Mexico:  Coronavirus

Diario this morning carries a report from the newspaper Reforma, in Mexico City, about some of the fallout from coronavirus.  In Sonora (a state neighboring New Mexico and Arizona), for example, "production lines in auto parts, aerospace, and manufacture of health equipment have been interrupted," according to Gerardo Vázquez, president of Index Sonora, a maquila association.

The value of the Mexican Peso has fallen nearly 5% during the last 6 business days, apparently due to uncertainty about the fallout from the coronavirus situation, according to La Jornada de Mexico.  It now stands at around 19.44 pesos to the dollar, a decline in value not seen in about three months.

President Lopez Obrador this morning in a press conference covered by Reforma, asked Mexicans not to exaggerate the dangers of coronavirus so as not to generate panic, and he assured the nation that the government is prepared to take the necessary steps should coronavirus reach Mexico.  Thus far there are no reported cases, although one case (19 potential cases have already been ruled negative for the virus) has not yet been determined.. 

Diario carries a story from Reforma this morning that a large cruise ship carrying 6000 passengers was allowed permission to dock at the Island of Cozumel, near Cancun, as initially programmed, but only after confirmation that a passenger suffering from flu-like symptoms was tested and found not to be carrying the coronavirus.  The ship had been denied docking privileges in Jamaica and Caiman Island, and the initial decision, later reversed by port authorities in Cozumel, was to deny access to the dock.

An international risk management firm, Fitch Ratings, suggests Mexico's exports of oil and autoparts will be affected by the coronavirus situation, according to a report this morning in La Jornada.  China, it seems, accounts for 30% of global new automobile sales, and the coronavirus epidemic in China is likely to result in a decline in future auto sales and to experience interruptions in global chains of supply of auto components to China.