DAVID ÁNGEL/DOWN UNDER (EXCÉLSIOR p. 2) Every year, one of the largest Mexican Independence Day celebrations takes place in Federation Square, Melbourne, Australia, the capital of the state of Victoria, which is attended by more than 50,000 people, making it the fourth biggest event of its kind outside of Mexico... The Government of Victoria has a keen interest in seeing Mexican investment increase in the state. Ten years ago, Mexican company Gruma brought its Mission Foods brand to the State of Victoria with a major investment, and it now produces a selection of flatbreads in the state both for the Australian market and for export to Asia. In fact, Mission Foods sponsored the Western Bulldogs professional Australian rules football club that took this year’s Football League championship. Gruma’s investment provides a great example of how Mexican companies can invest in Australia and gain access to key Asian markets.

GRUMA INVESTMENT GROWS BY 35% (REFORMA p. 1) (REFORMA p. 4) (EL NORTE (ONLINE) 0) While keeping its priority on sustained growth in international markets, Gruma invested USD 380 million in new plants this year, a figure 35% up on last year, according to Juan González Moreno, the company’s Board Chairman and CEO. Without neglecting domestic investment, he added, the company is focused on boosting its presence in other countries.

TWO MEXICAN COMPANIES WIN U.S. HEARTS THROUGH THEIR STOMACHS (EL FINANCIERO pp. 4-5) Bimbo sweet bread and Gruma tortillas have added flavor to the results of U.S. companies. While flour producer Gruma holds 30% of the tortilla market in the country, with revenues of USD 3.9 billion last year according to business intelligence agency IBIS World, Bimbo holds 21.8% of the leavened bread market, a figure valued by Euromonitor at USD 18 billion. Bimbo comes in behind Gruma with a 10% share of the tortilla market, while in the bread market Flowers Food comes in second behind Bimbo with a 9.8% share. Gruma, led by Juan González Moreno, is the largest corn flour producer in the United States with 29 production plants. Its top brand is Mission Foods and sales in the country are booming to such an extent that its latest quarterly report has revealed that 60% of its global sales are transacted in the U.S. market, a market in which the firm also generates 61% of its worldwide EBITDA, according to Miguel Tortolero, an analyst at GBM.

ECOMEX10 MAKES GAINS OF 16% ON THE MEXICAN STOCK EXCHANGE (EL UNIVERSAL p. 8) EcoMex10 announced its arrival around one year ago, at the Mexican Stock Exchange. The share portfolio contains the ten strongest recommendations of the Mexican IPC Index for the market consensus compiled by FactSet. Since the start of 2016, EcoMex has achieved an 11% profitability rate. Mexichem, Pinfra, Cemex, Grupo México, Alfa, Banorte, IEnova, Femsa, Gentera and Gruma were its trailblazing companies.

MEXICAN INVESTMENT FLOODING INTO TRUMP AREAS (EL NORTE (ONLINE) 0) (FORMATO p. 21 (11:00)) Private investment by Mexican companies is creating hundreds of jobs in some of the U.S. counties where presidential candidate Donald Trump is enjoying a healthy lead. An article published by The Wall Street Journal brought attention to the fact that investment by privately-owned Mexican companies in the United States has rocketed in recent years, from USD 5.3 billion in 2006 to USD 16.6 billion in 2015. Mexican companies that have made investments through subsidiaries they have acquired in the country include bread producer Bimbo, tortilla producer Gruma, beverage company Arca and chemicals conglomerate Mexichem.

TRENDS (EL ECONOMISTA p. 7) GRUMA The company boosted its sales revenues during Q3 to MXN 17.209 billion.

UNLIKELY INVESTMENT (REPORTE INDIGO p. 28) Mexico has become a key issue on the U.S. campaign trail. The anti-Mexican rhetoric used by Republican presidential candidate Donald Trump has resonated with some segments of the population that have witnessed profound demographic and economic change... However, a study by Ángeles Villarreal and Ian Ferguson of the U.S. Congress Research Service describes how NAFTA has led to neither a net loss nor a net increase in U.S. jobs... The operational cross-border expansion undertaken by companies such as Bimbo, Mexichem, Gruma and Arca Continental has counteracted the downward trend in manufacturing jobs.

