Mexico's Acapulco Hopes for Rebound as Virus, Violence Drop

Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)
Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)
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Mexico's Acapulco Hopes for Rebound as Virus, Violence Drop

Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)
Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)

Mexico’s Pacific coast resort of Acapulco is putting its hopes on a return of tourists as the number of coronavirus cases drops and the violence that drove travelers away slowly declines.

The governor of the state of Guerrero said Friday that hotels will now be allowed to accept guests at 40% capacity, up from 30% previously under pandemic restrictions. Gov. Hector Astudillo bragged that Acapulco has reduced the number of COVID-19 deaths to an average of 9.6 per day and alleviated the overcrowding that plagued the city's hospitals earlier in the pandemic.

The city, once ranked as the fifth most deadly in Mexico, has fallen to 44th place. Homicides were down about 20% in the first half of 2020, compared to the same period of 2019.

President Andrés Manuel López Obrador visited the once-glamorous resort Friday and pledged to fix pollution problems that affect the resort’s famous bay.

“We are going to clean up Acapulco, we are going to clean up the bay so that there is no more pollution. That is my commitment,” he said. In June, heavy rains caused storm drains to overflow, sending sewage and waste into the bay.

Unlike most experts, López Obrador predicted a quick end to the pandemic.

“What I feel — my prediction — is that soon, very soon, we will return to normality,” the president said. “Economic activity is returning, tourism is returning to Acapulco, but I predict that in a month, two months, we will have very favorable conditions.”

Even if those predictions are fulfilled, it will still be a long road back for Mexico’s battered tourism industry. In the first quarter, tourism revenues were down 51.5% and figures for the second quarter are certain to be worse.

With about 800,000 hotel rooms, Mexico's has the world's seventh-largest hotel infrastructure. In 2018, tourism accounted for 8.7% of Mexico's GDP and provided about 2.3 million jobs.

Many of those jobs have evaporated in the pandemic. Even under the best-case scenario, if travel alerts were lifted — Mexico currently has the highest “do not travel” alert from the US State Department — hotels in Mexico would end the year with only about 47% occupancy, on average.



Türkiye and Iraq Discuss Energy Cooperation Ahead of Pipeline Deal Expiry

A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
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Türkiye and Iraq Discuss Energy Cooperation Ahead of Pipeline Deal Expiry

A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)

Türkiye's ‌Energy Minister Alparslan Bayraktar said on Wednesday that he met senior Iraqi oil and foreign ministry officials to discuss energy cooperation, including on the Iraq-Türkiye Crude Oil Pipeline that runs from Kirkuk to Ceyhan.

The decades-old Türkiye-Iraq Crude Oil ‌Pipeline Agreement, which governs ‌exports through the ‌pipeline, ⁠is due to ⁠expire on July 27. Baghdad and Ankara are still discussing a new draft agreement.

The Iraqi delegation included Deputy Foreign Minister Hussein Bahr Al-Uloom, Deputy ⁠Oil Minister Naser Azez ‌Jabbar, and ‌Iraq's Ambassador to Ankara Majid Al-Lachmawi.

Bayraktar said in a ‌post on X that Türkiye aims to work closely with the new Iraqi government on more effective ‌use of existing energy infrastructure.

Türkiye also seeks to ⁠support ⁠existing infrastructure with new connections, Bayraktar said.

Baghdad last month asked Ankara to extend the pipeline agreement for at least a year to allow time for more talks, but Ankara said it does not want an extension under current conditions.


Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
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Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)

Gold fell for a third consecutive session on Wednesday, as rising US Treasury yields and growing bets that the Federal Reserve will raise interest rates pressured the non-yielding metal.

Spot gold was down 0.8% at $3,974.75 per ounce as of 0849 GMT, after touching its lowest level since last November at $3,942.99 in the previous session. US gold futures for August delivery lost 1.3% to $3,987.70/oz.

The yellow metal ‌on Tuesday recorded ‌its first quarterly loss since January 2024, Reuters reported.

A selloff ‌in ⁠US Treasuries on ⁠Tuesday pushed the benchmark 10-year yield up as much as 9 basis points before it backed off the highs. By Wednesday, yields were rising again, up 4 bps at 4.465%, outpacing increases in euro zone bond yields.

A stronger US dollar makes bullion less affordable for overseas buyers.

"The weakness is a bit driven by comments from ⁠Fed's Hammack, suggesting a rate hike might be ‌needed and market participants pricing in ‌a bit more rate hikes for this year," said UBS analyst Giovanni Staunovo. Federal ‌Reserve Bank of Cleveland President Beth Hammack said on Tuesday ‌she may advocate for higher rates if inflation pressures don’t moderate. According to CME FedWatch tool, traders see a nearly 67% chance of a rate hike by September.

Expectations for more hikes are not helping investment demand, and ‌ETF holdings have seen renewed outflows in recent days, said Staunovo, noting that price volatility is ⁠expected around economic ⁠data releases this week.

June ADP employment data, due at 1215 GMT, and Thursday's nonfarm payrolls report could give further clues on the Fed's policy path.

Markets will also closely watch the European Central Bank's annual Sintra conference on Wednesday, where Fed Chair Kevin Warsh and ECB President Christine Lagarde are due to speak. On the geopolitical front, concerns persisted over the prospects for US-Iran diplomacy after Tehran said it would not meet senior US envoys who travelled to the region following the recent outbreak of hostilities.

Spot silver fell 1.4% to $57.75 per ounce.

Platinum slipped 0.6% to $1,542.70, after hitting its lowest point since November. Palladium slid 1.4% to $1,187.01.


Turkish Manufacturing Contracts, Hit by Iran War Disruption, PMI Shows

 A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)
A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)
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Turkish Manufacturing Contracts, Hit by Iran War Disruption, PMI Shows

 A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)
A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)

Türkiye's manufacturing ‌sector contracted in June as the war in the Middle East disrupted demand and supply, a business survey showed on Wednesday.

The Istanbul Chamber of Industry's Türkiye Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 47.1 in June from 49.8 in May. The 50-mark separates growth from contraction.

Output returned to decline after rising slightly in May, with firms ‌citing market uncertainty ‌linked to the conflict ‌in ⁠the Middle East, softer ⁠new orders and higher prices.

Demand weakened further, with total new orders posting a solid decline and new export business also falling again after expanding in May.

Companies also cut purchasing activity, while employment continued to be scaled ⁠back. Suppliers' delivery times lengthened again, although ‌the deterioration was ‌the least marked since February.

There were some signs ‌of easing price pressures. Input cost inflation slowed ‌for a second straight month to its weakest since November, while output price inflation eased to its lowest level so far this year.

The June ‌survey reversed some of May's improvement and extended the sector's downturn to ⁠27 ⁠consecutive months. Firms also reduced stocks of purchases and finished goods amid muted demand conditions, the panel showed.

"The Turkish manufacturing sector took a step back in June, posting a renewed softening of production amid muted new orders. Anecdotal evidence from the survey indicated that the war in the Middle East continued to be the principal cause of the challenges facing firms," said Andrew Harker, economics director at S&P Global Market Intelligence.