• The Jamaica Stock Exchange (JSE) has suspended the trading of shares of two (2) companies for not filing their Audited Financial Statements for 2023.
• Effective at the end of trading on Tuesday, June 4, 2024, trading in the shares of Equityline Mortgage Investments Corporation Limited’s Preference Shares, a Main Market company, and EduFocal Limited’s Ordinary Shares, a Junior Market company, was suspended by the Jamaica Stock Exchange.
• The decision to immediately suspend trading in the shares of Equityline Mortgage Investments Corporation, pending the submission of its 2023 audited statement, is in keeping with JSE’s Main Market Rule 408 (iii) – Audited Annual Financial Statement, which states that “Companies with audited annual financial statements which are ninety (90) days overdue, shall have trading in their shares suspended until the reports are submitted to the Exchange.”
• Additionally, Edufocal Limited was in breach of JSE’s  Junior Market Rule Appendix 2, part 4 (2), which states that Junior Market Companies who do not submit audited financial statements as required by Part 4(2) of Appendix 2 within 90 days of the date on which they are due for submission to the JSE may be suspended from the Junior Market until they can submit the same.
• Mortgage Investments Corporation Limited and Edufocal Limited join iCreate on the list of companies suspended from trading since the start of the year.

 (Source: JSE)

• China's Ambassador to Jamaica, Chen Daojiang, recently reinforced the strong friendship between Kingston and Beijing, highlighting a range of initiatives aimed at strengthening their bilateral ties.
• This year, China has hosted training sessions for 42 Jamaicans, showcasing the continued educational cooperation. To further strengthen community bonds, the embassy will acknowledge local organisations that have cultivated a friendly relationship with China.
• Moreover, to facilitate international exchanges, China has implemented various visa policy reforms. Eligible visa applicants are now exempt from fingerprint requirements, will receive a 25% discount on visa fees, and can take advantage of an appointment-free visa application procedure. These changes are expected to facilitate smoother travel and interaction between the citizens of both countries.
• The trade relationship between Jamaica and China have been flourishing,. In 2023, China was Jamaica's second-largest trade partner, accounting for 8.0% of the country’s total imports, with the US being ranked as the main trade partner at 40.6%..
• Consequently, Ambassador Chen looks forward with optimism, highlighting opportunities for expanded collaboration in sectors such as trade and investment, renewable energy, agriculture and fisheries, the digital economy, and the blue economy. These sectors present ample opportunities for mutual growth and development in the coming years.

(Sources: Caribbean National Weekly & NCBCM Research)

• Brazil's economy rebounded in the first quarter from a sluggish second half of 2023 on stronger private investments and household demand amid a robust labour market, official figures showed on Tuesday, June 4.
• While the data supports a more optimistic outlook for Latin America's largest economy than earlier this year, concerns remain about the impact of historic flooding in southern Brazil, which has left a trail of destruction and pushed up food prices.
• Brazil's gross domestic product (GDP) expanded by 0.8% in the three months through March, gaining momentum from a revised 0.1% contraction in the prior quarter, according to the government statistics agency Brazilian Institute of Geography and Statistics (IBGE).
• Economic growth from the prior quarter was in line with the 0.8% median forecast in a Reuters poll of economists, while the 2.5% year-on-year rise exceeded the expected 2.2% growth.
• The stronger momentum has been fueled by a strong labour market, which spurred household consumption 1.5% higher from the previous quarter, while government spending remained flat.
• The Finance Ministry's economic policy secretariat (SPE) acknowledged that growth is expected to slow in the second quarter, reflecting the calamity in Rio Grande do Sul (severe climate events that claimed lives and will likely reduce economic activity). "Even with the positive result similar to that projected by SPE in the first quarter, uncertainties remain regarding the growth estimate for 2024," it said.

