August 2

 THE BMV WILL CONTINUE TO SET RECORDS: ANALYSTS (EL ECONOMISTA 4) Analysts estimate that the S&P/BMV IPC, the main index on the Mexican Stock Exchange (BMV,Bolsa Mexicana de Valores) will continue to set records, although a correction may come before that happens. The issuers of the S&P/IPC BMV increased their revenue by 10.76% during the second quarter of the year, compared to the same period for the previous year; cash flow rose 14.24% and net profit grew by 70.24%. Analysts favor shares from issuers including Alfa, Asur, Bimbo, Bolsa, Cemex, GAP,Gruma, Liverpool, Mexichem, Peñoles, and Walmex. Some of them, includingGruma and Mexichem, are due to possible rebounding prices, while others like Peñoles, are based on volatility scenarios that could penetrate the stock markets, which would benefit the price of gold and, ultimately, mining companies with exposure to precious metals.

 GRUMA LAUNCHED NEW PRODUCTS THAT MAINTAINED ITS GROWTH IN THE US TORTILLA MARKET (ENFOQUE FINANCIERO) Alicia Salgado: Here’s a topic I’d love to talk to you about. It’s something that I found in aGruma financial report, okay? I tweeted about it today, and so people are asking me where they can get it. I hope it’s available in Mexico soon. Because I’ve noticed that it’s something that has produced important growth inGruma’s tortilla business in the United States and in Mexico. According to Raúl Cavazos, the company’s CFO, the company has launched new products that sustain its growth in the tortilla market, the source of 55% of its sales.

There’s the super-soft wheat tortilla that competes with bread, and is usually found in street tacos or gyros, as well as in gluten-free tortillas. So everyone is asking me about the gluten-free tortillas, they say that they offer healthy tortillas such as those that are organic, whole-wheat, multigrain, fat-free, wraps made from chia and quinoa, and there are oven-toasted wraps. So I promise that not only am I going to ask more questions, but I’ll get someone to come and talk to us about gluten-free tortillas and all this other good stuff, so that we can stop feeling guilty about eating tortillas.

August 10

 TWO NEW INDICES JOIN THE MEXICAN STOCK EXCHANGE. (EL ECONOMISTA 1-4) The Mexican Stock Exchange and the S&P Dow Jones Indices (S&P DJI) debuted two new indices. One measures volatility in the Mexican stock market, while the other identifies the issuers who are producing higher value, quality, and growth in their operations. Since August 3, the Mexican stock market has its own indicator to measure stock market volatility over 90 days: the S&P/BMV IPC VIX. Around the world, these types of indices are known as the “fear barometer.” The S&P/BMV Quality, Value, and Growth Index or the S&P/BMV ICVC joins the top of the Mexican Stock Exchange issuers. According to BMV records, the indicator closed the first session on August 2, at 547.01 points, and closing at 550.39 points [sic]. The select group includes bottlers, Arca Continental and Coca-Cola FEMSA; Bimbo, the bread maker; Cemex, the cement producer; the Grupo Bolsa; the Pacific Airport Group (GAP); Fomento Económico Mexicano (FEMSA);Gruma, the corn flour producer; Televisa; and Walmex.

August 12

 CHINA INITIATES A NEW STRATEGY. (IMEF 6-7) Since it joined the World Trade Organization (WTO) at the end of 2001, China’s trade expansion has taken on another dimension. Its exchange of goods with Europe, Asia, and America has maintained a dynamic and growing flow. However, with the recent political and economic changes in the United States, there is an opportunity for the Asian leader to reach a new dimension on the trade map. Mexico opened its doors to China when it voted in favor of China entering the WTO, says Mausia Musacchio, a professor of East Asian Studies at Harvard. The result is that today, there is a balance-of-payments deficit, although some Mexican companies, including Bimbo andMaseca, have done very well.

August 16

 500. SPRING FOR THE SECTOR (AMÉRICAECONOMÍA 7-54-61) The 500 largest companies in Latin America function as a barometer for the region’s economy and help to define the evolution of the corporate landscape in terms of their industries. The panorama is increasingly diverse and they have identified important growth within technology and knowledge-based categories. For the first time in the history of this ranking, an oil company did not make the podium; JBS, the Brazilian food company, displaced Pemex for third place. This may herald the arrival of a new normal, in which the top 500 are abandoning uniformity and domination by sectors from the first half of the twentieth century, in favor of the more modern technology and knowledge sectors, which are more representative of the second half of the twentieth and the first part of this century. On the list of the 500 Biggest Companies in Latin America,Gruma ranked146th.

 BASKETS ARE FULL, POCKETS NOT SO MUCH. (AMÉRICAECONOMÍA 64-65) Sales for the food industry’s regional giants have recovered since last year, making it one of the fastest-growing sectors in the ranking. However, its profits are not at their best.Gruma is ranked 8th in theBiggest Food Sector Companies.

