Brandes Investment Partners

May 26, 2023

Foxconn’s Dispute With Lordstown Shows Souring EV Sentiment European Gas Tumbles in Longest Run of Weekly Losses Since 2007 Hot Inflation Puts Another Fed Hike In Play for June or July Latin America’s Hottest Stocks Pause After $220 Billion Rally McCarthy Notes Progress as Debt-Limit Talks Narrow Toward Deal World’s Biggest Green Finance Club Condemns ‘Political Attacks’ Fed’s Mester Says ‘Everything’ on the Table for June Rate Action ​AI is going to bring 'profound' change to companies: Investment expert Ukraine Recap: Blast in Russia’s Krasnodar, Kyiv Downs Missiles US Credit Rating Cut by Fitch Possible Even With a Debt Deal, TD Says Plunging LNG Prices Have Traders Bracing for US Export Cancellations Ramaphosa Sets Powers for New Minister to Address Energy Crisis Bond Investors Reward Greece With Lower Borrowing Costs Than UK Europe’s Natural Gas Glut Is About to Vanish as a Key Price Spread Flips US Navy Hit by Chinese Hacking Campaign, Report Says China and Congo Presidents Meet in Beijing Amid Mining Disputes Euro-Zone Crawl Toward 2% Inflation Keeps ECB in Rate-Hike Mode Billionaire Buys Stake in Mexico’s Mega Oil Field from Talos Marvell Rallies After Chipmaker Promises Big Gains in AI Sales How to invest globally without taking on a world of risk: Dale Jackson How improving your financial literacy can help ease stress in a tough economy Considering tenant insurance? Here's what you need to know first How to be the model driver, and get a break on car insurance Pattie Lovett-Reid: Protecting yourself financially from the risks of dementia Fixed income investors can breathe easier as inflation recedes: Dale Jackson Summer on a shoestring budget: Tips for surviving summer break as camp costs rise Why re-investing your tax refund is the smart option Owe money to the CRA this tax season? Here are some repayment options PSAC: Will Canada's tax deadline be moved due to the strike? How claiming income from side gigs can lower your tax bill Paper filing is dying but free income tax software lives on: Dale Jackson Tax deadline: Strike not a major issue for most Canadians, expert says 'Give yourself time and space': How to manage your finances during times of grief Experts explain how to cope with money stress Experts share effective ways to tackle student debt As thousands flock to day trading during lockdown, experts urge caution Dual income, no kids: Why some young Canadians are choosing this lifestyle 'Ask a lot of questions' before deciding what to do with your tax refund: experts Swiss Alps Holiday-Home Market May Be at Turning Point, UBS Says China Reopening Drives Demand for Industrial Land in Thailand UK Retail Sales Bounce Back More Than Expected After Wet March Australian Retail Sales Flat as Rate Hikes Weigh on Households Should I buy a cottage with friends or family? Office Real Estate Looks Dicey With REITs Plunging to a 2009 Low Kyle Bass Urges Investors to Develop Data Centers in a Play for AI Mortgage Rates in the US Rise to Highest Level Since Mid-March US Pending Home Sales Stall on Lack of Available Properties A quarter of Canadians want to buy an investment property within five years: Survey First Republic’s $35 Million Banker Outearned JPMorgan’s Dimon Before Bust Chanel Makes Bigger UK Bet With London Office Expansion Plans German Housing Push Falters as Building Permits Slump by a Third Mayfair Offices Remain Hot Property Amid Weaker Wider Market Swedish Housing Starts Slump 55% in Latest Sign of Crisis China Warnings Flash Across Global Markets as Growth Disappoints Bank of Korea Holds Rate, Lowers Growth View as Risks Mount PAG Chief Buys Century-Old Hong Kong Villa for $70 Million BHP Confident China Property Recovery Will Boost Metals Demand AI-Threatened Jobs Are Mostly Held by Women, Study Shows Foxconn’s Dispute With Lordstown Shows Souring EV Sentiment European Gas Tumbles in Longest Run of Weekly Losses Since 2007 Hot Inflation Puts Another