In this week’s podcast Mark Schaltuper (Head of Latin America Analysis) and Terry Alexander (Head of Country Risk and Financial Markets) discuss the return of risk appetite to global markets. Assessing recent moves and a stronger-than-expected bounce in developed markets’ equities, we explore potential opportunities and the implications for emerging markets.

 

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After a rough 2009, Mexico’s economic fundamentals look set for a breather over the next couple of months, as exports, manufacturing and unemployment levels continue to benefit from unprecedented fiscal stimulus north of the border. If the US Federal Reserve opts to keep the monetary floodgates open for a while longer, this could translate into [Read more...]

Cautious appears to be the best way to describe sentiment among Mexico City’s executives and bureaucrats at present, or at least that was the feeling Risk Watchdog came away with after spending a week on the ground there. This is not surprising, given the severity of the blow to Mexico’s economy from the recent downturn. [Read more...]

Not content with taking on the fearsome drug cartels, President Felipe Calderón has now decided he wants to do battle with another source of political influence in Mexico, namely the country’s trade unions. And it is not just any union which he has chosen to confront, but one of Mexico’s oldest and most powerful, the [Read more...]

Please consider ‘Mexico eases drug possession law’:
The Mexican government has enacted a law decriminalising the possession of small amounts of drugs, including cocaine and heroin. Mexican prosecutors say the move does not amount to legalisation. They say it is designed to prevent corrupt police from seeking bribes from small-time drug users, and to encourage addicts [Read more...]

Mexico has made a bid to become part of the emerging market (EM) elite by stating that it too may decide to lend to the IMF, either through a direct loan or the purchase of IMF debt. The announcement on June 12 by central bank governor Guillermo Ortiz came shortly after EM heavyweights Russia and [Read more...]

An age-old and overused proverb goes something as follows: ‘when the US sneezes, Mexico catches a cold’ – a reference usually labelled at the Latin American country’s inexorable commercial linkages to its northern neighbour. Well, this time it could be (quite literally) the other way around, with the US declaring a state of public health [Read more...]