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UPDATE 2-Mexico cuts 2005 growth forecast to 3.5 pct

UPDATE 2-Mexico cuts 2005 growth forecast to 3.5 pct Mexico's finance ministry on Tuesday cut its forecast for economic growth this year to 3.5 percent after manufacturers hit a soft patch due to weaker U.S. demand and a slump in agricultural output. Alejandro Werner, the ministry's chief economist, said the economy would pick up pace in the second half of the year but that growth in gross domestic product would be less than earlier forecasts of 3.8 percent. Mexico's economy grew a tame 3.1 percent in the second quarter, way below forecasts, as farming output fell and weak U.S. demand hit Mexico's

Wall St still cheers for Mexico peso, Brazil real

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

UPDATE 2-Mexico inflation dealt another blow in September

UPDATE 2-Mexico inflation dealt another blow in September Mexican inflation fell to a lowest recorded annual rate of 3.51 percent in September as the central bank exorcised the ghost of hyperinflation and looks set to keep cutting interest rates to spur growth. Consumer prices rose 0.40 percent in September, below expectations. Closely watched core inflation, which strips out volatile food and energy prices, was 0.18 percent during September, the bank said on Friday. "It's a good number," said John Welch, an economist at Lehman Brothers in New York. "They were able to bring inflation down very fast." A vigorous cycle of monetary policy tightening

UPDATE 1-Mexico 28-day T-bill yield falls to 7.92 pct

UPDATE 1-Mexico 28-day T-bill yield falls to 7.92 pct The yield on Mexico's benchmark 28-day Cetes, or T-bills, dropped six basis points to 7.92 percent on Tuesday as investors saw the central bank cutting interest rates further despite an uptick in inflation. The rate on 90-day Cetes fell 12 basis points to 7.84 percent while the yield on six-month paper dropped 11 basis points to 7.77 percent. An earlier Reuters survey of Cetes dealers had predicted the 28-day Cetes rate would fall eight basis points to 7.90 percent and that longer-term T-bill yields would also fall. The yield on the 5-year peso-denominated bond

UPDATE 1-Mexico 28-day T-bill yield edges down to 9.57 pct

UPDATE 1-Mexico 28-day T-bill yield edges down to 9.57 pct Mexico's benchmark 28-day T-bill yield edged down 1 basis point to 9.57 percent on Tuesday but longer-term rates fell sharply as investors bet the central bank will wait until next month before easing monetary policy. The yield on 91-day T-bills, or Cetes, fell 13 basis points to 9.56 percent and 175-day paper was down 11 basis points to 9.46 percent. The majority of analysts polled by Reuters on Tuesday predicted the central bank will not relax monetary policy this week, despite recent weak economic growth data. Mexico's finance ministry lowered its forecast for 2005

Mexico economy grows 3.3 pct in third quarter

Mexico economy grows 3.3 pct in third quarter Mexico's economy grew 3.3 percent in the third quarter, dragged down by weakness in the manufacturing sector despite strong farm output. Compared to the second quarter, gross domestic product expanded by a seasonally adjusted 2.15 percent, the government said on Wednesday. It had predicted third-quarter growth of around 3.5 percent from the same period a year ago, while a Reuters poll of analysts produced a consensus forecast of 3.2 percent growth. Manufacturing grew only 0.2 percent in the third quarter as sluggishness at factories, including assembly plants that supply the struggling U.S. auto industry, limited

Currency Strategists: BNP Says Mexico’s Peso May Fall

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. ``We still

UPDATE 1-Mexico central bank sees 2006 growth near 3.5 pct

UPDATE 1-Mexico central bank sees 2006 growth near 3.5 pct Mexico's central bank governor Guillermo Ortiz said on Thursday the economy will grow close to 3.5 percent this year, a lukewarm performance with presidential elections looming in July. Ortiz said he expected gross domestic product to rise between 3 and 3.5 percent. "It looks more likely that we will be in the upper end of the range," he told reporters. President Vicente Fox pledged before taking office in 2000 to deliver growth rates approaching 7 percent a year, but his proposals for tax, labor and energy reforms have been blocked by the opposition-dominated

Mexico Cuts Interest Rate a 4th Month to Spur Economy

Mexico Cuts Interest Rate a 4th Month to Spur Economy Mexico's central bank cut the benchmark interest rate a fourth time in as many months to spur the economy as inflation slows. Banco de Mexico reduced the overnight lending rate to 8.75 percent from 9 percent, citing an improving inflation outlook. The five-member board led by Governor Guillermo Ortiz reiterated today in a statement its inflation forecast of 3.5 percent for this year, within the target of 2 percent to 4 percent. ``The message is that they'll continue to ease policy,'' Hector Soto, who helps manage $1.2 billion of Mexican

UPDATE 2-Mexico’s Walmex quarterly net rises 34 percent

Mexican retail powerhouse Wal-Mart de Mexico, or Walmex, posted 34 percent growth in net profit for the third quarter on Friday as aggressive expansion and cost savings fueled growth. Walmex (WALMEXV.MX: Quote, Profile, Research), a unit of No. 1 global retailer Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research), reported a net profit of 2.001 billion pesos ($186 million) for the quarter. Walmex has used aggressive expansion and low prices to become the dominant retailer in Mexico's fragmented market with more than 700 stores and restaurants. It said quarterly sales rose 14.7 percent to 38.658 billion pesos year on year. Same-stores sales, which