Mexico’s Renewable Energy Revolution

The national and international attention paid to Pemex and the oil sector has eclipsed the other half of the reform with a greater potential. In March, the government bought 2.1 GW for $2.6 billion, which will be installed by 2018. In September, it will seek to buy between $2.6 to $2.8 billion more. Starting in 2018, qualified consumers (big energy consumers that but directly in the new power market) will have to show that they consume at least 5% from clean sources.

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“Mexican Trump” Noise

The possibility that AMLO wins in 2018 is significant. And he, as Trump or Sanders, represents an anti-establishment sentiment that has gained strength in recent years. The historical low approval rates of the president finally manifested themselves in the recent local elections on June 5.Although the “U.S. Trump” is the biggest concern for the economy in the short term, the “Mexican Trump” could bring more noise in the long run. Continue reading “Mexican Trump” Noise

Latin America’s Search for Yield

Summary: For all countries excluding Mexico, analysts are expecting the reversal of their tightening cycles and are trying to predict the beginning of rate cuts. Even bonds considered extremely toxic could offer an interesting opportunity. Latin America is likely to continue offering attractive returns for the time being in order to compensate investors for the region’s inherent risk.

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Peru: Is PPK’s Government Plan Sound Economics?

Pedro Pablo Kuczynski’s plan of 5% GDP growth by 2018 strikes as being overly ambitious, and the means to achieving it is not clear. Peru’s new government has the advantage of inheriting a country with positive inertia and a sound macroeconomic standing. The true size of the gap between political rhetoric and policy- making reality will become clear soon enough. Continue reading Peru: Is PPK’s Government Plan Sound Economics?

Cemex Improves Balance Sheet And Remains Attractive

Cemex (NYSE:CX) has reduced debt and increased profitability enabling a healthier balance sheet. USD exposure is manageable given the higher returns in the US business. Insufficient capacity for competitors in Mexico has allowed CX to regain a portion of the market share lost in recent times as cement volumes increased 12% YoY vs. the industry. Continue reading Cemex Improves Balance Sheet And Remains Attractive