 THE TOP 5 IN LATIN AMERICA (AMÉRICAECONOMÍA 136-137) The country’s biggest brands, according to the Latin America 2015/16 Country Brand Report by FutureBrand, who promoted image and investments in their respective economies.Maseca Harinaappears inMexico’s number 3 spot.

August 17

 NORTHERN REGION (EXPANSIÓN 2-69-74) It’s a well-known cliché that, as always, is rooted in truth: the north is richer than the south. Mexico is no exception. Within this overview, industries like the food sector giants includingGruma, from Nuevo León; Lala, from Coahuila; and SuKarne, from Sinaloa, are all leaders within their respective categories (tortillas, milk, and meat)…

 SCOREBOARD/WINNERS/LOSERS(FORBES MÉXICO 18) Sales.Gruma. Notably, this issuer posted a margin of 17.6%, a record high, during the second quarter of its operations in the U.S. In addition, in terms of operations, analysts predict solid profitability toward year-end...

August 20

  SISTINE CHAPEL COMES TO SOCONUSCO. (EL SOL DE MÉXICO 3) The inauguration of the exhibition of the Sistine Chapel replica took place in Tapachula, located in the region of Soconusco. It will be open to the public from August 19 to September 4, 2017. The Sistine Chapel is a work of religious art, and is considered a world heritage site. Its replica is currently located in the Cafetaleros de Tapachula stadium and offers free access to the public. During the inauguration, the Governor of Chiapas noted that “Tapachula is in gala mode with the exhibition of the replica of the Sistine Chapel, making it a cultural tourism destination.” Manuel Velasco emphasized that the presence of the Sistine Chapel in Tapachula meets two important objectives: the first is for families to visit it and to experience enjoying it, free of charge, while the second is that domestic and international tourists may do so from the Pearl of Soconusco. Finally, he thanked the authorities at the Vatican and the sponsorship of Grupo Banorte andGrupo Maseca.

August 23

NAFTA, A CAPATULT FOR MEXICO’S COMPANIES. (EXCÉLSIOR 3) The growth of large Mexican companies has been linked to the North America Free Trade Agreement (NAFTA), impacting Alfa and its subsidiaries, as well as industrial enterprises such as the Fideicomisos de Inversión en Bienes Raíces (Fibras), Grupo México, and Rassini. “These are companies with an important presence in the United States and whose production chain is closely linked to both countries. They encompass consumption and industry, leasing and transportation,” explained Armando Rodríguez, an analyst for Signum Research. The specialist noted that these companies manage to grow thanks to the trade exchange between the three signatory countries to the agreement, the United States, Canada, and Mexico. For example, Alfa was able to accelerate its growth in different divisions; in terms of the consumption industry,Grumaand Grupo Bimbo currently generate part of their income from the United States. Grupo México, through its transportation division, benefited from the trade agreement when transporting products of a different sort to that region, while the real estate Fibras cater to manufacturing companies to meet the needs of their US clients.

August 28

 TRENDS  (EL ECONOMISTA p.7)GRUMA.Gruma shares rose for the second consecutive week. Last week, the issuer’s shares rose 5.04% to MXN $263.95, its highest level since March.

“2018 BRINGS CHALLENGES AND OPPORTUNITIES” (EL SOL DE MÉXICO PP-4) Without a doubt, Ildefonso Guajardo, head of the Ministry of Economy, is defending his home well, according to Carlos Hank González, President of the Board of Directors for Grupo Financiero Banorte, when we asked him about the role of the Mexican team in the NAFTA negotiations. “Of course, I am confident and optimistic that the results of this negotiation will not only be beneficial for Mexico; but also for the region,” explained the grandson of Prof. Carlos Hank González andRoberto González Barrera, in an interview. Last week, the 2017 Banorte Strategy Forum was held in Mexico City. There, we met up with the business owner, who agrees that Mexico’s outlook is complex, but that the country is prepared to succeed.

August 29

 THESE SHARES HAVE THE BIGGEST POTENTIAL IN THE BMV (EL FINANCIERO 25)  Nemak, Volaris, Alpek, Alfa, Cemex, Mexichem and Pinfra head the list of shares on the Index of Prices and Quotations (S&P /BMV IPC). Although they remain far from their target price in the next 12 months, they are a purchase opportunity... Omar Taboada, Director of Analysis and Investments for Citibanamex, Brokerage, indicated that after five weeks in which the local stock market consolidated itself, there are attractive options for share participation, especially through capitalization, such as Alpek, Asur, Gentera,Gruma, Mexichem, Nemak, Pinfra, and Volaris.