FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

GlobeOne partners InvestaBank and Bankaool to bring M-Banking tech to Mexico

GlobeOne, a new financial technology company, today announced a partnership with InvestaBank and Bankaool that will bring GlobeOne’s mobile banking solution to Mexico later this year.

Through this new partnership, GlobeOne will provide a mobile interface for a suite of financial services offered by InvestaBank and Bankaool in Mexico, bringing bank services to those who are currently underserved by existing financial services.

“Only 45% of the population in Mexico has a bank account, which is why this partnership is an exciting development for Mexican consumers,” said Michael Wolper, GlobeOne member and Chief Marketing Officer. “Through GlobeOne’s growing global network, consumers will have access to the basic financial services necessary to build a strong financial future, and banks will have a new platform to serve the many digitally connected Mexican consumers who do not participate in the traditional, brick-and-mortar banking system.”

GlobeOne leverages mobile technology to provide a digital banking solution that is expected to launch in the United States and Mexico in the fourth quarter of 2015. As new banking partners are secured around the world, additional countries will join GlobeOne’s integrated global network. GlobeOne’s innovative app will offer paperless checking, a security savings account, a line of credit, domestic and international transfers between GlobeOne members, and access to the global income-building SocialBoostTM program, which gives members the opportunity to earn a new income stream while helping those who need it most.

“We are excited to work with GlobeOne and launch a system, an app, which will add to our business model of financial inclusion in the country. Technology is part of every person’s daily life, which is why this is a great opportunity to expand financial services to the unbanked and underserved population in Mexico,” said Francisco Meré Palafox, Chief Executive Officer of Bankaool.

“Our partnership with GlobeOne guarantees our ability to provide state-of-the-art banking and payment technology to the widest Mexican population who will now have mobile phone access to the best in financial services,” added Enrique Vilarte, Chief Executive Officer of InvestaBank.

GlobeOne executives will present the mobile interface and features at the “Mobile Money & Digital Payments Americas” conference in Mexico City on March 24th.

Source: Finextra,19.03.2015

Filed under: Banking, Latin America, Mexico, , ,

Temenos seeds Core Banking Cloud in Mexico

Temenos (SIX: TEMN), the market-leading provider of mission-critical solutions to the financial services industry, today announces the expansion of its cloud-based services in Mexico with the launch of the T24 country Model Bank for Mexico in the Microsoft Azure cloud.

Temenos has been working with Microsoft Azure since 2011, when together they were first providers to put core banking in the cloud. There are two early adopters for the service In Mexico, namely Servicios y Financiamiento Agrícola, S.A. de C.V. (SeFia); and Sociedad Financiera Campesina S.A. de C.V. (Soficam).

By offering core banking in the cloud, Temenos is enabling financial organisations to operate with lower costs and more flexibility and, by extension, help them to provide under-served communities with access to financial services.

By deploying a Mexico-specific modern core banking solution as a service on the Microsoft Azure platform, Temenos can offer the functionality to address local service needs, including assistance with regulation and compliance requirements, while removing the high cost, lengthy timeline and inherent risk of building or licensing a fully-functional, compliant technology platform in-house.

SeFia, one of two early adopters, was established in 2005 in Mexico and has a presence in the states of Chihuahua, Coahuila, Durango, Guanajuato and Queretaro. SeFia helps its customers finance the purchase of machinery and equipment in the agricultural sector. Their product portfolio is designed to facilitate farmers, cattle ranchers and builders in obtaining loans that allow them to expand their businesses and generate a positive impact on the local economy.

SeFia COO, Luis Fernando Rosado, said:

“We have in T24 a comprehensive solution for our loan portfolio administration, the software is quick and easy to use and the information it provides is of high quality.”

Soficam, another early adopter, was established in 2008 in Mexico and has a presence in 19 states. Soficam grew out of a strategic alliance between agricultural and banking sectors, offering loans to small producers in the Mexican agricultural and fishing industries. Soficam is related to the Confederacion Nacional Campesina, an organization formed by 2.5 million affiliates classified in 17 agricultural productive branches across Mexico.

Soficam CIO, Alejandro Hatchett Cruz, said:

“Accessing T24 in the cloud allows us to deliver financial services to our clients without the complexity and expense of in-house IT systems.”

Enrique O’Reilly, Regional Director, Temenos Latin America, said:

“We are delighted to kick off 2015 with the launch of our award-winning core banking solution in the cloud for Mexico. Deploying banking technology from a cloud-based platform solves significant issues for our clients by allowing them to launch quickly, to turn fixed into variable costs and to operate profitability at much lower levels of scale. The work we are doing in Mexico with Microsoft builds on our experience in other countries around the world such as Nigeria, Kenya and Myanmar.”

Ernesto Neve, Solutions Director for Financial Services, Microsoft, commented:

“We are very excited to bring Financial Institutions in México the best cloud platform available. Our cloud platform offers the best in IaaS, PaaS and SaaS, as well as compliance with the Mexican banking regulator CNBV’s requirements for institutions working with cloud services. Our security, privacy and integrity model enables Financial Institutions to feel confident when moving to our Azure platform.“

Filed under: Banking, Mexico, , ,

In the future, BBVA will be a software company

Fresh from his forecasts last month that half of the world’s banks would get left behind by the digital revolution in financial services, BBVA chairman Francisco González has mapped out a new future for his organisation, not as a bank, but as a software company.

González pointed out the dramatic impact that technology is having on the transformation of the financial sector during a speech at the Mobile World Congress in Barcelona.

