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Tag Archives: mexico

Green-Energy Zombie Abengoa Threatens to Default 3rd Time Since Enron-Style Collapse, Blames Covid, Begs for Fresh Bailout

In the forlorn hope the world’s biggest green-energy zombie will somehow survive the oncoming storm. By Nick Corbishley, for WOLF STREET: When it comes to amassing and defaulting on insurmountable debt loads and then having the debt restructured to live another day, few companies can hold a candle to Abengoa, the global green energy giant, headquartered in Spain, famed for cooking its books with Enron-esque aplomb before collapsing in 2015. Reverberations were felt the world over,...

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Wolf Richter Rails Against Mexican Companies that Borrow in Dollars and then Get Bailed Out When it Blows Up, Which is Now

“I want these f**kers to collapse and their CEOs thrown into a Mexican jail for having borrowed in dollars. I want shareholders and bondholders to pay the price, not the people. Let them eat their dollar-bonds.” By Nick Corbishley, for WOLF STREET: Mexico’s economy, like just about every national economy on the planet, is going through the grinder. Its currency has lost 26% of its value against the dollar in little over two months. In the past week alone, it tumbled 5.7%. One of its...

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Now in Lockdown, Mexico’s Economy Slides. Banks & Companies Clamor for Bailout. Government Refuses

All non-essential activities have been suspended for at least a month. But where are the bailouts? By Nick Corbishley, for WOLF STREET: Mexico faces its biggest economic storm since the Tequila Crisis in the mid-1990s. Then, the peso lost almost 50% of its value against the dollar in a matter of weeks, wiping out the life savings of much of the country’s middle class and stoking fears that collapsing asset values would push Mexican banks over the edge, taking part of Wall Street with...

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Latin America Was Already Steeped in Economic Problems. Now Come the External & Internal Shocks of COVID-19

Not even Brazil and Mexico have the fiscal and monetary leeway to offset those shocks. By Nick Corbishley, for WOLF STREET: Covid-19 is beginning to gain a foothold in Latin America. Even in some of the region’s tropical areas, the case numbers are rising at a startling rate. Ecuador, which appears to have caught the bug a month ago as a result of its close connections with Spain, now has over 1,300 cases — more than any other country in the region except for Brazil, which has over 12...

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New Currency Crisis Dawns: Mexican Peso Plunges to Record Low Against the Dollar

The flight into US dollars! Dollar-denominated debts of Mexican companies weigh heavily. By Nick Corbishley, for WOLF STREET: As the coronavirus crisis roils the global economy, the strengthening dollar is causing all manner of stress and mayhem for national economies and their respective currencies. Nowhere is this clearer than in Mexico, whose currency, the peso, never really recovered from the last crisis and is now collapsing all over again. As of 4 p.m. Monday (Mexican time), it...

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GM Better Figure Out How to Stop Shrinking, I Mean Globally & Pronto, Before It’s Too Late

GM tries to shrink itself out of trouble. And it shrinks where it wants to grow. But when will it stop before hitting zero? Ugly charts of GM’s global vehicle sales, by region. By Wolf Richter for WOLF STREET. GM announced this weekend that it would pull out of Australia, New Zealand, and Thailand, in line with its strategy to exit one market after another to shrink itself to higher profits, which has led to a stupendous downward spiral in vehicle sales. It already pulled out of...

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Ex-CEO of Pemex Arrested for “Looting Mexico”

Now attention is switching to former President of Mexico Peña Nieto. By Nick Corbishley, for WOLF STREET: Emilio Lozoya, former CEO of state oil company Pemex who went on the run last May after being accused of serious financial irregularities during his tenure, was arrested in an upscale suburb of the Southern Spanish port city of Malaga on Wednesday. Lozoya is accused of taking part in an elaborate scheme designed to systematically “plunder” Mexico’s finances, according to the...

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Global Slowdown, Internal Issues Hit Mexico: GDP Drops for First Time Since 2009

President AMLO put it this way: “There may be no growth but there’s development and well-being, which are different.” By Nick Corbishley, for WOLF STREET: For Mexico’s economy, 2019 was not a good year. The country entered a mild technical recession in the first half and by the end of the year had registered its first annual decline in GDP since 2009. According to a preliminary estimate published by Mexico’s statistical institute INEGI, “real” GDP (adjusted for inflation) for the year...

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US Auto Imports from Mexico Hit Record, but Mexico’s Global Auto Exports Fall for First Time since 2009

GM shifts even more production to Mexico (even as its US sales fall). But Ford’s imports from Mexico plunge. FCA’s, Audi’s, Nissan’s down too. By Nick Corbishley, for WOLF STREET: Hit by the global swoon in auto sales, Mexico’s exports of cars and trucks to the rest of the world fell by 3.4%, to 3.3 million units in 2019, the first annual decline since 2009. Exports to Europe plunged. The U.S. imports eight out of 10 cars and trucks that are assembled in Mexico. Over the first nine...

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PayPal, Western Union Named & Shamed for Overcharging the Most on Money Transfers to Mexico

Remittances to Mexico is a $36-billion-a-year business. By Nick Corbishley, for WOLF STREET: Remittances from workers of Mexican descent based mostly in the US, but also in other countries, are a lifeline for Mexico’s economy, accounting for almost 3% of GDP. Millions of people depend on relatives working in the U.S. In some Mexican states, they can represent as much as 10% of total revenues. Most of that money gets spent very quickly in the Mexican economy, often on rents or building...

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