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News Article

1,843 Units of the National Guard Protecting Health Workers

By Ricardo Guzman | Mon, 04/27/2020 - 21:19

As of Monday, April 27

852         new cases (from yesterday)

15,529   confirmed cases nationwide

8,614     under investigation

1,434     deaths

 

Impact on markets (19.30 hrs)

US Dollar              MX$24.85            (-1.06%)

BMV IPC               34,968.09             (1.10%)

Dow Jones          24,133.78             (1.51%)

 

IDB agreement does not use public funds

Mexico’s Inter-American Development Bank (IDB) representative Tomás Bermúdez said that the US$12 billion agreement reached with the Mexican Business Council (CMN) to finance micro, small and medium-sized enterprises (Mipymes) before the COVID-19 emergency does not represent any additional debt for the government. Addressing the media after President López Obrador said he would not endorse rescuing companies with public funds, Bermúdez explained that the IDB has the support of the Ministry of Finance (SCHP as Mexico is an IDB Invest shareholder.. “IDB Invest has a vehicle with which we finance the private sector without sovereign guarantee,” he said and highlighted that communication is ongoing with the president. CMN head Antonio del Valle said there was a misunderstanding about the loans program agreed with IDB because this plan does not include public funds since it is privately operated.

 

Mexican crude down again

The price of the Mexican crude basket started the week with a drop of 23.2 percent, closing at US$6.55 per barrel, PEMEX has reported. Fuel demand has decreased 30 percent globally, and around 85 percent of onshore storage worldwide was used as of last week, according to Kpler data reported by El Economista. The price of the Mexican basket fell in line with Brent which closed under US$20 a barrel while WTI lost almost 25 percent due to growing concerns about storage capacity in the US.

 

Sandoval tests positive for COVID-19

Ministry of Public Function (SFP) head Irma Eréndira Sandoval tested positive for COVID-19, making it the first confirmed case of a member of the federal cabinet. According to the SFP’s statement, Sandoval is in excellent health and without severe symptoms after testing positive on Monday April 20. “In strict compliance with medical recommendations, from the first symptoms Secretary Sandoval has remained in self-isolation and under constant medical monitoring,” the agency reported.

 

Lowest test levels in OECD

Mexico has lowest level of COVID-19 testing among the 36 member countries of the Organization for Economic Cooperation and Development (OECD). In the update on international advances against COVID-19, OECD states that while Mexico applies 0.4 tests per 1,000 inhabitants, the average for member countries is 22 per 1,000.

 

Agreement to protect transport

To make sure that supply chains in the country can continue working during the COVID-19 health emergency, the federal government and the country's transportation sector approved sanitary and security measures, including the installation of centers for immediate reaction to robberies. Measures also include protocols that must be followed on the origin, routes and destination of cargo the National Chamber of Cargo Transportation (CANACAR) reported in a statement.

 

CCE suggest responsible indebtedness

Mexico’s debt could reach 52 percent of GDP, after 2019 debt levels represented 44.9 percent of GDP, Business Coordinating Council (CCE) head Carlos Salazar said. He explained there is a way that the government can have a “responsible” debt during a special forum to address the COIVD-19 impact.

 

Grupo Bimbo hit hard

Grupo Bimbo's operating cash flow fell 30.9 percent on Q1 compared to the same period in 2019, while its net profit decreased 81.6 percent going from MX$1,589 million to MX$293 million, the company has reported. “The first quarter of 2020 has surprised us with an unprecedented pandemic,” Grupo Bimbo said in its report.

 

Ricardo Guzman Ricardo Guzman Editor