Fed Hike In Play for June or July JPMorgan Subpoenaed Sexual Assault Report Against Jes Staley Latin America’s Hottest Stocks Pause After $220 Billion Rally McCarthy Notes Progress as Debt-Limit Talks Narrow Toward Deal World’s Biggest Green Finance Club Condemns ‘Political Attacks’ Ukraine Recap: Blast in Russia’s Krasnodar, Kyiv Downs Missiles OpenAI’s CEO Says He Plans to Comply With EU Regulation Ramaphosa Sets Powers for New Minister to Address Energy Crisis Europe’s Natural Gas Glut Is About to Vanish as a Key Price Spread Flips Chinese Envoy Meets Russian Foreign Minister Over War in Ukraine US Navy Hit by Chinese Hacking Campaign, Report Says China and Congo Presidents Meet in Beijing Amid Mining Disputes Billionaire Buys Stake in Mexico’s Mega Oil Field from Talos Marvell Rallies After Chipmaker Promises Big Gains in AI Sales Fed Interventions in US Default Scenario in Focus as Debt Deadline Nears What’s Trending Today: Musk’s Brain-Implant Trial, Blockbuster Speaks Up, Passenger Opens Plane Door European Gas Tumbles in Longest Run of Weekly Losses Since 2007 McCarthy Notes Progress as Debt-Limit Talks Narrow Toward Deal Ukraine Recap: Blast in Russia’s Krasnodar, Kyiv Downs Missiles Plunging LNG Prices Have Traders Bracing for US Export Cancellations Ramaphosa Sets Powers for New Minister to Address Energy Crisis Europe’s Natural Gas Glut Is About to Vanish as a Key Price Spread Flips China and Congo Presidents Meet in Beijing Amid Mining Disputes Billionaire Buys Stake in Mexico’s Mega Oil Field from Talos What’s Trending Today: Musk’s Brain-Implant Trial, Blockbuster Speaks Up, Passenger Opens Plane Door Hedge Funds Bet Against Copper for First Time in Three Years Bunge-Viterra deal would create US$25B rival to Cargill Emerging US Debt Deal Would Raise Limit, Cap Spending for Two Years Private Equity Firm Ardian Plans to Double Team in Abu Dhabi Germany Weighs Selling TenneT Stake After Buying From Dutch Eskom Latest: Food Maker Installs Solar; Bigger Cuts for Longer Chile Government Resists Renewable Rescue as Boom Turns to Bust for Some Plants Iran and Belgium in Prisoner Swap After Deal to Return Diplomat Oil edges higher to head for weekly gain as debt talks in focus 18-Year High Inflation Leave Nigerian Firms with $1 Billion Goods Unsold Federal government posts $41.3 billion deficit for 2022-23 fiscal year Quebec opens door to more immigrants - if they speak French The Daily Chase: Glencore reportedly eyes Bunge; Canadian Western Bank misses expectations Spring flood risks highlight lack of insurance for Canadian homeowners: experts Canadian residential mortgage debt hits $2.08 trillion: CMHC U.S. economic growth for last quarter is revised up to a still-tepid 1.3% annual rate The Daily Chase: Loan loss provisions weigh on bank earnings; Nvidia forecasts upbeat outlook TSX recap: Index finishes more than 1% lower amid losses in materials stocks A June pause in rate hikes would be a close call for U.S. Fed officials, meeting minutes show Debt ceiling: GOP, Biden negotiators resume talks amid impasse CPP Investments reports 1.3 per cent return for its latest fiscal year The Daily Chase: Scotiabank and BMO miss analyst expectations; U.S. debt talks stall Canada has highest household debt level in G7: CMHC deputy chief economist Scotiabank economist explains his call for another Bank of Canada interest rate hike Investor-occupants made up almost 10% of B.C. homeowners in 2020: Statistics Canada Explained: What is the U.S. debt ceiling The Daily Chase: Markets point to negative open; Air Canada shows strong start to travel season Powell says tighter credit could mean a lower peak in rates Another interest rate hike? Economists divided on Bank of Canada's next step Ukraine Recap: Blast in Russia’s Krasnodar, Kyiv Downs Missiles Chile to Call Political Parties for Tax Bill Talks, Marcel Says Ramaphosa Sets Powers for New Minister to Address Energy Crisis Kosovo Police Clash With Serbs, Triggering Army