(Source: Reuters)

• Economic Intelligence Inc., a consulting firm based in San Juan, Puerto Rico, along with its subsidiary in Santo Domingo, organized a forum titled “Trade and Investment Opportunities” between Puerto Rico and the Dominican Republic.
• The event aimed to convene a gathering of business leaders and government officials to foster increased investment and trade between the two largest economies in the Caribbean. Both countries boast a gross domestic product (GDP) of approximately RD$113Bn and PR$116Bn, respectively. Bilateral trade between the two islands stands at around $1,200Mn annually, with the current trade balance favouring the Dominican Republic at $400Mn.
• An analysis conducted by economists Ellen Pérez-Ducy, the manager of the Economic Intelligence subsidiary in Santo Domingo, and Gustavo Vélez, CEO of the San Juan-based firm, underscored the vast potential for expanding this exchange. They emphasised that significant growth could be achieved with the right strategies, led by the private sectors of both countries with support from their respective governments.
• Former Governor Luis Fortuño inaugurated the forum, highlighting the opportunities for both neighbouring islands to attract manufacturing and investments from the United States and Asia. This is driven by the need for “nearshoring” and the revival of the concept of twin plants.
• The forum highlighted the need for skilled personnel in Puerto Rico to supply the Dominican Republic and explored potential collaborations in waste management and construction projects. The consensus among businessmen from both countries was that there are ample opportunities for collaboration in the technology industry and leveraging tourism marketing to attract new markets.
• They emphasised that both islands are natural partners for cultural and economic reasons and emphasized that collaboration between businessmen and governments could unlock significant potential for increasing bilateral trade.

(Source: Dominican Today)

• The U.S. job market in April cleared a key hurdle in its slow return from the COVID-19 pandemic when a wonky economic chart known as the "Beveridge Curve" finished its own journey from where it had shifted during the health crisis back to where it was in 2018 to 2019.
• The Beveridge Curve plots the relationship between job openings and the unemployment rate, and data released on Tuesday further validates an idea floated by Federal Reserve Governor Christopher Waller in mid-2022 that, counter to the idea that inflation could only fall with a large rise in the unemployment rate, the pandemic's elevated level of job openings pointed to an alternate path.
• A drop in job openings could create the economic "slack" needed for inflation to fall without much change in actual joblessness - returning the Beveridge Curve to where it was. As of April, that appears to be what has happened.
• The story isn't completely written: Inflation, which was running at 2.7% in April based on the Fed's preferred measure, is not back to the U.S. central bank's 2% target, and recent progress has been sluggish. However, measures of what's happening in the labor market are looking increasingly like they did before the pandemic.
• The Beveridge Curve is not one of the marquee economic concepts beyond the community of labor experts, but it has had a moment during the pandemic, with a large shift at the start of the health crisis and now a round trip back. Still unresolved is whether further progress on inflation - the so-called "last mile" - will require a move along the normal part of the curve, with further declines in job openings associated with rising unemployment.
• By the spring of 2022, the Bureau of Labour Statistics estimated that there were more than two open jobs for each unemployed person. The number before the pandemic never went much beyond 1.24. In April, it had returned to 1.24, a steady realignment between the demand for workers and those available to fill jobs.

(Source: Reuters)

• Growth in non-oil business activity in Saudi Arabia eased in May as new orders rose at the slowest pace in 25 months, a survey showed on Tuesday. The seasonally-adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index fell to 56.4 in May, from 57.0 the previous month, and was the second lowest reading in 22 months. A reading above 50 marks growth in activity.
• The output sub index slipped to 60.1, its lowest level since January, and down from 61.9 in April, although it remained firmly in expansion mode, with growth supported by demand and the completion of pending orders.
• The sub index for new orders hit its lowest level in just over two years at 59.5, down from 61.0 in April, with slowing market conditions and increased competition cited as reasons for the deceleration. Overall numbers, though, continue to indicate strong demand for non-oil sectors, which are a top priority as the kingdom weans itself off an oil dependency and has accelerated policies to drive investment into tourism and construction and expand the private sector.
• "However, the surge in demand has also led to price pressures impacting input prices and staff costs, although the increase in output prices has been observed at a slower pace," said Naif Al-Ghaith, Riyad Bank's chief economist.
• "This balancing act reflects the challenges faced by businesses in managing costs while trying to capitalize on the expanding market," he added. Confidence among businesses about the 12-month business outlook dropped in May to the weakest level since January.

