San Diego Red – About 20 states are in financial crisis due to a lack of resources to pay the pensions of members of the disgraced National Union of Education Workers.
Reuters – Deputy Finance Minister Fernando Aportela on Thursday said he expects budget planning for 2016 to include a lower oil price estimate if prices continue their current trend.
Tax News – Mexican Undersecretary of Finance and Public Credit Fernando Aportela said that the government is aiming to balance the federal budget by 2017.
Sentido Comun – International reserves last week reached a new record of $193.174 billion. The increase resulted primarily from the change in the valuation of the international assets of Banco de Mexico.
Reuters – Prolonged weakness of Mexico’s peso could have an impact on inflation but lower fuel prices, cheaper phone bills and favorable tax effects will likely help reduce annual inflation in the short-term, a top Central Bank official said.
Reuters) – Mexico’s sale of a new 30-year benchmark dollar bond and top-up of its 2025 ten-year dollar bond means the country has already covered half of its planned foreign currency debt issuance for 2015, the finance ministry said on Monday.
Bloomberg – More than 10,000 people working at Mexican oil service companies have been laid off as state-owned Petroleos Mexicanos cut contracts in the face of the global slump in crude prices. More job losses are expected.
Most of the companies are based in Ciudad del Carmen, on the Campeche Bay in the Gulf of Mexico, and were told last week that contracts wouldn’t be renewed with Pemex, as the world’s ninth largest oil producer is known.
Job losses could rise to 50,000, Gonzalo Hernandez, secretary at the Ciudad del Carmen Economic Development Chamber, said in a phone interview.
Reuters – Mexico’s central bank will pay particular attention to its monetary policy stance relative to that of the United States, Governor Agustin Carstens said, citing U.S. monetary policy as an external risk to domestic inflation in 2015.
Plastics News – Seven factors will affect Mexico’s plastics industry either positively or negatively in 2015, according to a consultant Eduardo de la Tijera Coeto.
Sentido Comun – Mexico’s international reserves last week reached a new record of $193.08 billion after rising by $43 million compared to the previous week.
Sentido Comun – Oil extended its fall to below $50 per barrel due to speculation that crude inventories will continue increase, thereby pushing prices to the lowest level since April 2009.
By Katherine Corcoran / Associated Press
As he heads to Washington on Monday to meet with Barack Obama, Enrique Pena Nieto leaves behind a year that was hardly what he had envisioned.
The Mexican president and his team started 2014 carrying out a slew of newly passed reforms, from breaking up telecommunications monopolies to opening the nation’s energy sector, earning him international plaudits, including a Time magazine cover with his image above the caption “Saving Mexico.”
Then came a 1-2-3 punch of scandals: Soldiers killing 22 civilians in a questionable “shootout”; the abduction and presumed murder of 43 college students, allegedly at the hands of local officials and police in league with a drug cartel; and revelations that Pena Nieto and his treasury secretary live in luxury homes built and financed by a favorite government contractor.
Pena Nieto’s meeting with Obama at the White House on Tuesday comes amid what was supposed to be “Mexico’s moment,” a new era of transparency and reform.
Notimex – The funding provided to commercial banks grew by 2.4 percent in real terms in November 2014 compared with the same period last year, the Bank of Mexico reported.
Azteca Noticias – The Mexican economy will close the year with greater dynamism, which will continue during 2015, said the Secretariat of Finance and Public Credit ( SHCP ).
WSJ – Mexico ran up a $1.08 billion trade deficit in November as a drop in crude oil prices led to a deficit in petroleum products, offset by continued growth in exports of manufactured goods.
Reuters – Mexican annual inflation unexpectedly ticked higher in the first half of December as a weaker peso threatens to push up consumer prices in Latin America’s second biggest economy.
Reuters – Mexico said it plans to auction high-speed mobile phone spectrum in 2015 for the first time in five years as the government seeks to ramp up competition in a sector long dominated by tycoon Carlos Slim.
El Siglo de Torreon – Basic goods could increase 10.4 percent over the next two months due to the increase of the dollar, said the president of the Asociación Mexicana para un Comercio Justo.
WSJ – The Mexican minimum-wage commission determined to raise the country’s daily minimum wage by 4.2 percent—in line with current inflation—to about 70 pesos a day, less than $5 at current exchange rates.