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

Mexico: Investment News Letter 14 March 2013

Mexican Peso Gains for Fifth Day on Export Outlook; Bonds Rally

Why you should be excited about Mexico

Group Of Investors Acquires Important Stake In Aeromexico

Mexico eyes telecoms revolution

The Mexican government on Monday announced a sweeping proposal to limit the reach of telecoms tycoon Carlos Slim and broadcasting giant Televisa as part of efforts to boost competition in Latin America’s second-biggest economy. The bill, which forms part of the most ambitious economic reform agenda in a generation, seeks to establish a powerful industry regulator armed with an array of tools to curb companies’ control of markets, while opening up space for new investors.

Bold reforms of president buoy Mexico

If every government has a defining moment, that of Mexico’s new administration may have come this month when authorities arrested the head of the teachers’ union and put her behind bars without bail.

Mexico, among the lagged to do business

The study Doing Business 2012 locates the country in the 53rd place of 183 countries. Among the states with the best regulations are Colima and Aguascalientes.

Beer, tomato and avocado are among the most exported

U.S. is the main destination of the Agrifood exports of Mexico, with 74.2% but they also arrive to new markets, such as the Japanese.

Mexico will remain tied to the U.S.

The country exported almost 80% of their goods and for 2030 is expected that the neighbor to the north will capture 70% of Mexican exports.

For Mexican Insurers, Solvency II Reforms are all about the Details

As the global insurance industry prepares for the implementation in 2014 of the new risk-based capital requirements, known as Solvency II, many discussions about how new regulations will be written have been taking place in both local and international forums. Among the countries preparing for Solvency II is Mexico, where recently its Congress passed a new law that essentially sets the scaffolding for implementing Solvency II and merges current laws for the country’s insurance business. The new law’s primary objective is to strengthen the procedures for reserves calculation and defines levels of capital requirement according to each company’s risk profile. In contrast to what the current law required, the new one allows for a more precise distinction between capital and reserve requirements for different business lines under Pillar I of Solvency II, for strengthening corporate governance under Pillar II, and for adding more transparency under Pillar III.

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

Latin America: Investor News Letter 17 November 2012

Mexico

Slim Acquires Controlling Stake in Real Oviedo, El Pais Reports

Billionaire Carlos Slim agreed to invest 2 million euros ($2.5 million) to acquire a controlling stake in Spain’s soccer team Real Oviedo, newspaper El Pais reported today.

Mexico lawmaker introduces bill to legalize marijuana
Sherwin-Williams to buy Mexico’s Comex for $2.34 billion
Mexico Third-Quarter GDP Rose at Slowest Pace in Over Year
Cemex Latam Falls in Bogota After $1.14 Billion Initial Sale
Mexican banks invest domestically
Mexico: Investors’ New China
TransCanada to build, operate Mexican natural gas pipeline; will invest US$1B

 

Brazil

Top names drop off list of Thyssen Americas bidders

FRANKFURT – Several top steelmakers are sitting out ThyssenKrupp’s auction of its U.S. and Brazilian mills and there appears little interest in the latter, suggesting the German firm may fall well short of its $9 billion asking price.

Eletrobras to take over bankrupt Brazil power utility
Cuba opens sugar sector to foreign management
Microsoft’s investment in Brazil to spur Rio research boom-execs
Telecom Italia looking at GVT, other opportunities
Wuhan Steel shelves plans to build Brazil mill
A new wave of Brazilian infrastructure investment
Brazil’s Itaqui port plans $3.2 billion upgrade
Rio Olympics, World Cup at risk with royalty bill, governor warns

 

Latin America

Paving the Way  High-­Tech Financial Infrastructure Hits LatAm

Foreign market leaders such as Fidessa, Direct Edge and Navatar are challenging local providers in the race to meet the booming region’s needs. The growth in size and sophistication of LatAm capital markets has both fueled and been fueled by the implementation of high-tech financial infrastructure in the region, as the hardware and software that have  been the foundation …

