Top Risks for 2011

Top Risks for 2011
The risks in 2011—conflict from the North Korean succession process, the unwillingness of China to budge under international pressure, the lack of political and economic coordination in Europe, currency controls intensifying global economic misalignment, violence in key emerging economies like Pakistan and Mexico—are intensified by the transition to a new world order.


GLOBAL ECONOMY

A Look at the Bigger Financial Ramifications of the Egypt Crisis
Riots in Egypt have shut down business operations and kept the nation's stock market (EGX) closed for a second day after it fell 16% last week

Egypt’s Messy Change Demands That Obama Step Up
The U.S. response to the outbreak of protests was initially inadequate. Some of the rhetoric used by the Obama administration in the first few days was out of touch with reality.

At Davos, men outnumber women by over 5 to 1
Research shows that investing in women is good business and some companies have taken significant steps to increase their female staff, especially at the top -- but at the world's premier economic gathering, men still outnumber women by a ratio of more than five to one.

How to tip in every major country
Even the savviest globe trotters can make a mistake when it comes to knowing when and how much to tip.


FINANCE AND ACCOUNTING

Governance, Corporate Responsibility, and Sustainability
For Standard Life Investments, corporate governance, social responsibility, and sustainability are integral parts of its investment process to protect the value of its investments. The Head of Corporate Governance presents his wish list for the next steps.

FASB moves toward reversing mark-to-market proposal
The FASB has started taking steps toward allowing banks to continue to use amortized cost to value many of their loans, rather than shifting to a "fair value" accounting method.

Obama pushes for a tax overhaul in State of the Union address
President Barack Obama called for a lower corporate tax rate and simpler taxes for individuals during his State of the Union address on Tuesday. Obama also indicated his willingness to repeal the expanded Form 1099 reporting provisions and end tax-cut extensions for the wealthy.


MEXICO AND LATIN AMERICA

Interactive map of drug-trafficking routes in Mexico
Formally, power in Mexico is shared between 31 states and one federal district. Informally, it is also shared by eight large drug-trafficking organizations.

How does Guadalajara do IT?
Relatively untouched by the recent wave of violence in northern Mexico, Guadalajara, capital of the state of Jalisco, seems like the promised land for those who still see big rewards in Mexican outsourcing.

Chinese factories lose ground to Mexican manufacturers
Wages in China have more than doubled in the past three years, driving firms to build factories in Mexico, where labor costs are more stable. "We ran the numbers and made the decision to move our equipment down to Mexico, with the decision really based on trying to give our customers more stable pricing," said Harrell Ward, president of grill manufacturer Meco.


"Only those who will risk going too far can possibly find out how far one can go."
T. S. Elliot


OTHER TOPICS

18 Common Work E-mail Mistakes
Time to go through some of the worst e-mail mistakes employees make and how to avoid them.

How managers can build better organizations
Steve Tobak shares 10 ways managers can promote more cooperation and employee engagement in their organizations. Rule No. 1: Eliminate the gulf between managers and employees. "Corporate culture fails when executives don't lead by example," Tobak writes.


PROJECT PORTFOLIO

Exporter of Mexican hammocks with key competitive advantages in price and quality. Based in the Yucatan Peninsula. Seeks distributors or investors.

French company, leader in the beauty sector, with strong presence in 10 countries and sales of 500K EUR. Seeks investors or acquirers.

Investment opportunity in Chiapas, Mexico. Ranch and warehouse for sale. Located near Tapachula. Property deeds in order. Ideal for live stock or coffee business.

Renewable energy company with strong distribution network in Mexico, annual sales of $7.5M USD, growing at annual 20% rate. Seeks investors or acquirers.

Flexible support in audit and finance projects worldwide.

(Contact armando@nuricumbo.com for further information)


KEY MEXICO STATISTICS
Jan-11 / Dec-10 / Nov-10

Exchange Rate: MXN to USD
12.1214 / 12.3936 / 12.5538

Exchange Rate: MXN to EUR
16.6306 / 16.0204 / 16.2275

Exchange Rate: MXN to CAD
12.1536 / 12.2941 / 12.1410

Country Risk (basis points)
142 / 140 / 141

Bolsa (IPC BMV)
36,840 / 38,551 / 36,817

Cetes 28d
4.05% / 4.56% / 4.51%

Inflation
3.96% / 4.32% / 4.02%

UDIs
4.558235 / 4.526308 / 4.498813

International Reserves (M USD)
117,565 / 112,996 / 110,544

(Source: Mexico Central Bank)