LyrArc Article Gist
This article in Spanish calls on president Santos and former president Uribe to bridge their differences and take the peace process forward in Colombia. This follows the "no" vote in the referendum on the agreement reached in peace talks with FARC. Only 38% of the voters voted in the referendum and the vote was 50.2% against and 49.8% in favor of the peace agreement.

LyrArc Article Gist
Changing perceptions of European companies about the viability of U.S. manufacturing in 2012-2014. The views of Atlas Copco AB, and Skanska, two Swedish companies, on why it makes sense to make products in the U.S.

LyrArc Article Gist
Mexico, Chile, Columbia and Peru will sign an agreement in Cali, Columbia, eliminating tariffs on 90% of merchandise trade between their countries and set a 7 year timetable for the remaining 10%. Visa requirements for citizens of these countries have been removed and plans are being developed for a common market. These countries have a private sector that plays a major role in their economies compared to Brazil and Argentina where the state plays an important role. The combined GDP is as large as Brazil's in the Latin American region- about 35%. The regional stock exchanges of these countries have created a single bourse. Their is potential for more regional trade- the Economist estimates intra-regional trade in South and Central America at a low of 27%, compared with 63% in the European Union and 52% in Asia.

LyrArc Article Gist
The weak dollar and lower unionized labor costs may make exports an attractive goal for US carmakers as the US market is shrinking. After years of shunning export markets US carmakers may finally be waking up to the potential in places like Brazil, China and India. GM is considering export of the Malibu to Brazil, and expects to send 25,000 Buick Enclaves to China because the Buick brand sells very well there. With the new UAW agreemets and lower unionized costs, the US carmakers backs to the wall and open to trying new things and not so America centric, and a cheaper dollar, exports may be one more way in which US carmakers can revive the automobile business in a declinig uS market. It is possible that after this recession the US market may have matured to the point where US sales levels may have peaked like that in Japan and Germany and exports and international markets are the only ways to growth. In this sense the transformation to making the so called Big 3 into global companies has begun in earnest in a true sense, and their company structures and the kind of people who work there will in future reflect this global nature of their business. The UAW is on board in this effort, new wages are at $14 per hour for new hires, and the UAW understands that exports mean additional jobs. In fact the Lordstown, Ohio plant is one location for another GM small car in the future which would be exported, this 42 year old plant once a target for closure could then become an example of renewal in a new kind of business model. Note that the US exported $50.66 billion in vehicles, half of it to Mexico and Canada. It imported $150 billion in vehicles. From now on the shift wold be to export to emerging markets....

LyrArc Article Gist
The fears within Mexico's auto industry that the TPP will allow imports of cheap Chinese auto parts hurting its auto industry, and reversing years of gains made under NAFTA. Canada also has fears about the TPP for its auto industry. Japan uses China and Thailand as part of its supply chain. China is not part of the TPP. Add to this the UAW and Detroit's suspicion of TPP concessions to Japan. This has stalled U.S. negotiations with Japan on the TPP trade agreement in 2015.

LyrArc Article Gist
The Bank of Mexico, Mexico's central bank, cuts interest rates by half a percentage point to 3% in June 2014. The consumer price index is at 3.4% for 12 months through mid-May, and the central bank sees the inflation target of 3% by early 2015 as achievable. The central bank's estimate for GDP growth in 2014 was lowered to 2.8% from 3.5%. GDP growth was annualized 1.1% for the 1st quarter of 2014. Mexico has failed to live up to the growth expectations after the new Nieto administration's efforts to jumpstart the economy and opening up of the state oil industry to foreign investment. The policy changes of the Nieto administration set the future course of the economy and will take time to deliver results in economic growth. More effective administration and execution is needed for economic growth.

LyrArc Article Gist
Relations between the U.S. and Argentina improve under the new Macri administration. U.S president Obama visits Argentina in March 2016.

LyrArc Article Gist
VW's global plans to increase sales and surpass Toyota. Efforts to increase sales in the U.S. by redesigning the Passat and having it compete with the Toyota Camry in the same price range of about $20,000. To develop new small cars for Asian markets VW has taken a 20% stake in Suzuki, giving it access to small car technology. Suzuki deal gives VW access to the Indian market. VW plans are to double the network of dealers in China to 1600 in 5 years and a sales target of 2 million cars for China. VW has stumbled before in the U.S. and lacks a presence in Asia outside of China. This is about to change.

LyrArc Article Gist
The new oil law allowing foreign oil companies to compete with Pemex passes the Senate in Mexico and now goes to the lower house. The legislation removes the 4 oil worker union's representatives from the 15 person Board of Pemex. The oil law now leaves only a 10 member board- five appointed by the government and five independent members approved by the Senate. Because past opening of investment by the private sector in state owned railways and telecom sectors has led to wealth passing into the hands of a few business owners and worsening competitiveness, there is concern in Mexico about how this law will be implemented so that it benefits Mexico and Mexicans through foreign investment in the oil industry. Leftist parties are pushing a bill in the lower house to allow a referendum on the oil law by 2015 if 1.6 million signatures are collected. Oil experts point to foreign investment in the Mexican oil industry as further enhancing the prospects of North American oil production in comparison to the position of Middle East oil producers, because of Mexico's large shale oil and gas reserves and the prospects for new exploration in deep waters. ...

LyrArc Article Gist
Mexico's president Enrique Pena Nieto describes his plans for increasing economic growth in an interview with Lally Weymouth. He looks back at the changes made through the Pacto de Mexico in energy, education and telecommunications, and in other areas. Changes made will allow political parties to form coalitions after 2018 following a presidential election, to form a majority in the legislature so that new legislation can be passed. A new criminal code for the entire country will override a patchwork of laws in different states. Economic growth is a high priority after disappointing 2.6% growth in the last 3 years, with infrastructure projects planned- new airport for Mexico City, doubling port capacity, new rail lines and high speed rail line Mexico City to Queretaro.

LyrArc Article Gist
Mexico's unemployment rate fell to 3.3% in June 2017, the lowest level since 2006, as the outlook for the Mexican economy improves. The problem for Mexico is that most of the new jobs created have low wages and wages have not kept up with inflation. Inflation is at 6.3%. Low labor skills means many people take jobs at low wages.

LyrArc Article Gist
Taxpayers not the banks are Secretary Paulson's clients and he needs to remind himself of that says the NYT editorial page. It wants to see the government bring in new more competent management and not use the management that got us into this mess in the first pace especially where that management has demonstrated poor judgement and made errors that caused the bank to be in trouble. And it does not want to see the government a passive investor. It want the government to have a sy in mergers an acquisitions. Its not saying tha the government should take on the job of running the banks but protecting its investment means Treasury has to be involved in critical decisions that affect its investment and in the way the business is run and what risks are taken. Also Treasury is asked to watch for and take steps against conflicts of interest. Many of the same banks that are selling their assets to Treasury will also be asked to help Treasury to run the troubled asset program. Treasury to take care that these banks do not end up writing the rules on one side for Treasury and selling Treasury the assets by being on the other side because it won't be good for taxpayers. See Guillermo Ortiz's advice to Fed chairman Bernanke at the recent G20 meetings which says says be sure to take ownership stakes, as there was serious, lasting and damaging political fallout in Mexico during the 1994-95 peso crisis, from conflicts of interest and the failure to take ownership stakes and dividends on preferred shares. ...