1. Analysts said major Canadian banks are seeking to establish or expand activities in Mexico while financial institutions are relatively inexpensive, because of the weak peso. 2. A weak peso also depressed Mexican bonds, as concerns about a guerilla movement in two poor southern provinces continued to temper prices. 3. A weak peso makes imported goods more expensive, thereby driving up consumer prices. 4. A weak peso makes Mexican stocks worth less and makes it more expensive for companies to pay for imported raw materials and dollar-denominated loans. 5. Alaska is viewed as particularly sensitive to a weak peso as imported skimmed milk from Australia makes up half its costs. 6. Company officials blamed a drop in advertising and publishing revenue along with a weak peso for the decline. 7. Investors also were concerned that a weak peso may hurt the dollar value of their Mexican stocks. 8. Moreover, a weak pesos increases the weight of dollar debts held by leading utilities. 9. Overseas, faltering economies in Brazil and Asia bit heavily into sales, while a weak Mexican peso meant that robust Mexican sales sounded meager in dollars. 10. PHILIPPINE stocks fell for the first time in five days on renewed concern high interest rates and a weak peso will lead to more loan defaults. |