Alert in Serbia Chinese Envoy Meets Russian Foreign Minister Over War in Ukraine Billionaire Buys Stake in Mexico’s Mega Oil Field from Talos South Africans Want Two Main Political Parties to Mend Fences, Form Coalition Mexico’s Strong Economic Growth Revised Slightly Down in Early 2023 Gay and Trans Veterans Faced ‘Culture of Homophobia’ in British Military, Report Says EU Strikes Deal With Pfizer to Cut Covid Vaccine Purchases Imran Khan Faces ‘End of the Road’ as Pakistan Army Cracks Down Alberta election: What are the frontrunners' plans for oil and gas? Imran Khan, Wife Barred From Leaving Pakistan Amid Army Row Iran and Belgium in Prisoner Swap After Deal to Return Diplomat Turkey’s Runoff Election Has Investors Bracing for More Pain The Rand is Paying the Price For South Africa’s Economic, Political Woes Netherlands Likely to Send F-16s to Ukraine After Pilot Training Pita Urges Unity After Thai Coalition Squabbles Over House Speaker Job Alarm Bells Ring as Orban Struggles to Rein in Hungary’s Budget AI-Threatened Jobs Are Mostly Held by Women, Study Shows Foxconn’s Dispute With Lordstown Shows Souring EV Sentiment OpenAI’s CEO Says He Plans to Comply With EU Regulation Chinese Envoy Meets Russian Foreign Minister Over War in Ukraine US Navy Hit by Chinese Hacking Campaign, Report Says Billionaire Buys Stake in Mexico’s Mega Oil Field from Talos Marvell Rallies After Chipmaker Promises Big Gains in AI Sales What’s Trending Today: Musk’s Brain-Implant Trial, Blockbuster Speaks Up, Passenger Opens Plane Door Nvidia’s $184 Billion Jump in Five Charts Ford taps Tesla superchargers in rare partnership among rivals US Commerce Chief Raises Concern on China Moves Against US Firms Wall Street Braces for Big Changes Over the Next Five Years Nvidia’s Rosy Forecast Shows Chipmaker Benefiting From AI Boom Private Equity Firm Ardian Plans to Double Team in Abu Dhabi Intel Risks Being Left Behind as Nvidia Ups AI Lead French Billionaire Saade Pursues Media Hunt With Tribune Bid Silvergate Void Sparks Rush for Crypto-Savvy Compliance Workers Comcast's CEO Is Considering His Next Big Move In the Transforming Media Landscape French Drugmaker Weighs Bids For Scottish Site Behind Covid Debacle The U.S. Fed is failing in four ways: Mohamed A. El-Erian Apple, JPMorgan turn to pay now grow later Remote Working Boom Is Huge for College Towns Like Knoxville Walmart flashes a warning sign to the entire consumer economy: Andrea Felsted Millennials are finally spending like grown-ups Dismal U.S. GDP report raises the odds of recession this year: Gary Shilling Musk is wrong for Twitter even if deal math works out Chocolate bunnies can teach us to save our food supply The Fed has made a U.S. recession inevitable America's oil reserve weapon risks misfiring Four-day workweeks can burn you out U.S. Fed expects a soft landing. Don't count on it Markets are pushing Fed into developing-economy territory Commodity traders go from bonanza to bailout plea Putin's war shows West must clean up dirty money Salary transparency is good for everyone Microsoft's US$69B Activision deal could be a blunder What if the oil market bulls are wrong and this lonely bear is right? Canada's trucker protest may spread from Ottawa to U.S. AI-Focused ETF Assets Could Triple to $35 billion by 2030 Cathie Wood’s ARKK Dumped Nvidia Stock Before $560 Billion Surge BlackRock’s $9 Billion Quant ETF Set to Lean in on Nvidia, Tech What’s Causing the FOMO Drought in US Equities? Goldman Says Stocks Risk ‘Elevator Down’ With Quants Near Max Long Wave of Corporate Spinoffs Fills a Void of Large US Listings AI Intrigues ETF Managers as Both Investment and Tool Investors Should  Prepare for Dividend Stock Rebound, Goldman Strategists Say AI-Powered ETF Getting Left Behind by an AI-Powered Stock Rally Fund Boss Who Beat 91% of Peers Says ESG Is Key to Making Money BlackRock Bond Chief Rick Rieder’s First ETF Is All About Income Cut Stocks, Buy Gold, Hold Your Cash, JPMorgan’s