Key Takeaways
- Mexican security forces have reportedly killed Nemesio “El Mencho” Oseguera Cervantes, the leader of the Jalisco New Generation Cartel (CJNG), in a high-stakes military operation supported by U.S. intelligence.
- The UK and U.S. governments issued urgent travel warnings for the state of Jalisco and surrounding regions as cartel members responded with widespread violence, including "narco-roadblocks" and vehicle arsons.
- High-level nuclear negotiations between the U.S. and Iran are scheduled to resume in Geneva on Feb. 26, with President Donald Trump demanding a "zero enrichment" deal amid a massive military buildup in the Middle East.
- Fonterra Co-operative Group (FCG) ordinary shares will resume trading on the NZX Main Board on Feb. 23 following a trading halt caused by a technical system error.
Mexico Security Crisis: "El Mencho" Targeted in Joint Operation
In a major blow to organized crime, the Mexican army reportedly killed Nemesio Rubén Oseguera Cervantes, known as “El Mencho,” during a military operation in Jalisco on Sunday. The Mexican Embassy in the U.S. confirmed that U.S. authorities provided critical intelligence for the mission, which targeted the head of the Jalisco New Generation Cartel (CJNG), an organization the Trump administration recently designated as a foreign terrorist organization.
The operation triggered immediate and violent retaliation across at least five Mexican states, including Jalisco, Guanajuato, and Michoacán. Cartel gunmen established burning roadblocks and engaged security forces, prompting the UK Foreign, Commonwealth & Development Office (FCDO) to advise against all non-essential travel to Jalisco. The U.S. Embassy has urged citizens in the region to "shelter in place" as local authorities activated a "code red" security alert.
Travel and tourism sectors are facing immediate disruption, with Air Canada, Delta, and WestJet among the airlines suspending flights to Puerto Vallarta. Panic was reported at Guadalajara International Airport as travelers sought cover during the unrest. Analysts suggest the death of El Mencho could lead to a prolonged power struggle within the CJNG, further destabilizing the region in the short term.
Geopolitical Tensions: U.S.-Iran Nuclear Talks Move to Geneva
Diplomatic efforts to address Iran’s nuclear program are set to intensify as Iranian Foreign Minister Abbas Araghchi and U.S. Special Envoy Steve Witkoff prepare to meet in Geneva on Feb. 26. The talks come at a moment of extreme tension, with the Trump administration pressuring Tehran for a deal that includes "zero enrichment" of uranium. Araghchi has publicly pushed back, stating that enrichment is a "right" for Iran, though he noted a "good chance" for a diplomatic solution remains.
The International Atomic Energy Agency (IAEA) is simultaneously preparing to review Iran’s nuclear facilities following reports that Tehran may be rebuilding sites previously damaged by strikes. The U.S. has underscored its diplomatic pressure with a significant military presence, including two aircraft carriers stationed in the region. Market participants are closely monitoring the talks for their potential impact on global oil supply and regional stability.
Market Update: Fonterra Resumes Trading on NZX
NZX Product Operations has announced that Fonterra Co-operative Group (FCG) ordinary shares will resume trading on the NZX Main Board at market open on Monday, Feb. 23. The shares were placed on a trading halt on Friday, Feb. 20, due to a system error that rendered them unavailable for trading. The Fonterra Shareholders' Fund units were reportedly unaffected by the technical glitch and continued to trade.
The resumption of trading comes as Fonterra progresses with its significant divestment of the Mainland Group to Lactalis. The co-operative is targeting a tax-free capital return of $2.00 per share, totaling approximately $3.2 billion, once the sale is finalized. Investors are expected to focus on the company's upcoming interim results on March 23 for further guidance on earnings and the progress of the capital return scheme.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.