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☆ Tesla can't build in northern Mexico if water is scarce, president says
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

MEXICO CITY, Feb 24 (Reuters) - Tesla Inc. would be denied permits to build a plant in the northern Mexican state of Nuevo Leon, where it has eyed investing, if water is scarce, Mexican President Andres Manuel Lopez Obrador said on Friday. Lopez Obrador called out arid Nuevo Leon for its water scarcity earlier this week, instead touting the benefits of Mexico's poorer southern region where he has sought to increase development. In 2020, he said he would withhold permits for a Constellation Brands (STZ.N) brewery in the northern state of Baja California after criticizing the project for consuming too much water in a dry zone. On Friday, the leftist leader praised Constellation for choosing to relocate to a state in southeastern Mexico. "They understood very well," Lopez Obrador said.

A year from Russia's invasion of Ukraine, fracturing geopolitics seems to be rolling back world trade links and financial interdependence at speed. But global financial conditions - and the strength of the U.S. dollar as a proxy for that - may be playing a bigger part than the more dramatic political narrative lets on. "A stronger dollar tends to go hand in hand with tighter global financial conditions and more subdued supply chain activity." Compensating somewhat for dollar exchange rate strength over the decade were historically low real dollar borrowing rates. There's little doubt that the pandemic and the geopolitics surrounding Ukraine and Taiwan have been major potential disruptions to world trade by themselves.

☆ Mexico president flags water-scarcity of northern state eyed for Tesla plant
▼ + stars: | 2023-02-20 | by ( ) www.reuters.com time to read: +2 min

[1/2] An aerial view shows a part of the urban area in the state of Nuevo Leon, where Tesla could build a new electric car plant, in San Pedro Garza Garcia, Mexico December 19, 2022. "There are favorable conditions in Nuevo Leon. Lopez Obrador said he would emphasize to Tesla the need for careful planning around water, electricity and other services, noting certain northern zones ban water extraction while the southeast holds 70% of Mexico's water. Lopez Obrador has made it a priority to draw investment to southern Mexico, which has lacked the level of industrialization that has flourished along Mexico's northern border. Following Lopez Obrador's remarks on Monday, Nuevo Leon Economy Minister Ivan Rivas said water access had not been an issue for companies or held back investment, according to Mexican outlet Milenio.

Hidalgo, just outside Mexico City, is hundreds of miles from the border yet land and labor costs are lower. The United States and Canada have formally entered a trade dispute over Mexico's energy policy. It remains unclear exactly what Tesla's investment in Mexico will look like and what the company plans to produce in the country. Yet Mexico's capacity for a nearshoring boom has been held back by Lopez Obrador, particularly his energy policies, analysts said. Reporting by Diego Ore and Daina Beth Solomonin Mexico City Additional reporting by Kylie Madry in Mexico City Editing by Stephen Eisenhammer and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Unilever to build Mexico plant as part of $400 mln investment
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +1 min

MEXICO CITY, Feb 7 (Reuters) - Unilever Plc (ULVR.L) will build a manufacturing plant in the northern Mexican border state Nuevo Leon as part of a $400 million investment in the country over the next three years, the company said on Tuesday. The plant, which will be located in Salinas Victoria on the outskirts of Monterrey, will manufacture beauty and personal care products, Unilever said. Unilever already operates four plants in the country, which is a key center for exports to other nations, the company said. The newest plant is set to open in 2024, Unilever said. Reporting by Kylie Madry in Mexico City Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Border-Town Warehouses Are Booming as More Manufacturing Moves to Mexico
▼ + stars: | 2023-02-07 | by ( Peter Grant | ) www.wsj.com time to read: 1 min

Some companies are shifting production and equipment to Mexico in pursuit of a manufacturing hub closer to the U.S. Real-estate investors are betting that big changes in global supply chains will boost demand for warehouses and distribution centers in Mexico and U.S. border towns. American and some foreign companies are shifting production and equipment to Mexico in pursuit of a manufacturing hub closer to the U.S. Many are relocating from Asia after a series of disruptions related to China during the pandemic, part of a burgeoning “nearshoring” trend.

☆ Mexico’s Industrial Hubs Grow as Part of Trade Shift Toward Nearshoring
▼ + stars: | 2023-02-01 | by ( Anthony Harrup | Juan Montes | ) www.wsj.com time to read: 1 min

Executives cited the labor force as a factor in their decision to open or expand manufacturing plants in Mexico. MEXICO CITY—Companies from around the world are moving production and equipment to Mexico as they seek a manufacturing hub closer to the U.S., part of a broader shift in global trade. Some companies are relocating from Asia, while others are investing millions of dollars to raise output of goods that are exported tariff-free to the U.S.

☆ Davos: India flexes its muscle as China's star fades
▼ + stars: | 2023-01-19 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

In 2023, as global recession fears persist, the country is expected to log the best performance of any major economy. An Invest India banner hanging from a building ahead of the World Economic Forum in Davos, Switzerland, on Monday, Jan. 16. India is also due to displace its powerful neighbor as the world’s most populous country this year. They’re a substantial asset — if India’s economy can create enough jobs. “The world needs resilience,” Tata Sons Chairman Natarajan Chandrasekaran told a Davos panel.

