The Day at a Glance | February 26 2025

The Top

• In Mexico, the fundamentals of the external accounts remain strong, with a current account deficit fully financed through Foreign Direct Investment (FDI).

• President Donald Trump ordered an investigation into possible tariffs on copper for national security reasons, arguing that the global oversupply has affected US production. This measure would mainly affect Chile, Canada, and Mexico.

• On Wednesday, Ukraine stated that Washington has committed to supporting its efforts to secure security guarantees as part of a finalized mineral deal, after two weeks of negotiations. However, the US did not offer its own security commitments.

• On Tuesday, the US House of Representatives – under Republican control – advanced with President Donald Trump’s tax cuts and border policy agenda, providing a significant boost to his plans for 2025.

• China plans to inject at least 400 billion yuan($55.13 billion) into its main banks in the coming months as part of a broader stimulus package to revive economic growth.

• The European Union plans to urge India to reduce its high tariffs on cars and wine to boost trade, as part of an effort to reduce its dependence on China, a senior EU official said ahead of the European Commission president’s visit to New Delhi.

• Oil prices remained at two-month lows on Wednesday, pressured by the possibility of a peace deal between Russia and Ukraine, although a reduction in US crude inventories provided some support.

Economic Environment

In Mexico, the fundamentals of the external accounts remain strong, with a current account deficit fully financed through Foreign Direct Investment. During 2024, the current account, which includes the trade balance of goods and services, remittances, and payments abroad, recorded a deficit worth $5.986 billion, equivalent to -0.3% of GDP. In 2023, the figures were similar, as the current account deficit was $5.611 billion, or -0.3% of GDP. Meanwhile, the financial account showed that Mexico attracted $36.872 billion in Foreign Direct Investment, a 1.1% increase compared to 2023. Of this, $28.710 billion were reinvested earnings, $3.196 billion were new investments, and $4.994 billion were intercompany accounts. In this regard, the country’s current account deficit, or the dollar requirements Mexico needs, is not a cause for concern or a source of external imbalances, as it was fully financed through foreign investment. Therefore, the fundamentals of the Mexican peso remained strong at the end of 2024; however, tariff threats pose the main challenge to external accounts, especially the potential impact they may have on global investment flows.

Markets and Companies

S&P 500 futures are trading higher after four consecutive days of declines; yesterday, consumer confidence data came in well below expectations. Today, investors await Nvidia’searnings report, which will be released after the market closes.

In Europe, markets are trending higher as investors analyze a series of corporate earnings reports in the region. The Stoxx600 was up 0.77% at 12 p.m. London time, with mostsectors in the green.

Meanwhile, Asia-Pacific markets logged mixed figures after two major Wall Street indices fell overnight following weak US consumer confidence data.

Oil prices remain near two-month lows, as a potential peace deal between Russia and Ukraine continues to weigh on prices, while lower US crude inventories provide some support.

Gold prices are holding steady as the market awaits Trump’s tariff plans.

The exchange rate stands at 20.49 after closing at 20.45 yesterday.

Alsea released its 4Q24 results yesterday afternoon. The company reported an 11.1% increase in revenue and a 13.0% rise in EBITDA pre-IFRS16, with a margin of 16.4%. However, net income fell 45.3%, impacted by higher financial costs (bank fees, interest expenses, and exchange rate losses) and a tough comparison base.

Corporate News

• Super Micro Computer shares jumped 21% after the company met Nasdaq’s listing deadline and regained compliance with its reporting requirements.

• Anheuser-Busch InBev shares surged more than 8% after beating fourth-quarter earnings and revenue estimates, despite a 1.9% decline in sales volume.