The Japan Bank for International Cooperation will lend $600 million to help Mexico’s state-owned Petroleos Mexicanos (Pemex) develop oil and gas fields in the Chicontepec Basin, northeast of Mexico City.
Some of the gas produced there will be supplied to the thermal power stations of Mexican-based independent power producers owned by Japanese trading houses. read more
Cartels of Mexico
One of Mexico’s most violent drug Cartels “The Gulf Cartel” has turned against its former armed wing in the latest outburst of killings on the U.S. border to test President Felipe Calderon’s overstretched army crackdown.
Banners were hung across Reynosa on Wednesday telling the army to leave and vowing the Gulf cartel and its allies will defeat the Zetas.
“You fight poison with the same poison,” read the banners, signed “Cartels of Mexico United against the Zetas.”
At least five attacks took place in Nuevo Laredo and the state of Nuevo Leon over the weekend, led apparently by members of the Gulf cartel who allegedly drove from the Matamoros-Reynosa area in search of members of the Zetas, according to the U.S. intelligence official. Their convoy included 20 SUVs with the logo, “CdG [Gulf Cartel]” and “X” plastered on the backs of the vehicles to distinguish themselves from the Zetas. The vehicles carried an undetermined number of heavily armed men.
Using grenade launchers, they struck police installations that are known to be associated with the Zetas, according to accounts that couldn’t be independently confirmed by authorities in Mexico City.
Citi Board Nominates Ernesto Zedillo to Board of Directors
“Dr. Zedillo’s extensive experience as a world leader and his expertise in global economics make him a valuable addition to the board,” Richard Parsons, Citi’s chairman said in a statement.
Citigroup announced on Friday that it would be nominating Ernesto Zedillo, former president of Mexico, for its board of directors at its shareholder meeting on April 1.
Adding Zedillo, an economist widely credited with steering his country through the so-called Tequila financial crisis in the mid-1990s, is the latest move by Citi to repopulate its board of directors with banking experts.
Mexican Federal Police confirmed the arrest of José Vázquez Villagrana, known by his alias “El jabalí ‘and identified as an important member of the Sinaloa cartel, responsible for moving the drugs from Nicaragua to Colombia and destined for the United States. The head of Mexico’s Drug Enforcement Division, Small Ramon Eduardo Garcia, has stated in a press conference that the arrest occurred in the town of Santana in the state of Sonora, without making a shot. During the operation, authorities also seized an antiaircraft machine gun capable of firing 800 rounds per minute and with a range of 1,500 meters. Vazquez Villagrana surti moved more than two tons of cocaine every month for Joaquin “El Chapo” Guzman, leader of the Sinaloa cartel and one of the most wanted drug traffickers in the country after importing from Nicaragua, Jamaica and Colombia via Panama. Mexican officials argue that ‘El jabalí‘ using their own airplanes for drug shipments. It is believed that performed at least three to five shipments, with up to one ton per trip. According to preliminary data, the drug dealer also had contacts with Alfredo Beltran Leyva, known by his alias “El Mochomo ‘and brother of the late drug lord Arturo Beltran Leyva. The arrest of ‘The Mochomo’ in 2008 did away with the alliance between the cartel of the Beltran Leyva brothers and dome of the Sinaloa cartel.
Vazquez’s capture comes amid accusations that the government of President Felipe Calderón has not fought the Sinaloa cartel with the same scowl that to other gangs.
In that telephone conversation, with El Chapo Guzman , he was told that area does not allow anyone charged with stealing, and kidnapping or assaulted, and that the people who did it had to get her out of there. “
Mexico, says the Organization of American States should first decide on whether to recognize or not the new Honduran leader, who took office on January 27.
The Mexican units of America Movil (AMXL.MX) (AMX.N), controlled by billionaire Carlos Slim, and Telefonica
(TEF.MC) are two of 17 companies that want to bid for new wireless spectrum, according to Mexico‘s telecommunication regulator Cofetel.
The spectrum auctions, which are expected to pit media and cable companies against wireless giants, are part of a government push to stoke competition in the industry long dominated by Carlos Slim’s companies.
A partnership between media conglomerate Televisa (TLVACPO.MX)(TV.N) and NII Holdings Inc (NIHD.O) as well as companies controlled by Ricardo Salinas Pliego, including broadcaster TV Azteca (TVAZTCACPO.MX), are planning bids, according to the Cofetel document released late on Wednesday.
