Mexico

Mexico’s headline inflation slowed slightly more than expected in November, boosting the odds of a fourth straight interest rate cut at the central bank’s meeting next week, Bloomberg News reported. Official data released Monday showed consumer prices rose 4.55% from a year prior, under both the 4.6% median estimate of economists surveyed by Bloomberg and the 4.76% reading in October. Monthly inflation stood at 0.44%.

Mexico’s finance ministry is preparing to enlist a consortium of banks to provide financing that Petroleos Mexicanos would use to pay off debt with service providers, according to a recording of remarks made by its CEO, Bloomberg News reported. The state-owned oil company is coordinating with the finance ministry, which would potentially take on debt on its behalf to pay the service contractors, Chief Executive Officer Victor Rodriguez said at a private event on Friday hosted by Mexico’s College of Petroleum Engineers.

Donald Trump’s new tariff pledges send a clear signal that he wants to rewrite the terms of North America’s free-trade pact and follow through with plans to hit China with tariffs, demonstrating to allies and adversaries alike that he is serious about renewing confrontation over a global trading system that he believes costs the U.S. dearly, the Wall Street Journal reported.

Mexico will transfer 136 billion pesos ($6.7 billion) to state oil company Petroleos Mexicanos to cover debt payments in 2025, according to the budget proposal presented to Congress on Friday, Bloomberg News reported. The driller’s proposed budget for next year totals 464 billion pesos, with an estimated surplus of 249 billion pesos, according to the document. The cash injection will be used to pay debt taken with the market and with banks. Mexico also expects the company’s oil output to reach 1.89 million barrels per day next year, with an average oil cost of $57.80 per barrel.

Mexico’s president lashed out Friday at Moody’s ratings service, after it downgraded the Mexican government’s debt outlook to “negative,” the Associated Press reported. Moody’s said that it had downgraded the government's debt outlook from “stable” to “negative” because newly approved laws in Mexico could weaken the judiciary branch and checks and balances. It reaffirmed Mexico’s Baa2 overall credit rating, but said increased government debt represented a risk for Mexico.

Mexico plans to set aside about $6 billion for state oil company Petroleos Mexicanos in its 2025 draft budget, people familiar with the matter said, as the government signals continued support for the indebted oil producer, Bloomberg News reported. The budget will include support for Pemex’s debt obligations next year, said the people, who asked not to be identified revealing details of the proposal that’s scheduled to be released on Nov. 15. The company has around $9 billion in debt coming due next year and roughly $13 billion in 2026, when maturities will peak.

Mexico delivered a third straight interest rate cut as a key measure of underlying inflation retreats and concerns mount over the slowdown in Latin America’s No. 2 economy, Bloomberg News reported. Banxico, as the central bank is known, reduced borrowing costs by a quarter-point to 10.25% in a unanimous decision on Thursday. The move was forecast by 25 of 27 economists surveyed by Bloomberg. Two of them saw policymakers holding the rate at 10.5%.

Mexico’s economic growth accelerated more than expected in the third quarter on solid domestic demand and a recovery of the agriculture sector, marking a pace that’s unlikely to be sustained going forward, Bloomberg News reported. Gross domestic product expanded 1% in the three months through September, above the 0.65% median estimate of economists surveyed by Bloomberg. From a year ago, GDP grew 1.5% in the quarter, more than the 1.3% median estimate, but less than the 2.1% the previous period, according to preliminary data published Wednesday by Mexico’s national statistics institute.

Grupo Aeromexico SAB sold $1.1 billion of bonds via international markets Monday that the air carrier will use to refinance debt due in the coming years, Bloomberg News reported. Aeromexico issued $500 million of five-year notes and $610 million of seven-year securities, according to data compiled by Bloomberg. Proceeds will be used in part to pay down $663 million in senior secured notes due in 2027, the company said in a statement. The 2029 notes priced to yield 8.25%, while the 2031 bonds yielded 8.625%, tighter than initial guidance. Barclays was the sole bookrunner for the deal.

Mexico is considering tax credits to attract foreign firms to invest and produce domestically, targeted at electric vehicle (EV), semiconductor, rare earth minerals, battery and electronics sectors, a top Mexican trade official said in an interview, Reuters reported. The comments come as Mexico's new government assesses how to spark more investment as companies look to move supply chains closer to their main market, while simultaneously navigating a turbulent and more protectionist period in the U.S. ahead of presidential elections.