 Latin American yields fall further in a warning to bond investors
Impoverished Iberians, booming Latin America eye new relations
Africa and Latin America Still Fight Vulture Funds
More LatAm ETFs Your Broker Forgot to Mention
UN asks LatAm firms to grow with social responsibility
Private Equity Lures Pensioners as Bond Yields Sink
Argentina’s Debt Restructuring Argument Could Be Very Significant For The Global Economy
Argentina’s YPF 3rd-Quarter Profit Down 51% on Year at $159 Million
Bolivia Returns to the Global Bond Market
Chile pension fund-ordered estimate lowers Endesa Latam asset value
Chilean regulator to put new limits on pension fund investments
Germany’s Solarstrom enters Latin America with 2MW in Chile
Colombia opens criminal probe into Interbolsa collapse
Colombia’s Interbolsa brokerage to be liquidated
Public-Private Partnerships in Colombia: Scaling-up Results
Paraguay, Worst LatAm Economic Result of 2012
Peru May Invest About $5.2 Billion in Water, Wastewater Projects
Aeropuertos del Peru mulling over opportunities in Brazil and Chile
Overseeing Peru’s international appeal at ProInversión

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

Latin America: Investors Newsletter 15 June 2012

Petrobras Is Worst Big Oil Investment on Deepwater Disappointments: Energy   Petroleo Brasileiro SA is the worst investment among the world’s biggest oil companies this year as Brazil’s state-controlled producer suffers delays and cost overruns developing the largest oil finds in more than a decade.

Iusacell, Telefonica to challenge Mexico’s Slim America Movil  – Iusacell and Spain’s Telefonica said on Wednesday they have reached a deal to share their infrastructure in Mexico as they seek to mount a

FX swings may stir debt investors in Mexico, Peru  Mexico, Peru debt mkts most vulnerable to outflows in Latam. * Peru acting to curb FX, Mexico avoiding intervention.

Mexico’s Slim family (Grupo Carso) takes stake in Argentina YPF nationalized enegy company Mexican tycoon Carlos Slim and his family have taken a stake in Argentina’s recently renationalized energy company YPF in lieu of a loan guarantee, ..

Filed under: Argentina, Brazil, Energy & Environment, Latin America, Mexico, News, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , , , , ,

Inmobiliaria Carso, de Carlos Slim, adquiere acciones ordinarias de BlackRock

Ciudad de México, 29 de noviembre de 2010 – Inmobiliaria Carso del señor Carlos Slim Helú, y BlackRock, Inc. (NYSE: BLK) confirmaron que la primera ha adquirido una posición en acciones ordinarias de la compañía durante la reciente oferta secundaria de acciones.

Como se anunció previamente, BlackRock, Inc. completó el 15 de noviembre de 2010 una oferta secundaria por 58’737,122 acciones de su capital ordinario a un precio de 163.00 dólares por acción.

“Estamos orgullosos de la afiliación del señor Slim como accionista de BlackRock y hemos acordado impulsar nuestra relación en beneficio mutuo”, comentó Laurence D. Fink, Chairman y CEO de BlackRock. “Las perspectivas de negocio del señor Slim, y su conocimiento de los mercados latinoamericanos tendrán un valor importante para continuar el desarrollo de BlackRock en esta región.”

BlackRock está comprometido con el desarrollo e innovación del sector financiero mexicano, en donde ha estado presente en el mercado de capitales desde 2004 a través de los ETFs iShares. Los ETFs, o Exchange Traded Funds por sus siglas en inglés, son también conocidos en México como “Trackers” o TRACs (Títulos Referenciados a Activos). Los ETFs son canastas de clases de activos estandarizadas que siguen a un índice. El compromiso de BlackRock en México se traduce en el desarrollo de 12 ETFs locales de renta variable y de deuda mexicana listados en la Bolsa Mexicana de Valores y en 150 ETFs listados en el Sistema Internacional de Cotizaciones de la BMV. BlackRock también cuenta con un fuerte equipo local de profesionales abocados a impulsar la cultura financiera en el país.

