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Tension hits markets.


Political tension is impacting Mexico's financial markets, foreshadowing fore·shad·ow  
tr.v. fore·shad·owed, fore·shad·ow·ing, fore·shad·ows
To present an indication or a suggestion of beforehand; presage.



fore·shad
 a trend that is likely to intensify in·ten·si·fy  
v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies

v.tr.
1. To make intense or more intense:
 ahead of the July 2006 presidential election, economists say.

The Dallas Morning News and The Wall Street Journal have reported that investors worry that if Mexico City Mexico City
 Spanish Ciudad de México

City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi
 Mayor Andres Manuel Lopez Obrador is barred from running, the election could be seen as tarnished. This would erase the so-called "democracy dividend" Mexico earned when President Fox unseated the Institutional Revolutionary Party (PRI PRI: see Institutional Revolutionary party.


(Primary Rate Interface) An ISDN service that provides 23 64 Kbps B (Bearer) channels and one 64 Kbps D (Data) channel (23B+D), which is equivalent to the 24 channels of a T1 line.
) after it ruled Mexico for 71 years.

[ILLUSTRATION OMITTED]

One economist told the Morning News that "the market perceives Lopez Obrador's potential loss of immunity as a negative. Foreign investors in particular want to see a clean election in 2006."

The Journal echoed this sentiment. It reported that impeaching the Mexico City mayor--the current front-runner in opinion polls--risks unleashing social unrest Unrest is a sociological phenomenon, for instance:
  • Industrial unrest
  • Labor unrest
  • Rebellion
Notable historical unrests
  • 19th century Luddites
  • 1978–79 Winter of Discontent (UK)
  • 1989 Purple Rain Revolt, (South Africa)
, which would cause a giant headache for investors. If Lopez Obrador is prevented from running, Mexico's democracy could be severely damaged, says the Journal.
COPYRIGHT 2005 American Chamber of Commerce of Mexico A.C.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BRIEFS; Andres Manuel Lopez Obrador's impeachment affects financial markets
Publication:Business Mexico
Article Type:Brief Article
Geographic Code:1MEX
Date:May 1, 2005
Words:161
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