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News Article

Pandemic Curve Predictions Incorrect says López-Gatell

By Ricardo Guzman | Wed, 06/10/2020 - 21:57

Deputy Minister of Health Hugo López-Gatell said the prediction of COVID-19 cases was outweighed by the persistence of infections in the Valley of Mexico. “We said that between May 6 and 8 we would reach the maximum point. That prediction was certainly exceeded because there is persistence,” he said in today´s briefing. The officer explained that the curve’s descent was stagnated for over 17 to 18 days.

The Ministry of Health reported 15,357 deaths and 129,184 accumulated positive cases. Further 19,899 active cases are reported while suspected cases kept rising for straight days, recording today 53,608.

Over 4,883 new confirmed cases and 708 new deaths were accounted in today´s report, however those cases were recorded in the last 11 to 20 days.

 

As of Monday, June 8

4,883     new cases (from yesterday)

129,184 confirmed cases nationwide

53,608   under investigation

15,357   deaths

 

Impact on markets (19.30 hrs)

US Dollar              MX$21.74            (-0.60%)

BMV IPC               38,266.19             (-2.35%)

Dow Jones          26,989.99             (-1.04%)

 

Banxico sees a solid position

The national financial sector entered an adversity stage derived from the COVID-19 pandemic in a solid position. However, going forward risks could intensify and affect its proper functioning, Banxico Gov.

Alejandro Díaz de León has warned. In the presentation of the 2020 first semester financial stability report Díaz de León stressed that the economic outlook for the Mexican financial system has deteriorated. Slowdown in the global economy and uncertainty associated with its recovery, a greater volatility in international financial markets and funds going to lower risk assets are the main factors driving the financial stability, the Central Bank head said.

 

Banorte rules out rating downgrade

Contrary to what other financial entities have pointed out, Banorte “has other data” and believes that Mexico will not lose its investment grade on 2020 or next year. “The Mexican government debt rating is one step above the investment grade in the case of Fitch, two steps up for S&P and has a three-step cushions over Moody's,” said Alejandro Padilla in a weekly podcast. Banorte analyst noted that not increasing public debt was a good decision which impact will be seen from 2021.

 

Mexico City five step plan

A protection and safeguard program based on five axes was presented today by Mexico City Head of Government Claudia Sheinbaum. The program includes: 1) A house-to-house information campaign, 2) Protocol of early attention, 3) Strengthening telephone assistance, 4) Detection of cases and their contacts and 5) Delivering care kits to diagnosed people.

 

Bridgestone restarts operations

The tire manufacturer Bridgestone announced that the plant located in Cuernavaca, Morelos restarted operations on June 1. The Bandag renewed products manufacturing plant located in León will be restarting operations towards the end of June.

 

SHCP responds to OECD

After the OECD pointed out that Mexico can still implement additional measures to counter the COVID-19 crisis effects, the Ministry of Finance (SHCP) replied that Mexico´s “room to maneuver” is more limited than other nations, but that a further interest rate cut can be feasible. During an OECD panel, SHCP Public Credit Unit head José de Luna said that each country has its own economic characteristics that make them unique, and so room for maneuver is also different.

 

SRE readies return of Mexicans

The Mexican embassy in China reported that a flight is being prepared to repatriate Mexicans stranded in the Asian country due to the COVID-19 pandemic, which is scheduled for June 16, the Minister of Foreign Affairs (SRE) has reported.

 

Ricardo Guzman Ricardo Guzman Editor