☆ Covid broke supply chains. Now on the mend, can they withstand another shock?
▼ + stars: | 2023-01-16 | by ( Alicia Wallace | ) edition.cnn.com time to read: +8 min

“Because of that, supply chains are not as brittle as they were three years ago,” he said. “There could be another huge black swan event in a month that throws everything upside down; but for right now, it seems like respondents are predicting steadiness in the supply chain.”If anything, the pandemic’s shock to the supply chain should be a wake-up call, said Jack Buffington, director of supply chain and sustainability at First Key Consulting and assistant professor of supply chain management at the University of Denver. “I would categorize it as ‘efficiently broken,’” said Buffington, whose own book about supply chains, “Reinventing the Supply Chain: A 21st Century Covenant with America,” had its release delayed due to supply chain issues. “All supply chains really are is supply and demand, and there’s been so much disruption in materials and consumer demand related to labor and inflation and geopolitics,” he said. The complexities related to a globalized supply chain, human systems aren’t capable of handling it.”He added: “Covid wasn’t the cause of the problems with the supply chain, it was a trigger to show how bad it was,” he said.

☆ Mexico's AINDA seeks $600 mln to kickstart fund, Colombian business
▼ + stars: | 2022-12-20 | by ( Valentine Hilaire | ) www.reuters.com time to read: +2 min

Its foray into Colombia seeks to collaborate with the government's infrastructure plans, with AINDA set to open offices in the South American country by next year's second quarter, Rodriguez said. In Mexico, Rodriguez emphasized potential investments in logistics, citing the Pacific ports of Manzanillo and Mazatlan, but declining to go into detail. Rodriguez added that the ESG-focused fund will continue to evaluate other Mexican energy projects, citing possible investments in electricity transmission, without being more specific. But Rodriguez said he nonetheless sees opportunities to invest in "green efforts" that can compliment the government's energy priorities. Reporting by Valentine Hilaire; Editing by David Alire Garcia and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

☆ Apple may pull iPhone production out of China. Don’t expect other supply chains to follow.
▼ + stars: | 2022-12-08 | by ( Emma Cosgrove | ) www.businessinsider.com time to read: +4 min

COVID lockdowns and protests in China have reportedly pushed Apple to move production. It's the latest hit in a wave of talk about "reshoring" supply chains not always followed by action. In an August survey conducted by research firm Gartner, 95% of responding companies said they were reevaluating their China sourcing strategies. And most would say they had plans to move their supply chains away from China. But just as the Wall Street Journal reported Apple's intent to leave China, the country's leaders relaxed the COVID restrictions that were strangling the economy.

☆ JPMorgan expects to keep growing in Latin America with improved outlook
▼ + stars: | 2022-11-23 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +2 min

SAO PAULO, Nov 23 (Reuters) - JPMorgan Chase & Co (JPM.N) will keep growing in Latin America over the next few years as it expects the region's geopolitical outlook to improve, said Alfonso Eyzaguirre, the bank's chief executive for Latin America and Canada. He expects Latin America to profit from the changes. Latin America also stands to receive a large portion of private investment to tackle climate change, Eyzaguirre added. JPMorgan has been adding headcount and new services for corporate clients in Latin America. Brazil and Britain are the only countries apart from the United States where JPMorgan has retail banking activities.

☆ Deglobalization is not an option for any one of us, German Chancellor Olaf Scholz says
▼ + stars: | 2022-11-15 | by ( Su-Lin Tan | ) www.cnbc.com time to read: +5 min

Picture Alliance | Picture Alliance | Getty ImagesGerman Chancellor Olaf Scholz and Singapore Deputy Prime Minister Lawrence Wong have taken a united stance on continuing to work with China, but also remain committed to diversification. Scholz said Germany is keen to deepen economic ties with Asia-Pacific, not just China, in line with the pursuit of trade diversification. Olaf Scholz German chancellor"Often these are nothing but protectionism in disguise," Scholz said. Picture Alliance | Picture Alliance | Getty ImagesSingapore's Wong said the U.S. and China both have broad interests across Asia and must find a way to coexist, compete and cooperate peacefully. Picture Alliance | Picture Alliance | Getty Images"And within ASEAN, no country wants to be in a position to have the two sides between China or the U.S.

☆ Nearshoring represents 'a lifetime opportunity' to invest in Mexico, BofA says. How to play it
▼ + stars: | 2022-11-02 | by ( Fred Imbert | ) www.cnbc.com time to read: +5 min

This has already led to a manufacturing surge in Mexico and represents "a lifetime opportunity" to invest in Latin America's second-largest economy, according to Bank of America. "Nearshoring represents Mexico's best growth opportunity for the next 10 years and it is already occurring," Bank of America's Capistran said. The EWW is up 1.9% in 2022, easily outperforming the S & P 500. All five of those stocks are outperforming the S & P 500 this year, with FirstCash jumping nearly 30% and Sanmina popping 38%. PriceSmart and Ingredion are down 6.4% and 8.2%, respectively, in 2022, but that's still better than the S & P 500's 19% drop for the year.

☆ U.S. companies are reshoring at a rapid pace. Here's how to play the trend
▼ + stars: | 2022-08-27 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +6 min

The reshoring trend – or companies shifting parts of their manufacturing and supply chains to different countries – has boomed over the last decade. In 2022, reshoring and foreign direct investment jobs announced coming back to the U.S. is on pace hit a record high of 348,493, according to data from the Reshoring Initiative. The trend also includes companies moving parts of their supply chains or manufacturing to different countries abroad. Investing the trend There are a few ways to play the reshoring trend as it continues to unfold. Analysts covering the space generally recommend picking up stocks in companies that stand to benefit from the trend, as opposed to companies in the reshoring process.

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