• The aviation authorities of the Dominican Republic recently authorized the operation of 110 “special” flights between the local districts of Punta Cana and La Romana, in the east of the country, and the Russian city of Yekaterinburg between June 23 and October 29. 
• The Civil Aviation Board (JAC) assured that the flights would contribute to the country about 70 million dollars to impact tourism and the economy. 
• The agency highlighted that it has also approved another 1,601 charter flights, whose revenues will represent $686Mn. According to the JAC, the airports handled 816,813 passengers last May, surpassing the April figures.

(Source: Dominican Today)

• In order to increase investment and exports with the south-east region of the USA, Costa Rica has opened a trade facilitation office in the city of Houston, Texas, from which it will work on the promotion of Costa Rican products and services that have potential in the zone, as well as opportunities for investments and strategic alliances. 
• The official opening of Costa Rican Exports Promotion Agency PROCOMER's trade promotion office took place on Tuesday, June 8 at the headquarters of the Greater Houston Partnership, the city's largest Chamber of Commerce. 
• Various studies carried out by PROCOMER have identified potential for exports in southern and eastern USA in sectors such as foodservice, information and communications technology (ICT), agricultural products, roasted coffee, health care services, the aerospace industry and artisan beer, among others; products that Costa Rica produces with certified quality. 
• Texas is the ninth-largest economy in the world (by GDP), as corroborated by the intensive migration of people and companies from other US states, because of its pro-business environment and job growth. Additionally, 30% of Costa Rica's international trade with the USA is with the state of Texas. 
• It is for these reasons, and others such as opportunities in information and communications technology, creative industries, biotechnology and life sciences, digital animation, advanced manufacturing and medical technologies, that the agency has decided to increase its presence in this state.

(Source: El Paso Inc)

• The U.S. government posted a May deficit of $132 billion, about a third of the May 2020 deficit of $399 billion, as higher employment and an earlier tax deadline this year boosted receipts sharply, even as COVID-19 pandemic-related outlays grew, the U.S. Treasury said on Thursday. 
• Receipts for May rose 167% to $464 billion, an increase partly attributed to last year's delay of the Internal Revenue Service income tax filing deadline until July 15. This year's deadline shifted by a month to May 17. 
• The Treasury also said taxes withheld from wages increased by 20% to $204 billion during May compared to a year ago, while May corporate taxes rose to $18 billion from $2 billion last year. Outlays for May increased 4% from a year earlier to $596 billion as benefits from President Joe Biden's $1.9 trillion COVID-19 aid package continued to be paid out. 
• This spending also helped push the fiscal year-to-date deficit to a record $2.064 trillion from $1.88 trillion for the first eight months of the prior fiscal year, Treasury officials said. Year-to-date receipts rose 29% from a year earlier to $2.607 trillion, while outlays grew 20% to $4.671 trillion.

(Source: Reuters)

• Consumer prices for May accelerated at their fastest pace in nearly 13 years as inflation pressures continued to build in the U.S. economy, the Labour Department reported Thursday. 
• The consumer price index, which represents a basket including food, energy, groceries, housing costs and sales across a spectrum of goods, rose 5% from a year earlier. Economists surveyed by Dow Jones had been expecting a gain of 4.7%. The reading represented the biggest CPI gain since the 5.3% increase in August 2008, just before the financial crisis sent the U.S. spiraling into the worst recession since the Great Depression. 
• Though the inflation readings are well above anything seen since the 2008-09 financial crisis, the Federal Reserve has been largely dismissive of the numbers. Central bank officials believe the current rise is due to temporary factors that will abate as the year goes on and look higher because of comparisons to the year-ago period, when much of the economic activity remained restricted due to pandemic precautions. 
• Consequently, market participants generally do not expect to see the Fed react to the latest numbers when the policymaking Federal Open Market Committee meets next week.

(Source: Reuters)

• For its audited financial year ending December 2020, General Accident Insurance company reported net profit attributable to shareholders of $242.50Mn (EPS: $0.24), a 56.6% contraction over the same period in 2019. 
• Although net premium earned grew by 22.7% (or $506.79Mn) this was largely eroded by a 50.7% (or $611.60Mn) increase in claims expenses and 23.8% (or $235.78Mn) rise in management expenses, which together contributed to the YoY contraction in the company’s bottom-line. Costs incurred in relation to the commencement of operations in Barbados also added to the overall increase in expenses. 
• Management expects the company’s profitability to improve in 2021 due primarily to premium growth in Barbados and Trinidad. In addition, as the reorganization of its foreign subsidiaries is now fully complete, it anticipates that overhead costs will stabilize. Furthermore, as the group continues to grow in size, it expects to achieve scale and resilience. 
• Since the start of the year, General Accident’s stock price has declined by 7.1% to $5.75 on June 09, 2021. At this price, the company trades at a P/E of 30.3x earnings, which is above the junior market financial sector average of 31.8x earnings.

