AUGUST 2005 EDITION ARCHIVE

• • Business & Politics Outlook

    The Race for the Presidency

    While former Mexico City Mayor, Andrés Manuel López Obrador, is strongly positioned as his party’s candidate for next year’s presidential election, the race for the presidential nomination within the PRI and the PAN is at top speed. Within the PRI, Arturo Montiel, governor for the influential Estado de Mexico, has positioned himself as the alternative to Roberto Madrazo. Both are regarded as experienced politicians with strong links to the party’s strongholds. Fox’s... [Read More]

  • New Labor Union Leader

    Leonardo Rodríguez Alcaine, General Secretary of the CTM, the largest labor union in Mexico, passed away on August 6, 2005 at 85 years of age. His successor, Joaquin Gamboa Pascoe was elected without the support of the oil workers’ union. Gamboa Pascoe has recently publicly expressed the support of the CTM to Roberto Madrazo’s candidacy.

  • While Violence Continues, U.S. Consulate is Re-opened in Nuevo Laredo

    Amidst a continuing wave of violence, the United States closed and a week later re-opened its consulate in Nuevo Laredo, Tamaulipas. Although trade has not been hampered, and both the U.S. and the Mexican governments are showing concern and taking action, violence continues.

  • Fox Announces 36 Steps to Eliminate Red Tape and Attract Investment

    Fox’s new plan, which will not require legislative authorization, is meant to foster exports and attract foreign investment. Measures are meant to impact ten key sectors: financial, foreign trade, immigration, energy, norms, transportation, social welfare, health care, social security and improvement within states and municipalities. Business associations, however, are skeptical about the effectiveness of the measures and have expressed discomfort with the proposed tariff reductions.

  • Steady Job Growth in the Maquila Sector

    The manufacturing industry in Mexico employed 1,174,829 individuals in May, 2005, which represents a 4.4% increase over that same period in 2004. The most relevant increase has been in administrative posts (11.2%), followed by production technicians (6.5%) and hourly workers (3.4%).

  • Mexican Oil Prices on the Rise

    While oil prices continue to rise worldwide, the Mexican mix or crude oil is quoted at $51.55 U.S Dollars per barrel. The record price is almost 90% higher than the price considered in Mexico’s Federal Annual Budget for 2005.

  • Tidelands Corporation Announces Plan to Build Natural Gas Storage Facility in Reynosa

    San Antonio based Terranova Energy, a subsidiary of Tidelands Oil & Gas Corporation, announced plans to build a natural gas storage facility to supply the Burgos complex. The storage facility, which will be located in Reynosa, Tamaulipas, is designed to store 500 million cubic feet of natural gas and supply 50 million cubic feet of natural gas on a daily basis. The natural gas would not only be of Mexican origin, but would also be imported from Texas.

  • Economic Indicators

    Dollar Quote

    The Mexican Pesos has continued to strengthen against the United States Dollar. The Mexican Peso is quoted at 10.59 pesos per Dollar.

  • Mexican Stock Exchange

    Fueled by the strength of the Mexican Peso against the U.S. Dollar, the Mexican Stock Market is situated at around 14,702 points, which, in Dollar terms, represents a 22% increase in the last three months.

  • Interest Rates

    Interest rates have remained stable in the last few months. The Equilibrium Interest Rate, used among Mexican banks for 28 day deposits, is at 10.01%.