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.
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 major oil producers have seen declines of almost 400,000 bpd y/y. Without Brazil, production trends in the region would be more dramatic. Continue reading Latin America’s Oil Output Shocks
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.
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
Mexico’s EWW down 3.3% last week as 2Q16 results disappointed. AMX plunged 8.3% while Cemex rose 10.9%. Brazil´s EWZ continues uptrend posting a weekly gain of 1.2%. VALE ´s results surprised while Ambev missed estimates. Continue reading Heatmap Weekly Summary (July 29)
We present a glance of the Mexican midstream following Mexico’s Energy Reform; traditionally closed upstream has drawn a lot of attention from foreign investors; however, the midstream which received less attention, could be significantly more dynamic in the following years with an outstanding potential for investment opportunities. Continue reading Investment Opportunities in the Mexican Midstream