El Sr. Carlos Slim afirmó: “El equipo de gestión global de BlackRock y el posicionamiento estratégico de su modelo de negocio lo hacen una inversión atractiva. Espero una comunicación frecuente con BlackRock a medida que trabajemos juntos y podamos explorar nuevas oportunidades.”

Al 30 de septiembre de 2010, BlackRock administraba aproximadamente 15 mil millones de dólares en activos para clientes en México a través de los ETFs iShares, cuentas segregadas e institucionales. El total de activos gestionados globalmente por BlackRock asciende a 3.45 trillones (millones de millones) de dólares.

Con los ETFs iShares de BlackRock, los inversionistas mexicanos tuvieron por primera vez en 2004 acceso desde México a una amplia gama de vehículos de inversión con exposición a diferentes clases de activos internacionales, que les han permitido conformar portafolios mejor diversificados para lograr mejores rendimientos ajustados por riesgo.

BlackRock está firmemente comprometido a poner al alcance de los inversionistas mexicanos la familia más completa y diversificada de vehículos de inversión para tener acceso a todas las clases de activos disponibles a escala global. Y a su vez, ofrece acceso a inversionistas internacionales a instrumentos de activos mexicanos que contribuyen al financiamiento y desarrollo de México.

Source:BlackRock/Carral Sierra, 29.11.2010

Filed under: BMV - Mexico, Latin America, Mexico, News, Services, Wealth Management, , , , , , , , ,

Rumor: ITAU to buy Banamex from Citigroup

Marcia Peltier Column at Jornal do Commercio (Rio de Janeiro) says that Itau-Unibanco will announce next week the purchase of Banamex. It also says that executives from brazilian bank are already in Mexico City.

Itau-Unibanco opportunities in US crisis

There are two immediate analyses that Itaú has to do. The first is the sale of Citibank’s’ stake in the credit card processor Redecard. The stake is worth R$ 2.9 bn, at market value. Itáu declared that it is only interested in buying 24 mn shares, which will allow it to be the largest shareholder, with a 26.7% stake. At market value, Itaú will have to pay R$ 573 mn. As Redecard trades at 24x BV, it will mean that, net of tax, Itaú will pay less than R$ 400 mn. Itaú also stated that it would like to find a strategic partner for the rest of the stake. The only bank Itau would feel  fit the bill is HSBC, but we are uncertain if it desires to hold such a stake.

The second immediate opportunity that arises, also due to Citibank’s financial problems, is the sale of Citi’s Mexican bank. According to Mexican law, no foreign government can own a bank in that country. As Citi will have as a major shareholder the government of the United States, the situation forces them to sell their Mexican stake. This would be a very attractive asset for Itaú, as it would assure the bank’s international expansion. However, we expect it to let it pass due to the current process of digesting the merger with Unibanco.

Itau Unibanco are in merging process

Itaú and Unibanco have effectively begun the merger of the two banks. There are no expectations of major lay-offs, as
management expects natural turnover and retirements to decrease the total number of employees. There have been
some reductions in specific areas, but nothing significant enough to affect personnel expenses. By 1H10 the merger
should nearly be over, with only some back office mergers in 2011. According to management, there will be no
significant reduction in the number of branches.

IXE Casa de Bolsa conference call: ITAU

Source: IXE Casa de bolsa, 27.02.2009, 03.03.2009

Filed under: Banking, Mexico, News, , , , , , , , , , , , ,

Citigroup-Banamex: Failed US Banks vs. Soild Mexican Institutions

Does the US government’s 36 per cent stake in Citi violate Mexican ownership laws? Have we got our countries confused? No. Citi owns Banamex, a Mexican bank with circa 1,200 branches and 2.6m checking accounts. And Latin American finance blog Inca Kola sees a fight brewing over the Southern subsidiary:

The nub of the issue revolves around Mexican law, which states in crystalline manner that foreign governments cannot own more than 10% of any bank that operates inside Mexico. It’s as clear as a bell and on the statute. So as Banamex is a wholly owned subsidiary of Citigroup (C paid $12.1Bn or so back in 2001 for the bank) if the US Gov’t takes its 36% stake in Citigroup then it will be a larger-than-10% shareholder of Banamex, something against Mexican law. Won’t it?