“BBVA will be a software company in the future,” González told the audience, recalling that the bank embarked on its “digital journey” eight years ago.

During this time it has made significant investment to build a new customer-centric technological platform, which operates in real time and is also modular and scalable. This platform allows BBVA to develop a new generation of services to compete with new startups and major digital companies, with the emphasis on mobile says González.

“The mobile has emerged as the driving force for disruptive innovation in banking,” the BBVA chairman said.

The number of BBVA mobile customers has increased 14-fold in three years and totaled 4.3 million at the end of 2014.

González underlined the success of the bank’s mobile payments app BBVA Wallet, which already claims over 450,000 downloads in Spain and is poised to be rolled out in Mexico, the US and Chile. “It’s the world’s most-used cloud-based NFC payment app,” the BBVA chairman boasted.

The bank currently has 450 people working on the wallet, but this is just the beginning. Currently just 3000 of its 110,000 staff work on the digital side but in five years González reckons it will be a majority, as the company re-engineers its workforce to compete on equal terms with the likes of Apple, Samsung, Google and Amazon.

“There is a threat element which I like because banking needs competitors,” said González. “We need to be more efficient but we can also collaborate with them.”

Source: Finextra 05.03.2015

Filed under: Banking, Chile, Latin America, Mexico, Services, , , ,

Mexico: BMV incorporates into MILA (Mercado Integrado Latino Americano)

Ciudad de México, diciembre 03, 2014.- La incorporación de México al Mercado Integrado Latinoamericano (MILA) es un hito trascendental para el mercado mexicano, destacó la Secretaría de Hacienda y Crédito Público (SHCP).

Apuntó que esta incorporación es resultado de la reforma financiera promulgada el 10 de enero pasado y del trabajo coordinado de las autoridades y el gremio bursátil, en beneficio de todos los participantes del sistema, así como de la sociedad mexicana en su conjunto.

La dependencia federal señaló en un comunicado que este martes se realizó la primera operación en el MILA a través de la Bolsa Mexicana de Valores (BMV), lo cual fue posible gracias a la reforma financiera.

Además, indicó, con base en la implementación de su regulación secundaria realizada por la SHCP, la Comisión Nacional Bancaria y de Valores (CNBV) y demás autoridades financieras, así como en los trabajos de cooperación entre las bolsas de valores y las casas de bolsa de los países miembros.

Refirió que los sistemas tecnológicos y operativos del MILA en México se encuentran en funciones, y por su parte el S.D. Indeval, Institución para el Depósito de Valores, ha realizado las gestiones necesarias para conectarse a los otros depósitos de valores del MILA.

En paralelo, añadió la Secretaría de Hacienda, se firmaron acuerdos recíprocos y se realizaron pruebas de conectividad para que la operación se lleve a cabo de forma segura y eficiente.

Con esto los mercados de Colombia, Chile y Perú quedan habilitados a partir de esta fecha para operar en el mercado mexicano a través de un intermediario local, realizando intercambios operativos en todos los sentidos.

Resaltó que la incorporación de México al MILA significa que los inversionistas mexicanos tendrán acceso a más de 780 valores listados, además este mercado integrado abre una ruta franca, disponible a los inversionistas de los países miembros, para invertir en valores mexicanos.

De acuerdo con la Federación Mundial de Bolsas (WFE), con la incorporación de México el MILA se convierte en el primer mercado en América Latina por número de compañías listadas y valor de capitalización bursátil, expuso.

Indicó que en el MILA se operarán, a través de la BMV, todos los servicios de los mercados de acciones y derivados, incluyendo el listado de acciones, títulos de deuda, Certificados de Capital de Desarrollos (CKDs) y Fideicomisos de Infraestructura y Bienes Raíces (Fibras).

Asimismo se ofrecerán plataformas electrónicas de negociación para acciones, derivados financieros, operaciones de renta fija y derivados over the counter (OTC), además de acceso por medio de una orden de ruteo al mercado de derivados más grande del mundo, el Chicago Mercantil Exchange (CME).

Del mismo modo se liquidarán y compensarán todas las operaciones a través de contrapartes centrales y se ofrecerán servicios de custodia, abundó la dependencia federal.

Source: Mexican Business Web, 03.12.2014

Filed under: BMV - Mexico, Chile, Colombia, Exchanges, Latin America, Mexico, Peru, , , , , , , , , , , ,

Brazil: BTG Pactual Buys Generali’s BSI (Banca Svizzera Italiana) Swiss private-banking Unit for $1.7 Billion

Grupo BTG Pactual (BBTG11), the only investment bank publicly traded in Brazil, agreed to buy Assicurazioni Generali SpA (G)’s Swiss private-banking unit for 1.5 billion Swiss francs ($1.7 billion) to help build a global private-banking platform.

BTG will pay for BSI Group with 1.2 billion francs in cash and 300 million francs of shares in units listed in Sao Paulo, Generali said in a stock-exchange statement today. The Trieste, Italy-based company said it will book a loss of about 100 million euros ($136 million) for the transaction, while the deal will add about 9 percentage points to its Solvency 1 ratio.

The Brazilian lender controlled by billionaire Andre Esteves is expanding internationally as the country’s growth slows. It’s added units in Mexico and Colombia, and in January Esteves said he planned to open offices in Geneva, Houston and Singapore as the firm expanded in commodities. Last week, it agreed to acquire Global Atlantic Financial Group Ltd.’s reinsurance unit Ariel Re.