Mexican cable operator Megacable (MEGACPO.MX) is also on the list.
Mexico plans to buy more U.S. dollars and end credit lines with the International Monetary Fund and U.S. Federal Reserve in a sign of confidence in the country’s recovery from the financial crisis.
Mexican Central Bank chief Agustin Carstens said on Wednesday his country should increase international reserves and gradually extricate itself from a $47 billion line of credit with the IMF.
Separately, the bank said Mexico would not renew a $30 billion swap line with the Fed that expires on Feb. 1.
Carstens said the Mexican economy was recovering from a deep recession better than he had expected and that it was a good time for the bank to buy dollars. The peso currency MXN= weakened 0.8 percent to 12.97 per dollar following his comments.
The plan shows that the central bank thinks Mexico’s currency does not need help at the moment, although Carstens said he was concerned the peso could take a hit when the United States eventually starts raising interest rates.
Higher reserves would allow Mexico to cushion any shocks to the peso by selling dollars into the market, as it has been doing since the financial crisis flared in October 2008.
Mexico’s economy has recovered in recent months from the fall in U.S. demand for Mexican exports like cars and refrigerators, although Carstens noted that the turnaround is not strong enough to affect inflation, so interest rates do not need to move “at the moment.”
The U.S. Federal Reserve in October 2008 offered Mexico and more than a dozen other countries swap lines to give them access to dollars to counter turmoil in financial markets. Mexico tapped the line for about $3 billion in April of 2009, the same month it asked the IMF for access to a line of credit.
Mexico, however, will try to boost reserves instead of putting limits on foreign investment in financial markets, Carstens said.
“We don’t want to put limits on capital inflows,” he noted.
Since October 2008, Mexico’s central bank has sold nearly $32 billion in dollars to foreign exchange markets.
Accumulating more international reserves would be “a gradual process,” Carstens said, adding that the plan would have to be approved by the Finance Ministry, which also has a say in foreign exchange policy. Mexico currently holds $91.2 billion in reserves, near a record high.
Carstens said Mexico’s economy will grow between 3.2 percent and 4.2 percent in 2010, above the bank’s previous forecast for growth between 2.5 percent and 3.5 percent.
Carstens said “the bank’s primary objective will be to be predictable and transparent, “so that whenever we buy international reserves, it can’t be considered by the markets as an attempt by the Mexican authorities to defend a particular exchange rate.”
Mexico’s Treasury Department says it expects the economy to grow by 3.9 percent this year. That’s an improvement over its earlier prediction of 3 percent.
“Finally, growth predicted for the global economy as well as the recovery in formal employment that began in July 2009 allows for expectations that the recovery of external and internal demand will continue in 2010,” the ministry said. – Finance Minister of Mexico
The statement said the new forecast is in line with private estimates. The International Monetary Fund‘s latest forecast is for 4.0% growth this year and 4.7% in 2011.
However, the Finance Ministry cautioned that despite the “moderate optimism” about the economic outlook, “it remains necessary to deepen the broad agenda of structural reforms to build a more competitive economy, and achieve higher growth and job creation that will be sustainable in the medium-term.”
Wal-Mart de Mexico, S.A.B. de C.V. (WALMEX), a Mexico-based operator of hypermarkets, apparel stores and restaurants, has acquired Walmart Centroamerica from Wal-Mart Stores, Inc. ( WMT | Quote | Chart | News | PowerRating), a US-based operator of retail stores. The transaction is valued at approximately $2,852.05 million.
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Mexican media giant Televisa said Monday it has agreed to buy 30 percent of cell phone carrier Nextel de Mexico for $1.44 billion as part of its plan to offer “quadruple play” — voice, video, Internet and wireless products.
Two of Mexico’s most powerful businessmen are set for a new round of head-to-head competition as the country’s television
The companies plan to bid together on wireless airwaves in a government auction planned for May, and the investment is subject to winning the auction and Nextel getting the spectrum to broaden its services.
“If the proposal we present in the auction is not successful, then we don’t do the deal,” Alfonso de Angoitia, Televisa’s executive vice president, told reporters on a conference call.
Grupo Televisa S.A., the world’s top producer of Spanish-language television programming, will have the option to buy an additional stake of 7.5 percent, the company said in a statement earlier Monday.