Mexico’s National Banking ans Securities Commission is therefore investigating, while Banamex is saying that the North American Free Trade Agreement will (somehow) protect it.

Selling Banamex would effectively mean an even worse deal for the US government. The unit’s been described by Citi as one of its “crown jewels”, managing to post an $896m net profit for 2008, making it one of the least toxic parts of the banking group. Banamex is accordingly part of Citicorp — the retail (read: non-toxic) part of the Citi empire. Full Article click here.

Source: FT Alphaville 02.03.2009, Inca Kola News 01.03.2009

Mexico Gov. Studying Effect on Banamex of U.S. Aid to Citi,

(Bloomberg) Mexico’s National Banking and Securities commission said it’s studying the legal impact of the U.S. government’s stake in Citigroup Inc., which owns Grupo Financiero Banamex SA.

The U.S. government announced today it plans to convert as much as $25 billion of preferred shares of Citigroup into common stock. The conversion would give the U.S. a 36 percent stake in the New York-based company. Mexico’s banking law prohibits foreign governments from owning or having a stake in banks that operate in Mexico, like Banamex. Citigroup purchased Banamex for $12.5 billion in 2001.

The commission has asked all banks operating in Mexico that have received help from governments to provide information on the aid, the statement said. The banking commission and other financial authorities will “soon” release information on the study, the body said in a statement.

“The Mexican financial authorities are analyzing the legal implications of the aid that foreign governments have granted foreign financial entities that have subsidiaries in Mexico,” the agency said.

Speculation has mounted in recent weeks that Citigroup may sell Banamex to raise cash and shore up capital amid the global financial crisis. Chief Executive Officer Vikram Pandit flew to Mexico Feb. 19 for two days of meetings with clients, Banamex officials and government officials, including Finance Minister Agustin Carstens and central bank Governor Guillermo Ortiz.

Citigroup fell 96 cents, or 39 percent, to $1.50 at 4 p.m. in New York Stock Exchange composite trading as a record 1.87 billion shares changed hands. The stock has plummeted 94 percent in the past year.

Source: Bloomberg 27.02.2009 Andres R. Martinez in Mexico City at amartinez28@bloomberg.net

Mexican Bank Asset Value

(IXE) According to local newspaper EL UNIVERSAL columnist Alberto Aguilar, ITAU is one of the government’s favorite candidates to acquire Citigroup’s BANAMEX if they have a minority stake in a group led by Mexican investors.Other candidates that have expressed interest are JP Morgan Chase and HSBC.

IXE understands that if Citibank sells Banamex, it will likely sell its BZ.Bradesco branch as well. Due to the fact that Banamex ranks in second in Mexico (assets) and first (equity), along with an important corporate loans book, while the BZ subsidiary present loans book smaller than the ones presented by mid-size banks, and with a lower ROE, which could be higher considering its BZ peers. Furthermore, Citibank BZ does not present important market share in any particular segment in Brazil.

Banamex instead, possess a significant Mexican banking market (see file attached). This would be a very important operation for Itau if it materializes. We believe foreign players could be potential acquirers of Banamex (including Itau) because local players could end up having problems to find funding to finance the operation in the future. If Itau buys Banamex, it will be coherent with Itau’s Roberto Setubal past speeches.

The following is a table of the size of Mexican Banks (Tot. Assets 2Q08 in billion US$)

US$ 53.4 bn BBVA Bancomer
US$ 38.9 bn Banamex
US$ 31.5 bn Santander
US$ 26.8 bn HSBC
US$ 21.0 bn Bannorte
US$ 12.7 bn Inbursa
US$ 10.0 bn Scotia

Source: IXE Casa de Bolsa, 28.01.2009

Filed under: Banking, Mexico, News, Risk Management, , , , , , , , , , , , , , , ,

New York Times confirms $250m deal with Carlos Slim

The New York Times confirmed last night that it had reached an agreement to take an $250m (£171m) investment from a group of companies controlled by Mexican billionaire Carlos Slim Helú to offset crippling debt.

