Mexico's automobile exports grow 11.4% annually in April
During the January-to-April 2026 period, 1,081,948 units were exported, representing a variation of 4.7% compared to the same period in 2025.
Markets and Stocks
US futures were holding practically unchanged in the morning after Trump rejected over the weekend the Iranian counterproposal that demanded the lifting of the naval blockade, sanctions relief, war reparations, and the maintenance of some control over traffic in the Strait of Hormuz, terms Washington considers incompatible with its position. Brent was trading back toward US$104–106, reversing part of last week's decline. 10-year Treasury yields were advancing three basis points toward 4.39% on the return of inflationary concerns. The dollar was rising marginally. The more-than-one-month ceasefire formally remains in force but continues to be fragile. The week concentrates three first-order events: the publication of the US PCE index on Tuesday, the Trump-Xi summit in Beijing on Thursday and Friday, and the end of Jerome Powell's term as Fed chair on Friday.
Key points
The US rejects Iran's latest offer to end the war.
China's consumer and producer inflation rise in April above expectations.
Positive external sector figures from China in the fourth month of the year.
For the rest of the day, the interbank exchange rate (pesos per dollar) could trade between $17.13 - $17.28 spot.Me
What you need to know about the economy and markets
In April 2026, Mexico's automotive industry showed a positive performance. Light vehicle sales grew 8.6% annually, reaching 118,859 units, while production increased 2.1% annually to 329,878 units and exports advanced 11.4% annually to 286,317 units. In the January-to-April cumulative period, production grew 0.9% annually and exports 4.7%, with the United States concentrating 76% of external shipments.
Our Take
The automotive sector maintains solid performance, supported by domestic demand and at times reflecting the characteristic strength of exports to the United States. The growth in foreign sales suggests that regional manufacturing integration continues to be an important support for Mexico's industrial activity. However, the lower cumulative dynamism in production relative to domestic sales and exports reflects that the sector still faces challenges associated with Trump's tariffs, global slowdown, production costs, and potential trade tensions in the context of the USMCA review.
The war in the Middle East shows few signs of ending after President Donald Trump rejected Iran's response over the weekend to a 14-point peace proposal. Trump described Tehran's reaction as "totally unacceptable," keeping geopolitical risks elevated. Iran's response, transmitted through Pakistani mediators, reportedly demanded the lifting of sanctions, an end to the US naval presence around the Strait of Hormuz, security guarantees, and recognition of Iran's right to continue with some nuclear activity.
Our Take
The new failure of the peace agreement and the escalation of military activity in the Strait of Hormuz are pushing oil prices higher. Brent is rising 2% to $103 per barrel but reached above $105 in early trading.
China's Producer Price Index (PPI) rose 2.8% annually in April, well above the 1.8% consensus had anticipated, marking a 45-month high and decisively reversing the 41-month consecutive deflationary streak that had begun to break in March with a barely 0.5% rise. On the consumer side, inflation increased to 1.2% annually, surpassing the expected 0.9% and accelerating from March's 1.0%.
Our Take
The jump in the PPI to its highest level in nearly four years might seem like good news for an economy that has spent years fighting deflation. However, the inflation China is recording today is driven by external energy and commodity shocks from the Iran conflict and does not reflect an improvement in the domestic supply-demand balance, which represents a different and in some respects more complex problem for policymakers.
Chinese exports grew 14.1% annually in dollar terms in April, a significant acceleration from the meager 2.5% of March and above analyst consensus, despite the war in Iran and the residual impact of US tariffs. On the imports side, these grew 25.3% annually, above the forecast of 20.0% though below March's 27.8%, driven by the accumulation of component inventories amid fears that the war in Iran could push global input costs even higher.
Our Take
April's data reveal the remarkable resilience of China's export machine, but also contain signals that merit careful interpretation. The export rebound was driven in part by factories that accelerated order fulfillment ahead of fears of supply disruptions from the Iran conflict, which introduces a demand-anticipation component that could moderate export dynamism in the coming months.
Corporate News
Grupo Aeroportuario del Pacífico reported that it has initiated the process for the possible formation of FIBRA GAP, a trust that would subscribe a minority stake in the capital of its 12 airport concessionaires in Mexico. With the proceeds from the initial issuance, each airport seeks to complement the financing of the 2026–2029 Master Development Plan, which contemplates investments of approximately $40 billion pesos and includes an estimated 60% increase in passenger terminals, 35% in inspection points, 25% in aircraft positions, and 10% in airfield capacity.
Our Take
The move responds to a concrete financial need: as of Q1 2026, GAP had already accumulated total debt of nearly $63 billion pesos, with a leverage level of 1.9x Net Debt/EBITDA. Structuring a FIBRA allows access to institutional capital without increasing debt, diversifying financing sources beyond the stock market certificates the company has used since 2015. The predictable cash flows of airports make the asset naturally attractive for this type of vehicle. If it materializes, FIBRA GAP could become a benchmark for other airport groups in Latin America facing equally intensive investment cycles.
Cerebras Systems raised the price range of its initial public offering to between US$150 and US$160 per share and expanded the number of shares offered to 30 million, which would bring the total raise to up to US$4.8 billion with a market valuation of up to US$34.4 billion. Pricing is scheduled for May 13 and shares will trade on Nasdaq under the symbol CBRS. Cerebras manufactures AI chips for Nvidia and has agreements with Amazon and OpenAI, which holds warrants on 33.4 million shares.
According to Bloomberg reports, SoftBank's Masayoshi Son has held conversations about announcing an ambitious AI data center project in France alongside President Emmanuel Macron in the coming weeks. The move would be consistent with SoftBank's strategy of positioning itself as the main investment vehicle in AI infrastructure outside the US, leveraging the cycle of elevated valuations to raise capital and deploy it in long-term infrastructure assets.
The to-do list
Review the US CPI data tomorrow; a reading below that figure would be the most direct catalyst for reactivating Fed rate cut expectations under Warsh.
The Trump-Xi summit begins Thursday, monitor especially any signal on semiconductors, China's stance on Iran, and the extension of the critical minerals agreement.
Write your three priorities for the day before beginning office activities.
Follow Cerebras' IPO process, pricing is set for May 13; the level at which it closes on its first day of trading will be a clear signal of the market's appetite for alternatives to Nvidia.
Today's quote…
"We must not fear uncertainty. Uncertainty is the condition that drives man to develop his faculties."
— Erich Fromm
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