Mexico Panics As Trump's Leverage "Far Greater Than What Mexican Elites Thought"
by Tyler Durden
Jan 4, 2017 11:20 PM
Earlier this morning we noted that the Mexican Peso was plunging once again - very close to all-time record lows - as fears spread that Ford's decision yesterday to cancel a $1.6 billion plant may become the norm following president-elect Trump's tweet that "this is just the beginning."
Donald J. Trump ✔ @realDonaldTrump
Thank you to Ford for scrapping a new plant in Mexico and creating 700 new jobs in the U.S. This is just the beginning - much more to follow
5:19 AM - 4 Jan 2017
16,479 16,479 Retweets 70,417 70,417 likes
And here is the peso:
And while many senior politicians within the Mexican government dismissed Trump's campaign speeches as empty rhetoric, per the Associated Press, Ford's cancellation of it's $1.6 billion auto plant has served as a "much needed wake-up call" that shows that Trump has far greater leverage "than what Mexican elites thought until recently."
"Trump leaves Mexico without 3,600 jobs," read the headline on El Universal. "Ford's braking jolts the peso," said Reforma, referring to the Mexican currency's nearly 1 percent slump following the news.
Two weeks before inauguration, the scuttling of the planned Ford factory and Trump's pressure on General Motors should be a "much-needed wake-up call," said Mexico analyst Alejandro Hope.
http://www.zerohedge.com/news/2017-0...elites-thought
