Connect with us

CBS News

Business leader shot to death after complaining about drug cartel extortion in Mexican TV interviews

Avatar

Published

on


The head of a Mexican business chambers’ federation in Tamaulipas state, across the border from Texas, was killed Tuesday, hours after giving television interviews complaining about drug cartel extortion in the state, officials said.

Julio Almanza was shot to death outside his offices in the city of Matamoros, across from Brownsville, Texas.

“We are hostages to extortion demands, we are hostages of criminal groups,” Almanza said in one of his last interviews. “Charging extortion payments has practically become the national sport in Tamaulipas.”

Even Mexico’s largest corporations are now being hit by demands from drug cartels, and gangs are increasingly trying to control the sale, distribution and pricing of certain goods.

The problem came to a head when the Femsa corporation, which operates Oxxo, Mexico’s largest chain of convenience stores, announced late last week that it was closing all of its 191 stores and seven gas stations in another border city, Nuevo Laredo, because of gang problems.

The company said it had long had to deal with cartel demands that its gas stations buy their fuel from certain distributors. But the straw that broke the camel’s back came in recent weeks when gang members abducted two store employees, demanding they act as lookouts or provide information to the gang.

Since convenience stores are used by most people in Mexico, the gangs see them as good points to keep tabs on the movements of police, soldiers and rivals.

“We had incidents in stores that consisted of them (gangs) demanding we give them certain information, and they even abducted two colleagues to enforce this demand,” said Roberto Campa, Femsa’s director of corporate affairs.

In a statement Monday, Femsa said its stores in Nuevo Laredo remain closed this week “due to acts of violence that put our colleagues’ safety at risk.”

In a social media post, the Tamaulipas attorney general’s office acknowledged Almanza’s death.  “We send our condolences to his family members and friends,” the office said.

Earlier this month, a Mexican fisheries industry leader who complained of drug cartel extortion and illegal fishing was shot to death in the northern border state of Baja California. Minerva Pérez had complained that drug cartels were extorting protection payments from fishing boats, distributors, truck drivers and even restaurants.

Cartel violence in Mexico has long been focused on smaller businesses, where owners often visit their shops and are easily abducted or approached by gang members to demand extortion payments. But Femsa is the largest soft drink bottler in Latin America and is listed on the Mexican stock exchange.

Nuevo Laredo has long been dominated by the Northeast Cartel – an offshoot of the old Zetas cartel – but the problem is starting to hit larger companies nationwide. Sectors ranging from agriculture, fishing and mining to consumer goods have been plagued by cartels trying to essentially take over their industries.

“Organized crime has taken partial control”

This week, the American Chamber of Commerce, whose members tend to be larger Mexican, American or multinational corporations, released a survey of its members in which 12% of respondents said that “organized crime has taken partial control of the sales, distribution and/or pricing of their goods.”

That means drug cartels are distorting parts of Mexico’s economy, deciding who gets to sell a product and at what price – and in return they are apparently demanding sellers pass a percentage of sales revenue back to the cartel.

In the past, cartels have carried out violent attacks, arson and even killings of those found selling goods that had not been “authorized” by them or bought from distributors they control.

About half of the 218 companies in the American Chamber survey said that trucks carrying their products had suffered attacks, and 45% of the companies said they had received extortion demands for protection payments.

Of the companies that reported how much they had to spend on security measures, 58% said they spent between 2% and 10% of their total budgets on security; 4% spent at least a tenth of their total outlays on security measures.

On Tuesday, Femsa said in a statement that it was making progress in talks with authorities that might provide guarantees for the safety of its employees and allow the chain to reopen its stores in Nuevo Laredo.

Mexico’s powerful drug cartels have expanded their income sources by both extorting money from companies and even taking over legitimate businesses.

In 2014, authorities confirmed the Knights Templar cartel had essentially taken over exports of iron ore from the western state of Michoacan, and the ore trade with China had become perhaps its biggest single sources of income.

Cartels have also been accused of controlling production and manipulating domestic prices for crops like avocados and limes.

And late last year, authorities in Michoacan confirmed one cartel had set up its own makeshift internet system and told locals they had to pay to use its Wi-Fi service or they would be killed.

Dubbed “narco-antennas” by local media, the cartel’s system involved internet antennas set up in various towns built with stolen equipment. The group charged approximately 5,000 people elevated prices between 400 and 500 pesos ($25 to $30) a month.

Cartels also targeting Americans

Sometimes, the victims are Americans. Earlier this month, the U.S. imposed sanctions on a group of Mexican accountants and firms allegedly linked to a timeshare fraud ring run by the Jalisco New Generation drug cartel in a multi-million dollar scheme targeting Americans.

In November, U.S. authorities said the cartel was so bold in operating timeshare frauds that the gang’s operators posed as U.S. Treasury Department officials.

The scam was described by the department’s Office of Foreign Assets Control, or OFAC. The agency has been chasing fraudsters using call centers controlled by the Jalisco drug cartel to promote fake offers to buy Americans’ timeshare properties. They have scammed at least 600 Americans out of about $40 million, officials said.

But they also began contacting people claiming to be employees of OFAC itself, and offering to free up funds purportedly frozen by the U.S. agency, which combats illicit funds and money laundering.

Officials have said the scam focused on Puerto Vallarta, in Jalisco state. In an alert issued in March, the FBI said sellers were contacted via email by scammers who said they had a buyer lined up, but the seller needed to pay taxes or other fees before the deal could go through.



