Hurricane Rafael already pounded Cuba, taking out its power grid Wednesday. It's now headed toward Mexico's Gulf Coast. (Sky Alert Storm/X)
The Yucatán Peninsula is bracing for intense rainstorms on Thursday as Hurricane Rafael slowly makes its way into the south-central region of the Gulf of Mexico.
Rafael — a Category 2 hurricane as of 2 p.m. Mexico City time Thursday, down from a Category 3 on Wednesday afternoon — was about 350 kilometers north-north-east of Cabo Catorche, Quintana Roo, according to Mexico’s National Water Commission (Conagua).
As Rafael passes by Mexico, it will continue to weaken but bring tropical-storm-force winds to the Yucatán Peninsula and to states along the Gulf of Mexico coast as it takes about five days to move through the region. (NHC)
Rafael’s arrival in Cuba Wednesday as a Category 3 storm took out the island nation’s power grid with over 200 km/hr winds and brought flooding and heavy damage to Havana, Mayabeque and Artemisa, according to President Miguel Diaz-Canel’s account on the social media platform X. Cuba was still experiencing residual rains from the storm on Thursday afternoon even as the storm headed toward the Gulf of Mexico.
Current models have Rafael moving slowly west over the weekend before turning slightly southwest early next week, according to the U.S. National Hurricane Center. If the model holds (initial models had Rafael heading toward the U.S. Gulf Coast), the hurricane is likely to weaken as it veers toward the southwest Gulf of Mexico in the direction of the states of Veracruz and Tabasco.
Conagua reported that as of noon, Rafael was featuring sustained maximum winds of 155 km/hour, gusts of up to 195 km/hour and was moving northwest at 15 km/hour. The advisory also warned that the hurricane’s outer bands would increase humidity across the peninsula, stoking heavy rain (25 to 50 mm) in the states of Yucatán and Quintana Roo, as well as cloudbursts in Campeche on the southwestern side of the peninsula.
A hazardous weather outlook was also issued for Yucatán and Quintana Roo as Conagua warned that the outer bands would bring winds of up to 60 km/hour while also producing waves reaching up to 2 meters in height on Thursday afternoon.
Yucatán’s Civil Protection authorities advised residents in eastern, central and southern municipalities to take precautions as storm conditions worsened throughout the day, according to the newspaper Diario de Yucatán.
Mexico’s National Meteorological Service (SMN) expects Rafael to weaken throughout the weekend, with maximum sustained winds dipping to 65 km/hour by Tuesday.
If the forecast holds, Rafael would be downgraded to a tropical storm and not make landfall in Mexico, according to the newspaper Milenio. Instead, the storm would dissipate and drift north while remaining 400 kilometers or more off the coast of the state of Tamaulipas.
President Sheinbaum described her call with the U.S. president-elect as "very cordial." (Claudia Sheinbaum/X)
President Claudia Sheinbaum on Thursday had her first phone call with United States President-elect Donald Trump, to congratulated him on his victory over Kamala Harris in Tuesday’s U.S. presidential election.
In a Wednesday post on the social platform X, Sheinbaum said she was open to dialogue and asked Trump for respect for Mexico’s sovereignty. She also expressed confidence that the two neighboring countries would work together “to advance the broad bilateral agenda that links us.”
“There will be good relations with the United States. I’m convinced of that,” she told listeners at her morning press conference.
Reflecting those concerns, the peso dropped to a two-year low in overnight trading, but trimmed its losses on Wednesday as the markets digested Trump’s win.
Mexico surpassed China as the top U.S. trade partner last year, as the value of goods imported by the United States from Mexico rose nearly 5% from 2022 to 2023, to more than $475 billion, according to the Associated Press.
Mexico surpassed China as the United States’ top trade partner in 2023. (Asipona Manzanillo)
Demonstrating the importance of the bilateral relationship, Sheinbaum on Wednesday also met with Larry Fink, CEO of BlackRock Inc, and Adebayo Ogunblesi, director of BlackRock’s private equity firm Global Infrastructure Partners, at the National Palace in Mexico City.
Sheinbaum topics of discussion included Mexico’s economic advantages and the US-Mexico-Canada free trade agreement, the president said in a post on X.
According to La Jornada, Sheinbaum emphasized that Mexico’s economic indicators are solid since a shift in policies under her predecessor Andrés Manuel López Obrador, a new economic model that she is following. She also said Fink agreed that the peso is strong and now is a “good moment for Mexico.”
