The Day at a Glance | March 11 2025

The Top

• Tourism revenue in Mexico moderated in January.

• On Tuesday, U.S. President Donald Trump will meet with the CEOs of the country’s leading companies, many of which have seen their market value decline in recent days due to recession and inflation fears affecting consumer and investor confidence.

• Ukrainian and U.S. officials held key talks in Saudi Arabia on Tuesday in search of a path to end the war with Russia, just hours after Kyiv’s forces carried out their largest drone attack on Moscow to date.

• The Bank of Japan announced it will increase oversight of how lenders are estimating the impact of rising interest rates on their earnings during next fiscal year’s on-site inspections, after finding that some were not properly assessing deposit outflow risks.

• Mexico’s Economy Minister Marcelo Ebrard and his team arrived in Washington, D.C., to negotiate tariffs on steel and aluminum, which are set to take effect tomorrow, March 12^th.

• Oil prices rose 1% on Tuesday, boosted by a weaker U.S. dollar. However, gains were limited by growing concerns over a slowdown in the U.S. and the impact of trade tariffs on global economic growth.

Economic Environment

Tourism revenue in Mexico moderated in January. In Mexico, net revenue from international travelers stood at $2.265 billion in January 2025, close to the record high of $2.372 billion set a year earlier. This entailed a 4.5% decline compared to the same period in 2024. Net revenue consisted of $3.347 billion in foreign exchange inflows and $1.082 billion in outflows, signaling 6.5% growth in inflows and 40.2% growth in outflows from the previous year. In terms of average spending, foreign visitors in Mexico spent 10.2% less between January 2024 and January 2025, averaging $416 per person. Meanwhile, spending by Mexicans traveling abroad rose by 2.8% over the same period, reaching $160 per person. The number of international tourists entering Mexico increased 18.6% to 8.03 million, while Mexicans traveling abroad rose 36.4% to 6.75 million. These foreign exchange inflows are recorded in Mexico’s tourism account within the balance of payments and contribute to the country’s surplus currency accounts.Overall, the tourism sector continues to attract foreign visitors, though they are spending less per trip, while Mexicans are traveling more and increasing their spending abroad.

Markets and Companies

The S&P and Dow Jones are trading lower. Yesterday, markets logged a sharp decline, with the Nasdaq falling 4%, though it´s rebounding today. Investors are concerned about a possible slowdown in the U.S. economy and have taken profits in sectors such as technology and momentum stocks. Additional uncertainty has been driven by the U.S. government’s protectionist policies and geopolitical tensions stemming from the country’s shift in stance on the European conflict. Asian and European markets are also trading lower.

Treasury yields are rebounding after declining in previous sessions due to economic slowdown concerns. The market is awaiting the release of consumer and producer inflation data this week. The 2-year Treasury yield stands at 3.9%, while the 10-year yield is at 4.2%.

Gold remains on a positive streak, supported by safe-haven demand.

In Mexico, IPC futures are trading higher.

The Mexican peso is trading at $20.31 per dollar, after closing at $20.35 yesterday.

Corporate News

• Kohl’s shares were down nearly 14% after reporting a 9.4% y/y drop in quarterly revenue and issuing disappointing guidance.

• Delta Air Lines revised its 1Q25 earnings guidance downward due to weak demand in the U.S., causing its stock to fall 5%.

• Southwest Airlines announced plans to implement new fees to boost per-passenger revenue.