(Source: Company Financials)

• In anticipation of the full reopening of the entertainment sector, the Government has proposed a list of approved venues that will be made available at subsidized rates as a stimulus for the sector, which has been severely impacted by the coronavirus pandemic. This was disclosed by Minister of Culture, Gender, Entertainment and Sport, Hon. Olivia Grange, who said these venues will be retrofitted to comply with COVID-19 safety protocols. 
• “These venues include facilities at Independence Park, Trelawny Stadium, and the Port Royal Entertainment Zone, including Fort Rocky and Fort Charles, as well as Seville Heritage Park. We’re still finalizing the arrangements while continuing consultations with stakeholders for the reopening of the wider entertainment sector and will make the appropriate announcements soon,” she said. 
• Grange noted that in preparation for the reopening of the wider entertainment sector, the Government engaged in consultations with members of the sector on the prevailing health conditions in the country as well as the specific protocols that would have to be employed for particular activities. 
• Grange also stated that while months were spent discussing and refining proposals for the safe reopening of the wider entertainment sector, the Government has also “been busy building the capacity of members of the sector to enable them to Build Back Stronger” from the pandemic. 
• This bodes well for the recovery in the services sector, which has contracted in each quarter since the onset of the pandemic, due to restrictions imposed to contain the spread of the virus.

(Source: JIS)

• Latin America’s top central banks are coming under growing pressure to raise interest rates, as inflation stands way above the target ceiling in Brazil and Mexico. 
• Consumer prices in both countries came in above forecasts in May, showing persistent inflationary shocks even as central bankers expect them to be transitory. Inflation in Brazil was driven up by electricity prices, while in Mexico food and services were the main culprits. 
• Consumer prices in Brazil jumped 8.06% in May from a year earlier, more than double the 3.75% target for 2021. Swap rates rose, with contracts maturing in January 2022 up 5 basis points, as traders bet the central bank will have to raise borrowing costs more aggressively. 
• In Mexico, annual inflation slowed slightly to 5.89%, still way above the 3% goal. The peso fell slightly after the data was released, then pared losses.’ 
• The data came ahead of interest rate decisions in both countries. Brazil’s central bank is expected to lift interest rates by 75 basis points next week, its third consecutive hike of that magnitude this year. Mexico’s central bank, known as Banxico, will revisit later this month its decision to hold the benchmark rate at a near five-year low of 4%.

(Source: Bloomberg)

• Bahamas Paradise Cruise Line has brought its Grand Classica vessel back to its Port of Palm Beach home port as it begins to prepare for the July resumption of cruises to Grand Bahama. 
• The vessel has not sailed for more a year due to the COVID-19 pandemic, and the cruise line said in a statement that its main priority is to begin fully vaccinating the ship’s crew - a process that has already begun. The ship’s arrival was greeted by cruise line executives, as well as employees and partners. 
• Manuel Almira, the Port’s executive director, said that: “We couldn’t be more excited to see Bahamas Paradise Cruise Line prepare for the resumption of sailings from the Port of Palm Beach. Before the pandemic, the cruise line was credited for generating more than $100Mn in local and state revenue and supporting more than 1,300 cruise-related jobs. It’s time to get crew members, cruise line support staff and parking attendants back to work.” 
• Bahamas Paradise Cruise Line said it was working closely with the Centres for Disease Control and Prevention (CDC) to ensure all guidelines are met prior to receiving passengers.

(Source: Tribune)

• The Bank of Canada on Wednesday left its key interest rate unchanged at a record low 0.25%, as expected, and said the economy would "rebound strongly" as vaccinations against COVID-19 picked up. 
• The bank reiterated its guidance that rates would remain unchanged until at least the second half of 2022, noting there remained considerable excess in the economy. The bank said while second quarter growth would be hit by measures taken to fight a third wave of coronavirus infections, the longer-term prospects were good. 
• "With vaccinations proceeding at a faster pace, and provincial containment restrictions on an easing path over the summer, the Canadian economy is expected to rebound strongly, led by consumer spending," it said in a statement that analysts said did not break much new ground. 
• The central bank plans to maintain its current policy of quantitative easing. It is aiming to buy C$3Bn of government bonds a week as part of attempts to aid the recovery. 
• Overall inflation would likely remain at 3% through the summer, above the bank's 2% target, before easing later in the year, the bank said. Measures of core inflation had also risen due primarily to temporary factors, the Bank noted.

(Source: Reuters)

• China's May factory gate prices rose at their fastest annual pace in over 12 years due to surging commodity prices, highlighting global inflation pressures at a time when policymakers are trying to revitalize COVID-hit growth. 
• Investors are increasingly worried pandemic-driven stimulus measures could supercharge global inflation and force central banks to tighten policy, potentially curbing the recovery. China's producer price index (PPI) increased 9.0%, the National Bureau of Statistics (NBS) said on Wednesday, as prices bounced back from last year's pandemic lows. 
• The PPI rise in May - the fastest on-year gain for any month since September 2008 - was driven by significant price increases in crude oil, iron ore and non-ferrous metals, the NBS said. Analysts in a Reuters poll had expected the PPI to rise 8.5% after a 6.8% increase in April. The PPI surge has yet to substantially feed through to consumer inflation, meaning the People's Bank of China is unlikely to worry for now. 
• Consumer prices rose 1.3% in May - the biggest year-on-year increase in eight months - but came in below expectations for a 1.6% gain. Consumer inflation remained well below the government's official target of around 3%.

(Source: Reuters)