Mexico

Latam oil opening demands hedged bets

2 May 2018

The region's growing receptiveness to foreign investment in its energy assets could be a dream come true for oil majors. Political winds can change, though, and there is no perfect blend of hydrocarbon potential and legal certainty. Brazil and Mexico will do better than the rest.

BP’s marathon repair job gets sprint finish

1 May 2018

The UK oil major’s first-quarter results beat expectations. Costs from the Gulf of Mexico spill mean it needs higher oil prices than peers to generate free cash flow. But a mix of cost discipline on new projects and higher crude values mean BP should be able to keep gushing cash.

Heineken’s number two status brings marginal costs

12 February 2018

The Dutch brewer is one of the few global groups still increasing beer volumes. However, acquisitions will weigh on operating margins in 2018. Heineken needs to invest in its new Brazilian brands to take on market leader AB Inbev. That limits the scope for boosting profitability.

Cox: Sliding stocks don’t surprise our readers

5 February 2018

From Mumbai to Milan, we polled participants at our Predictions 2018 summits. Even before last week's rout, most thought investors are too exuberant, bitcoin is a bubble and Donald Trump is doing poorly. More surprising were regional takes on NAFTA, Italian elections and Brexit.

Auto industry exposes NAFTA’s blind spot

29 January 2018

Canadian negotiators have pointed out that the North American treaty doesn’t capture the value of high-tech equipment in autos, Reuters reported. A rule change to reflect tech advances is due. Complex supply chains call for new ways of measuring trade flows.

Canada’s insurance policy on NAFTA isn’t loony

23 January 2018

Negotiators have opened talks on revamping the trade pact, but their chances look slim. A U.S. pullout from NAFTA would affect Canadian exports amounting to nearly 20 pct of the country’s GDP. But Ottawa has other trade pacts in the works, and a flexible currency would help cushion any blow.

Canada will be biggest loser in U.S. trade spats

20 December 2017

Trump threatened China and Mexico with tariffs, but the real levies hit Canadian lumber and Bombardier jets. While Ottawa is pushing other trade deals, America is its biggest export market. Souring NAFTA talks and fights over dairy, wine and paper make it the chief target.

Latam’s turn from populism will be put to the test

15 December 2017

Demagogues of right and left will test the region's recent embrace of pro-business pragmatism in 2018. Presidential elections in Mexico and Brazil will feature firebrands keen to exploit voter anger at corrupt elites and lawlessness. The center, if it holds, will emerge stronger.

U.S. hands HSBC CEO perfect going-away gift

11 December 2017

The end of a five-year agreement over money-laundering lapses removes the threat of authorities yanking the bank’s U.S. licence. HSBC devoted 8 pct of its operating expenses to compliance last year. Though those costs will stay, departing boss Stuart Gulliver can leave on a high.

Review: The next fight for Latin America’s soul

17 November 2017

Dictators and demagogues have come and gone; progress in the region has been impressive. Still, rule of law and effective institutions still lack, Michael Reid writes in "Forgotten Continent." That makes the next steps toward prosperity harder.

Trump’s hardline NAFTA stance could benefit Asia

11 October 2017

Canada and Mexico oppose a U.S. push to boost North American content for autos and impose a new 50 percent standard for U.S.-sourced parts. The White House says it will reduce the U.S. trade deficit. But the push could increase costs for automakers and force them to move abroad.

Heineken tries its hand at conscious uncoupling

19 September 2017

The brewer’s second-largest investor, Femsa, has sold a stake worth 2.5 billion euros. A spat over Brazilian distribution was a hiccup in an otherwise successful relationship. Co-dependence in the lucrative Mexican market is a good reason for both sides to keep things friendly.

Slim’s Movil win could dial up Mexico oil reform

17 August 2017

A court sided with the billionaire against government efforts to end his telecom dominance. That may persuade President Peña Nieto and his PRI party, already lagging in the polls for 2018 elections, to offer more sweeteners to keep his other landmark reform, on energy, pumping.

U.S. blunt force ill-suited to NAFTA intricacies

16 August 2017

President Trump’s trade chief demanded changes to reduce the country’s trade deficit at the renegotiation kickoff. He also wants to speed up talks given upcoming elections. The America First tone fails to recognize that Canada and Mexico have leverage, and face pressure at home.

Mexico, Canada miss trick in NAFTA e-commerce fight

14 August 2017

Both countries are battling against Trump administration demands to let their citizens import more online goods duty-free. It would hurt their retailers and help U.S. firms like Amazon. But consumers would benefit. Conceding may also help their case in broader NAFTA negotiations.

Israeli water deal is a glass half full

7 August 2017

Mexichem leaked $220 mln of value on its $1.9 bln purchase of Permira- and kibbutz-backed Netafim. With global populations, drought and pollution growing, though, the drip-irrigation pioneer should fill its new owner’s coffers. India and China, especially, have yet to be tapped.

Trump fuzziness gives NAFTA mediators wiggle room

17 July 2017

The president wants to cut deficits with Mexico and Canada and strengthen rules for products made in North America. But his trade rep is offering few details, while cribbing other ideas from the ditched TPP. Such a vague approach may increase the chance of striking a decent deal.

Mexico and Canada on the lookout for new friends

14 July 2017

Donald Trump will soon present demands for a revised trade pact. Uncle Sam's size gives it leverage, but America’s neighbors have been seeking out partners in South America and Europe. This could benefit firms like Adecoagro in Argentina and Germany’s Oetker over U.S. rivals.

Ford’s new driver veers back onto old road

20 June 2017

Jim Hackett is shifting production of the Focus compact to China from Mexico. The move risks angering President Trump but it’s a smart use of capital and a sign globalization isn’t dead. It’s also ex-CEO Mark Fields’ idea, proof there’s no quick fix for what ails the automaker.

Mexico drives a train through Trump border wall

29 March 2017

The $2 bln purchase of a Florida railway by miner Grupo Mexico is a timely reminder that the countries' relationship is not all one-way traffic. The outward-looking Mexico the deal exemplifies is better for U.S. business than the more hostile neighbor Trump's wall plan portends.