However, Trump’s campaign promises have left Mexico bracing for punishing tariffs and mass migrant deportations, according to the newspaper The Guardian. The U.S. president-elect has even suggested he would call for U.S. military strikes on organized crime groups in Mexican territory, an idea that former President López Obrador categorically rejected.
Trump has repeatedly threatened to implement tariffs on cars and other products made in Mexico, in spite of the USMCA free trade agreement. (Volkswagen de México)
Wednesday’s decision to recognize Trump’s victory was a bit of a surprise after Sheinbaum had said earlier in the week that she would wait until all the votes were counted. However, after Harris conceded, Sheinbaum decided to congratulate the U.S. president-elect.
Sheinbaum’s predecessor, Andrés Manuel López Obrador, famously delayed congratulating Joe Biden after he defeated then-President Trump in November 2020, waiting more than a month until the U.S. Electoral College had confirmed the result.
Dive into your own slice of paradise with one of these genuinely outstanding pieces of Mexican real estate currently on the market. (Alta Habitat)
Mexican real estate is undoubtedly in vogue, with some of the absolute coolest offerings anywhere in the world. The climate and ambiance of many of its cities and towns attract investors from all over the world. Whether it’s new construction or stunning traditional houses transformed into modern spaces, the architectural and design scene in Mexico has flourished in recent years, and combined with positive indicators in the real estate market, this presents a great opportunity for investment.
Projections for real estate in Mexico, both residential and commercial, for the period from 2024 to 2029 are optimistic. According to an analysis by Mordor Intelligence, the residential real estate sector in Mexico is expected to grow by 4.14% during this period. But what does investing in property here actually get you?
Well, look no further, because here is our selection of some of the best real estate deals currently available in Mexico.
Nature melds with modern architecture in Oaxaca
(Alta Habitat)
With a delicate and elegant design by architect Juan José Rivera Río, this construction blurs the boundaries between interior and exterior spaces as its simple lines harmonize with the surrounding nature. Located in Huatulco, along the beautiful Pacific coast, this area is experiencing growth while maintaining a low profile compared to other Mexican beaches. Here, you will experience spaciousness and breathtaking views of the ocean. Amenities include saltwater swimming pools, a hydro-massage pool, a wellness center and a gym. The development offers houses ranging from 180 to 435 square meters in size, with two to four bedrooms and two to five bathrooms, depending on your preference.
Colonial elegance in the heart of Mérida
(Grupo Inmoflo)
This colonial home in the Historic Center of Yucatán’s capital features beautiful architecture, with high ceilings, large windows and skylights that create a sense of open space and light throughout the property. The walls and ceilings preserve some of the original materials, adding a special charm with a modern touch. The ceramic floors, rustic doors, ironwork and expansive garden filled with amate, the sacred Maya tree, along with the original facade.
The property’s charms are only enhanced by its proximity to major landmarks like Parque La Ermita de Santa Isabel.
An eco-abode on the Oaxaca Riviera
(Alta Habitat)
This stunning architectural project is situated on one of the most beautiful beaches in Oaxaca, Santa Elena del Tule. The views from the property are spectacular, with the Pacific Ocean in front and the rock formations of the Sierra Madre del Sur surrounding it. The renowned architect behind this project is Bernardo Quinzaños of firm CCA.
The location provides a sense of intimacy and pristine nature, as it is only 40 minutes from Puerto Escondido. The property offers amenities such as massages, an outdoor jungle gym, a bar, an organic vegetable garden, meditation and yoga sessions and the option of a personal chef who can prepare dinners in the comfort of your home or provide cooking classes to help you learn new culinary skills. The construction size is 125 m², with 1-2 bedrooms and 1 bathroom.
An original gem in San Miguel de Allende
(CDR Bienes Raíces Forbes)
Casa Palikao is truly a gem in a town renowned for its quality of life. Located in the heart of San Miguel, the house dates back to 1764, with its iconic central courtyard and high ceilings reminiscent of the classic 18th-century haciendas. The renovation was overseen by internationally acclaimed interior designer Anne-Marie Midy and local landscape designer Timoteo Wachter. The property features seven bedrooms, eight bathrooms and a total area of 1,157 square meters. One of its main attractions is the beautiful pool at the center of the house.
The perfect house for entertaining in Valle de Bravo
(Alta Habitat)
Situated in a privileged setting with stunning views of a private lake and just a couple of hours from Mexico City, Cardo Santo was designed by the renowned architect Manuel Cervantes Céspedes. It is part of a collection of farmhouses following the farm-to-table concept. Each house features its own garden, and the community was envisioned as a gastronomic hub surrounded by trails, orchards, gardens and water features. The property offers four bedrooms, four and a half bathrooms and 406 square meters of construction.
