WSJ – Mexico ran up a wider-than-expected trade deficit in July as exports of petroleum and manufactured goods fell sharply from a year earlier, partially offset by a decline in imports.
Bloomberg – Mexico is evaluating ways to aid private equity investors and spur growth in the industry, including a reduction in the tax that funds pay to list companies on the stock exchange, according to four people with knowledge of the proposals.
Reuters – A Chinese-Mexican businessman accused of drug trafficking could be handed over by U.S. authorities to Mexican authorities as early as next week as he has nearly exhausted his legal options, ending a years-long extradition battle. Zhenli Ye Gon’s July 2007 arrest in the United States and the seizure of $205 million in cash at his Mexico City home several months earlier, played a role in high-profile money laundering investigations by U.S. authorities at the British banking giant HSBC and the Las Vegas Sands Corp. casino company.
Fox Sports – Juan Carlos Osorio has named Mexico’s team for the upcoming World Cup qualifiers against El Salvador and Honduras. It’s a side that has been weakened by the injuries to Javier “Chicharito” Hernandez and Oribe Peralta, but even with the duo out, Giovani dos Santos and Carlos Vela couldn’t get a look in what appears to be a pretty big statement about their status in the national team.
Reuters – Mexican construction firm ICA reported a much wider loss in the second quarter compared with the year-earlier period, as revenue was nearly halved and financial costs rose. The company, which has not posted a profit since 2013 and has defaulted on multimillion-dollar debt payments, lost 3.36 billion pesos ($184 million) in the April-June period.
Daily Mail – A small building in Mexico tells the violent history of treachery and conquest at the great Aztec city of Cholulu – but for hundreds of years, a secret lay beneath its floors. Hiding under the grass, trees and soil sits the Great Pyramid of Cholula, deemed the largest monument ever built on Earth, with a base four times the size of the Great Pyramid of Giza.
Standard & Poor’s on Tuesday lowered Mexico’s sovereign credit outlook to negative from stable, adding that a downgrade could happen in the next two years if the government’s debt or interest burden deteriorated.
Mexico’s peso slumped on the news, to trade nearly 1 percent lower against the dollar, while the IPC stock index fell more than 1 percent.
Standard & Poor’s said in a statement it affirmed Mexico’s ‘BBB+/A2’ foreign currency and ‘A/A1’ local currency sovereign credit ratings but added it saw “an at least one-in-three possibility of a downgrade over the next 24 months.”
The ratings agency said it expects government debt to rise to an average of 4 percent of gross domestic product per year over the next three years.
It expects GDP to expand by just over 2 percent in 2016, and roughly 3 percent between 2017 and 2019, if growth in the neighboring United States remains stable.
“Low GDP growth will make it difficult for the government to meet its ambitious target of stabilizing and gradually reducing its debt as a share of GDP over the next three years,” it said.
AP – The Mexican government says it is taking control of a battered rail line long used by Central American migrants heading north toward the United States. Fewer migrants have been hopping the freight cars on the line since government agents began raiding the trains in 2014.
The Guardian – Storms earlier this year blew down more than a hundred acres of forests where migrating monarch butterflies spend the winter in central Mexico, killing more than 7 percent of the monarchs, according to conservationists.
ABC – Donald Trump has said that he would meet with the president of Mexico. During a town hall tonight with Fox News, the Republican nominee was asked about Mexican President Enrique Pena Nieto, saying he would meet with the next U.S. president, regardless of who it is.
Breitbart – Speaking at the second Conference of States Parties of the Arms Trade Treaty in Geneva, Foreign Minister Claudia Ruiz Massieu blamed Mexico’s rampant gun crime on the U.S. laws and, in particular, cited the absence of a ban on “assault weapons.”
WSJ – Mexican oil regulators on Tuesday approved a bidding process for a dozen exploration and production areas containing mostly natural gas, the sixth auction since the country opened the industry to private and foreign investment. The auction includes 12 onshore blocks, nine in the Burgos basin of northern Mexico and three in the south of the country.
NYT – In a country that is struggling with pressing social, economic and political challenges yet possesses a rich cultural heritage, many emerging artists and trendsetters no longer feel compelled to look abroad for inspiration.
AP – Victor Juarez and three relievers combined to allow one hit and no earned runs and Mexico beat Canada 7-1 on Tuesday in an elimination game of the Little League World Series.
EFE – Teachers opposed to the government’s education reforms resumed blocking roads Tuesday in the southern Mexican state of Oaxaca, where public schools remain closed.
Bloomberg – Mexico’s biggest department-store operator, El Puerto de Liverpool, became a dealmaker to jump start growth. Its second major purchase this summer is winning over investors who were startled by the first one.
CBS Sports – This isn’t how fans of Bayer Leverkusen envisioned the season beginning. Star striker Javier ‘Chicharito’ Hernandez will miss two weeks after breaking his hand while falling down the stairs at his apartment in Germany.
World Highways – Mexico will set up four road maintenance tenders worth nearly US$827 million in total as public-private partnerships in 2017. Contracts will cover the road projects Piramides-Tulancingo-Puebla, Matehuala-Saltillo, Saltillo-Monterrey-Nuevo Laredo and Texcoco-Zacatepec.
RT – A spectacular, ancient document housed in the Bodleian Libraries at Oxford University since the 17th Century has finally been revealed – and the story it tells gives a dazzling insight into Mexican civilizations prior to the arrival of the conquistadores.
By Natalie Kitroeff / Wall Street Journal
Enrique Zarate, 19, had spent just a year in college when he landed an apprenticeship at a new BMW facility in San Luis Potosí, Mexico. If he performs well, in a year he’ll win a well-paid position, with benefits, working with robots at the company’s newest plant.
“When you start with such little experience, and get such a big salary, it’s unbelievable,” says Zarate, whose father is a taxi driver and whose mother is a housewife.
That sounds like an exported version of the American dream, circa 1965, in places such as Dearborn, Mich., or Marysville, Ohio. Indeed, the influx of those types of jobs to Mexico has enraged Ford employees in Wayne, Mich., and the makers of furnaces in Indianapolis.
But Mexico’s manufacturing surge has not been an unalloyed disaster for American workers.
U.S. manufacturing production, it turns out, is rising as well. Factory output has nearly reached its all-time high this year, and is up more than 30% since 2009.
The bottom line, say economists and company executives, is that what’s good for Mexico’s factory workers is good for some U.S. workers too.