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Yahoo
5 days ago
- Politics
- Yahoo
Brazen murders threaten Mexico City's image as pocket of safety in violent nation
By Rafael Escalera Montoto MEXICO CITY (Reuters) -On a Tuesday morning along a busy Mexico City avenue last month, a secretary to the city's mayor pulled her black Audi SUV up to a metro station to pick up a colleague. Their killer was waiting for them. The assassin shot the political staffers at point-blank range through the windshield, and then through the driver's window, before breaking into a sprint and disappearing into the city's morning bustle, CCTV video of the attack seen by Reuters shows. The murders of Ximena Guzman, a secretary to Mexico City Mayor Clara Brugada, and Jose Munoz, the mayor's adviser, immediately sent shockwaves through Mexico City's political and business elite. Not only was this kind of targeted political violence unusual in Mexico City, many of them believed the murders were a clear message to Brugada from organized crime groups to give them free rein. With around 30,000 homicides a year, Mexico has one of the highest murder rates in the world behind Myanmar, Honduras, and Jamaica according to a 2023 report by the UN. But the violence is almost entirely in areas outside the capital: all but one of the 37 candidates for local and federal office killed in the run-up to national elections last year were outside Mexico City. Experts have pointed to powerful drug cartels as the perpetrators. Reuters spoke to five business people who referred to the murders as shocking and terrifying, but declined to be named for fear of putting themselves at risk. One bank executive said he already uses an armored vehicle and didn't expect to boost security measures further. Not since the dramatic assassination attempt in 2020 of Mexico City police chief Omar Garcia Harfuch -- now Mexico's Security Minister -- has the capital seen what at least two experts said is a blatant effort to intimidate its political leaders. The killings have, at least momentarily, pierced the city's reputation as a safe haven from the country's widespread political violence. There is much at stake for the capital. Mexico City is the country's beating heart: a business, political and tourist hub vital to both the functioning of Latin America's second largest economy and its global image. Any sense the city is no longer safe could deal a devastating blow to its image, especially as Mexico co-hosts the 2026 soccer World Cup alongside Canada and the United States. The Mexico City attorney general's office has not released findings from its ongoing investigation into the crime or identified a suspect. But three security analysts told Reuters the public nature of the attack and its high-profile targets point to the Jalisco New Generation Cartel, one of the most powerful criminal groups in Mexico and labeled by the U.S. as a terrorist organization. The killings showed signs of meticulous preparation, said David Saucedo, a security expert in Mexico City who advises state governments and companies on security issues. He noted they occurred during President Claudia Sheinbaum's morning press conference, where she touted arrests and the confiscation of weapons from criminal groups across several states. "They did it with the objective of dismantling Claudia Sheinbaum's narrative," Saucedo said. "If you want to make a big media splash, you do it in the capital." Mexico City's government and the presidency did not respond to requests for comment. After the killings, Brugada promised the crime would not go unpunished and that her government would continue its fight against violent crime. Mexico City police said the case is being investigated with "the same rigor that every homicide in the city is investigated with." TOURIST HOTSPOT Mexico City in recent years has become a tourist hotspot, with over a million tourists landing at the capital's airport between January and March this year, following only Cancun as the country's airport with the heaviest traffic. Safety has been vital to the city's renaissance as an attractive destination for business and tourism. Between 2019 and 2023, when Sheinbaum was the city's mayor, homicides in the city plummeted by roughly half, according to federal government data - a record she campaigned on in her successful bid the for the presidency. Still, the presence of drug cartels in Mexico City remains beneath the surface. Business owners say it is common for organized crime groups to force nightclubs to allow them to sell drugs in their bathrooms, while some restaurants are told to make extortion payments to operate. Some of the city's wealthier residents have been taking more precautions in recent months, said Fernando Ortega, from Blindaje Diamante, an armored car shop in Mexico City, noting a rise in sales of armored cars this year. "There is a market that might not have the budget for a full armoring, but wants to feel protected," Ortega said. Security analysts say Brugada now faces a dilemma - she cannot let the crime go unpunished but a hardline response risks retaliatory attacks in the city from criminal groups. That mirrors the broader security challenge in the country, especially as U.S. President Donald Trump demands a stronger response to organized crime in Mexico. "Mexico is stuck between a rock and a hard place," said David Shirk, a professor at the University of San Diego, who studies security issues in Mexico.
Yahoo
20-05-2025
- Business
- Yahoo
Investments in Latin American startups up 26% in 2024, to rise again in 2025, study says
By Rafael Escalera Montoto MEXICO CITY (Reuters) -Capital raised for startups in Latin America grew 26% in 2024 from 2023, more than in Europe, which was up 7%, and Southeast Asia, which shrank 34%, according to a study published on Tuesday. Funding for Latin American startups is also expected to increase in 2025 thanks to a young population, accelerated digitalization and increasingly sophisticated capital, said the report from Mexican entrepreneurship network Endeavor and private equity firm Glisco Partners. Still, the industry faces challenges from low participation of local investment funds in later-stage investments and global volatility, the study said. "2024 was a year for redefinition. Startups that managed to adapt to changes in the market now have more solid and sustainable models," said Alfredo Castellanos, managing partner at Glisco Partners. The report noted domestic investors tended to invest early, while foreign ones did so after companies were more established and scalable. Capital injections in mature companies, rather than brand new ones, are increasingly dominant. Such investments made up 65% of all capital raised in 2024, compared to 46% in 2023. "There are fewer rounds, but more capital," the report said. Through 2025, the report identified three main trends, including the use of venture debt and mixed rounds, which combine risk capital and debt, as alternative ways of investing. Additionally, annual growth in secondary markets - where investors can buy and sell shares from each other rather than directly from the company - was projected to rise 60%, as a way for early-stage investors to secure liquidity. Finally, it found employee stock ownership plans were an increasingly relevant way of attracting and retaining talent, though less than 20% of Latin American startups offered them to employees due to uncertainty surrounding the financial implications. Financial technology firms remained the sector with the highest volume of investment in Mexico, with property technology startups and software companies growing at the fastest rates, according to the report. Mexico and Argentina were two of the big winners in the recovery of venture capital in Latin America in 2024, the study found. Mexico boasted large financing rounds with startups Clip and Justo, which have maintained a "solid flow of investments," according to the study. Uala, an Argentine financial services company, raised $330 million, which amounts to 73% of all capital raised in Argentina, the report said. "The region is advancing toward a more solid ecosystem, but must strengthen its local financing in later stages," it added.