“This acquisition reflects our confidence in the tradition and strength in Switzerland as a global financial center,” Esteves, the bank’s chief executive officer, said in a statement. “It’s an opportunity to build one of the biggest global private-banking platforms.”

Photographer: Simon Dawson/Bloomberg

Assicurazioni Generali SpA Chief Executive Officer Mario Greco is selling BSI as part… Read More

BTG was unchanged at 34.15 reais at 10:31 a.m. in Sao Paulo. Generali reversed earlier gains, falling 0.1 percent to 15.38 euros in Milan, valuing the insurer at 24.1 billion euros.

Global Platform

The acquisition will almost double BTG’s assets under management to create a wealth- and asset-management business with more than $200 billion in assets, BTG said. The bank plans to keep the BSI brand for its global wealth-management platform.

“The acquisition is in line with BTG’s strategy to diversify revenue,” Ricardo Kim, an analyst at brokerage XP Investimentos CCTVM SA in Sao Paulo, said in a report today. He said the transaction was positive for BTG.

Brazil’s rising inflation and slowing growth has led to a drought in the nation’s initial public offerings, reducing investment banking revenue. BTG has been building a global commodities business since last year as part of its strategy to offset declining investment banking fees.

Brazil, which hosted this year’s World Cup, has expanded at an average annual pace of 2 percent since 2011, when President Dilma Rousseff took office, the slowest economic growth for a Brazilian administration in more than two decades. Economists expect the South American nation to expand 1.05 percent this year, according to a weekly survey published by the central bank today.

U.S. Fine

Proceeds from the sale, which is scheduled to be completed by the first half of next year, may be reduced by “any fine established pursuant to the U.S. Department of Justice’s tax amnesty program relating to Swiss financial banking institutions payable by BSI,” Generali said.

BSI is one of at least 36 Category 2 Swiss banks seeking to avoid prosecution for handling undeclared American money by joining the U.S. Justice Department’s voluntary disclosure program. The U.S. is scouring Switzerland for names of tax dodgers who used the world’s largest offshore haven to hide money from the Internal Revenue Service.

Under a program announced in August, about a third of Swiss banks with “reason to believe” they violated tax laws asked the Justice Department to forgo prosecution. In turn, banks must hand over data on undeclared accounts and pay penalties.

Revenue Goal

Generali CEO Mario Greco sold the unit to focus on the company’s main business, strengthen finances and boost profitability. The firm, which set a goal of 4 billion euros of revenue from asset sales by 2015, will have achieved 3.7 billion euros with the sale, Greco said in the statement.

“This sale completes the disposal process aimed at strengthening the capital base of the group, resolving a key issue for us, and allowing Generali to focus on driving forward with its core insurance business,” he said. “This result is a testament to our team’s ability and commitment to execute a complex transaction in a challenging environment.”

BSI Loss

BSI had a net loss of 722 million Swiss francs last year as it took writedowns faster than planned because of new regulations for accounting treatment of goodwill, the bank said in April.

Generali’s net income in the three months to March climbed to 660 million euros from 603 million euros a year earlier, the company said in May. The first-quarter pro-forma Solvency 1 ratio after the BSI sale will exceed the insurer’s 2015 target of 160 percent, it said today.

“Once the announced sale of BSI is concluded, Generali’s period of balance sheet repair will be complete,” Marcus Rivaldi, an analyst at Morgan Stanley, said in a report today. “Focus now turns to how earnings and dividends can be improved.”


Source: 14.07.2014 Bloomberg  by editor Elisa Martinuzzi at

Filed under: Banking, Brazil, Colombia, Latin America, Mexico, News, Singapore, , , , , , , , , , ,

Marco Polo New World appoints Christian Robertson as CEO

NEW YORK – 03 FEBRUARY 2014 – Marco Polo New World, the leading provider of trading solutions for developed and emerging markets, today announced that Christian Robertson has assumed the role of Chief Executive Officer of the company. The Marco Polo New World Board of Advisers has carefully selected Mr Robertson for his unique financial services delivery experience garnered during nearly a decade of building trading platforms around the world.

Marco Polo New World appointed Mr Robertson to lead the firm based on the success as co-founder of Paladyne Systems, a leading provider of buy-side technology and services,  acquired by Broadridge Financial Solutions (NYSE: BR)  in September 2011.  Before Paladyne, Mr Robertson was the founder and President of GAA, a consulting firm providing high-end systems to the alternative investment industry, having spent his early career as a technology investment banker for Credit Suisse and later Merrill Lynch.

“I believe there is a tremendous opportunity for revenue growth and expansion of the Marco Polo New World product offering given our long-standing relationships with foreign brokers and our unique global trading reach,” commented Christian Robertson. “Marco Polo New World is able to leverage Perseus infrastructure services in new and existing markets.  Investing in the latest technologies, Marco Polo New World will be able to grow into new global markets and lines of business, while expanding our existing platform,” he concluded.

Marco Polo New World, established in 2000, was one of the original firms who set out to overcome the barriers to investing and trading between developed and emerging markets. Today Marco Polo New World, with its new focus and technology, has in place a global electronic trading platform that currently provides connections to 80+ plus countries representing more than 100 markets.

Dr. Jock Percy, Chairman of Marco Polo New World commented, “We are delighted to have Christian take the helm given his proven track record, innovative thought leadership and his ability to execute on deployment of a global trading technology business.”