Kolanovic Says Qatar Wealth Fund Sets up $275 Million Market-Making Program Stock Futures Decline, Currencies in Tight Ranges: Markets Wrap Regional Banks Rallied Last Week. Traders Continued to Short the Sector Hedge Funds Rush to Buy Stocks on S&P 500’s Momentum US Exposure Is Next Headache for Europe Inc. as Dollar Slides No Talk of Moon Shots at This Year’s Bitcoin Bash in Miami China Tech Stocks in Grip of Slowdown Fears Lag Global Peers BCE You are now being redirected to the BCE.ca website (Bell Canada Enterprises), where you can view our Accessibility plan, and submit your feedback using our Accessibility webform. Vinícius Andrade, Ezra Fieser and Michael O'Boyle, Bloomberg News , (Bloomberg) -- President Andrés Manuel López Obrador’s meddling in the private sector is denting Mexico’s appeal as a safe haven after a stock rally that added about $220 billion in market value in the past three years. Abrdn Plc and Brandes Investment Partners are among those that trimmed bets after stock gains left the market expensive compared to regional peers. A surge in the Mexican peso and a bout of political noise — including the government seizure of a private rail line and the scuttling of a long-awaited M&A deal — have given investors reasons to sell, even as they remain optimistic on the country. “We did use this opportunity to implement a small trim in positions,” said Eduardo Figueiredo, head of Latin American equities at abrdn. The firm still has “significant exposure” to Mexico, he added. Mexican stocks have been a defensive play with their near-monopolies and close ties to the US economy. But a 10% rally in the Mexbol index this year means local companies are now selling at 12 times forward earnings, compared to 9.4 times for Chile’s IPSA and 7.3 times for Brazil’s Ibovespa. “It may make sense to take some profit given the relative performance, but I am not making drastic changes,” said Verena Wachnitz, a London-based portfolio manager at T. Rowe Price. “Valuations are not excessive, though as a USD investor I am mindful that the peso has strengthened substantially and is starting to screen expensive.” AMLO’s recent rail grab, investors say, underscores the risk of government interference ahead of presidential elections scheduled for next year. The government took over part of a rail line owned by billionaire German Larrea’s Grupo Mexico SAB last week — spooking the business community. Days later, Citigroup Inc. scrapped the sale of its Banamex unit, which was 16 months in the making. Concerns that the rule of law might be eroded and fears related to the government’s treatment of regulated industries are the main risks, said Louis Lau, a portfolio manager at Brandes who is overweight Mexico, Brazil, Panama and Chile. Much of Mexico’s strong equity returns in the past few years have to do with the government’s harsh fiscal stance, as it deployed less stimulus amid the pandemic shock compared with other nations. Its central bank was also one of the first to embark on a monetary tightening to tame inflation. That combination allowed investors to look past the political noise. The country is also set to keep benefiting from US companies moving their supply chains closer to home, the so-called nearshoring trend that has boosted the Mexican peso to a seven-year high. Shares in the consumer and financial sectors offer opportunities, according to Wachnitz. While the rail line grab episode impacted investor confidence, that’s unlikely to stop nearshoring, according to Marco Priani, a money manager at Houston-based Vaughan Nelson, which manages $14 billion in assets. “AMLO has authoritarian tendencies and the more he perceives he has power, the more mistakes he could make from a rule of law/capital markets perspective,” said Priani. “This has not reached a critical point since there are guardrails/opposition to his measures at some political, social and institutional levels, but it requires vigilance.” ©2023 Bloomberg L.P.