Read the original article

Leave your vote

CBS News

Are gold ETFs a good investment now that the price is dropping?

Avatar

Published

on


Gold bull and bear on each side of a wooden seesaw in gradient blue background. Illustration of the concept of bullish and bearish market, change of stock prices and risk of investment
Gold prices are dropping, but it could still make sense to add gold ETFs to your portfolio now.

Getty Images


Gold has long served as a safe-haven asset for investors during times of economic uncertainty and market volatility, which is a large part of why it has been so popular over the past year. Thanks to that uptick in gold interest, the price of gold has been climbing throughout much of 2024 — hitting multiple record highs and surpassing $2,700 per ounce at one point late in the year. That price trend has been shifting lately, though, and over the last few weeks, there have been significant fluctuations in gold prices, with the price of gold dropping over the last few days in particular.

With gold’s price currently sitting at under $2,650 per ounce, today’s lower price is prompting many investors to reassess their positions in gold-related investments — including gold exchange-traded funds (ETFs). These investment vehicles, which track the price of gold without requiring physical ownership of the precious metal, have become increasingly popular among retail and institutional investors alike. Much of the appeal of gold ETFs lies in their simplicity and accessibility. Unlike physical gold, these funds can be easily bought and sold through standard brokerage accounts, offering investors a convenient way to gain exposure to gold price movements. 

But while the current price dip could present a good opportunity to buy into gold at a discount, it makes sense to remain cautious about any type of investment right now. So is investing in gold ETFs still a good strategy now that the price of gold is slipping? 

Find out how to add gold to your portfolio today.

Are gold ETFs a good investment now that the price is dropping?

When gold prices drop, it can create opportunities for investors to buy at a lower cost, potentially increasing their returns if prices rebound. Gold ETFs provide an easy way to capitalize on this strategy. Unlike physical gold, ETFs can be traded on stock exchanges just like equities, offering liquidity and convenience. They also eliminate the need for storage and security concerns associated with owning physical gold.

There are also a few other reasons to consider investing in gold ETFs despite the current price drops. For starters, gold ETFs offer an efficient way to implement dollar-cost averaging during price dips. By regularly investing fixed amounts, investors can potentially lower their average purchase price over time. This strategy can be particularly effective during periods of price volatility, allowing investors to accumulate positions at various price points.

And while gold prices may be dipping now, it’s unlikely that today’s lower prices will remain the status quo over the longer term. Gold prices have historically rebounded and grown over longer time horizons, so while the current price may be lower than it was a few weeks ago, it could represent a good entry point for long-term investors. That’s particularly true if the fundamental factors supporting gold prices remain intact, such as inflation concerns, currency devaluation risks and global economic uncertainties.

However, investors should consider that there are risks to investing in gold ETFs. One issue is that gold ETFs are subject to market volatility and may not provide immediate returns — so it’s important to make any investing decision based on your unique investment goals and strategy. Gold also generates no income or dividends, making it a pure price appreciation play. The opportunity cost of holding gold ETFs also becomes more significant in high-rate environments where yield-generating investments become more attractive.

Diversify your investments by adding gold to your portfolio now.

Who should invest in gold ETFs now?

While investing in gold ETFs may not make sense for all investors right now, it could be particularly suitable for certain types. For example, investors who need to diversify their portfolios may find gold ETFs attractive, as gold has historically shown a low correlation with traditional asset classes like stocks and bonds. So, the current price drop could present an opportunity to achieve portfolio diversification at more favorable prices.

Risk-conscious investors who are looking to hedge against inflation, currency risks or geopolitical uncertainties might also want to consider adding gold ETF exposure. After all, with the uptick in inflation over the last few months, gold’s historical role as a store of value remains relevant right now, despite the potential for short-term price volatility. Long-term investors might also find current prices attractive in terms of building strategic positions. 

However, short-term traders and income-focused investors may want to exercise caution when it comes to gold ETFs. Gold’s price volatility can make short-term trading challenging, while the lack of yield may not align with income-oriented investment objectives.

The bottom line

The current drop in gold prices presents an intriguing opportunity for investors who are interested in gold ETFs, but it’s essential to weigh the potential risks and rewards of this type of gold investing carefully. Gold ETFs offer a convenient and liquid way to gain exposure to gold, making them a viable option for many investors, but they are just one of several ways to invest in this precious metal. Whether or not gold ETFs are the right choice for you will ultimately depend on your investment objectives, risk tolerance and overall portfolio strategy, so before you buy in, do your homework to make sure your decision aligns with your long-term goals.



Read the original article

Leave your vote

Continue Reading

CBS News

NASA again delays return of Boeing Starliner crew

Avatar

Published

on


NASA again delays return of Boeing Starliner crew – CBS News


Watch CBS News



Two astronauts who have been stuck in space since June will have to wait until at least the end of March to come home after NASA on Wednesday again pushed back their return date. Derrick Pitts, chief astronomer for the Franklin Institute, joined CBS News to discuss what’s causing the delays.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

Inside Jeff Bezos’ upcoming meeting with Trump

Avatar

Published

on


Inside Jeff Bezos’ upcoming meeting with Trump – CBS News


Watch CBS News



Amazon founder Jeff Bezos on Wednesday will be the latest tech leader to meet with President-elect Donald Trump at Mar-a-Lago. CBS News political correspondent Caitlin Huey-Burns has more.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.