Source: Marco Polo New World,03.02.2014

Filed under: Brazil, Latin America, Mexico, Trading Technology, , , , , ,

Mexico: FIBRAS (REIT´s) drive BMV Mexicos Stock Exchange listings

17 Placements that have been made in the Bolsa Mexicana de Valores (BMV) so far in the year, five correspond to Fideicomisos de infraestructura en bienes raíces (Fibras).

These five trusts represent 34% of all placements in the year. This percentage shows the strength they mean to the Mexican stock market.

In addition, the participation of Fibras is remarkable for its amount of placement, since participates with 46.377 billion pesos, of the approximately 120 billion pesos collected until now.

But if the historical figure of Grupo Financiero Banorte is not considered- 27.815 million pesos-the capital gathered at the BMV is 91.568 billion pesos and of this amount, the resources obtained through the Fibras is close to 51%.

Then, five Fibras have collected slightly more than half of the resources at the BMV only from January 30 to July 24 this year.

The percentage of resources obtained by the trusts gives certainty and reflects a favorable perspective that constitutes one of the main platforms of financing for companies operating in the country, as well as an important investment vehicle.

Given the positive evolution of the Fibras in so far this year, José Manuel Allende, Deputy general director of promotion and planning of the BMV, did not rule out that in the remainder of the year new placements of these trusts could be announced .

The launch of a new Fibra, of Grupo Danhos is expected for next September. While today there are six trusts from investment in real estate listed in BMV: Fibra UNO, Fibra Hotel, Fibra Mcquarie, Fibra Inn, Fibra Terra and Fibra Shop.

Performance and operability of the Fibra has excelled since they went to the Mexican stock market, already reaching high levels of operation and in accordance with the liquidity, the BMV index, two trusts are in the segment of high liquidity and three more are in a midrange, said Jorge Placido, director of analysis and investment strategy of Vector.

No doubt it was an instrument with very good acceptance among investors and is expected to grow interestingly in the future, because it has several advantages.

For the real estate sector, the arrival of the Fibras brought important benefits that will also impact on the growth of the productive sector construction Mexico and represents one of the best ways to access funding.

Listings  BMV 2013 from January 30 – till July 24, 2013
























































(Judith Santiago / Mexican Business Web)

Related posts:

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Risk Management, , , , ,

Mexico: Fibras acaparan la colocación bursátil MBV

De las 17 colocaciones que se han realizado en la Bolsa Mexicana de Valores (BMV) en lo que va del año, cinco corresponden a los Fideicomisos de infraestructura en bienes raíces (Fibras).

Estos cinco fideicomisos representan 34% de todas las colocaciones en el año. Dicho porcentaje muestra la fortaleza que significa la actividad inmobiliaria para el mercado bursátil mexicano.

Además, la participación de las Fibras es destacable por su monto de colocación, ya que emite 46,377 millones de pesos, de los aproximadamente 120,000 millones de pesos hasta ahora recabados.

Pero si no se considera la cifra histórica del Grupo Financiero Banorte -27,815 millones de pesos-, el capital recabado en la BMV suma 91,568 millones de pesos; de este monto, los recursos obtenidos por medio de las Fibras representa una participación cercana a 51 por ciento.

Entonces, las cinco Fibras han recabado poco más de la mitad de los recursos en la BMV tan solo del 30 de enero al 24 de julio de este año.

El porcentaje de recursos obtenidos por los Fideicomisos da certeza y refleja una perspectiva favorable de que constituye una de las principales plataformas de financiamiento para las empresas que operan en el país, así como un importante vehículo de inversión.

Dada la evolución positiva de las Fibras en lo que va del año, José Manuel Allende, director general adjunto de Promoción y Planeación de la BMV, no descartó que en lo que resta del año se anuncien nuevas colocaciones de estos Fideicomisos.

Para septiembre próximo se espera el lanzamiento de una nueva Fibra, la de Grupo Danhos. En tanto que a la fecha hay seis Fideicomisos de inversión en bienes raíces listadas en la BMV: Fibra Uno, Fibra Hotel, Fibra Mcquarie, Fibra Inn, Fibra Terra y Fibra Shop.

El desempeño y operatividad de las Fibras ha destacado desde que salieron al mercado de valores en México, ya alcanzan altos niveles de operación y de acuerdo con el índice de bursatilidad de la BMV, dos Fideicomisos se encuentran en el segmento de alta bursatilidad y tres más están en un rango medio, dijo Jorge Plácido, director de Análisis y Estrategia de Inversión de Vector.

Sin lugar a dudas ha sido un instrumento con muy buena aceptación entre los inversionistas y se prevé que tenga un crecimiento interesante en el futuro, ya que tiene diversas ventajas.

Para el sector inmobiliario, la llegada de las Fibras trajo importantes beneficios que impactarán también en el crecimiento del sector productivo construcción México y representa una de las mejores vías para acceder a financiamiento.

























































* Millones de pesos  (Judith Santiago / Mexican Business Web)

 Artículos relacionados

  1. Fibras tras proyectos de infraestructura
  2. Fibras aportan liquidez a desarrolladores inmobiliarios
  3. Fibras impulsan construcción de corporativos

Source: MexicanBusinessWeb, 19.08.2013

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Risk Management, , , , ,

Risk Management Mexico PRMIA: Retos y Riesgos de la Industria de la Construcción en México

Retos y Riesgos de la Industria de la Construcción en México: el caso de las empresas desarrolladoras de vivienda

Los retos que enfrenta la industria de la Construcción, particularmente dentro del sector de la Vivienda, han sido producto de diversos cambios y políticas de carácter económico. Se analízarán estos impactos y las perspectivas que se tiene sobre la industria en el corto y mediano plazo.


