November 26th, 2021
1. Government projects will be protected by national security agreement
President Andrés Manuel López Obrador signed an agreement that declares projects execution by the federal government as a matter of public interest and national security. Among the projects considered are the Felipe Ángeles International Airport, the ‘Tren Maya’ and the Dos Bocas oil refinery. In addition, some specialists agree that this agreement would alter accountability procedures in sectors such as: communications, telecommunications, environment, tourism, health, energy, ports, airports, and railways.
The National Institute of Transparency and Access to Information and Protection of Personal Data (INAI) determined to exercise a constitutional controversy before the Supreme Court of Justice of the Nation (SCJN), after holding a working meeting and analyzing the characteristics of the agreement, given the risk that it supposes to the public transparency exercise.
2. Senate elects new Supreme Court minister
The Senate of the Republic appointed attorney Loretta Ortiz Ahlf as the new minister of the Supreme Court of Justice of the Nation (SCJN). With 92 of 114 votes cast by the Plenary of the Senate, it was determined that Loretta Ortiz will fill the vacancy that will be left by Minister José Fernando Franco González. The jurist Loretta Ortiz pointed out that it is an important advance, but there are still pending items on gender issues in the Judiciary.
The jurist Ortiz Ahlf has a political profile. She was a Deputy for the Labor Party (PT) and in 2011 she was part of the founding group of the Morena party. In addition, she held positions in the current government as Coordinator of the Advisory Council to Guarantee Peace, a body created by President López Obrador for groups victims of violence. In addition, since the 1980s she worked as a consultant for the Foreign Ministry, an advisor to the Bank of Mexico and was head of the Ministry of Culture.
3. Increase in Foreign Direct Investment
In the first nine months of 2021, Mexico reported a figure of foreign direct investment (FDI) for USD $ 24,831 million, 5.7 percent more than in 2020. The Ministry of Economy (SE) reported that the figure for last year between January and September it amounted to USD $ 23 thousand 482.3 million. The main investors remain in the United States, with 49.6%; Spain, 10.7%; Japan, 6.3%; Germany, 5.3%; Canada, 5.2%, and other countries contributed the remaining 22.9%.
Data from the United Nations Conference on Trade and Development (UNCTAD) show a recovery in foreign investment flows, in congruence with the positive global trend. Some sectors such as manufacturing received 45.0%, above mining with 14.0%; while financial and insurance services only 10.9%.
4. Presidential nomination for Bank of Mexico´s head
President Andrés Manuel López Obrador proposed the Undersecretary of Finance Expenditures, Victoria Rodríguez, as the next governor of the Bank of Mexico (Banxico), which will be present before the Senate. The announcement influenced market outlooks, because the economist’s experience focuses on public finances and debt, which would imply considerable changes for the central bank, on international reserves. If the nomination is approved, the economist Rodríguez Ceja will be the first woman to govern the Bank of Mexico.
On the other hand, during the first half of November, inflation reached its highest level in more than two decades, even at a higher level evaluated by official figures, with a record of 7.05% according to data from the National Institute of Statistics and Geography (Inegi). Given this scenario, the Bank of Mexico (Banxico) would raise its benchmark interest rate for the fifth consecutive time next month.
Milenio: Mercados financieros en shock por anuncio de Victoria Rodríguez en Banxico: Monex.
El Financiero: ‘Nada bueno’: riesgo país de México, en su mayor nivel en 8 meses por inflación y políticas económicas.
5. Businessmen hold meeting with the President
President Andrés Manuel López Obrador met with some businessmen from the Business Advisory Council. The meeting was attended by Carlos Slim, from Grupo Carso; Bernardo Gómez, vice president of Grupo Televisa; Carlos Hank, president of Grupo Banorte; Ricardo Salinas, president of Grupo Salinas; Germán Larrea, from Grupo México, and Sergio Gutiérrez, president of Grupo Deacero, among others.
In addition, from the public sector, the Presidential Liaison Coordinator with the business sector was present and former Head of the Office of the Presidency, Alfonso Romo. The President affirmed that among the discussed topics were the Electricity Reform, the Federal Electricity Commission (CFE) protection, economic matters such as the national average salary, growth expectations, and job creation.