04 August 2010
Power and Policy Team update (English)
Iraq’s neighbors
This Los Angeles Times article describes the struggle between some of Iraq’s neighbors to fill the void that the United States might leave. “Iran, Saudi Arabia, Syria and Turkey are all pursuing their agendas and taking sides along a Sunni-Shiite divide. That could become dangerous as U.S. troops withdraw.”
Pakistan
Raza Haider, the leader of the Muttahida Quami Movement (MQM), was assassinated on Monday. His death set off a wave of violence that has left at least 47 people dead the southern port of Karachi, Pakistan’s largest city. (See NYT report.)
BP Oil Spill
According to the White House 75% percent of the oil spill has been “captured, burned off, evaporated or broken down”. (Source: The Guardian.)
U.S. Supreme Court
Debate on Elena Kagan’s nomination started in the Senate. She has the support of all Democrats and some Republicans, and is expected to be confirmed by the end of the week. (More in NYT.)
Health care reform setback
Voters in Missouri approved a measure “intended to invalidate a crucial element of President Obama's health care law — namely, that most people be required to get health insurance or pay a tax penalty.” The effect of the vote remains uncertain, since the insurance requirement does not take effect until 2014 and since by then the courts “are likely to weigh in on the provision”. (See NYT report.)
Israel and Lebanon
Israeli and Lebanese forces exchanged fire among the border. At least four people were killed, the deadliest incident in the border since 2006. Lebanon and Israel traded accusations, but neither seemed interested in escalating the conflict. (Seen in FT$.)
Patrick Signoret and Isabel Gil
This Los Angeles Times article describes the struggle between some of Iraq’s neighbors to fill the void that the United States might leave. “Iran, Saudi Arabia, Syria and Turkey are all pursuing their agendas and taking sides along a Sunni-Shiite divide. That could become dangerous as U.S. troops withdraw.”
Pakistan
Raza Haider, the leader of the Muttahida Quami Movement (MQM), was assassinated on Monday. His death set off a wave of violence that has left at least 47 people dead the southern port of Karachi, Pakistan’s largest city. (See NYT report.)
BP Oil Spill
According to the White House 75% percent of the oil spill has been “captured, burned off, evaporated or broken down”. (Source: The Guardian.)
U.S. Supreme Court
Debate on Elena Kagan’s nomination started in the Senate. She has the support of all Democrats and some Republicans, and is expected to be confirmed by the end of the week. (More in NYT.)
Health care reform setback
Voters in Missouri approved a measure “intended to invalidate a crucial element of President Obama's health care law — namely, that most people be required to get health insurance or pay a tax penalty.” The effect of the vote remains uncertain, since the insurance requirement does not take effect until 2014 and since by then the courts “are likely to weigh in on the provision”. (See NYT report.)
Israel and Lebanon
Israeli and Lebanese forces exchanged fire among the border. At least four people were killed, the deadliest incident in the border since 2006. Lebanon and Israel traded accusations, but neither seemed interested in escalating the conflict. (Seen in FT$.)
Patrick Signoret and Isabel Gil
Financial Market Team update (data for 4 August 2010)
16:30 ET
DJIA: +0.41% to 10680
S&P 500: +0.61% to 1127
Mexico IPC: +0.40% to 32900
Brazil Bovespa: +0.40% to 68272
FTSE 100: -0.19% to 5386
DAX: +0.37% to 6331
Nikkei 225: -2.11% to 9489
Hang Seng: +0.43% to 21549
US$1.00= 0.76 euros
US$1.00= 12.53 Mexican pesos (-0,41%)
US$1.00= 86.28 Yen (+0,58%)
EUR$1.00= 1.32 US$ (-0,56%)
WTI crude 1m: -0.01% to 82,54 US$/bbl
Corn 1m: +2.72% to 415,00 US$/bbl
Wheat 1m+6.45% to 755,50 US$/bbl
Gold 100 oz 1m: +0.76% to 1196.50 US$/bbl
Aug 04
Ted spread: 26
T bill 3m: 0.16
USD Libor 3m: 0.42
Patrick Signoret and Georgina Lara
DJIA: +0.41% to 10680
S&P 500: +0.61% to 1127
Mexico IPC: +0.40% to 32900
Brazil Bovespa: +0.40% to 68272
FTSE 100: -0.19% to 5386
DAX: +0.37% to 6331
Nikkei 225: -2.11% to 9489
Hang Seng: +0.43% to 21549
US$1.00= 0.76 euros
US$1.00= 12.53 Mexican pesos (-0,41%)
US$1.00= 86.28 Yen (+0,58%)
EUR$1.00= 1.32 US$ (-0,56%)
WTI crude 1m: -0.01% to 82,54 US$/bbl
Corn 1m: +2.72% to 415,00 US$/bbl
Wheat 1m+6.45% to 755,50 US$/bbl
Gold 100 oz 1m: +0.76% to 1196.50 US$/bbl
Aug 04
Ted spread: 26
T bill 3m: 0.16
USD Libor 3m: 0.42
Patrick Signoret and Georgina Lara
FDI in Mexico in 2009 drops by 50% from 2008: What to do?