– Entendimiento del entorno económico actual de México
– Modelo de Riesgo Industria
– Riesgos que enfrenta la industria de la Construcción
– Análisis de los principales indicadores del sector
– Situación actual de las constructoras de vivienda en México

Impartido por: Mtro. John Soldevilla
Director General ECOBI (Economy, Business & Indicators)

Fecha: Agosto 22, 19:00 hs

Lugar: Escuela Bancaria y Comercial, División de Posgrado
Centro de Estudio y Convivencia
Dinamarca no.32 esq. Hamburgo, Col. Juárez  México, D.F.
Registro y Detailles ver: PRMIA Mexico
SOURCE: PRMIA Mexico 15.08.2013

Filed under: Events, Latin America, Mexico, Risk Management, , ,

ITG launches Posit Alert for Mexican equities

ITG, a leading independent execution and research broker, today announced the launch of Posit Alert for Mexican equities, marking the 30th global market where Posit Alert is available.

POSIT Alert is a premier platform for sourcing large blocks of liquidity, actively alerting buyside traders to liquidity that matches orders on their trade blotter. Buyside traders use POSIT Alert to prevent information leakage on large orders, maximize their chances of finding liquidity and reduce market impact by matching at the midpoint with no need for negotiation.

In Mexico, POSIT Alert allows buyside traders to anonymously cross blocks of shares on the Bolsa Mexicana de Valores (BMV). POSIT Alert Mexico provides seamless block crossing opportunities without any human intervention, minimizing information leakage.

“The Mexican market can present challenges for the buyside in terms of sourcing block liquidity, particularly in thinner names,” said Eric Blake, ITG’s Head of Latin America. “The launch of POSIT Alert offers an efficient, cost-effective solution for trading Mexican equities.”

 Also commenting on the rollout, ITG’s Head of Electronic Brokerage, Jamie Selway, said, “our Mexican launch is an important addition to POSIT Alert’s global footprint, enhancing the block liquidity value proposition we deliver to buyside traders.” POSIT Alert is already a successful tool for buyside traders across North America, Europe and the Asia Pacific region, seamlessly connecting more than 550 trade blotters. POSIT Alert currently offers 1.1 billion shares of active, global liquidity on a given day in the US, with an average trade size in 2013 of 33,000 shares, compared to approximately 300 shares on US exchanges. In Canada, POSIT Alert trades average approximately 29,000 shares, while in Europe the average trade size is $1.1 million and in Asia Pacific it is approximately $300,000.

Source: Finextra 30.07.2013

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, , , , , ,

Mexico Investment News Letter 07 June 2013

Mexico Is The Next China

“Mexico is the next China,” Ferrari North America CEO Marco Mattiacci said during a panel discussion today about the future of luxury.

Mexico and the cursed Dragon Mart

The closest People’s Republic of China President Xi Yinping came to China’s controversial top project in Mexico was on his Thursday visit to the Chichén Itzá archaeological site with President Enrique Peña Nieto.

China, Mexico vow broad cooperation as Xi visits; no trade pact soon

MEXICO CITY – China and Mexico promised broad cooperation on issues ranging from energy to mining and infrastructure during a state visit by Chinese President Xi Jinping on Tuesday, but any free-trade pact between the emerging market powers is still some way off.

What does Xi see in Mexico?

Analysis: Much of Latin America has for years found in China a voracious trade partner. Mexico has found its fiercest competitor.

Death map’ of deserts aims to save lives of desperate Mexican migrants

Illegal immigration: Humane Borders support group charts bodies found in US-Mexico frontier to try to limit future tragedies

Grupo Gigante buys rest of Office Depot’s Mexican arm

MEXICO CITY – Mexican retailer Grupo Gigante on Tuesday said it purchased the 50 percent stake of the Mexican unit of U.S. office-supply store chain Office Depot Inc it did not already own in a deal worth 8.78 billion pesos ($691 million).

Heineken-Modelo Beer Probe Nears Mexico Agency Decision

Heineken NV (HEIA) and Grupo Modelo SAB, the dominant brewers in Mexico with brands such as Dos Equis and Corona, are nearing the end of an almost three-year-old government…

Pemex Mulls Bolsa Listing of Projects to Lower Funding Costs

Petroleos Mexicanos, Mexico’s state- owned oil producer, is considering securitizing some assets in a way tailored to attract national pension funds to unlock money for its equipment needs.

Analysis: Mexico peso poised at precipice, may face much steeper fall

MEXICO CITY – Mexico’s peso could slide even further if convictions mount that the massive monthly U.S. monetary stimulus is nearing an end and lead to an exodus of foreign investors who have piled into Mexican markets.

1st Marijuana  “Starbuck” style Chain in the US by ex Microsoft Exec  using drug fighting former Mexican president Vincent Fox as marijuana grower

More projects of passenger trains in Mexico

With the Plan Nacional de Infraestructura 2013-2018 the routes that will be developed during the six year period will be made known, as well as the required investment.

The Mexico Paradox

In spite of the violence, illegal drug and arms trade, trucks continue to line up at the border in Ciudad Juarez Mexico.

