Image credits: Image by Geralt from Pixabay
/
Weekly Roundups

Facebook and Amazon Crash, Global Recovery Faces Barriers

By Emilio Aristegui | Thu, 10/07/2021 - 17:38

Public sector revenue exceeds expectations as foreign trade could salvage Mexico's crisis.

Ready? This is the week in Finance!

Accendo Banco Faces Final Downfall

Mexico’s Ministry of Public Finance and Credit (SHCP) published a notice on Accendo’s website revoking the bank’s license to operate saying they would liquidate its assets to protect client´s savings. The Institute for the Protection of Bank Savings (IPAB) informed the bank’s users of the steps to take in order to recover their savings as well. Clients received a final message stating , “The severs of Accendo Banco S.A. can be confident that their deposits are protected by up to 400,000 UDIS per person in the bank, which as of today is equivalent to MX$2.77 million (US$134,659).”

Foreign Trade to Salvage Mexico’s Crisis

After loss of many jobs, BBVA research argued that the growth of the manufacturing industry in 2021 will surpass other industries. “We maintain our expectation that manufacturing will have the highest growth during 2021, far surpassing mining, electricity and construction.” While the entry into effect of the USMCA will also represent an important boost for the Mexican economy.

Public Sector Increases Revenue

A recent SHCP report reads, “Public sector revenues for the month of August were higher than planned by MX$164.9 billion (US$8.08 billion) and increased by 5.5 percent in real terms compared to the January-August 2020 period, in congruence with the prudent estimates presented in the Economic Package.” Rogelio Ramirez de la O, Head of the SCHP also indicated that Mexico’s strategy on tax-collection has been successful.

Facebook Shares Plummet

Facebook communications executive Andy Stone said “We are aware that some people are having trouble accessing our apps and products. We are working to get things back to normal as quickly as possible, and we apologize for any inconvenience.” After the crash, the company’s shares fell 5 percent, shrinking Mark Zuckerberg’s fortune by US$7 billion in a couple of hours. According to Bloomberg Billionaires Index, Zuckerberg has seen losses of almost US$140 billion over the last few weeks.

Global Recovery Increases Expectations

The World Trade Organization (WTO) published a report that showed an increase in their trade forecasts for 2022. “The resurgence of global economic activity in the first half of 2021 sent merchandise trade above its pre-pandemic peak, prompting WTO economists to improve their trade forecasts for 2021 and 2022” as the report reads. WTO Director General Ngozi Okonjo-Iweal described the importance of trade in the process of recovery, indicating that this aspect of the global economy will represent a major factor in helping out countries.

Sixth Consecutive Week of Losses for Amazon

Amazon’s stock fell a total of 15 percent in a span of six weeks. Shares of Amazon were down 3 percent on Monday, October 4. The multinational giant has been affected by several factors and it is unclear what has affected the company’s stock the most so far, “Overall, there are too many factors influencing the market to identity a clear answer for Amazon’s recent decline but they company stands to regain ground with the holiday season around the corner.”

The data used in this article was sourced from:  
MB
Emilio Aristegui Emilio Aristegui Junior Journalist and Industry Analyst