Global Business, Finance and Accounting Newsletter - August 2010

The Key To Successful Corporate Reorganization
Corporate reorganizations are risky investments of time, energy and resources, and many do little to improve the business.
http://www.forbes.com/2010/07/30/corporate-reorganization-abb-ford-leadership-managing-bain.html?boxes=Homepagechannels

GLOBAL ECONOMY

China Becomes Second Biggest World Economy
China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth.
http://www.cnbc.com/id/38482538

BlackBerry Challenges May Spread in the future
BlackBerry faces increasing challenges to its overseas expansion as more countries tighten restrictions on mobile e-mail.
http://www.bloomberg.com/news/2010-08-01/blackberry-expansion-at-risk-as-governments-tighten-curbs-on-mobile-e-mail.html

The new division of labor: Adding profits, subtracting workers
Although jobs haven't returned, corporate profits surely have and, at $1.2 trillion, are now higher than they were before the crisis.
http://www.washingtonpost.com/wp-dyn/content/article/2010/07/29/AR2010072906281.html?sub=AR

FINANCE AND ACCOUNTING

SEC Pushes Companies for More Risk Information
The SEC has been prodding companies in recent reviews of regulatory filings to provide more information about the risks they face.
http://www.cfo.com/article.cfm/14513695/c_14514289

SEC Charges Former Citi CFO
The Citigroup CFO who steered the company through the financial crisis is charged by the SEC with misleading investors.
http://www.cfo.com/article.cfm/14514146

The DNA of an Effective Forensic Accountant
If attorneys could engineer the perfect fraud investigator, 78% of them would choose an accountant with strong analytical abilities.
http://www.journalofaccountancy.com/Issues/2010/Aug/20092400.htm

MEXICO AND LATIN AMERICA

Brazil Is Booming (and Maddening)
U.S. companies are keen to expand into Latin America's biggest market, but CFOs report that Brazil poses unique challenges.
http://www.cfo.com/article.cfm/14508833/c_14509253

A breath of fresh air
Surrounded by mountains and volcanoes, Mexico City is the perfect smog-trap. Yet the capital’s filthy atmosphere has improved at last.
http://www.economist.com/node/16706385?story_id=16706385

Is Mexico The New China?
Mexico ranked as the cheapest country to manufacture products for the U.S. market. India is now No. 2, followed by China and then Brazil.
http://www.investortrip.com/is-mexico-the-new-china/

OTHER

Do schools kill creativity?
Sir Ken Robinson makes an entertaining case for creating an education system that nurtures (rather than undermines) creativity.
http://www.youtube.com/watch?v=iG9CE55wbtY&feature=related

Condoleezza Rice plays piano for Aretha Franklin
The former US Secretary of State and the Queen of Soul team up for charity concert in Philadelphia.
http://www.youtube.com/watch?v=oO6YO9xDHi8&feature=fvst

Best Places to Retire Abroad: Puerto Vallarta
Mexico offers spectacular beaches and charming hill towns, making it the number one foreign destination for American retirees.
http://www.aarp.org/home-garden/livable-communities/info-07-2010/best-places-retire-abroad-mexico-puerto-vallarta.html

KEY MEXICO STATISTICS
Jul-10 / Jun-10 / May-10

Exchange Rate: MXN to USD
12.8279 / 12.7225 / 12.7118
Exchange Rate: MXN to EUR
16.4808 / 15.7276 / 16.0283
Exchange Rate: MXN to CAD
12.2724 / 12.0907 / 12.3472
Country Risk (basis points)
153 / 179 / 186
Bolsa (IPC BMV)
32,309 / 31,379 / 32,058
Cetes 28d
4.63% / 4.60% / 4.58%
Inflation (INPC, annual variation)
4.75% / 3.92% / 3.93%
UDIs
4.415633 / 4.413205 / 4.428907
International Reserves (Millions USD)
103,416 / 100,363 / 97,994
(Source: Mexico Central Bank)