FITCH RATINGS STANDS BY GRUMA (EL ECONOMISTA p. 11) Fitch Ratings assigned corn flour manufacturer Gruma a foreign currency and local currency rating at “BBB” with a stable outlook. According to Fitch, Gruma’s rating is underpinned by its strong business position as one of the world’s leading corn flour and tortilla manufacturers operating in the United States, Mexico, Central America, Europe, Asia and Oceania. Fitch added that the ratings also consider the company’s positive operating performance, cash flow generation, sources, and strong financial position. 

ISSUERS RESISTANT AGAINST VOLATILITY (EL ECONOMISTA p. 5) Four IPC issuers have strong bases and could perform well with a Democratic or Republican victory in the U.S. presidential election, according to a Signum Research analyst. Walmart Mexico & Central America, Industrias Peñoles, Gruma and Alpek are the issuers that could perform well, regardless of whether Hillary Clinton or Donald Trump win presidential race. Gruma, one of the leading players in the food industry, is regarded as resistant due to its operations in the United States, which account for approximately 61% of the company’s EBITDA, and due to the likely continued increase of tortilla consumption. 

SEVEN WINNERS AND SEVEN LOSERS FROM THE DOLLAR EXCHANGE RATE (EL FINANCIERO p. 16) (REFORMA p. 1) The uncertain environment facing the financial markets following Donald Trump’s victory has weakened the Mexican peso further against the U.S. dollar, with economists estimating that the rate could reach 21 pesos to the dollar by year-end. El Financiero analyses reveal that seven companies whose profits could be affected by this scenario include Famsa, Televisa, ICA, Cemex, América Móvil, ASUR, and Liverpool. Unlike the companies that could lose out from the strengthening of the U.S. dollar, seven companies that could make gains by making a high percentage of their revenues in U.S. dollars, which they combine with low or zero dollars leverage, are Grupo Bimbo, Gruma, Peñoles, Nemak, Alfa, ICH, and Mexichem.

TRUMP’S PROTECTIONISM HITS BUSINESS CORPORATIONS (EL ECONOMISTA pp. 2-5) (EL NORTE (ONLINE) (NOTICIAS MVS (EVENING))The rollout of protectionist policies and the possibility of the North American Free Trade Agreement being revoked or renegotiated represent a negative risk to more than 75% of corporate issuers in Mexico, Fitch Ratings warns... Just eight Mexican issuers will avoid being hit by any changes to NAFTA or protectionist measures. These are food and beverage companies Becle, FEMSA and Gruma, as well as Grupo Cementos de Chihuahua, Grupo México, Grupo Posadas Grupo Ferroviario Mexicano, and even PEMEX.

MONEY FOR EVERYONE/FREE TRADE (CAMBIO p. 30) Late last century, the great neoliberal dream was to make the world economically smaller. Across the ocean, the European Union was formed, while Mexico signed NAFTA with the United States and Canada... We must understand something fundamental about the U.S. economy: the degree of specialization in some professions has led to a shortage of employee profiles that its economy doesn’t have and which they don’t plan to develop. The United States import abundant raw material from other countries. Despite not being an entirely service-based economy, a large volume of its raw materials come from abroad, largely from Mexican companies such as Bimbo, Cemex, Alfa, Televisa, América Móvil, Alsea, Gruma and FEMSA, all of whom have made major investments outside of Mexico, particularly north of the border... 

TRENDS. (EL ECONOMISTA p. 7) GRUMA. Gruma’s stock rises for the second successive week. In the week of November 25, the company's share price increased 1.23% to MXN 250.12 per share.

TRUMP SHOCK THERAPY (EXPANSIÓN pp. 2-82-89)... There are even a handful of companies that could gain from Trump’s victory, such as Arca Continental, Bimbo, Gruma, Mexichem and Grupo México, all of whom have a significant part of their operations in the United States and sizeable dollar revenues.

GRUPO REAL TURISMO REWARDED FOR ITS EXCELLENCE (pp. EXCÉLSIOR 1-7) Grupo Real Turismo, a division of Grupo Empresarial Ángeles, directed by Olegario Vázquez Aldir, was acknowledged by Grupo Mundo Ejecutivo and ProMéxico as one of the leading companies in the tourism sector on account of its excellence and investment... Gruma was the prizewinner in the agribusiness sector.