MARKETS
The S&P / BMV IPC was stable over the week (-0.1%), outperforming its US counterparts, which experienced some profit taking on Moody’s sovereign downgrade, the prospect of higher interest rates and concerns about Trump’s fiscal plan. Meanwhile, the Mexican peso appreciated further by 0.9% to MXN$19.32/USD, and the yield of the 10-year M-Bono was down 1 bps to 9.42%.
The S&P / BMV IPC’s top gainers for the week were: BOLSA A (+7.4%), RA *(+3.1%) and FEMSA UBD (+2.3%). On the other hand, the main losers were: MEGA CPO (-6.5%), Q * (-6.4%) and LIVEPOL C (-4.0%).
LISTED COMPANIES
El Puerto de Liverpool and some members of the Nordstrom family have completed the acquisition of 100% of Nordstrom Inc. for US$24.25/share. Liverpool invested US$1.23 billion and will be the owner of a 49.9% equity stake with the Nordstrom family holding an indirect 50.1% equity stake. Erick and Pete Nordstrom will manage the company.
Femsa signed a US$250 million accelerated share repurchase (ASR) agreement with a US financial institution to acquire ADS’s as part of its capital allocation strategy. The company also completed the sale of its remaining stake in Heineken (5.2 million shares), ending a 15-year highly profitable relationship that began in 2010 when it trade its beer business for a 20% stake. The Mexican company will use proceeds to prepay the convertible bond maturing next February.
TelevisaUnivision and Disney Entertainment announced a multi-region distribution deal to expand access to Spanish-language content across platforms. Starting June 3rd, TelevisaUnivision’s US Networks (Univisión, UniMas, TUDN, and Galavision) will join Hulu + Live TV’s core lineup, with additional channels to be added in the future. In Mexico, Disney+ and ViX will be offered together, giving ViX users access to Disney+. On the other hand, Cablevision announced that Rodrigo Villanueva has become its CFO from last May 21st. Mr Villanueva will also continue as Grupo Televisa’s VP of Investor Relations.
Fresnillo announced the sale of most of its shares in MAG Silver for an undisclosed amount, following Pan American Silver’s agreement to acquire the latter company. Fresnillo initially invested in MAG Silver to support their partnership in the Juanicipio mine, but the expected conversion of its stake of over 9% in MAG shares for less than 1% in Pan American no longer aligns with its strategic goals. The terms of the Juanicipio partnership, including all governance and legal matters, remain unchanged.
Orbia plans to double its recycled PVC production capacity in 2025 through its Vinyl in Motion initiative, which expanded 83% last year and now involves over 100 firms. On the other hand, the company launched a cash tender offer to acquire its outstanding 4.0% Senior Notes due 2027 at US$1,000 each plus accrued interest, with the offer expiring on May 28th unless modified or withdrawn.
Norte 19 reported consolidated revenues of MXN$364.6 million in April, up 11.7% YoY, fueled by a favorable calendar effect that allowed the company to adjust ADR’s in certain destinations. The total portfolio, comprising 157 hotels and 18,292 rooms, recorded an 8.0% YoY ADR increase to MXN$1,427, while occupancy declined 1.6 pp to 56.0%, resulting in a RevPAR of MXN$799, up 4.9%.
Financiera Independencia issued US$25 million in 9.25% Unsecured Senior Notes due May 20th, 2028. This marks the first issuance under Findep’s US$100 million Euro Short-Term Note Program. The company plans to use net proceeds to repay or prepay existing liabilities and for general corporate purposes.
OTHER COMPANIES
Mercado Libre announced that its founder and CEO Marcos Galperin will become Executive Chairman from January 1st, 2026. Ariel Szarfsztejn will assume the role of CEO. Mr. Szarfsztejn joined Mercado Libre in 2017 and, for the last three years, has led its Marketplace.
Nu México and OXXO have expanded their partnership, with Nu’s more than 11 million customers now able to make cash deposits at the more than 23,000 OXXO stores across the country. Each transaction will incur a P$15 fee. Nu’s customers have been able to make cash withdrawals at OXXO stores since January of this year, paying a P$20 fee.
