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Anthony Esposito

Mexico central bank chief concerned higher energy prices could fan inflation

Oct 18 2018

MEXICO CITY Mexico's central bank chief Alejandro Diaz de Leon said on Wednesday that he is concerned that energy prices could rise in coming months, making it harder to bring inflation down toward the 3 percent target.

Mexican auto parts makers see new trade deal boosting output

Oct 01 2018

MEXICO CITY Auto parts output in Mexico will jump about 10 percent over the next three years as automakers scramble to adhere to stricter content rules laid out in a new North American trade deal, a top industry executive said on Monday.

EMERGING MARKETS-Brazil real firms past 4.00, Argentine peso continues decline

Sep 27 2018

By Bruno Federowski and Anthony Esposito BRASILIA/MEXICO CITY, Sept 27 The Brazilian real on Thursday strengthened past 4 to the dollar in intraday trade, leading gains among Latin American currencies as traders continued to unwind short bets amid speculation over the outcome of this year's presidential elections. The Argentine peso, however, continued to drop as investors worried that a revised $57 billion program with the International Monetary Fund, which assured the government's funding until the end of next year, could hurt the ailing economy and leave foreign exchange markets volatile. "The initial market reaction to yesterday's (IMF) announcement is mixed," said Grupo SBS in a note to clients. The Argentine peso tumbled 2.65 percent. Anxiety in Brazil around next month's vote drove the real currency to boomerang in recent weeks, battered by near-daily voter intention polls. It approached all-time lows as traders feared the next president could fail to curb ballooning public debt, but bounced back in recent days as far-right lawmaker Jair Bolsonaro seemed to consolidate its lead in a first-round vote. Yet Bolsonaro, who has tapped a University of Chicago-trained banker as an economic adviser, would probably have difficulty beating his main rival, leftist Fernando Haddad, who is backed by jailed former President Luiz Inacio Lula da Silva. Traders say volatility is likely to stay high even after the vote as clarity over what the next president will manage to achieve is unlikely to emerge anytime soon. "We're at peak volatility right now but that doesn't mean that once the winner is known, everything will be smooth sailing," a portfolio manager at a Rio de Janeiro asset manager said. The real firmed 0.78 percent, the best-performing currency in Latin America, though it shed some of its earlier gains. Meanwhile, Brazil's benchmark stock index rose 1.44 percent, led by shares in Petroleo Brasileiro SA , or Petrobras as the company is known. Petrobras shares were up 6.3 percent in afternoon trading, after the firm agreed to pay an $853.2 million fine to settle charges that former executives and directors of the state-run Brazilian oil company broke U.S. anti-corruption laws by bribing politicians and then seeking to conceal the payments. It was the latest milestone for the company in turning the page on the landmark "Car Wash" investigation. Other markets in the region mostly rose, extending the previous day's gains after the U.S. Federal Reserve raised interest rates and left intact plans to steadily tighten monetary policy. The U.S. central bank foresees another rate hike in December, three more next year, and one increase in 2020. Some investors had expected the bank to predict more rate hikes, which could dampen demand for high-yielding assets. The Mexican peso gained 0.24 percent, even as uncertainty surrounding the renegotiation of the North American Free Trade Agreement (NAFTA) weighed on sentiment. The prospects for a quick deal to update NAFTA appeared to dim on Wednesday after U.S. President Donald Trump blasted Canada's stance and threatened to impose tariffs on cars imported from Canada. Key Latin American stock indexes and currencies at 1950 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1050.74 0.45 -9.71 MSCI LatAm 2584.41 1.95 -10.37 Brazil Bovespa 79789.77 1.44 4.43 Mexico IPC 49662.06 0.11 0.62 Argentina MerVal 33706.13 -0.7 12.11 Colombia IGBC 12388.87 0.58 8.95 Venezuela IBC 320899.56 -0.11 912.13 Currencies daily % YTD % change change Latest Brazil real 3.9932 0.78 -17.03 Mexico peso 18.8065 0.24 4.75 Chile peso 659.68 0.32 -6.83 Colombia peso 2985.05 0.42 -0.10 Peru sol 3.299 0.09 -1.88 Argentina peso (interbank) 39.6000 -2.65 -53.03 Argentina peso (parallel) 38.25 0.00 -49.73 (Reporting by Bruno Federowski in Brasilia and Anthony Esposito in Mexico City Editing by Alistair Bell and Sandra Maler)

U.S., Mexico plan NAFTA ministerial talks on Thursday: sources

Jul 30 2018

MEXICO CITY The United States and Mexico plan to hold ministerial-level NAFTA trade talks on Thursday in Washington, the second such meeting within a week as efforts are ramped up to seal a deal on updating the 24-year-old accord, two sources said.

Global auto powers plotting response to Trump auto tariff threats

Jul 30 2018

MEXICO CITY/OTTAWA Canada, the European Union, Japan, Mexico and South Korea will meet in Geneva next week to discuss how to respond to threats by U.S. President Donald Trump to impose tariffs on U.S. imports of autos and car parts, officials familiar with the talks said.

Mexico, Latam allies commit to free trade amid Trump threats

Jul 24 2018

PUERTO VALLARTA, Mexico Led by Mexico, major Latin American nations pledged to deepen commercial and economic ties on Tuesday as they sought to counter the risk of a deepening trade war sparked by U.S. President Donald Trump's "America First" policy.

Mexico, Latam allies commit to free trade amid Trump threats

Jul 24 2018

PUERTO VALLARTA, Mexico, July 24 Led by Mexico, major Latin American nations pledged to deepen commercial and economic ties on Tuesday as they sought to counter the risk of a deepening trade war sparked by U.S. President Donald Trump's "America First" policy.

Trump, Mexico expect progress in stalled NAFTA talks

Jul 24 2018

PUERTO VALLARTA, Mexico U.S. President Donald Trump spoke warmly of Mexico's incoming leftist president on Monday, saying he expected to get "something worked out" on NAFTA, while a top Mexican official said there was scope to revive the trade talks this week.

Mexico's Bimbo suspends delivery routes in violent resort town Acapulco

Jul 21 2018

MEXICO CITY Mexican bread-maker Bimbo on Saturday said that it had suspended some delivery routes in the violent state of Guerrero, the latest company to scale back its operations in what was once a glamorous tourist hub.

Mexico's business chiefs praise Lopez Obrador after prickly campaign

Jul 04 2018

MEXICO CITY Mexico's business elite had warm words for President-elect Andres Manuel Lopez Obrador on Wednesday after he assured them he respected private enterprise, a contrast to jibes in his campaign that some tycoons belonged to a "mafia of power."

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