The quintessential Cuernavaca home
(CGC RE))
This property embodies a beautiful Mexican rustic design, reminiscent of ex-haciendas, yet with a distinct 1950s Cuernavacan style. The property features a spacious layout, a central pool surrounded by a lovely garden, adobe floors and talavera tiles. The house has a total area of nearly 660 square meters with 151 square meters of construction, and includes three bedrooms and two bathrooms.
A Puebla hideaway
(Antona Lama Inmobiliarios)
This property spans 1,487 square meters and exemplifies the classical rustic style of Mexico. The house is all on one level, featuring high ceilings and mud floors that showcase its stunning beauty. It includes four bathrooms, three bedrooms, a beautiful pool, a garden and terraces.
Rustic sophistication in Tlalpan
(CGC RE))
Filled with light, this house features high ceilings and represents the rustic classical Mexican construction style that is both elegant and simple. Featuring wood and stone elements, the property includes three bedrooms and three bathrooms, with a total area of 660 square meters and 327 square meters of construction. Situated in one of the most beautiful areas in Mexico City, near the southern forest, the garden and layout of the spaces in this property are major highlights.
A turn-of the century palace in Santa María la Ribera
(Raph Desarollos)
This area of Mexico City is undergoing growth and revitalization. Filled with colonial houses, the potential of this zone is remarkable. Cedro 328 is a prime example. Built in 1900, this property is currently undergoing restoration and transformation to create 14 apartments within a Porfiriato-era building with a central garden. The space is stunning, and the structure is awe-inspiring with its high ceilings, halls and patios. Each apartment features either one or two bedrooms and one or one and a half bathrooms, along with a kitchen, living room and dining room.
Ana Paula de la Torre is a Mexican journalist and collaborator for various outlets including Milenio, Animal Político, Vice, Newsweek en Español, Televisa and Mexico News Daily.
In October, produce prices were up almost 16% compared to last year, due to unfavorable weather conditions. (Rogelio Morales/Cuartoscuro)
Mexico’s annual headline inflation rate increased in October from the previous month as fruit and vegetable prices surged.
The national statistics agency INEGI reported Thursday that headline inflation rose to 4.76% in October, up from an annual rate of 4.58% in September. The rate is slightly higher than the 4.73% median forecast of analysts surveyed by Citibanamex.
With an interest rate announcement coming next week, the Bank of Mexico is keeping a close watch on the inflation rate. (Archive)
The increase in inflation in October broke a two-month streak of declines in the annual headline rate.
Month-over-month inflation was 0.55% in October, while the annual core rate, which excludes volatile food and energy prices, declined for a 21st consecutive month to 3.80%.
The decrease in the closely-watched core rate likely keeps the Bank of Mexico (Banxico) on track for another interest rate cut next week, the Bloomberg news agency reported.
The central bank — which targets a 3% headline inflation rate — has reduced its key rate on three occasions this year, shaving a combined 75 basis points off borrowing costs. The most recent 25-basis-point cut came in September, leaving Banxico’s benchmark rate at 10.50%.
Fruit and vegetable prices up almost 16%
INEGI’s data shows that fruit and vegetables were 15.90% more expensive in October than in the same month of 2023. That’s the highest inflation rate for those products since July, and represents an increase of more than eight points compared to September.
Varying weather conditions have caused produce prices to fluctuate significantly this year.
Annual inflation for meat was 6.17% in October, up one point from the rate in September.
Prices in the combined category of agricultural products (fruit, vegetables and meat) were 10.92% higher than a year earlier.
With meat included, October prices for agricultural products increased almost 11% compared to last year. (Victoria Valtierra/Cuartsocuro)
Annual inflation for services was 4.98% in October, while energy prices, including those for electricity and gasoline, rose 4.62%. Compared to September, nationwide electricity prices increased 18.07% in October due to the end of the summertime electricity subsidies program in various cities including Mérida, Monterrey, Acapulco, Campeche and Cancún.
Annual inflation for processed food, beverages and tobacco was 3.81% in October, while non-food goods were 1.63% more expensive.
Will inflation trend down in the final months of 2024?
Andrés Abadía, chief Latin America economist at Pantheon Macroeconomics, is predicting that inflation will fall in the fourth quarter of 2024, despite the uptick in October.
“Our expectation is based on several factors, including less pronounced base effects, weakening internal demand, improving supply chain conditions and more favorable climate patterns,” he said.