Filed under: China, Latin America, Mexico, , , , , , , , , , , , , , ,

Latin America: Investors News Letter 10 May 2013


Mexico Industry Output Falls Three Times More Than Forecast

Mexico’s industrial production fell three times more than analysts forecast in March, reinforcing expectations that the central bank will cut interest rates for the second time since 2009 later this year.

Factbox: Key facts about Mexico’s tax system

MEXICO CITY – Mexico’s new government has promised a comprehensive review of its tax system, to be announced in the second half of 2013 along with an overhaul of energy policy.

Obama tells Mexicans a ‘new Mexico’ is emerging

US-Mexico Stereotypes Must Be Broken

America Movil sees material impact from Mexico telecom reform


Despite winning top world trade job, even Brazil looks beyond WTO

Brazil campaigned hard to get the top job at the World Trade Organization this week but behind closed doors even it acknowledges that the WTO’s main mission – pushing forward in global trade talks – looks for the moment like a lost cause.

BM&FBovespa Quarterly Earnings Trail Estimates as Costs Increase

Petronas Malaysia bolsters Brazil’s Batista with $850 million oil-field buy

Venezuela’s Maduro gets firm Brazilian backing, trade

Brazilian M&A Picks Up as Asians Seek Cheaper Oilfields

Latin America

Argentina’s Deadbeat Special: Buy a 4% Bond or Go to Jail

Panama Canal Cuts Water Use as Drought Prompts Energy Rationing

Brazil’s Odebrecht plans $20 billion spend, targets Peru as key investment
CHICAGO TRIBUNE – Brazilian conglomerate Odebrecht plans to invest $20 billion globally over the next three years, mostly in Latin America and much of it in Peru

Saipem wins $500m offshore contracts in Latin America
– Italy-based engineering services provider Saipem has received new engineering and construction (E&C) offshore contracts, worth a total value of $500m, in Latin America.

APMT prepares for high growth markets
Although global container volumes are not predicted to grow as rapidly over the next five years as they have over the past decade, high growth emerging markets will require higher levels of productivity and rely heavily on expanded inland services

Cartagena aims to be a global megaport by 2017
The Colombian Caribbean port of Cartagena is undertaking extensive infrastructure and technology upgrades in an effort to be one of the world’s 30 best megaports by 2017.

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Energy & Environment, Malaysia, Mexico, News, Peru, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , ,

Mexico, The Emerging Latin American Powerhouse

TABB Forum:  For the past few years, coverage of Mexico in the U.S. media has largely been dominated by stories of violence stemming from the country’s drug cartels. Lately though, the media have increasingly been turning their attention to the story of Mexico’s booming economy, and new president Enrique Peña Nieto’s bold moves to radically reshape it. This robust growth in Mexico looks set to continue for some time, which has led the Financial Times to label Mexico as the “Aztec Tiger.”1

MexDer, the nation’s only futures exchange, has been taking steps to ensure that it grows apace with the nation’s economy by making substantial upgrades to its matching engine, while continuing to make it easier for foreign investors to access the market. As a result of these changes, as of yesterday, April 14, north-to-south routing to MexDer via CME Group’s Globex® platform is available on Trading Technologies. You can read the details in the news release that we published today and on  TradingTechnology website.

The Aztec Tiger 

A perfect storm of positive influences is coming together to make Mexico one of the world’s emerging economic powerhouses. Mexico has a young and growing population, low levels of government debt and low inflation. The country is developing into a leading exporter due in part to widespread implementation of new manufacturing processes, but also due to the fact that Mexico has free trade pacts with 44 countries—more than any other nation on earth.These forces have combined to make Mexico’s economy one of the few bright spots in a global economy still working off the hangover resulting from the credit bubble. Mexico’s economy grew at around four percent in 2012, quadruple the growth rate of Latin America’s largest economy, Brazil.2 The Mexican peso hit a 19-month high against the U.S. dollar in March, and has outpaced 16 other major world currencies over the last month.3

With its growth track record and favorable conditions for growth to continue, a Nomura Equity Research report in July 2012 predicted that Mexico would overtake Brazil to become the largest Latin American economy within the next decade.4 In addition, Standard & Poor’s and Fitch have indicated that in the near future, they are likely to upgrade Mexico’s debt, which is already investment grade.5

A Pact for Mexico, An Open Door for Growth

Much of the optimism for Mexico’s future can be traced back to its new president, Enrique Peña Nieto. He hails from the Institutional Revolutionary Party (PRI), which ruled Mexico uninterrupted for 71 years and was identified with corruption and inefficient bureaucracy. That being said, President Nieto is quickly making himself known as a risk taker, willing to take on fights in which none of his predecessors seemed willing to engage.

Within two days of his swearing-in last December, Nieto’s PRI signed a “Pact for Mexico”6 with the opposition National Action Party (PAN). This pact outlines 95 proposals to modernize and liberalize Mexico’s economy. Nieto began by taking on the richest man in the world, Carlos Slim, by announcing plans to foster competition in the telecommunication and television industries, which are currently dominated by monopolies. Later this year, Nieto is expected to propose his most significant change, opening up Mexico’s energy market and allowing the state-run oil concern Pemex to work with the world’s largest oil companies. It’s expected that these reforms, once enacted, will increase Mexico’s GDP growth from four percent to six percent a year.7

Making MoNeT

In parallel, MexDer and the Mexican government have done quite a bit to attract foreign investors, and to make it easy for them to access the market. Perhaps one of the most significant changes has been the development of the MoNeT matching engine, which went live on Bolsa Mexicana de Valores (BMV), the equities segment, last fall.

