA, based in Rio de Janeiro, also has wireless and fixed-line phone businesses in Brazil.
“I’m not opposed to them becoming more exposed to Brazil,” Christopher King, an analyst at Stifel Nicolaus & Co., said yesterday in a phone interview from Baltimore. He advises buying America Movil shares. “It’s probably not a bad thing, given the state of the Brazilian economy.”
he Haitian embassy in Mexico opened on Wednesday a stock up center to gather humanitarian aid for the victims of the earthquake occurred on Tuesday in that Caribbean country.
The embassy summoned Mexican people to aid with canned food, non-perishable food and drinking bottled water.
The Haitian embassy in Mexico also opened a bank account to raise money for the victims.
Meanwhile, the Mexican Red Cross said on Wednesday that it will send 20 experts of rescue, two tons of medicines and 5,000 packs of food to Haiti.
Mexican Red Cross leader, Daniel Goni told local radio station “Radio Red” that the humanitarian aid is ready to be sent and they are just waiting for the authorization of the interior, foreign and Defense Ministry, as well as of the Navy.
On Tuesday Mexican Deputy Foreign Minister for Latin America and the Caribbean Salvador Beltran said that Mexico will send to Haiti specialized doctors on injuries for structures collapse.
An earthquake measuring magnitude 7 struck Haiti on Tuesday, possibly leaving 3 million victims, the International Red Cross said.
To the moment there are no official reports on the number of deaths and injuries, however, the quake made tens of buildings, including the presidential palace and the building of the United Nations in Port au Prince, capital of Haiti, collapse.