Banco Inbursa and Inmobiliaria Carso, the companies owned by Slim, will in effect each supply $125m (£89m) in notes due in 2015, with warrants convertible into shares in a private financing arrangement with the beleaguered New York Times Company. The announcement last night confirmed speculation, widely reported yesterday, that the deal was in the offing.

The publisher, which owns the New York Times, the Boston Globe and a host of US local newspapers, said it would use the money to help refinance its existing debt although it will continue to look for other finance options.

In December, the company said it would not replace one of two $400m credit facilities, due to expire in May. It is exploring options to sell its New York headquarters and lease it back.

“The proceeds from this transaction will be used to refinance existing debt, including amounts currently borrowed under a revolving credit facility that matures in May 2009,” said Janet L Robinson, president and chief executive of the New York Times Company.

“We continue to explore other financing initiatives and are focused on reducing our total debt through the cash we generate from our businesses and the decisive steps we have taken to reduce costs, lower capital spending, decrease our dividend and rebalance our portfolio of assets.”

Forbes claims that Slim, who made his money in telecommunications, is the third richest man on the planet with a wealth of $49bn from a portfolio of companies in retail, construction, banking, insurance and a number of other industries.

In September, Slim bought a 6.4% stake in the New York Times Company for $128m (£73m).

Before the deal was announced yesterday, it was suggested that Slim would not gain representation on the NYT publisher’s board or be issued with shares that entitle him to special voting rights like those of the Sulzberger family, which has maintained control of the company for over a hundred years and has about 19% of its shares. However, when the warrants are exercised, Slim will become the largest shareholder in the company.

Source: The Guardian UK by Oliver Luft, 20.01.2009

Filed under: Data Vendor, Mexico, News, , , , ,

Carlos Slim’s Inbursa Bank Acquires Citigroup Banamex Shares in Mexico

The bank controlled by Carlos Slim Helu, the Mexican billionaire ranked as one of the world’s richest men, paid about $134 million to buy 26 million Mexico-traded shares of Citigroup Inc. over the past five trading days.
Grupo Financiero Inbursa SA’s brokerage unit purchased the Citigroup stake in a series of trades from Nov. 19 through today, according to exchange records, which don’t specify whether the transactions were on behalf of clients or for the bank’s account.
An Inbursa spokesman said the firm had no comment on the trades. The 26 million shares amount to less than 1 percent of the Citigroup’s stock.

Inbursa, based in Mexico City, bought 9.63 million shares on Nov. 20 as Citigroup fell 26 percent in New York to $4.71, sinking below $5 for the first time since 1994 on speculation the company might be forced to sell itself or split up. The stock rebounded 58 percent yesterday after the U.S. government announced a rescue plan, injecting $20 billion of cash and shielding the company from losses on some toxic assets.

The value of the net number of shares acquired by Inbursa was 1.78 billion pesos ($134.3 million), according to Bloomberg data. The Citigroup shares were purchased at an average price of 67.77 pesos apiece.
Citigroup rose 7 cents, or 1.2 percent, to $6.02 today a 3:34 p.m. in New York Stock Exchange composite trading.
Slim, 68, controls Inbursa, the bank and brokerage he formed in the 1960s. Citigroup, led by Chief Executive Officer Vikram andit, owns Grupo Financiero Banamex SA, the country’s second-largest lender.

Citigroup, the second-biggest U.S. bank by assets, paid $12.7 billion to acquire Banamex in 2001.
Mexican weekly newspaper El Semanario reported yesterday that Inbursa bought 40 million Citigroup shares over three days on the New York Stock Exchange, citing people involved in thepurchases it did not name. Slim vies with Berkshire Hathaway Inc. Chairman Warren Buffett for the title of world’s richest man according to Forbes magazine.

Source: Bloomberg, 25.11.2008

Filed under: Banking, Mexico, News, , , , , , , , , , , , , ,

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