Positive Case Count Climbs 1,043 to 10,544 Total

Over 1,043 new positive cases and 113 deaths were reported in today’s COVID-19 special briefing. The daily account recorded more than one thousand confirmations in a 24-hour period for the first time bringing the total figure of infections to 10,544. Of the 970 deaths, 69 percent have been male and their average age was 59, according to the Ministry of Health.

During today’s briefing, Alethse de la Torre Rosas, director of the National Center for the Prevention and Control of HIV and Aids, explained that the treatment of dead bodies is based on a biosecurity protocol and ensuring a dignified treatment of both the deceased person and their relatives. De la Torre said a person can get COVID-19 through contact with a dead body but also indirectly from being in a contaminated space used by them. She called on the people to follow all hygiene protocols and highlighted that personal safety equipment must be based on the risk exposure level.

As of Wednesday, April 22

1,043     new cases (from yesterday)

10,544   confirmed cases nationwide

7,706     under investigation

970         deaths

Impact on markets (19.30 hrs)

US Dollar              MX$24.55            (0.97%)

BMV IPC               34,223.85             (0.98%)

Dow Jones          23,475.82             (1.99%)

Mexico launches US$6 billion bond

After a series of cuts by rating agencies and poor growth forecast by banks, Mexico launched US$6 billion bonds on a three-part offering the Finance Ministry (SCHP) has reported. The COVID-19 economic crisis and the sharp drop in oil prices keeps hurting the country's growth prospects. “Today we made one of the largest bond placements in the history of Mexico, for US$6 billion with terms of 5, 12 and 31 years. This shows that, despite the global turmoil, there is confidence among internationals markets in Mexico,” SCHP head Arturo Herrera wrote in his Twitter account. The agency noted that the issue reached a demand of approximately US$28.5 billion, equivalent to 4.75 times the total amount of the transaction.

BBVA expects 7 percent contraction

Mexico's GDP will contract 7 percent according to a new BBVA estimate. “Mexico is entering the most critical stage of the COVID-19 epidemic so there is still no certainty regarding when the economy could be reactivated and, therefore, on the magnitude of the economic contraction,” the bank reported. Given this the GDP will contract at least 6 percent but could reach 12 percent in 2020. Although measures announced yesterday by Banxico will prevent further deterioration and ease cash flow problems in financial markets, they do not represent a financial boost, BBVA said.

CONCAMIN’s call to the President

Given that the risk of a breakdown in North America value chains is imminent, the Confederation of Industrial Chambers (CONCAMIN) urged the President Andrés Manuel López Obrador government to consider allowing automotive, aeronautics and electronics global chains to resume their operations. The office warned of the need to standardize an agenda with their commercial regional partners as soon as possible. In a videoconference CONCAMIN’s value chains head Eduardo Solís warned that if Mexican parts are not delivered in time, then the US and Canada will look for local suppliers, a situation that represents a serious threat for the Mexican sector.

Mexico nears the worst of the pandemic

Mexico is about to experience the worst moment of the COVID-19 epidemic, Pan American Health (PAHO) and World Health (WHO) representative Christian Morales said. In a virtual press conference, Morales said that the epicenter of the pandemic is moving from Europe to America. “We are about to experience the worst moment of the epidemic in the region and in Mexico,” he said. During the briefing Jean Marc Gabastou, international adviser in health emergencies, said that all mitigation efforts are being made in Mexico and that the national health system capacity is being consolidated. The expert said that seeing what happened in other countries gives Mexico certain advantage, “but this has to be operational, because the wave of cases is coming”.

Remittances will plunge

Remittances sent from Latin American migrants will reduce by 20 percent in 2020, the World Bank has reported. This fall will be the sharpest in recent history after high unemployment rates in the US and the European Union. In a statement the World Bank head David Malpass urged countries of advanced economies to “shorten the recovery time”, so that this flow of foreign funds is replaced. The agency estimates that remittances will recover next year at 5.6 percent annually.