Iberdrola announced on Tuesday a major sale of natural gas assets in Mexico, putting an end to several years of tensions with the country’s government. As the company, headed by Ignacio Sánchez Galán, informed the CNMV late in the afternoon, the subsidiary Iberdrola México and the state fund Mexico Infrastructure Partners (MIP) have signed an agreement of intent whereby a trust headed and managed by MIP will acquire 8,539 MW…
Intermoney | Last week, Iberia (IAG) and Viva Aerobus announced a code-sharing agreement for passengers travelling between Mexico and Spain. On the one hand, Iberia’s passengers who use the Madrid-Ciudad de México route will be able to take advantage of the network which Via Aerobus offers from that city. Meanwhile, on the other hand, those passengers who want to transfer to Madrid via Iberia will be able to connect with…
Banco Sabadell | A federal court in Mexico has temporarily suspended the government’s legislative reform for the electricity sector. The reform would prioritise energy production by state-owned company CFE when it comes to feeding energy into the grid. In turn this would harm private renewable generation firms which, by producing more cheaply, would enter the market earlier. The impact of for the Spanish firms with presence in the Mexican market, Iberdrola, Acciona and Naturgy is limited.
The last policy meeting by Banxico in 2020 is set to capture broad attention, as several topics alongside the monetary policy agenda will be on the table. In addition to a debated interest rate cut, Banxico will be faced with concerns over the recently approved Senate bill on excess dollars, dollar auctions from Fed swap lines, and the departure of one of the board directors.
The Mexican Institute of Social Security (IMSS) reported that 92.4 thousand formal jobs were created in August, equivalent to 8.3% of the 1.1 million jobs lost from March to July. The weak recovery in employment could not stop the deterioration of the labor market in a generalized way.
The operator may have opted for dividing its assets in the region to facilitate their sale. Specifically, America Movil would be interested in the subsidiaries in El Salvador and Guatemala, and both Millicom and AT&T in the rest (Costa Rica, Nicaragua and Panama).
I. de la Torre and L. Torralba (Arcano Partners) | The economist Dornbusch says that “crises take long to arrive than you can possibly imagine, but when they do come, they happen faster than you can possibly imagine”. The events that have affected the emerging countries this summer have proven Dornbusch was right.
Repsol has reached agreement to acquire 40% of Mexican lubricant company Bardahl, which represents its biggest purchase in this business and pushes forward its internationalisation strategy in Downstream.
Luis Gómez Romero via The conversation | Mexico’s next president will be Andrés Manuel López Obrador, a former Mexico City mayor and outspoken critic of the political establishment both in Mexico and the United States. The 64-year-old leftist, who had for months led a crowded presidential field, beat three competitors on July 1 to triumph in his third presidential bid.
Mexicans go to the polls on 1 July. Some 3,400 elected positions are at stake (including the President, deputies senators, and gubernatorial elections), potentially reshaping the country’s political landscape. AXA IM analysts expect that Andrès Manuel Lopez Obrador, also known as AMLO, will be victorious and become the next President and that his coalition Called MORENA) will obtain a small majority in both chambers of the Congress.