JPMorgan, CSFB, Santander, ING Cut Mexico GDP Outlook (Correct)
JPMorgan Chase & Co., Credit Suisse First Boston, Santander Central Hispano SA and ING Groep NV cut their forecasts for Mexican growth this year after a government report showed the economy expanded less than expected in the second quarter.
JPMorgan reduced its growth forecast to 2.4 percent from 3.2 percent while Credit Suisse First Boston cut its forecast to 3 percent from 4 percent and Santander lowered its estimate to 3.2 percent from 3.5 percent. ING cut its estimate to 2.8 percent from 3.6 percent.
Latin America’s largest economy expanded 3.1 percent in the second quarter from a year ago, below the 4 percent median estimate in a Bloomberg survey of 12 economists, as the agricultural industry slumped, rising interest rates curbed consumer spending and demand fell in the U.S. for Mexican-made cars. The economy shrank a seasonally adjusted 0.4 percent in the second quarter from the first quarter.
“The weakness is across all sectors,'’ Alfredo Thorne, a Latin America economist with JPMorgan in Mexico City, said in a telephone interview.
More: bloomberg.com
The Washington Posts trouble with numbers Mexico after NAFTA
On April 17, the Washington Post ran an article about Mexicos economy and the North American Free Trade Agreement, which took effect on January 1, 1994. Part of the focus was on market forces and the flight of some Mexicans to the U.S.
Still, the past 13 years havent been all bad economic news for Mexico, wrote Manuel Roig-Franzia of the Posts Foreign Service. Spurred by NAFTA, Mexicos gross domestic product has ballooned, multiplying nearly seven-fold, from $108 billion in 1993, the year before NAFTA implementation, to $748 billion in 2005.
If
Mexico, Venezuela, Chile: 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.
Chile {BCPCL }: Chile's jobless rate fell to a nine-month low of 7.6 percent in November, the government reported yesterday, on increased industrial production and seasonal agricultural employment. Industrial production expanded at a faster-than-expected 6.2 percent.
The yield on Chile's 8 percent bond maturing in June 2014 fell 4 basis points to 6.35 percent, according to JPMorgan Chase Chile. {CL0000000605 DES }
Mexico {MBONO }: Mexico's government releases
Mexico 3rd-Qtr GDP Rises 3.3%, Fastest Pace in 2005
Mexico's economy grew at its fastest pace in three quarters in the July-to-September period, spurred by a surge in bank lending to consumers.
The economy expanded 3.3 percent in the quarter, more than the 3.2 percent median forecast from 18 analysts in a Bloomberg survey, a government report showed. The growth rate was higher than the 3.1 percent rate in the second quarter and 2.4 percent rate in the first quarter.
Consumer demand is rising as interest rates decline and banks boost lending, helping offset a slump in manufacturing exports to
Mexico Exports Rise 16% in June to $21.2 Bln on Autos (Correct)
Mexicos exports surged for a second month in June as sales of automobiles helped regain U.S. market share lost to China.
Exports climbed to $21.2 billion from $18.3 billion a year earlier, after reaching a record $22.71 billion in May, according to a Finance Ministry report. Mexico posted a trade deficit of $417 million in June, the report said. Imports rose 17.9 percent from a year earlier to $21.7 billion.
Source : bloomberg.com
Mexico's Inflation Rate Drops to Record Low in August (Update1)
Mexico's annual inflation rate fell to the lowest on record in August, adding to expectations that the central bank will cut the benchmark lending rate for a second straight month.
Inflation in the 12 months through August slowed to 3.95 percent, the lowest rate since the central bank began keeping records in 1969, from 4.47 percent in July. The monthly inflation rate dropped to 0.12 percent from 0.39 percent in July as the cost of cars and vegetables such as tomatoes and avocados fell.
``Inflation has been declining consistently and
UPDATE 1-Bank of America sells Mexico asset management firm
Bank of America Corp. (BAC.N: Quote, Profile, Research) said on Thursday it will sell its asset management business in Mexico to Grupo Financiero Santander Serfin, the Mexican subsidiary of Madrid-based Grupo Santander (SAN.MC: Quote, Profile, Research)(STD.N: Quote, Profile, Research).
Terms of the deal, expected to close no later than the end of first-quarter 2006, were not disclosed. The Mexico business has about $1.8 billion under management.
Bank of America said it decided to sell the business because it did not have sufficient synergies with the company's corporate and investment banking and cash management businesses
Mexico Bolsa Falls on Shift to Brazil, Yields: Latin Stocks
Mexican stocks fell for a second day, led by America Movil SA, as investors sold Mexican stocks to increase positions in Brazil after Fitch raised the South American country's debt outlook.
The Bolsa index of the most-traded stocks in Mexico City fell 346.41, or 2.2 percent, to 15,098.96 at 1:15 p.m. New York time. Elsewhere, Argentina's Merval fell 37.44, or 2.3 percent, to 1606.52.
Mexican stocks extended their decline today after Fitch Ratings yesterday revised the outlook on Brazil's debt to ``positive'' from ``stable.'' Fitch rates Brazil BB-, three levels below
MEXICO CITY, Aug 18 (Reuters) - Mexico cut its forecast for 2005 economic growth to 3.5 percent after sluggish U.S. demand for car exports unexpectedly slowed expansion in the second quarter, a senior presidential advisor said on Thursday.
The government said this week Mexico's second-quarter gross domestic product grew only 3.1 percent, pushing its previous year-end growth forecast of 3.8 percent out of reach.
"That now looks a bit more difficult. We would have to have a very strong second half to achieve that growth," Eduardo Sojo, who is President Vicente Fox's public policy coordinator, told Radio Formula in an interview.
"We still
Mexico credit card clients balk at ID photos
Mexicans consumers balk at having passport-style photos, which often are unflattering, printed on their credit cards even if it helps avoid crime, a bank executive said on Monday.
Market research and past experience in Mexico rule out printing identification photos of clients on credit and debit cards to prevent robbery and fraud, even though most people believe crime is rampant, Santander Serfin vice president Jorge Alfaro told reporters.
Credit cards with identification photographs "have not done well, especially with women, because nobody likes those photos that come out on (drivers') licenses," Alfaro said.
Taxis and dark
Mexico predicts 3 percent GDP growth
Mexico's finance minister said Monday that the government expects to end the year with gross domestic product growth of about 3 percent, a slowdown from 4.4 percent in 2004.
At a news conference, Francisco Gil Diaz said economic growth "isn't what we would have wanted, and could have been higher if reforms had been carried out."
Mexico's Congress has resisted President Vicente Fox's efforts to push tax, labor and pension reforms, as well as initiatives to increase private investment in energy.
Still, 750,000 jobs were created in 2005, Gil said.
Gil said the country's free-floating exchange rate and flexible