The median projection of analysts surveyed by Citibanamex this month is that Mexico’s annual headline inflation rate will stand at 4.41% at the end of the year.
Bloomberg reported that most analysts believe that the long-running decline in core inflation will continue “going forward.”
The PGA World Wide Technology Championship is also expected to see significant change in the coming years. (PGA World Wide Technology Championship)
Jack Nicklaus may have been the first legendary figure to put Los Cabos on the golfing map when his layouts at Palmilla and Cabo del Sol opened to acclaim in the early 1990s. But Tiger Woods, the man still chasing Nicklaus’ record for all-time major championships, is the latest, and he’s done something locally that Nicklaus never did: bring a PGA tournament to Los Cabos.
The PGA World Wide Technology Championship (WWTC) returns to the Woods’ designed El Cardonal Course at Diamante in Cabo San Lucas from Nov. 7 to 10, with many of the world’s best golfers competing for a purse of US $7.2 million, plus points and exemptions for next season. To the winner go much of the spoils. Last year, South African golfer Erik van Rooyen won the first iteration of the tournament held in Cabo San Lucas with a scorching final round 63, pocketing $1.46 million in the process.
El Cardonal will once again host the PGA Tour. (Diamante Cabo San Lucas)
This year, the winner will not only score a significant cash prize but will earn a two-year PGA Tour exemption, 500 FedExCup points and entry into select 2025 tournaments like The Sentry and The Players Championship.
What to expect at the 2024 WWTC
Who’ll be playing?A mix of young up-and-coming stars like Neal Shipley and established tour veterans such as Lucas Glover, Charley Hoffman, and Matt Kuchar. The tournament has a history of showcasing rising stars, and in previous years has hosted players as notable as Scottie Sheffler (in 2022), Collin Morikawa, Jon Rahm, Jordan Spieth, Justin Thomas, and two-time WWTC winner Victor Hovland (a two-time winner of the WWTC).
Less noteworthy to U.S. viewers, but of interest to those in Mexico, is the qualification process that allows Mexican players to become eligible for play. In 2023, four Mexican golfers played in the WWTC: Isidro Benitez of Puebla; Roberto Díaz of Veracruz; Pachuca native José Cristóbal Islas; and Mexico City’s Sebastián Vázquez. The latter had the best finish, shooting 15 under to tie for 38th place. This year, four more will compete, including Benitez again.
Isidro Benitez of Puebla returns again this year. (Official World of Golf)
Whatever the announced field, the course they’ll be playing on is the same world-class one as a year ago. El Cardonal was the first ever Tiger Woods-designed course to be completed. The 7,363-yard parkland-style layout premiered in Cabo San Lucas in 2014 and was intended to evoke the “Old California” courses Woods grew up playing. It’s perfect for tournament play, with a closing par-5 that almost guarantees dramatic finishes. Van Rooyen eagled the 537-yard 18th in the final round of the 2023 event, with those two strokes accounting for his margin of victory.
For the 2024 WWTC, players will arrive and register at El Cardonal by Monday, Nov. 4, with the course available for practice rounds on the 4 and 5 before the tournament tees off on Thursday, Nov. 7. However, tickets aren’t available for the practice rounds or the Pro-Am events on Nov. 6: only for WWTC tournament play.
How to get tickets for the 2024 WWTC
General admission tickets have been on sale since Aug. 1 and remain surprisingly affordable by Los Cabos standards: only US $35 per person for Rounds 1 and 2, with the price increasing to $40 and $45 for Rounds 3 and 4, respectively. Or you can buy a ticket for all four days for $139. Children under 15 get in free if accompanied by a ticket-holding adult, with a limit of two kids per parent.
Good luck getting into Tiger Woods’ sports bar. (The Woods Cabo.)
That’s for an entry pass to watch the tournament and enjoy most concession areas. To access the upgraded VIP areas will require a more substantial outlay. Meanwhile, to enjoy hospitality privileges at Wood’s superb restaurant, The Woods Cabo, which commands views of the first and 18th holes… you might need to sell your car.
Where do you park if you still have a car? At a designated parking lot near Diamante with a free shuttle that continuously ferries fans to the course entrance and back. Another free shuttle leaves from downtown Cabo San Lucas, with discounted parking available.
For those not expecting to be in Los Cabos to attend the tournament, it’s still possible to watch it on television. The Golf Channel will provide coverage for U.S. and Canadian viewers, while those in Mexico can follow along via Golf Channel Latin America.
