Mexican official eyes more agricultural exports to Asia
A senior official from a leading farm state in Mexico said that the country should work to boost its agrifood exports to Asia.
Currently Mexico’s agrifood exports to Asia account for just five percent of the total, said Hector Padilla, secretary of rural development for western Jalisco state, citing a recent report by the Chamber of Deputies’ Study Center for Sustainable Rural Development and Food Sovereignty, Xinhua reported.
Asian agricultural goods account for just three percent of Mexico’s total food imports, leading to a surplus of $707 million, said Padilla, also former president of the Mexican Association of Secretaries of Agricultural Development.
In recent months, there has been an uptick in sales abroad, mainly to Japan and South Korea, as well as Turkey and the United Arab Emirates, said Padilla.
Mexico buys cinnamon and pepper from Asia, while exporting mostly meat, avocados, which represent 52 percent of sales to the region.
Jalisco supplies some 17 percent of the country’s agrifood exports. China, the world’s top car market.
Carmakers including Daimler (DAIGN.DE) and BMW (BMWG.DE) had cut profit outlooks ahead of results due to trade tariffs and slowing Chinese demand.
But negative surprises during this season then came from their suppliers, the auto parts manufacturers including Michelin (MICP.PA), Nokian NR1V.HE, and Valeo (VLOF.PA), also suffering from weaker sales growth.
Sharp share reactions
Volatility in equity markets globally is shifting up a gear and a sharp worldwide sell-off right at the start of the earnings season certainly didn’t help sentiment.
Outsized share moves continued into this quarter, with a distinct negative skew to investors’ reactions to companies delivering disappointing earnings while in-line or modestly positive results have not been rewarded in kind.
On Thursday, shares in Prosiebensat (PSMGN.DE) sank 15 percent to its lowest in more than six years after the German broadcaster said it would pay out less of its earnings to shareholders
Meanwhile Siemens (SIEGN.DE) shares the same day rose just 0.7 percent even after the German engineering company’s results beat expectations.
Stocks that missed consensus EPS estimates have seen the worst performance of the last four quarters, according to UBS.
Earnings-day moves in Europe are averaging ±4 percent, against the typical average of ±3.1 percent since 2003, Goldman Sachs strategists said.
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