UPDATE 1-Mexico’s Kimber net tumbles on currency hedge
Kimberly-Clark de Mexico (Kimber), the country’s top paper products company, said on Thursday its third-quarter net profit was down 10 percent, hit by a badly-timed currency hedge.
Kimber earlier this year made a hedge against a weak peso until 2007, covering potentially volatile presidential elections next year.
But the Mexican currency has strengthened recently, gaining 1.3 percent during the last quarter.
“Net profit was affected by a high integral financing cost which continues to reflect the relative strength of the Mexican peso during 2005,” Kimber (KIMBERA.MX: Quote, Profile, Research) said.
The company, minority-owned by U.S.-based Kimberly-Clark Corp. (KMB.N: Quote, Profile, Research), said net profit was 659 million pesos ($61 million), from 732 million pesos in the same period in 2004.
Sales were up 4 percent to 5.369 billion pesos in the quarter, roughly in line with economic growth in Mexico.
More: today.reuters.com
Mexico 28-day T-bill yield tumbles to 8.14 percent
The yield on Mexico's benchmark 28-day Cetes, or T-bills, tumbled 28 basis points to 8.14 percent on Tuesday as markets reacted to a sharp central bank interest rate cut last week aimed at boosting growth.
Longer-term rates also fell at the central bank auction.
The yield on 91-day Cetes dropped to 8.12 percent from 8.38 at last week's auction, while the 175-day yield fell to 8.13 percent from 8.34 percent.
Further along the yield curve, the 5-year peso-denominated bond fell to 7.88 percent from 8.36 percent when it was last auctioned on Nov. 15.
The market
Currency Strategists: BNP Says Mexico's Peso May Fall
The Mexican peso, up 4.5 percent versus the dollar this year, will drop in 2006 as the central bank cuts its benchmark interest rate amid slowing inflation, said Rafael de la Fuente, chief economist for Latin America at BNP Paribas SA.
The peso has dropped 1.4 percent since the central bank lowered its key rate by a greater-than-expected half a percentage point to 8.25 percent on Dec. 9, the fifth reduction since August. Mexico's currency may also decline on concern lower rates will reduce the yield advantage of domestic bonds.
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Mexico assets down on US economy, emerging markets
Mexican stocks and the peso fell on Friday on concerns of a slowdown in U.S. economic growth and a slump in emerging markets.
The IPC stock market index < .MXX> dropped 1.50 percent to 21,175.59 points and the peso currency was off 0.41 percent at 11.1000 per dollar.
Mexican markets fell sharply on Thursday after the Federal Reserve Bank of Philadelphia said its business activity index slid to -0.4 in September from 18.5 in August, its weakest level in more than 3 years.
Mexicos economy is especially vulnerable to a U.S. slowdown as Americans buy 90
UPDATE 1-Fitch sees Mexico ratings weathering elections
Fitch Ratings said on Wednesday that Mexico's July 2006 presidential election, which Wall Street fears could bring instability, is unlikely to cost the country its investment grade status.
Wall Street investors have particularly questioned whether leftist front-runner Andres Manuel Lopez Obrador would make a "market-friendly" fiscally prudent president.
"In Fitch's view, unless the new administration departs significantly from the current policy framework, Mexico's investment-grade rating should not be affected," Fitch said in a statement.
Fitch, which considers countries with a rating of 'BBB-' and above to be investment grade, rates Mexico's foreign and local currency debt
UPDATE 3-Political ads boost Q2 profit at Mexico's Televisa
MEXICO CITY, July 14 (Reuters) - Mexican broadcaster Televisa's second-quarter net profit rose 165 percent, driven by rising political advertising and better results at its satellite business, the company said on Thursday.
It also increased its broadcast television sales outlook for the rest of the year.
Televisa (TV.N: Quote, Profile, Research)(TLEVISACPO.MX: Quote, Profile, Research) earned 1.277 billion pesos ($118.5 million) in the quarter to end-June compared with 482 million pesos a year earlier, when it had a one-time charge from losses at its Sky satellite unit.
More: today.reuters.com
Mexico, Argentina, Venezuela: Latin America Local Bond Preview
The following events and economic reports may influence trading in Latin American local-currency bonds today. Bond yields are from the previous session.
Argentina {ARGENT }: Argentina's central bank plans to step up oversight over foreign-exchange trading, seeking to block bond trades that are used to make illegal foreign- currency transfers, the bank said in an e-mailed statement yesterday. The bank said it had detected alleged violations of exchange control regulations through simultaneous purchases and sales of bonds in Argentina and abroad. Analysts such as Rafael Ber at Argentine Research say the
Brazil, Chile, Mexico, Peru: Latin America Local Bond Preview
The following events and economic reports may influence trading in Latin American local-currency bonds today. Bond yields are from the previous session.
Argentina {ARGENT }: Argentina's currency weakened 0.2 percent, its fifth straight decline, to 3.06 pesos per U.S. dollar as Argentines traveling abroad during the summer months buy foreign currency.
The yield on Argentina's 5.83 percent bond maturing in 2033 remained unchanged at 6.19 percent, according to Banco Mariva in Buenos Aires. {ARARGE03E121 DES }.
Brazil {BLTN }: Brazil's real rose for a second day on speculation companies
Woman caught smuggling $119,912 to Mexico
A 25-year-old Donna woman was caught trying to cross into Mexico with nearly $120,000 under her clothes, U.S. Customs and Border Protection officials said Thursday.
Aurora Garcia was arrested on federal charges of bulk cash smuggling Wednesday after agents at the Hidalgo international bridge pulled aside the taxi she was in and discovered the cash.
Garcia declared $1,000 but gave a negative declaration for currency in excess of $10,000, weapons, or ammunition.
CBP officers said they noticed discrepancies in Garcia's clothing, which turned out to be bundles of money totaling $119,912.
It is a federal offense not to declare
UPDATE 1-Mexico's Geo 3rd-qtr net profit rises 32 pct
Geo, Mexico's No. 1 home builder, posted a 32 percent rise in third-quarter net profit from a sales surge during a nationwide housing boom.
Geo (GEOB.MX: Quote, Profile, Research) said on Wednesday net profit in the July-September period was 267 million pesos ($25 million) as revenues rose 24 percent.
Revenues at Geo jumped to 2.657 billion pesos as the company sold 9,624 houses in the period, up from 8,600 homes in the same quarter a year earlier.
Geo said its core earnings before interest, taxes, depreciation and amortization rose 31 percent to 641 million pesos.
"For
Mexicos Peso Falls to Eight-Week Low Amid Inflation Concerns
Mexicos peso dropped to an eight- week low against the dollar and local-currency bonds fell on expectations inflation quickened last month.
The peso fell as much as 0.6 percent today before a report that is expected to show consumer prices rose 0.44 percent last month, the biggest increase in seven months, according to the median forecast of 16 economists in a Bloomberg survey. Accelerating inflation decreases the value of peso-denominated assets.
The inflation number today is going to look pretty bad, said Raul Rodriguez, head of economic analysis at Mexico City- based