The history of competitive golf in Los Cabos
Jack Nicklaus & Lee Trevino ~ At Cabo Del Sol (1/2)
Nicklaus may not have brought a PGA Tournament to Los Cabos, but the “Golden Bear” has made incredible contributions to raise the area’s golfing profile. In addition to designing six world-class local courses , Nicklaus participated in two of the five Senior Slam events that took place in Los Cabos in the late 1990s and also played in the first of the two head-to-head stroke play events for Shell’s Wonderful World of Golf television series that were held in Los Cabos.
The first Wonderful World of Golf matchup in 1996 saw Nicklaus lose to Lee Trevino on a course he designed at Cabo del Sol’s Ocean Course.
The other Shell event featured two more major champions, Phil Mickelson and Sergio Garcia, competing at the then-new and still remarkable Tom Fazio-designed Querencia Golf Club in 2001.
The Shell show was a terrific showcase for the sport and the Senior Slam drew a host of legendary players since the event paired the previous year’s major winners on the PGA Senior Tour. However, it was not an official event on that tour. It took Woods to help attract an official PGA tournament to Los Cabos — although an assist should probably be given to Greg Norman, another former major champion with design history in Los Cabos.
How the WWTC ended up in Los Cabos
The WWTC tournament has been contested since 2007 and was the first PGA Tour event ever played in Mexico. The first 16 events were held at the Greg Norman-designed El Camaleón Mayakoba Golf Course on the Riviera Maya. However, when Norman became CEO of the Saudi Arabia-backed LIV Golf Tour and announced a LIV Golf tournament would be scheduled at El Camaleón, the rival PGA decided to move the WWTC to another location.
Woods was influential in getting the tournament to Los Cabos, with the PGA ultimately inking a 5-year deal to have the WWTC hosted at Diamante, the luxury development on the Pacific Coast of Cabo San Lucas where Woods has designed two courses (El Cardonal and the 12-hole Oasis Short Course) and has another (The Legacy Club) on the way.
Chris Sands is the Cabo San Lucas local expert for the USA Today travel website 10 Best, writer of Fodor’s Los Cabos travel guidebook, and a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily. His specialty is travel-related content and lifestyle features focused on food, wine and golf.
Jenna Mayhew has been practicing psychology in Mexico for almost a decade. Now, she is here to answer your questions. (Jenna Mayhew)
You may have noticed lately that every Wednesday we publish a “Talk Therapy” column, a weekly advice column designed to offer support, insights, and practical solutions.
Life can be complicated. Whether you’re facing personal dilemmas, grappling with cultural adjustments, or simply trying to make sense of your emotions, we all need a little help from time to time. That’s where Jenna Mayhew comes in. A seasoned psychologist with a deep understanding of both mental health, relationships and crosscultural living.
Jenna Mayhew (center) and the team at Hola Therapy. (Jenna Mayhew)
Every Wednesday, Jenna answers one carefully selected question from our readers. Her approach is grounded in years of experience, a warm and empathetic demeanor, and a genuine commitment to helping people understand themselves better. Whether you live in Mexico, are navigating life as an immigrant, or simply want advice on a personal matter, Therapy Talk is here to provide thoughtful, evidence-based guidance.
No question is too big or too small.
How to Submit Your Question
Are you ready to seek advice? Submitting your question to Jenna is simple. Just comment on any of the existing articles, including this one, or send an email to [email protected] and your question could be featured in an upcoming column. Jenna will select one question each week, ensuring a variety of topics and perspectives are covered.
Whether you’re grappling with a personal issue or seeking practical advice on how to improve your mental well-being, Therapy Talk is here to help. The column is open to all readers, whether you’re a long-time resident, a recent expat, or someone simply curious about life in Mexico and how to live it well.
To introduce the column, we put the following question to Jenna:
“How can I find an English-speaking therapist in Mexico and how do I know if they’re registered?”
Jenna says:
Being an English-speaking immigrant in Mexico presents unique challenges when it comes to seeking therapy. While the country has, in many ways, a robust healthcare system, very few of the many public healthcare services are dedicated to mental health.
Despite this, Mexico does train many psychologists who then work privately. Today, there are approximately 148,000 psychologists in Mexico. When compared with the 108,000 psychologists serving the U.S. population of 333 million (1 per 3083 people), Mexicans have much greater access to psychology support services (1 per 858 people). However, the majority of professionals operate primarily in Spanish, which means the language barrier can be one of the first obstacles for those who need to access care in English.