TRADE AND ECONOMICS
The US Government reduced average tariffs on imported vehicles from Mexico to 15%, from an original level of 25%, for those meeting USMCA rules of origin. The measure will include US-assembled auto parts as regional content under USMCA. Marcelo Ebrard highlighted that the tariff reduction gives Mexico a significant competitive edge. On the other hand, the US House of Representatives approved a 3.5% tax on remittances from non-US nationals; the measure still needs Senate approval before coming into effect.
The headline inflation rate rose 0.09% in the first half of May 2025, INEGI reported, which was above the 0.13% expected reduction, according to the latest Citi Mexico Expectations Survey. The last twelve-month headline inflation reached 4.22% (vs. 4.02% E), the highest since December 2024, while the last twelve-month core inflation stood at 3.97% (in line), the highest since August 2024.
The final 1Q25 GDP grew 0.2% QoQ in seasonally adjusted terms, in line with preliminary estimates and rebounding from the 0.7% QoQ contraction in 4Q24, according to INEGI. Primary activities increased 7.8% QoQ, while both secondary and tertiary sectors contracted 0.1%. Mexico thus avoided the “technical recession” which includes two consecutive quarters with GDP contraction. 1Q25 GDP expanded 0.8% YoY based on original figures, accelerating from the 0.4% YoY increase recorded in the previous quarter.
The consensus anticipates a 50-bps rate cut in the June meeting, with 29 out of 32 participants projecting such a move, according to the latest Citi Mexico Expectations Survey. The median year-end 2025 policy rate forecast declined to 7.50% from 7.75% in the previous survey, while the 2026 year-end projection remained unchanged at 7.00%. GDP growth forecasts were stable, with 2025 expected at 0.1% and 2026 at 1.5%, both consistent with the prior survey. Headline inflation expectations for 2025 rose to 3.85%, from 3.80%, and core inflation increased to 3.90%, from 3.81%. For 2026, headline inflation slightly decreased to 3.77% from 3.80%, while core inflation remained at 3.70%. The peso is now expected to reach 20.69 per US dollar by year-end 2025, down from the previous estimate of 20.80, and 21.00 by year-end 2026, compared to 21.23 in the prior survey.
The IGAE decreased 0.4% MoM (seasonally adjusted) In March 2025, below the 0.1% expected decline. This marked a deterioration compared to the prior two months. Primary activities posted a solid 4.3% increase, driven by agricultural expansion, while secondary activities declined 0.9% due to contractions in mining and manufacturing. Tertiary activities also fell 0.4%, dragged by a decline in professional and hospitality services.
ANTAD reported that same store sales increased by 2.4% YoY in nominal terms in April. By store format, supermarkets posted a 3.8% rise, while department stores remained flat and specialty stores recorded a 3.2% increase. Total sales, which include all new stores opened in the past 12 months, grew 5.1% YoY. Within this metric, supermarkets led with a 6.8% increase, specialty stores followed with 7.2%, and department stores posted a modest 1.3% gain.
Retail sales rose by 0.5% MoM in March on a seasonally adjusted basis, accelerating from the 0.2% increase observed in February, INEGI reported. This performance exceeded market expectations, which had anticipated a modest 0.1% rise. Retail sales surged by 4.3% YoY (original data), marking the strongest annual growth since November 2023 and a significant rebound from the 1.1% annual decline recorded in February.
Service sector’s revenues declined by 1.2% MoM (seasonally adjusted) in March, the weakest performance since January 2024, according to INEGI. This monthly contraction followed was due to professional, scientific, and technical services, which fell by 7.1%, and recreation and cultural services, dropping 4.6%. Service sector revenues increased 3.1% YoY (original data).
Banco de Mexico’s Governor Victoria Rodríguez Ceja, highlighted in an interview with El Financiero newspaper that, while there is room to continue lowering the rate, monetary policy must remain restrictive to address potential upside risks, especially given the uncertainty stemming from economic weakness and the effects of tariffs imposed by the United States.
CETES auction: 28-day CETES -25 bps to 8.15%; 91-day CETES –11 bps to 8.24%; 175-day CETES -9 bps to 8.16% and 721-day CETES -5 bps to 8.55%.
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