Abraham González

Reuters • 11th March 2021

Exclusive: Mexico to evaluate need for tax reform after midterm elections

MEXICO CITY (Reuters) - Mexico’s government will study the need for a tax reform this year and is talking to regional authorities about their fiscal requirements to see if it is warranted, Finance Minister Arturo Herrera told Reuters on Thursday.

While Mexico has long suffered from a weak tax take, leftist President Andres Manuel Lopez Obrador pledged not to increase the overall tax burden in the first three years of his government, a period which ends in December.

Noting that the coronavirus

Reuters • 19th March 2021

Analysis: Exports, stimulus throw lifeline to Mexico's battered economy

AGUASCALIENTES, Mexico, March 19 (Reuters) - In an arid valley in central Mexico, one of the world’s largest automotive suppliers is preparing to open a new plant to produce components for North America, underpinning the export business that has kept the country’s struggling economy ticking over.

The new Continental AG plant in Aguascalientes state should benefit from the new United States-Mexico-Canada (USMCA) trade deal and U.S. President Joe Biden’s $1.9 trillion stimulus plan to revive grow

Reuters • 10th September 2020

Exclusive: Pemex could tap Mexican debt market more

MEXICO CITY, Sept 10 (Reuters) - Mexican state oil company Petroleos Mexicanos should consider borrowing more on the local market to meet its vast financing requirements, a top official said after the finance ministry presented an austere 2021 budget.

Pemex is already the world’s most indebted oil company and was this year stripped of its investment grade rating.

Billions of dollars in bond repayments are still due during the six-year administration of President Andres Manuel Lopez Obrador, de

Reuters • 2nd July 2021

Analysis: Latam central banks look past COVID as inflation phantoms loom

MEXICO CITY/NEW YORK, July 2 (Reuters) - Latin America's central banks have become more hawkish as the region's inflationary ghosts rattle their chains, with a recent pivot by the U.S. Federal Reserve further boosting market expectations of tighter monetary policies.

In the past three weeks, the central banks of Brazil and Mexico, the region's two largest economies, raised their benchmark interest rates, widely telegraphed in the first case but shocking markets in the second.

The moves dramati

Reuters • 12th March 2020

The end of the Mexican carry? Traders smarting from peso crash

MEXICO CITY, March 11 (Reuters) - Global currency investors who piled into the peso through the “carry trade” strategy are nursing a bloody nose after the Mexican currency tanked 12% in three weeks, and analysts are asking if it spells the end of the popular investment tactic.

In a carry trade strategy, an investor borrows money in the currency of a country with low interest rates, such as the United States and some European countries, to buy bonds of a high-yield nation like Mexico.

The juicy

Reuters • 5th August 2019

As Mexico's economic prospects dim, pension funds pile into bonds

MEXICO CITY (Reuters) - Dimming prospects for economic growth in Mexico are prompting local pension funds to shift their $194 billion holdings faster than ever to what they see as a safe bet: government bonds.

Over the 12 months through June, Mexican pension funds invested eight times more in Mexican debt than they had in the July 2017-June 2018 fiscal period, a record increase in the rate of bond purchases, data from pensions regulator Consar show.

Purchases of government bonds in the year th

Reuters • 27th January 2020

The paradox of the peso: Mexican currency benefits from weak economy

MEXICO CITY (Reuters) - Mexico registered its biggest economic slowdown in a decade last year, and expectations for 2020 are not much better.

Nevertheless, the peso reached its best level in more than a year.

Mexican imports of capital goods, which foreign companies buy to produce locally, plummeted in 2019. That led to lower domestic demand for dollars, helping the peso, experts said.

“When you have such a sharp, sudden economic slowdown in the domestic market, you absorb fewer imports, and

Reuters • 26th September 2019

Losing the edge: Mexican leftist's risk levels near Brazilian rightwinger

MEXICO CITY (Reuters) - The risks of betting on Mexico, with its staunchly leftist government, and Brazil, which is run by a hard-right administration, are more even now than they have been for six years - according to traders in credit default swaps (CDS).

Risk premia for both countries have improved in 2019, but the advantage Mexico once enjoyed over Brazil has narrowed, due to a blend of rhetoric, results and expectations about their two presidents as they approach nearly a year in power, an