Treasury Withdraws Magna’s Fiscal Stimulus

The Ministry of the Treasury and Public Credit (SHCP) withdrew the fiscal stimulus to the quota of the Special Tax on Production and Services (IEPS) for Magna gasoline. According to the document published this Friday in the Official Gazette of the Federation (DOF). In the period from March 7 to 13 period, drivers will pay MXN 4.95 per liter of Magna.

The outlook for the Mexican economy does not look any better. Economists polled by Citibanamex reduced their forecasts for growth in 2020 to 0.7 percent from 0.9 percent on Thursday. For the 2021 forecast, respondents also reduced their forecast to 1.6 percent from 1.7 percent.

Meanwhile, President Lopez Obrador’s optimism remains unshakeable. He said that BlackRock, the largest financial asset management company in the world, expressed confidence to invest in Mexico.

"(Larry Fink) expressed his confidence in Mexico and I thanked his decision to invest in our country," AMLO said on his Twitter account.

In other news, quarterly earnings reports keep coming. Check out the highlights! 

• Costco, which has been experiencing a surge in sales of consumer staples in recent weeks due to the coronavirus outbreak, reported better-than-expected earnings and revenue in its fiscal second quarter, which ended in mid-February. Same-store sales for all of February jumped 12.1 percent.

• American Eagle Outfitters was up in premarket trade after the clothing retailer posted fourth-quarter earnings and revenue that beat estimates. American Eagle expects Q1 earnings of 20 to 22 cents per share, basically matching expectations.

• Lego published good results for 2019, after a couple of years of slow growth. New chief Niels Christiansen is bringing the Danish firm a little closer to its early-2010s double-digit growth, with a sales increase of 6 percent, double the previous year. The company plans to open 150 branded stores around the world this year. CEO Niels Christiansen: "Some of the changes in the retail landscape have put toy retailers under pressure... But we see the great power of people getting their hands on bricks.", reported BBC.

• JPMorgan Chairman and CEO Jamie Dimon, 63, is recuperating after having emergency heart surgery. Co-presidents Daniel Pinto and Gordon Smith will be jointly leading the company as Dimon recovers. CNBC's Wilfred Frost reports that Dimon woke up with chest pains Thursday morning and went to the hospital.