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Strategic Insights

— 2 min read

Mexican stocks tumbled to a one-year low, while concerns about a recession in Japan and Asian currency fluctuations impacted demand for exports. This downturn affected profit margins for Mexican exporters, including those shipping goods to the United States. In contrast, the Dow Jones industrial average in the United States experienced a slight increase, ending a three-day losing streak. Meanwhile, a significant development in the aviation industry occurred as Continental Airlines pilots approved a new contract, while Microsoft's co-founder, Paul Allen, sold a substantial portion of his Microsoft stock holdings. Additionally, MCI Communications Corp. is considering selling more of its Internet businesses to secure government antitrust approval for its planned merger with WorldCom Inc.

Key Takeaways:

  • Mexican stocks plummeted to a one-year low on concerns about a recession in Japan and Asian currency fluctuations, affecting demand for exports and profit margins for Mexican exporters.
  • The bolsa index fell 1.72 percent to 4,215.68, its lowest level since June 11, 1997.
  • The Dow Jones industrial average in the United States rose 23.17, ending a three-day losing streak.
  • Continental Airlines pilots approved a new contract that provides improved salaries, vacation time, and profit sharing, as well as a pension program that is one of the best in the industry.
  • The average pay increase amounts to 45 percent over the next three years, ending 16 years of union concessions aimed at helping the ailing company.
  • Microsoft co-founder Paul Allen sold $681.5 million worth of Microsoft stock, selling 7.8 million shares from May 1 to May 26.
  • Allen still holds 157.3 million Microsoft shares, or 6.4 percent of the almost 2.5 billion shares Microsoft reported outstanding as of April 30.
  • MCI Communications Corp. is considering selling more of its Internet businesses to help win government antitrust approval for its planned merger with WorldCom Inc.
  • These sales could potentially include MCI's business and residential Internet customers.

Statistics:

  • 1.72 percent: The decline in the bolsa index on the day the Mexican stocks tumbled.
  • 4,215.68: The value of the bolsa index at its lowest level since June 11, 1997.
  • 23.17: The increase in the Dow Jones industrial average.
  • 45 percent: The average pay increase for Continental Airlines pilots over the next three years.
  • $681.5 million: The value of the Microsoft stock sold by Paul Allen.
  • 7.8 million: The number of Microsoft shares sold by Allen from May 1 to May 26.
  • 157.3 million: The number of Microsoft shares still held by Allen.
  • 6.4 percent: The percentage of Microsoft shares held by Allen as of April 30.
  • 2.5 billion: The number of shares Microsoft reported outstanding as of April 30.

Sources:

  • Staff and wire reports
  • Becky Bisbee, Business Editor (statesman.com)
  • Marco Ugarte/AP (statesman.com)

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