
Argentina's Economy Extends Downturn in June Before Midterms
Economic activity fell 0.7% from May, below economists' estimates for a 0.2% dip. From a year ago, the economy expanded 6.4%, more than expected, according to government statistics published Wednesday.
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Bloomberg
22 minutes ago
- Bloomberg
Japan to Set FY26 Provisional Rate at 17-Year High, Yomiuri Says
Japan's Finance Ministry plans to set the provisional rate for interest payments on government bonds at 2.6% for the next fiscal year, the highest level in 17 years, according to a local media report. The accumulated interest rate, which serves as the basis for the initial calculation of debt-servicing expenses, will be set at 2.6% in the upcoming budget draft, the Yomiuri newspaper reported Friday. A year ago, the initially proposed rate for the current fiscal year was 2.1%. The ministry typically determines the rate by averaging recent market yields and then adding 1.1 percentage points to reflect historical fluctuations.

Yahoo
an hour ago
- Yahoo
Mexico's Unconventional Oil Plays Could Boost Production By 250,000 bpd
A couple of weeks ago, Mexico's National Oil Company (NOC) and the federal administration unveiled the Pemex Strategic Plan 2025–2035, a comprehensive roadmap for Petróleos Mexicanos (Pemex) to boost oil production, reduce debt, and promote energy sovereignty through increased public and private investment. Key goals of the blueprint include achieving oil production of 1.8 million barrels per day by 2030, increasing natural gas output, securing funding through government support and private partnerships, and integrating energy transition projects like hydrogen and geothermal. Pemex is Mexico's largest company and one of the largest in Latin America, not just by revenue but also as the country's most significant fiscal contributor. As the state-owned oil company, it handles the entire oil and gas value chain and plays a critical role in Mexico's energy security and economy. Wall Street appears to have warmed up to the ambitious strategy, with Wood Mackenzie saying the Mexican government is likely to target the Pimienta and Eagle Ford unconventional formations for initial development, thanks to their established geology as well as ample potential to supply both oil and natural gas. According to WoodMac, both formations have the potential to produce 250,000 bpd of liquids and another 500 million cubic feet per day (mmcfd) of natural gas by the early 2030s. 'The strategy needs major capital investment and international operators working under profitable contract terms. However, it's encouraging that the government and Pemex leadership are tackling natural gas production challenges by promoting development of the nation's extensive unexploited unconventional reserves,' said Ismael Hernandez, Research Associate at is also looking to unlock its LNG sector, with a series of projects proposed for the country's Pacific Coast having the potential to turn the country into Latin America's LNG powerhouse. According to a recent Gas Outlook report, Mexico plans to build five major LNG export terminals along the Pacific Coast, aiming to transform the country into a top-tier gas exporter. Most of the feed gas needed to supply these terminals would mainly be sourced from the United States' America's Permian basin in New Mexico and Texas, rather than sourced from Mexico directly. This would give Mexico a big cost advantage over its LATM peers. Natural gas prices at the Waha hub in the Permian basin in West Texas have sunk to sub-zero levels in recent years, thanks to gas production growing more quickly than takeaway capacity. Mexico would then be able to sell this gas at ~$10-$14 per MMBtu in Japan or Korea, a potentially highly profitable business even after factoring in liquefaction costs. However, a lot of these plans could be derailed by Pemex's poor financial health. The Mexican government recently expressed confidence that it will stop funding the debt-ridden NOC as early as 2027, saying Pemex will have become financially self-sufficient. However, President Claudia Sheinbaum's administration has its work cut out trying to rescue the country's crown jewel. For years, Pemex has struggled with a high debt load amidst persistent underproduction of crude, with the company only managing to remain solvent through tax incentives and capital injections. In fact, Pemex has been able to post a profit in three of the past 15 years. Last year, Pemex reported a net loss of approximately $30 billion (or about 190.5 billion pesos) for FY 2024, a reversal from the modest profit in 2023. This loss was driven by decreased revenues from lower oil exports and falling international crude prices, alongside increased operating and financial costs, including losses from foreign exchange. More worryingly, Pemex's refining division has remained in the red over the past decade and a half despite high utilization rates coupled with a favorable policy environment. Operative inefficiencies have dogged Pemex for so long that the company is unable to capitalize on high oil prices whenever they arise. Pemex's debt has surged to nearly $100 billion since 2010, making it the most indebted oil and gas company in the world. Meanwhile, the company has seen its overall liabilities jump from $121.9 billion in 2010 to $233.4 in 2023. If Pemex were a country, its liabilities would be the seventh largest amongst Latin American economies. However, there's still hope for the company. Pemex swung to a profit during the first half of the current year, with the government seeking to inject $12 billion to help pay down the company's debt. Pemex's bottom-line was boosted by a strengthening peso in the second quarter, as well as lower cost of sales and improved performance among some financial assets. Further, Moody's Ratings is looking to upgrade Pemex thanks to the government's new commitments. This could help the company secure future loans at more favorable interest rates. By Alex Kimani for More Top Reads From this article on


New York Times
an hour ago
- New York Times
Judge Orders That ‘Alligator Alcatraz' Detention Center Be Shut Down for Now
A federal judge on Thursday ordered that no more immigrant detainees be sent to a center in the Florida Everglades, and that much of the facility be dismantled. The ruling rebuked the state and federal governments for failing to consider potential environmental harms before building the facility, known as Alligator Alcatraz. The judge gave both branches of the government 60 days to move out existing detainees and begin to remove fencing, lighting, power generators and other materials. The order also prohibits any new construction at the site. The decision is a major legal setback for the detention center, the nation's first state-run facility for federal immigration detainees, which has faced several lawsuits and numerous complaints about poor conditions and other problems. The state is expected to appeal. Judge Kathleen M. Williams of the Federal District Court in Miami found that the state and federal governments had violated a federal law that requires an environmental review before any major federal construction project. Judge Williams partly granted a preliminary injunction sought by environmentalists and the Miccosukee Tribe, whose members live in the area. The detention center is surrounded by protected lands that form part of the sensitive Everglades ecological system. The detention center presents risks to wetlands and to communities that depend on the Everglades for their water supply, including the Miccosukee, Judge Williams found. 'The project creates irreparable harm in the form of habitat loss and increased mortality to endangered species in the area,' she wrote. Want all of The Times? Subscribe.