Mexico’s inflation accelerated broadly in line with analysts’ estimates in July to the fastest pace since early 2001, as the central bank is seen delivering a second straight 75 basis-point increase to its key interest rate this week, Bloomberg News reported. Consumer prices rose 8.15% last month compared to a year earlier, slightly faster than the 8.14% median estimate of economists surveyed by Bloomberg, the national statistics institute reported Tuesday. On a monthly basis, inflation slowed to 0.74% from 0.84% in July, versus economists’ median estimate of 0.73%.
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Mexico
Credit Suisse is not exposed to any large losses among lenders to embattled Mexican firm Credito Real, the Swiss bank said on Saturday, contradicting earlier media reports. Mexican newspaper El CEO citing documents said Credit Suisse is owed over $100 million by Credito Real, which has begun bankruptcy proceedings over $2.6 billion in debts. That is the largest debt Credito Real owes to a foreign bank, the newspaper reported. "Credit Suisse has no material exposure to the company in question," a spokesperson told Reuters on Saturday.
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Credit Suisse is among the lenders owed the most money by embattled Mexican finance company Credito Real, which has begun bankruptcy proceedings for $2.6 billion in debts, Reuters reported. Private documents show that Credit Suisse is owed over $100 million by Credito Real, according to a report from Mexican business paper El CEO. That would be the largest debt Credito Real owes to a foreign bank, the report said. The news comes as media have reported that Credit Suisse was considering making sweeping cuts, and after Moodys rating agency downgraded the bank's unsecured debt ratings.
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Mexico's central bank is expected to hike the benchmark interest rate to a new historic level of 8.5% next week, hoping to contain rising inflation while the economy shows better-than-expected growth, a Reuters poll revealed on Thursday. All 13 analysts polled expect Banxico, as the central bank is known, to hike its benchmark rate by three-quarters of a percentage point when the monetary authority announces its decision next week. This would be Banxico's second 75-basis-point hike this year, and mirrors the most recent policy decision taken by the U.S. Federal Reserve.
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Mexico's COVID-battered aviation sector has benefitted from a robust reactivation of travel, but analysts fear its takeoff could be soon shaken by recession in the United States, Reuters reported. Profits of air terminal operators in Mexico's most important tourist destinations grew strongly last quarter, thanks to solid traffic numbers for both domestic and international passengers. "Aviation has had a surprising recovery," said Pablo Casas, director of the National Institute of Aeronautical Legal Research (INIJA).
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Mexico’s programs and subsidies to tame inflation will cost the country almost 575 billion pesos ($28 billion) this year as the government tries to cap inflation that has spiked to the highest in over 21 years, Bloomberg News reported. Finance Minister Rogelio Ramirez de la O said Tuesday that the wide-ranging government programs used to contain price gains include gasoline and residential electricity subsidies for a total of 503 billion pesos on top of fertilizer handouts, measures to guarantee food supply and freezing highway tolls.
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Grupo Financiero Inbursa is still in the process of buying Citigroup's Mexican retail bank unit and is inviting other business partners to join the bid, Inbursa's Director of Investor Relations Frank Aguado said on Wednesday, Reuters reported. The comment, made during a conference call discussing its second-quarter results, comes days after Spain's Banco Santander said it had dropped out of the process to buy Citibanamex, having submitted a non-binding offer earlier this year.
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Mexican conglomerate Alfa will not provide any financial guarantees to its telecommunications unit Axtel during the subsidiary's spin-off process, Alfa's top financial officer said on Thursday, Reuters reported. Axtel is expected to reach $35 million cash flow this year, sufficient to carry out its operations, Alfa Chief Financial Officer Eduardo Escalante said during a call with analysts to discuss second-quarter results.
The U.S. government has forced Mexico into negotiations over what Washington considers unfair practices that are effectively excluding U.S. and other foreign companies from the Mexican energy sector in violation of the free trade agreement they signed with Canada, the Associated Press reported. Mexico says it has received a similar notice from Canada related to its electricity law. The U.S.
A commercial court recognized the dissolution of Mexico's Credito Real and ordered its judicial liquidation, the troubled payroll lender said in a filing yesterday, Reuters reported. Credito Real, reeling from a bond default, said in June it was aiming for an orderly restructuring of its debt.