Additionally, the cultural context of therapy can differ significantly between Mexico and countries like the United States or Canada. Immigrants may need to navigate these differences while trying to find a therapist who understands their specific needs, such as issues related to acculturation, identity, or immigration stress. This can be more accessible in larger cities like Mexico City, Guadalajara, and Monterrey.
In terms of regulation and licensure, Psychologists in Mexico are required to have a Cédula Profesional. This is a confirmation of a degree in psychology. It is not linked to regulation which is what ensures that ethical and practice codes are set and adhered to. Non-psychology therapists such as clinical social workers, psychoanalysts or counsellors do not require a cédula professional and also do not have required licensure or regulation.
If you’re feeling stressed by the demands of living and working abroad, there’s a therapist in Mexico that’s right for you. (Nik Shuliahin/Unsplash)
This means finding a ‘registered’ therapist isn’t as straightforward as it may be in a country with a tighter licensing and regulation framework. Due to this, personal recommendations are often a great place to start. Many therapists in Mexico also voluntarily adhere to international standards of practice. Despite the regulatory differences, the growing awareness of mental health in Mexico, along with a more globalized approach to therapy, makes it increasingly accessible for English-speaking immigrants to seek support.
Jenna Mayhew is an Australian psychologist based in Mexico, with over 20 years of experience in Australia, England and Mexico. She is the founder of Hola Therapy, a bilingual practice dedicated to supporting the immigrant and cross-cultural communities in Mexico.
Hola Therapy aims to give back to the community and one way they achieve this is by providing by clinical and financial support Misión México Foundation. https://www.misionmexico.org Misión México Foundation is a charity in Tapachula, Chiapas, Mexico. They provide a stable, therapeutic environment for some of the state’s most vulnerable children, with a focus on safety, emotional recovery and education.
If you have enjoyed the “Ask Jenna” column, please consider giving back by making a small donation to the Misión México Foundation
The peso kicked off Semana Santa (Holy Week) at nearly 20 to the dollar. (Shutterstock)
The Mexican peso went on a rollercoaster ride on Wednesday after Donald Trump won the U.S. presidential election.
After closing at 20.08 to the US dollar on Tuesday, the peso depreciated to a low of 20.81 to the greenback in early trading on Wednesday.
The peso’s volatility Wednesday contributed to several stock values falling on the Mexican stock exchange (BMV), but many rallied after investors apparently picked up some deals. (Andrea Murcia Monsivais/Cuartoscuro)
That position – a depreciation of 3.5% compared to the USD:MXN rate at the close of markets on Tuesday – was the peso’s weakest since August 2022.
The currency subsequently rallied and was trading at 20.16 to the dollar at 6 p.m. Mexico City time.
Mexico’s close trade relationship with the United States makes the peso particularly vulnerable to political developments in the U.S. During the U.S. election campaign, the likelihood of a Trump victory contributed to the peso’s depreciation to above 20 to the dollar.
However, the slump to 20.81 to the dollar on Wednesday was “a fall some analysts said may have been overdone,” according to the Reuters news agency.
The currency’s rebound to virtually the same position it was at 24 hours earlier supports that view.
On Monday, Trump threatened to impose a 25% tariff on Mexico in retaliation for what he called an “onslaught” of criminals and drugs to the United States. This would require renegotiation of the USMA free trade pact, however. (File photo/Donald J. Trump Facebook)
In recent months, the peso has also been highly sensitive to political developments in Mexico. It depreciated sharply in June after the ruling Morena party won big majorities in Congress that enabled it to pass controversial constitutional reforms such as the recently enacted judicial overhaul that allows the direct election of all Mexican judges.
Chris Turner, global head of markets for Dutch financial services corporation ING, said he couldn’t rule out a depreciation of the peso to 22 to the dollar in coming weeks.
Gabriela Siller, director of economic analysis at Mexico’s Banco Base, said on social media that the peso continues to face “internal risks, especially now” that Morena and its allies are seeking to approve a constitutional reform that would disband a number of autonomous government agencies.
In another X post, Siller acknowledged there is widespread “concern” in Mexico about a second Trump presidency, but stressed the importance of remembering that the former (and soon-to-be) president initiated a trade war with China and signed the USMCA during his first term.
Rodolfo Ramos, head of Mexico research at Brazilian bank Bradesco, said that his bank anticipated “uncertainty on tariffs in the short term” but added that “we remain positive on nearshoring over the medium and long run.”
The current USD:MXN exchange rate is “an attractive entry point” for investors to Mexico, he said.
While many Mexicans are anxious about a Donald Trump presidency hurting Mexico, Banco Base’s Gabriela Siller reminded her followers on X that Trump signed the USMCA free trade agreement in 2018.