FT's Adam Thompson cites a UN study showing that Mexico has dropped out of the top 20 destinations for foreign direct investment.
With the safety valve of emigration closing month-by-month, what can Mexico's federal and state governments do to attract more investment? Bombardier's happen once in a generation (viz Queretaro). It is the medium-size foreign enterprises that struggle with bureaucratic jungles and CFE.
The one industry that offers seemingly unlimited job opportunities is the one that Mexico is trying to shut down: the narco-cartels.
With the safety valve of emigration closing month-by-month, what can Mexico's federal and state governments do to attract more investment? Bombardier's happen once in a generation (viz Queretaro). It is the medium-size foreign enterprises that struggle with bureaucratic jungles and CFE.
The one industry that offers seemingly unlimited job opportunities is the one that Mexico is trying to shut down: the narco-cartels.
Financial Market Team update (English)
Mexicana files for bankruptcy in Mexico and U.S.
Mexico’s airline filed for insolvency proceedings in Mexico and for bankruptcy protection in U.S. to avoid (more of) its airplanes to be seized by its creditors. It’s struggling to restructure its liabilities and to come to an agreement with its employees’ unions. The Mexican government is not planning on bailing the company out.
(El Financiero, Wall Street Journal)
Stocks
U.S. stocks advanced today after unexpected growth in the jobs and service industries.
Brazil's Bovespa started to rise again, after yesterday's fall had ended an 11-day winning streak.
European markets closed with mixed results and minor changes.
Asian stock markets, fell on yesterday's disappointing home sales and factory orders releases.
(FT$, Bloomberg)
Commodities
After crude oil rose 7.2% in four days, today it remains almost unchanged. U.S. gasoline inventories increased more than expected, but U.S. economic indicator releases were positive.
Gold rose for the sixth straight day.
(FT$, Bloomberg)
Patrick Signoret and Georgina Lara
Mexico’s airline filed for insolvency proceedings in Mexico and for bankruptcy protection in U.S. to avoid (more of) its airplanes to be seized by its creditors. It’s struggling to restructure its liabilities and to come to an agreement with its employees’ unions. The Mexican government is not planning on bailing the company out.
(El Financiero, Wall Street Journal)
Stocks
U.S. stocks advanced today after unexpected growth in the jobs and service industries.
Brazil's Bovespa started to rise again, after yesterday's fall had ended an 11-day winning streak.
European markets closed with mixed results and minor changes.
Asian stock markets, fell on yesterday's disappointing home sales and factory orders releases.
(FT$, Bloomberg)
Commodities
After crude oil rose 7.2% in four days, today it remains almost unchanged. U.S. gasoline inventories increased more than expected, but U.S. economic indicator releases were positive.
Gold rose for the sixth straight day.
(FT$, Bloomberg)
Patrick Signoret and Georgina Lara
Power and Policy Team update (español)
IMSS no modificará pensiones
"El monto para calcular sus pensiones seguirá aplicándose al límite general de 25 salarios mínimos". Así lo dijo Daniel Karam, director del IMSS.
(El Economista)
México: Narco violencia
De acuerdo con Calderón el 90% de las muertes violentas del país corresponde a miembros de grupos criminales, el 6% a autoridades y el 1% por ciento a víctimas inocentes. Afirmó que no cederá en la lucha contra el narco y no dejará de enfrentarse a los criminales, aún si parte de la opinión pública cree que es la única manera de que disminuya la violencia. Ayer el CISEN confirmó que, en la administración actual, han habido 28 mil muertes relacionadas con el narco. (Reforma $)
Patrick Signoret e Isabel Gil
"El monto para calcular sus pensiones seguirá aplicándose al límite general de 25 salarios mínimos". Así lo dijo Daniel Karam, director del IMSS.
(El Economista)
México: Narco violencia
De acuerdo con Calderón el 90% de las muertes violentas del país corresponde a miembros de grupos criminales, el 6% a autoridades y el 1% por ciento a víctimas inocentes. Afirmó que no cederá en la lucha contra el narco y no dejará de enfrentarse a los criminales, aún si parte de la opinión pública cree que es la única manera de que disminuya la violencia. Ayer el CISEN confirmó que, en la administración actual, han habido 28 mil muertes relacionadas con el narco. (Reforma $)
Patrick Signoret e Isabel Gil
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