NEW YORK, Aug. 3, 2007 (PRIME NEWSWIRE) -- This week's Wall Street Journal Weekend Edition centerpiece will focus on Mexico's wealthiest citizen, Carlos Slim, and how he amassed his fortune by putting together monopolies in industries ranging from telecommunications to banking to construction. The 67-year-old tycoon controls more than 200 companies, which account for nearly half the total value of Mexico's leading stock market index. His fortune is equal to 7 percent of the country's annual economic output.
Monopolies have long been a staple in Mexico's economy but in the past, politicians ensured that big business did not threaten their power. In the 1990s, political control faded with the privatization of much of the economy. Over the years, Mr. Slim accumulated so much power that he is considered a force as great as the state itself. His interests are rarely infringed upon as Congress routinely kills legislation that threatens his assets and the media is reluctant to criticize him for fear of retribution. His empire is so vast that doing business without him can be difficult. Now, Mexico's young president Felipe Calderon must decide whether to try and rein in Mr. Slim despite the mogul's standing as the country's largest private employer and taxpayer.
Mr. Slim has drawn praise and criticism for his practices. Admirers say Mr. Slim embodies Mexico's potential to become a Latin powerhouse, while his critics argue that his rise says a lot about Mexico's deepest problems, including the gap between rich and poor.
"Mr. Slim's fortune has grown faster than anyone in the world during the past two years, rising by more than $20 billion to a current $62 billion," writes David Luhnow, the Journal's Latin American Deputy Bureau Chief in this week's Weekend Edition. "While the market value of his stake in publicly traded companies could decline at any time, at the moment he is probably wealthier than Bill Gates." With no clear successor to the patriarch's empire, Mexican officials hope that one day the state will be able to regulate Mr. Slim's companies.
Additional stories appearing in this week's Weekend Edition of the Wall Street Journal include the following:
Money & Investing:
-- Online Checking Accounts: In a bid to grab more of their customers'
assets, brokerage firms are pitching new online checking accounts
that pay much higher interest rates than traditional banks do and
offer other perks. Is it worth the switch?
-- Housing Downturn: They said it couldn't happen again: A housing
downturn that would leave large home-builders stuck with land,
starved for cash and wobbling financially. But a week ago, D.R.
Horton reported its first loss in history, and recently, Beazer
was beset with bankruptcy-filing rumors. The Journal explains where
the companies -- and the analysts that follow them -- slipped up
and where they go from here.
Pursuits:
-- Merging Couples: Forget deciding about joint bank accounts and
whose bedroom furniture stays. For young couples today, the
thorniest questions include whether to merge their blogs, share an
email address or link up iTunes accounts.
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Editor's Note: WSJ reporters are available to discuss these topics.