Univision News

Under the radar: Mexico’s auto industry has quietly become one of the world’s fastest growing. (Photo: FT Beyond Brics)

By STEPHEN KEPPEL
Channel: Economics 

Below we have compiled the top business stories in the Americas that we are reading this week. Topics range from Mexico’s surging auto industry to U.S. immigration, Latin American airlines, U.S. immigration (and how it could boost the economy), and “charter cities” in Honduras. Also is the U.S. government on the verge of a shutdown?

Finally, we end with a special Christmas message from the mayor of San Juan, Puerto Rico. Enjoy!

SOUTH AMERICA

Latin America’s biggest airline LATAM is approved

The merger of two major Latin American airlines—TAM and LAN—has been approved, creating the largest carrier in the region. TAM and LAN, together LATAM, will fly to 115 destinations in 23 countries. The new airline  is valued at about $14.5bn and will represent 6% of global air transport … via BBC

Private Equity and Venture Capital funds are turning their eyes to Latin America

The gloomy economic outlook in the U.S. and Europe is encouraging private equity and venture capital investors to look for opportunities in Latin America, and they are already finding good deals … via Univision News

Santander sells another stake in South America

After selling all of its Colombian businesses last week Spain’s Banco Santander sold a 7.8% stake in its Chilean unit Wednesday, raising $950 million. Santander said it will make a $818 million in capital gain from the sale of its Colombian business, including Banco Santander Colombia. The moves are part of a flurry of recent deals aimed at reinforcing the bank’s capital position … via The Wall Street Journal

New Peru Prime Minister promises “moderate” stance

Peru’s new prime minister, Oscar Valdés, denied on Sunday that the government was in crisis after the sudden resignation of his predecessor and the suspension of a $4.8bn gold mining project. Valdés, a former military officer, pledged a continuation of “moderate” policies amid fears of a “militarisation” of the administration of Ollanta Humala, the president and himself a former army officer and leader of a failed coup in 2000. A cabinet reshuffle was expected to unseat several ministers but Mr Valdés has pledged that Luis Miguel Castilla, a well-respected centrist, would remain as finance minister … via The Financial Times

Netflix for iPad Gets a New Look, Latin American Support

Netflix has updated its iOS and Apple TV apps to support unlimited TV and movie streams for customers in Latin America … via Mashable

Univision News’ Best and Worst of 2011: Economics and Finance

There were plenty of reasons to be pessimistic this year — from persistently high U.S. unemployment to the debt crisis in Europe — but somehow we managed to keep the scale balanced. Poverty in Latin America dropped to its lowest level in decades and Hillary Clinton announced the creation of a $100 million fund to invest in Latino businesses on Univision. Check out our picks … via Univision News

NORTH AND CENTRAL AMERICA

Immigration reform could boost the U.S. labor market Did you know that 25% of the high-tech companies created in the U.S. from 1995 to 2005 were founded by at least one immigrant, and that nearly 40% of the 2010 Fortune 500 companies were started by an immigrant or the child of an immigrant?  These are some of the findings regarding the impact of immigration on the U.S. economy - particularly in the labor market - that are analyzed in a study published today by the American Enterprise Institute and the Partnership for a New American Economy … via Univision News

A Hong Kong in Honduras?

Honduras has embarked on an ambitious development project to build “charter cities” in its territory which would operate as “special development regions” with their own rules and legal system. The Charter City concept is championed by Paul Romer, the renowned growth theory economist currently at NYU, who believes that creating new cities with an established rules system (or Charter) will lead to rapid growth in developing countries. He points to the example of Hong Kong, but can it work in Honduras? … via The Economist

Mexico, an auto superstar

Mexico has become one of the most efficient and competitive automobile producers in the world.  This week, the country’s Mexican Auto Industry Association (Amia) reported that auto exports grew 18.3 per cent to record the highest volume in a single month so far this year of 231,080 units … via FT Beyond Brics

US Economy ending 2011 on positive note

Unemployment in November fell to 8.6% and last week new jobless claims dropped to a 3-year low, signaling that the economy continues to rebound, albeit slowly. A recession in the U.S. is not imminent although a lot will depend on how Europe deals with the continuing crisis. Check out this great “State of the States” map … via the FT

Or is it? Government again on verge of a shutdown.

A shutdown would be an unneccesary blow to confidence. The Obama administration is alerting employees to the possibility of a partial government shutdown if talks on bills to fund the government and extend the payroll tax cut collapse later this week. Congress faces a midnight Friday deadline to either pass a short-term or final measure to fund government operations for the remainder of the fiscal year … via The Washington Post

2011: A year of shadows and lights for the U.S. economy

Isaac Cohen comments that for the U.S. economy, 2011 was a year of shadows and lights. Things started ominously, under the threat of another recession but things appear to be turning around by year end … via Univision News

Commentary: NCLR’s Holiday Wish List

According to NCLR’s Director of Wealth-Building Policy Janis Bowdler: “our policymakers can take concrete steps immediately to improve the housing market and keep families in their homes.”  Here is her wish list … via Univision News

And finally … a very special Christmas card from the Mayor of San Juan. Its amazing, trust me. Merry Christmas!