Reuters Mexico first to track bold presidential move to shut down bloated state power company

Reuters owned the story as Mexican President Felipe Calderon shut down a large money-losing electricity company and its powerful union hit back. Reuters was ahead of foreign media and Mexican national newspapers with news in the middle of the night on Oct 11 that Calderon sent police to permanently close down the utility. Calderon said he had to stem huge losses at the firm at a time of bulging state deficits that have forced him to ask Congress to hike taxes. Reuters had strong multimedia coverage of the closure, union protests, and analyzed whether Calderon is now likely to challenge other inefficient state companies and their unions. Even before Luz y Fuerza was closed, Reuters had a well timed analysis on Sept 24 — “Mexico takes aim at capital’s bloated power company” — predicting the utility could be a prime target as Calderon looks to buck up creaking state-owned companies. The move was hailed by investors as a sign of much-needed fiscal discipline.