(Source: Reuters)

• The Jamaica Stock Exchange (JSE) has highlighted an increasing investor interest in the Jamaican stock market. In an interview with Radio Jamaica News, the Managing Director at the JSE, Marlene Street Forrest confirmed that more Jamaicans are looking to invest generally.
• Forrest stated that "we have seen the green sprouts already" and growth is "always a gradual process." However, she highlighted that improved interest rate conditions would generate even more interest.
• She noted that "with the knowledge that investors have in the market now, persons are just waiting a little while, biding their time in coming back to the market."

(Source: RJR News)

• The Minister of Tourism, Honorable Edmund Bartlett, has announced a historic milestone for Jamaica, with the island recording 2 million visitors in the first five months of the year. Preliminary figures show that Jamaica received 1,265,830 stopover visitors and 745,812 cruise passengers between January and May. This translates to an 8.5% increase in arrivals and USD 1.9Bn in earnings.
• The Minister, who shared the news at the launch of Reggae Sumfest, also applauded the festival’s organisers while highlighting its impact on tourism’s growth over the years. “Since 2016, Reggae Sumfest has seen approximately 175 thousand patrons, with 35 thousand being visitors. Outside of these impressive numbers, the festival injects US$20Mn annually into the local economy.
• Reggae Sumfest, initiated in 1993, is recognised as the biggest music festival in Jamaica and the Caribbean. It occurs annually in mid-July in Montego Bay. Every year, it draws thousands of local and international attendees to Jamaica's tourism hub.
• With a great start to the 2024 year, the country is poised to surpass its forecast of 4.58Mn visitors with a 9.6% increase in earnings of US$4.38Bn.

 (Source: JIS)

• At the 62^nd Bi-Annual CARICOM Central Bank Governors’ Meeting, which was held virtually and ended last Friday, May 31, the governors reaffirmed their commitment to using monetary policy tools to combat inflation, ensure financial stability, and promote efficiency and innovation in financial services delivery.
• To enhance resilience, the governors also agreed to form a region-wide central bank committee on statistics to harmonise financial data quality and availability.
• A significant portion of the CARICOM governors’ meeting was dedicated to financial system issues, with emphasis on payments market developments and opportunities for enhanced regional collaboration.
• Recognising the financial system’s competitiveness as crucial to economic prosperity, the CARICOM Central Bank governors also acknowledged common challenges faced by citizens across the region, including opening bank accounts and accessing banking services. They pledged to implement strategies and reforms to address obstacles and improve access.
• Going forward, the CARICOM governors’ technical working group on intra-regional payments will engage with the Inter-American Development Bank team on the Fully Scalable Settlement Engine, as a collaborative project.

 (Sources: Barbados Central Bank & Barbados Today)

• Peru's monthly inflation rate slowed for the second month in a row in May to 0.09%, bringing annual inflation down to its lowest level in three years, according to data published on Saturday, June 1st,  by the national statistics agency INEI.
• On a yearly basis, prices in May slowed to 2.0%, within the central bank's target range (1%-3%) and below the annual rate recorded a month prior as the country shakes off the effects of the COVID pandemic and other shocks.
• The May easing was the result of a drop in the prices of both food and non-alcoholic beverages, according to the consumer price index (CPI) for Metropolitan Lima, the inflation reference for the Andean nation.
• Core inflation - which excludes food and energy prices because of their high volatility - rose 0.16% last month.
• Annual inflation falling within the central bank target range of between 1% and 3% could help the bank maintain its monetary easing cycle. Peru's central bank reduced the key interest rate by 25 basis points to 5.75% in May, following a reduction in April and forecasts that the CPI will continue its downward trend this year.

(Source: Reuters)