- Title: Mexico's new leader takes charge under cloud of soured optimism
- Date: 30th November 2018
- Summary: MEXICO CITY, MEXICO (FILE - JULY 01, 2018) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** LOPEZ OBRADOR ON STAGE AFTER ELECTION WIN LOPEZ OBRADOR SUPPORTERS
- Embargoed: 14th December 2018 08:13
- Keywords: president-elect Andres Manuel Lopez Obrador Mexico Mexico City leftist election Los Pinos
- Location: MEXICO CITY, TEXCOCO, STATE OF MEXICO, TLAPA, GUERRERO, MEXICO
- City: MEXICO CITY, TEXCOCO, STATE OF MEXICO, TLAPA, GUERRERO, MEXICO
- Country: Mexico
- Topics: Government/Politics
- Reuters ID: LVA00D98P5BUR
- Aspect Ratio: 16:9
- Story Text: Armed with the strongest democratic mandate of any recent Mexican president, Andres Manuel Lopez Obrador takes power on Saturday (December 01) confronting deep scepticism in financial markets and the most violent period in the country's modern history.
The 64-year-old former Mexico City mayor won with the widest margin in a presidential election since the 1980s, pledging to eradicate corruption and subdue drug cartels with a less confrontational approach. Lopez Obrador will carry high expectations into office, while his efforts to reduce inequality will be watched closely by nervous investors.
A decision by Lopez Obrador to scrap a partly built $13 billion Mexico City airport has already rattled markets. Billions of dollars were wiped off the value of the local stock market shortly after the decision.
Also, unexpected bills from lawmakers in Lopez Obrador's party to limit bank fees and change laws governing mining rights further weakened stocks this month.
Investors and analysts have become concerned Lopez Obrador and his party could pull Mexico away from the orthodox economic policies backed by the central bank.
But in recent weeks, Lopez Obrador and his team have sought to calm markets.
Analysts have expressed concern that Lopez Obrador could significantly raise spending or pass more radical economic reforms than he has detailed so far. But the president-elect has said he would respect "macroeconomic equilibria."
Amidst the uncertainty, Mexico's central bank this week trimmed its growth outlook and raised its inflation forecast for next year while warning that current uncertainty around investment could hinder growth. - Copyright Holder: FILE REUTERS (CAN SELL)
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