A volatile day on the Mexican Stock Exchange
The Mexican Stock Exchanges benchmark index declined more than 2.5% shortly after opening, but ended the day 1.77% higher.
The El Economista newspaper reported that the turnaround was supported by investors snapping up stocks that dropped in value early in the day.
On Wednesday, Sheinbaum unveiled some details of her electricity transition plan. (Galo Cañas Rodríguez/Cuartoscuro)
Just hours after it became clear that Donald Trump had won the presidential election in the United States, President Claudia Sheinbaum held her Wednesday morning press conference at the National Palace in the historic center of Mexico.
Here is a summary of her remarks about Trump’s victory, energy sector reform and other issues, during her latest mañanera.
Sheinbaum’s daily press conference began soon after most U.S. media outlets definitively called the U.S. presidential election for Donald Trump. (File photo/Jonah Elkowitz for Shutterstock)
‘No reason for concern’ about a second Trump presidency
“To all Mexicans, there is no reason for concern. To our compatriots [in the U.S.], to their relatives here, to Mexican business people: there is no cause for concern,” she said despite Trump’s tariff threats and pledge to carry out a mass deportation operation.
Sheinbaum noted that four of 11 Supreme Court justices voted against a proposal to partially invalidate the recently enacted judicial reform, ensuring that large-scale judicial elections can go ahead next year as planned.
“Who voted against [the proposal]? Justice Yasmín Esquivel, Justice Loretta Ortiz, Justice Lenia Batres and also Justice Alberto Pérez Dayán,” she said.
Justice Pérez Dayán in a session of Mexico’s Supreme Court in February. (Cuartoscuro)
“I invite you to listen to the intervention of Justice Pérez Dayán. … What he said is, ‘I don’t agree with the reform, but that doesn’t mean that my personal opinion implies that a project of unconstitutionality can be accepted because [the reform] is already in the Constitution,'” Sheinbaum said.
“… There is coherence in the justice’s vote. … We might have differences with the justice, but in this case reason prevailed, the Constitution prevailed, the rule of law prevailed,” she said.
“… It was good news yesterday … for all Mexicans,” Sheinbaum said.
The energy transition and ‘clear rules’ for electricity sector investors
“We’re going to move ahead in a sustainable and very determined way in the energy transition,” Sheinbaum said.
“We will reduce the impact on the environment and the emissions that cause global warming.”
Earlier in the president’s press conference, Energy Minister Luz Elena González presented the government’s National Electricity Sector Strategy.
Part of that strategy is having “clear rules” for private investment in the sector, González said.
“Private participation in electricity generation will be maintained with a percentage of up to 46%,” she said.
The state-owned Federal Electricity Commission (CFE) has a guaranteed 54% stake in electricity generation, as per a recently promulgated energy reform.
CFE director Emilia Calleja told Sheinbaum’s press conference that US $23.4 billion will be invested in the utility over the next six years. Over half of that amount – $12.4 billion – will go to electricity generation projects, including renewable ones, she said.
Sheinbaum said that the CFE will continue “growing” and become stronger during her six-year term.
“How? With already proven financial schemes, with which we’re going to continue increasing … [electricity] generation. And a very significant percentage of that will be from renewable energy sources,” she said.
BYD's president of Mexican operations confirmed the Chinese auto company's plan to build a Mexico plant to the El País newspaper Tuesday. (BYD Mexico/Facebook)
Chinese electric vehicle (EV) giant Build Your Dreams (BYD) announced Tuesday its plans to follow through with building its first plant in Mexico, no matter the outcome of the U.S. election.
Doubts had surfaced in September after a Bloomberg News report alleged that BYD had postponed its plans for a Mexico plant indefinitely due to uncertainty about the U.S. election. As the Republican candidate for U.S. president, Donald Trump has repeatedly promised to impose prohibitively huge tariffs on Chinese imports.
BYD’s Americas head said that BYD plans to build a factory in Mexico but stresses that this is for the Mexican market and not for export to the US.
She said the US market is too complicated, including the politics, whereas in China if you don’t go electric, “you have no future.” pic.twitter.com/07bmyQeRDw
In February, BYD Executive Vice President Stella Li told Yahoo Finance in no uncertain terms that BYD has no plans to enter the U.S. market via Mexico.
At the time of the Bloomberg report, BYD officials denied that they had wavered in their resolution to build the announced Mexican plant.