The MoNeT matching engine was designed to attract high-frequency traders, mainly from the U.S. and Europe. It boasts internal latencies of 90 microseconds, which is faster than the 110 microseconds of NASDAQ or 125 microseconds at the London Stock Exchange.8 BMV volumes have increased 30 percent to 40 percent since the launch of the new matching engine.9For international traders and investors, accessing MexDer is straightforward. The north-to-south routing available via CME Globex allows any TT customer with an existing CME infrastructure to route orders to MexDer’s matching engine. MexDer is also accessible now in TT’s MultiBroker environment, which is currently available in beta. Additional information regarding how CME users can access MexDer is posted on the CME website.There are a number of other reasons why doing business in Mexico is easier than most other Latin American countries. Unlike Brazil, there is no withholding tax of any kind on foreign investment. The Mexican peso is a freely traded and easily convertible currency, and MexDer’s clearing house, Asigna, accepts U.S. dollar-denominated collateral.

La Oportunidad Está En Todas Partes

Owing to the fact that the U.S. does $1.5 billion per day in trade with Mexico,10 the Mexican markets are, predictably, highly correlated with America’s. North-to-south customers trading MexDer via Globex have access to a number of financial futures that allow for arbitrage opportunities against their American counterparts.

MexDer lists the IPC index of the BMV, which in general tracks closely to the S&P 500. The full Mexican yield curve is available on MexDer, from one-month bills to 30-year bonds, and it converges with the U.S. yield curve. Finally, MexDer lists a Mexican peso/U.S. dollar FX future, one of the 20 biggest FX futures contracts in the world by volume, which sets up arbitrage opportunities with the CME’s equally liquid peso/U.S. dollar future. In a recent MarketsWiki interview, MexDer CEO Jorge Alegria indicated that going forward, the exchange would likely look to list commodity futures linked to similar contracts listed on CME Group.

BMV IPC vs. S&P 500
Chart obtained from Yahoo! Finance

The ascent of the Aztec Tiger is no sure thing. There is always the danger of President Nieto’s PRI party losing its appetite for reform and returning to its old ways. There’s the chance that the hiccups in the U.S. economic recovery may impact Mexico, given that 30 percent of the Mexican economy is tied to U.S. exports. There may even be signs that Mexico’s economy is stalling already, which led the central bank to reduce interest rates for the first time since March 2009. Either way, TT users now have the ability to participate in one of today’s most interesting markets.

1 Thomson, Adam. “Mexico: Aztec tiger.” Financial Times. January 30, 2013.
2 Rathbone, John-Paul. “Mexico’s reform plan lifts hopes for greater prosperity.” Financial Times. March 20, 2013
3 Kwan Yuk, Pan. “Mexican peso hits 19 month high”. Financial Times. March 14, 2013.

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, News, Trading Technology, , , , , , , , , , , , , , , , , , ,

Latin America: Investors News Letter 18 April 2013


Mexico Peso Declines as U.S. Earnings Crimp Outlook for Exports

Mexico says Nestle to sell Pfizer baby food business

MEXICO CITY – Swiss food giant Nestle will sell the assets of U.S. pharmaceutical company Pfizer’s baby food business in Mexico, a business it acquired globally in an $11.85 billion deal last year, Mexico’s competition watchdog said on Monday.

Analysis: Mexico’s smaller homebuilders set to gain as top three struggle

MEXICO CITY – Mexico’s top three homebuilders, facing heavy debt burdens and holding land where Mexicans no longer want to live, will sell fewer homes this year, leaving a market wide open for smaller rivals or even private equity funds to snap up business.

Mexican manufacturing: from sweatshops to high-tech motors

SILAO, Mexico – Made in Mexico is increasingly more likely to mean cars than clothes as the country’s manufacturing sector moves away from the low-skill, high-volume production lines of the past toward more sophisticated products.

VIP Interview: Enrique Peña Nieto, forging the future

Enrique Peña Nieto, President of Mexico, on a new spirit of democracy and cooperation, and the economic future of Mexico.


Itau Bet on Stocks Outside Brazil Leads Latin America Funds

QItau Unibanco Holding SA has found a winning strategy for the Itau Latam Pacific mutual fund: avoiding shares from the bank’s home country, Brazil.

 Brazil’s Votorantim Cimentos files for $5.4 billion IPO

Votorantim Cimentos S.A., Brazil’s biggest cement producer, on Wednesday filed with regulators to raise up to $5.4 billion in an initial public offering of its units.

Brazil clears Pão de Açúcar’s appliance stores deal

BRASILIA/SAO PAULO – Grupo Pão de Açúcar SA , Brazil’s biggest retailer, won regulatory approval on Wednesday for its 2009 purchase of the Casas Bahia and Ponto Frio appliance chains in exchange for selling less than 8 percent of their store fronts.

Brazil Indian-farmer standoff intensifies, tribes storm Congress

BRASILIA – Brazilian Indians are trying to derail a congressional proposal to change the way indigenous lands are recognized, intensifying a standoff between the powerful farm sector and a carefully protected minority by literally storming the floor of Congress.

Special Report: Rough justice as Brazil tries to right past wrongs to Indians

MARAIWATSEDE, Brazil – Damião Paridzané was nine years old in 1966 when the Brazilian Air Force loaded him and hundreds of other Xavante Indians onto a cargo plane. | Video

UK-based TMO Renewables building cellulosic fuel plant in Brazil

SAO PAULO – UK-based TMO Renewables said on Friday it plans to build Brazil’s first commercially viable second-generation ethanol plant, betting on the South American country’s need for non-food-based biofuels.

