OCTOBER 2005 EDITION ARCHIVE
Business & Politics Outlook
Impending Crisis in PRI Political Party
Information sources, allegedly close to Roberto Madrazo, ex-president of the PRI (Institutional Revolutionary Party) political party, provided information accusing his opponent for the PRI Presidential nomination, Arturo Montiel, of amassing a fortune while he served as governor of the State of Mexico. Bank accounts, business transactions, and real estate purchases, in addition to deposits made in cash presumably in the name of members of the Montiel family, have affected the flow of political... [Read More]Mexico and Panama Sign Agreement to Promote Investment
Panama and Mexico recently signed an agreement promoting reciprocal investment in their two countries. Panama wants to offer more opportunities to Mexican investors, as Mexico currently has important investments in the Panamanian construction, infrastructure, cement production, bottling, electricity and financial services sectors.UNAM - On the Cutting Edge of Water Purification
Specialists at the National Autonomous University of Mexico (UNAM) have developed a new method for treating wastewater, which allows for the purification of industrial and municipal water without using electrical energy. This purification process is based on the use of microorganisms and their controlled reproduction. Chile and Argentina have formed a group of countries, which Mexico is advising on this new water conservation technology to a group of countries including Chile and Argentina.Televisa expanding in Spanish market
Televisa is looking for a strategic partner to enter the Spanish market.Forecasters See Few Changes in the Economy During 2006
According to Prognosis, a well-known consulting company, the Mexican economy will maintain its stability and growth through 2006, even though growth will be slow, at approximately 3.5%. The upcoming electoral contest for the Presidency of the Mexican Republic will not have a major effect on economic indicators. For the next few months, between eight and nine million dollars will arrive to Mexico for foreign investment. No impact is foreseen on the Peso exchange rate.Aeromexico and Mexicana de Aviación Up for Sale
Shares of CINTRA, the holding company that owns Aeromexico and Mexicana Airlines, fell 4% after Iberia Airlines pulled out of negotiations for the sale of such carriers. The Spanish airline could not agree on terms to be accompanied by a Mexican group for a purchase offer. However, it is confirmed that Grupo Globalia would continue its push for participation in the Aeromexico and Mexicana sale process, for which it had aligned with a group of Mexican investors who would own 75% of the shares.Businesses Classified as "Small" Have Not Recuperated
Businesses classified as "small" businesses have not recuperated in the internal Mexican market from inflationary pressures. Between January and the current time, 235 businesses had begun to wind down or to suspend their activities. These small businesses have been negatively affected by lower demand for their products.Ecuador to Require Visas for Mexicans
The government of Ecuador announced last week that it would impose tourism and business visa requirements on Mexican citizens beginning October 8, as a reciprocal measure taken with Mexico, which decided to take the same course of action with respect to visiting Ecuadorian citizens.Mexico Captures Additional Millions in Tourism Dollars
During the first eight months of the year, 15 million foreign tourists visited Mexico. This lead to a rise in foreign exchange received from tourism and up 15.3% over amounts reflected in October 2004. The number of tourists increased 10.3%. These are great news for investors in tourism projects, which will continue to increase the capacity of their hotels in the hotel/tourism industry at an annual rate of 4.8%.Economic Indicators
Dollar Quote
The Mexican peso lost against the U.S. Dollar. The current exchange is 10.88 pesos per dollar, compared to 10.80 from the month of September.Mexican Stock Market
The Mexican Stock Market closed on October 13th at 14,924 points.Interest Rates
Mexican Interbank Equilibrium Rates (TIEE) for 28 day terms are currently at 9.43%.