MXPE Weekly Essentials

Unexpected cheer for Pemex, China in the crosshairs, the political cost of cartel violence, and other highlights in Mexican politics, policy, and markets from the past week.

Many shuddered at the prospect of seeing Mexico’s oil and electricity firms, Pemex and CFE, turn from State-owned but independent companies into State-administered companies focused less on profit and more on aligning with the government’s social and economic objectives. On the face of it, the private sector might have been expected to baulk at this reform. Ideologically, the Mexican government’s rejection of free-market ideals should make companies and investors uncomfortable. But, in this case, corporate observers saw the switch as potential good news.