Brazil’s Embraer looks to shock Lockheed with price of cargo jet

RIO DE JANEIRO – Brazilian planemaker Embraer SA is looking to shock rivals with the price of its KC-390 military transport plane when it starts booking firm orders within the next 12 months, according to a senior executive.

Higher volumes and more investment for Brazilian railfreight
INTERNATIONAL RAILWAY JOURNAL – Despite a slowdown in economic growth, Brazil’s freight railways invested nearly Reais 4.9bn ($US 2.4bn) in new infrastructure and equipment last year, a 6.6% increase over 2011,


British Firms Explore Trade Opportunities in Mexico and Colombia

A four-day trade mission to Mexico and Colombia by medium-sized British businesses took place in March, focusing on high value opportunities in key sectors.

Jamaica’s decades of debt are damaging its future

The latest IMF loan does not ‘rescue’ Jamaica, whose debt must be written off if its people are to take control of their economy

 The Logistics Hub Project and Jamaica’s Development
An ideal location midway between North and South America, in close proximity to the Panama Canal contributes to this advantage. The Panama Canal will be widened by 2015 to accommodate wider ships and Jamaica hopes to capitalise on this by expanding its port facility and affiliated infrastructure spread over four south coast parishes: namely Kingston, St Catherine, Clarendon and St Thomas. An IDB (2010) study on the productivity of the LAC region concluded that “ports and airports are grossly inefficient.

Latin America’s top port faces logistical woes
Santos’ cargo handling volumes made a strong start to 2013, with the port hitting a record high of 7.9 MM tons, up 27 percent year-on-year, according to Santos’ Port Authority CODESP. If the trend continues, the port is expected to close 2013 with total cargo traffic of 109 MM tons, up from 104 MM last year and 97 MM in 2011. But a record soybean harvest this year has clearly overwhelmed its storage and loading capacity. “It seems that our infrastructure can’t cope with the growth in grain production,” said Sergio Mendes, executive director of the Brazilian Cereal Exporters Association (ANEC). Last month, the logistical nightmare reached epic proportions, with a 64-kilometer traffic jam of trucks waiting to unload their soybean cargo outside Santos port. And the port congestion and resulting shipment delays led Sunrise Group, China’s largest soybean importer, to cancel an order to buy 2 MM metric tons of Brazilian soybean.

Latin America’s Largest PV Projects

As of April 1, 2013, 9.8 gigawatts of large-scale PV projects had been announced in Latin America and the Caribbean. Currently, the generating capacity of projects in operation is just 114 megawatts. Of the 9.8 gigawatts’ worth of announced projects, 731 megawatts have signed off-take agreements of some sort (power purchase agreements, feed-in tariff contracts, etc.) and a further 168 megawatts are under construction. These large numbers have generated a lot of hype for various Latin American markets, in particular, for Chile, Mexico, and Brazil.

Filed under: Banking, Brazil, Central America, Chile, Colombia, Energy & Environment, Latin America, Mexico, Peru, Risk Management, , , , , , , , , , , , , , , , , , , , , , , , ,

Bloomberg and El Financiero to Launch Spanish-Language HD Channel in Mexico and Central America

Partnership Will Create Local Content across Television, Web, Mobile and Print

 Bloomberg Media Group, a division Bloomberg L.P., and El Financiero, the media branch of Grupo Lauman, an integrated solutions company, today announced a long-term agreement to launch a new multi-platform Spanish-language business news service. The companies will create a high-definition television channel that combines Bloomberg’s global business and financial insight with locally-produced content. The service will be offered in Mexico and Central America. The companies also plan to offer content online, on mobile sites and in print with a co-branded section in El Financiero newspaper.

“Mexico is one of the fastest-growing economies in the world, and our agreement with El Financiero allows Bloomberg to deliver the sharpest global business and financial insight to a critical market,” said Andy Lack, CEO of Bloomberg Media Group. “This is a significant part of the company’s strategy of forming partnerships with leading providers in markets that have a compelling economic growth story, as we have done in India, Turkey, Mongolia, Indonesia, Africa and the Middle East.”

“The new venture with Bloomberg will provide local investors, businessmen and opinion makers, with high-quality, relevant content that moves markets,” said Manuel Arroyo, President and CEO of Grupo Lauman and El Financiero. “We look forward to bringing to the table Mexico’s key influencers to further the discussion around this region’s economic growth.”

Scheduled to launch in late 2013, this will be the first business news channel available in HD throughout Mexico, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama. It will be broadcast from El Financiero’s new HD studio in Mexico City. An executive producer from Bloomberg Television will be appointed to work alongside El Financiero to assist in the production of the network’s economic and business coverage. The programming will draw from Bloomberg’s extensive financial and economic data as well as reporting from the company’s 2,400+ journalists in 146 news bureaus across 72 countries.

Mr. Arroyo, along with Enrique Quintana, Chief Editor of El Financiero, will participate in the Bloomberg Mexico Economic Summit at the Club de Banqueros de Mexico. This event gathers the country’s most influential political, financial and corporate minds to discuss the critical issues surrounding the region’s growth.

Source: Bobsguide, 21.03.2013

Filed under: Central America, Latin America, Mexico, News, , , , , , , , , , ,


Get every new post delivered to your Inbox.

Join 81 other followers