November 1, 2019
1. Mexico registers worst economic performance in a decade: INEGI
The National Institute of Statistics and Geography (INEGI) submitted its projection for GNP growth for Q3 2019. Estimates show an economic contraction of 0.4% in comparison to the same period in 2018. This is Mexico’s first negative result since the 2009 global financial crisis.
Furthermore, data from INEGI showed that in Q3 of this year, the performance of the service sector did not change, the industrial sector contracted 1.8% year-over-year, while primary economic activities (cattle ranging, forestry, agriculture, fishing, hunting and mining) grew 5.3% year-over-year. Figures reported by INEGI are given in the context of a decelerating global economy.
2. President López Obrador announces failed operation against El Chapo’s son
President Andrés Manuel López Obrador and the Security Cabinet revealed in a press conference, a report with all the information about the failed operation in Culiacán, Sinaloa to capture the son of notorious drug trafficker El Chapo, Ovidio Guzmán.
The president reiterated that his administration’s approach to security is different to that of former governments. Also, he stressed that the government’s priority is not to risk anyone’s life. In addition, the president said that there is no “war on drug trafficking” and added that he feels supported and protected by members of his security cabinet and the institutions that comprise it.
El Heraldo de México: AMLO presenta informe sobre operativo en Culiacán para detener a Ovidio Guzmán
3. Pemex stabilizes production, but sees heavy losses
Despite a 1.3% uptick in oil production in Q3 2019, Petróleos Mexicanos (Pemex), the losses from the state’s company amounted to MXN $87.86 billion (USD $4.6 billion). Pemex has accrued four straight quarters with negative financial results.
Alberto Velázquez, the state-owned company’s director of finance, explained that the company’s losses hinged on two factors; a decrease in the international price of the Mexican oil mix and lower sales in domestic and foreign markets. In Q3, Pemex’s financial debt decreased by 6.1% compared to the same period of the previous year, while the oil company’s bonds rebounded due to the recovery in operating indicators.
4. Federal Electricity Commission endorses new clean energy guidelines
The Federal Electricity Commission’s (CFE) Board of Directors endorsed modifications to the guidelines for the granting of Clean Energy Certificates (CELs). Among the changes approved include the reorganization of supply management, the establishment of an intelligence and market analysis management system as well as the implementation of an electronic recruitment electronic system that will allow the CFE to save up to MXN $7.71 billion (USD $402.9 million) and a reduction of discretional margins in the purchasing process.
The Business Coordination Council (CCE) argued by way of a press release that this modification substantially disturbs the existing regulatory framework and equal treatment among market participants. The CCE will initiate legal proceedings against the modifications to guarantee USD $9 billion investments pinned to the original rules of the CELs.
5. Latin American airlines state operating at Santa Lucía airport ‘unviable’
Four of Latin America’s largest airlines declared that they see the prospect of operating simultaneously at the Mexico City International Airport and the Felipe Angeles International Airport as proposed by the Mexican Government as unviable.
Aeromexico, Copa Airlines, Avianca and LATAM Airlines stated that their business model makes it necessary to operate out of a single airport, ruling out moving part of their operations to the airport currently being built in St. Lucia, as this would raise operating costs.
Aristegui Noticias: 4 aerolíneas ven complicado operar en el aeropuerto de Santa Lucía