“BYD has a very strong interest in the Mexican market, and to give the people here our products, we intend to build a factory here,” Ray Zou, president of BYD’s Mexican operations told the newspaper El País.
The company has no intention of exporting vehicles from the Mexico plant to the U.S., El País reported, although some experts have theorized that BYD building a plant in Mexico is a strategy to attempt to skirt U.S. tariffs on Chinese products by importing their cars to the U.S. from inside the USMCA free-trade zone.
BYD will reveal the new plant’s location soon, reported Forbes.
“Since the swearing-in of the new Mexican government,” Zou added, “we have had more close conversations with the authorities to determine the best location.”
By the end of the year, BYD will confirm the details of its manufacturing plant in Mexico, which is expected to produce 300,000 units and create over 10,000 jobs.
José Miranda, director of Marketing and Communications for BYD’s Americas operations, stated that the U.S.’s imposition of duties on products from China would not influence BYD’s investment decisions in Mexico.
BYD presented a new SUV model for Mexico on Tuesday called the BYD Yuan Pro, with prices starting at 599,880 pesos ($29,472).
Several automotive companies, including BYD, Zeekr, MG Motor and Yadea, have stood firm on plans to invest in Mexico, with many developing manufacturing plants.
Mexican cargo truckers blocking Mexico City's streets in September. They were protesting the prevalence of hijackings and thefts on their routes. (Victoria Valtierra Ruvalcaba/Cuartoscuro)
The National Guard will soon collaborate with Mexican companies that track stolen vehicles in order to increase the recovery of cargo transport vehicles stolen by criminals in highway theft.
The Guard, in conjunction with the National Association of Vehicle Tracking and Protection Companies (Anervp), will focus on Mexico’s five worst states for cargo vehicle theft, where many of the robberies happen as hijackings on Mexico’s highways, according to the association’s new head, Luis Villatoro Martínez.
Tractor trailer trucks on the Mexico-Puebla highway, considered one of the most risk-prone in Mexico for cargo vehicle hijackings. (Mireya Novo/Cuartoscuro)
In an interview with the publication Forbes México, Villatoro said that México state, Puebla, Michoacán, Guanajuato and San Luis Potosí report the highest rates of theft of cargo- transport vehicles, with 70% of incidents happening in those states.
“We will have more feedback from the National Guard, the Federal Public Security Ministry and authorities in [these] five states,” Villatoro said.
So far this year, Anervp has recovered over 838 million pesos (US $41.6 million) worth of cargo transport vehicles, including 1,225 tractor-trailers, trailers, dry vans, cars, pickup trucks and motorcycles. This resulted in the arrest of 180 alleged criminals and the confiscation of 29 properties allegedly linked to organized crime activities.
Better security on Mexico’s highways needed to attract nearshoring
Over the last few years, the most pressing security concern for foreign companies operating in Mexico has been violent cargo truck hijackings on major highways. According to some estimates by business chambers in the country, an average of 50cargo trucks are hijacked each day in Mexico.
The Reliance Partners’ Cargo Truck Hijacking Data Portal, which compiles official data published by Mexico’s federal government, reported that 2023 saw 7,862 hijackings, up 3% from 2022. Wal-Mart, Ford, Danone, Chevrolet, Apple, Amazon and other foreign companies have all experienced cargo truck hijacking incidents in Mexico, according to the portal.
2023 saw 7,862 hijackings of cargo transport vehicles on Mexican highways, up 3% from 2022. Rising trends in such theft could scare off companies interested in nearshoring, one expert warned. (Alaín Hernández/Cuartoscuro)
Cargo theft on Mexico’s highways not only implies economic losses for companies but also, said vice president of the Mexican Institute of Foreign Trade Executives (Imece) Luis Masse Torres, a challenge that could hinder the burgeoning nearshoring trend in Mexico.
“The first thing these [foreign] companies will notice when they do their risk analysis is that Mexico poses significant dangers regarding highway insecurity,” Messe told newspaper El Economista. “Faced with the very high possibility of losing merchandise or having accidents, surely these companies will think twice or three times before establishing themselves in Mexico.”
What are the top 10 states in Mexico for highway cargo thefts?
According to the National Public Security System (Sesnsp), 10 states accounted for more than 90% of highway thefts in Mexico last year:
México state
Puebla
Michoacán
San Luis Potosí
Morelos
Jalisco
Tlaxcala
Nuevo León
Veracruz
Oaxaca.
According to the Mexican Alliance of Transport Organizations, the three highways targeted most by criminals in Mexico are the Mexico-Puebla, México-Querétaro and Veracruz-Mexico highways.
