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PODCAST: Mexico seeks to tap its oil resources

Mexican President Enrique Pena Nieto delivers a speech before the signing of the bill of constitutional reform that allows state-owned oil company Pemex to partner with private for exploration and extraction of hydrocarbons, keeping the company in the hands of the State in Mexico City, on August 12, 2013.

The government's reading on consumer spending has gone up the most in seven months.  Retail sales went up 0.2 percent in July. Bill Stone, chief investment strategist at PNC Financial Services Group, explains what this means for the economy.

Right now, if the Mexican government needs help drilling for oil and gas -- and it does need help especially in deep water drilling and shale -- it’ll pay outside oil companies a fee. The thing is, oil companies haven’t really been that interested in Mexico’s fees. The idea now is to attract companies by letting them share in oil profits. Mexico’s president Enrique Peña Nieto is proposing ending his government’s monopoly on oil production, which will require amending the Mexican constitution. If that works, 87 billion barrels of oil could come to market.

It’s state fair season -- the time of year for fried food on a stick and a chance for kids to take part in competitions celebrating agriculture. But fewer young people are growing up to be farmers and more is expected of them in the classroom. And that’s fueling debate between state fairs and schools over how kids should spend their summers.

 

About the author

David Brancaccio is the host of Marketplace Morning Report. Follow David on Twitter @DavidBrancaccio

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