Yahoo
20-05-2025
- Business
- Yahoo
Investments in Latin American startups up 26% in 2024, to rise again in 2025, study says
By Rafael Escalera Montoto MEXICO CITY (Reuters) -Capital raised for startups in Latin America grew 26% in 2024 from 2023, more than in Europe, which was up 7%, and Southeast Asia, which shrank 34%, according to a study published on Tuesday. Funding for Latin American startups is also expected to increase in 2025 thanks to a young population, accelerated digitalization and increasingly sophisticated capital, said the report from Mexican entrepreneurship network Endeavor and private equity firm Glisco Partners. Still, the industry faces challenges from low participation of local investment funds in later-stage investments and global volatility, the study said. "2024 was a year for redefinition. Startups that managed to adapt to changes in the market now have more solid and sustainable models," said Alfredo Castellanos, managing partner at Glisco Partners. The report noted domestic investors tended to invest early, while foreign ones did so after companies were more established and scalable. Capital injections in mature companies, rather than brand new ones, are increasingly dominant. Such investments made up 65% of all capital raised in 2024, compared to 46% in 2023. "There are fewer rounds, but more capital," the report said. Through 2025, the report identified three main trends, including the use of venture debt and mixed rounds, which combine risk capital and debt, as alternative ways of investing. Additionally, annual growth in secondary markets - where investors can buy and sell shares from each other rather than directly from the company - was projected to rise 60%, as a way for early-stage investors to secure liquidity. Finally, it found employee stock ownership plans were an increasingly relevant way of attracting and retaining talent, though less than 20% of Latin American startups offered them to employees due to uncertainty surrounding the financial implications. Financial technology firms remained the sector with the highest volume of investment in Mexico, with property technology startups and software companies growing at the fastest rates, according to the report. Mexico and Argentina were two of the big winners in the recovery of venture capital in Latin America in 2024, the study found. Mexico boasted large financing rounds with startups Clip and Justo, which have maintained a "solid flow of investments," according to the study. Uala, an Argentine financial services company, raised $330 million, which amounts to 73% of all capital raised in Argentina, the report said. "The region is advancing toward a more solid ecosystem, but must strengthen its local financing in later stages," it added.
Yahoo
15-05-2025
- Entertainment
- Yahoo
Mexico brings suit against media company over MrBeast pyramids video
By Rafael EscaleraMontoto (Reuters) -Mexican authorities have filed a lawsuit against a firm they say worked with popular YouTube creator MrBeast after he produced a video at the nation's ancient pyramids, including Chichen Itza, that violated the terms of government permissions. Mexico's National Institute of Anthropology and History (INAH) said in a post late on Wednesday that it had given a firm representing MrBeast, who boasts 395 million subscribers on YouTube, permission to film at the sites but not monetize the video. MrBeast, whose real name is James Donaldson, uploaded a video on May 10 entitled "I Explored 2000 Year Old Temples". In the video's caption, he thanks local authorities, including the INAH, for allowing him to film, while he also touts products. INAH said it was lodging the suit against a firm called Full Circle Media. "The permission granted to Full Circle Media ... did not authorize ... the use of images of the archeological site for for-profit advertisements of private brands," INAH said. Reuters contacted a local production firm with that name but did not immediately receive a response. MrBeast also did not immediately respond to a request for comment. In MrBeast's video, the YouTuber and his team climb on pyramids and explore hidden tunnels in the southern states of Campeche and Yucatan. They are escorted through the pyramids by several guides, including one person identified only as Arthur, who is seen wearing an INAH vest. "I can't believe the government is letting us do this," MrBeast says at one point in the video.
Yahoo
05-05-2025
- Business
- Yahoo
Mexico's Banorte backs away from potential Banamex bid
By Rafael EscaleraMontoto (Reuters) -Mexican lender Banorte is not considering making a bid for Banamex, Citi's one-time retail unit in the country which it split off last year, CEO Marcos Ramirez told local newspaper Milenio in an interview published on Monday. WHY IT'S IMPORTANT Ramirez's comments were a shift away from statements he made during Banorte's most recent earnings call last month, where he suggested Banorte could be eyeing potential opportunities for the purchase. Ramirez told Milenio those comments were misinterpreted. KEY QUOTES "We were interested a few years ago, but we backed out... We are not involved in the new process," Ramirez told Milenio. "We will continue monitoring what happens with it (Banamex) and any others." Ramirez had told analysts last month that Banorte was watching the unit's moves closely and would "propose" from there. CONTEXT Banorte in 2022 launched a bid to take over Banamex, but eventually withdrew, a decision analysts viewed favorably at the time. Citi was close to selling the unit to mining conglomerate Grupo Mexico for $7 billion, though tensions between the group and then-President Andres Manuel Lopez Obrador led to the deal falling apart. Citi now plans to list Banamex, which could be a possible dual listing in Mexico City and New York.
