• The group achieved a 109% upturn in profits for the first quarter ended March 31, 2019. Net profits moved from $492.63Mn (EPS: $0.22) to $1.03Bn (EPS: $0.31) mainly as a result of efficiency measures undertaken by the company.
• The company experienced a 44.5% dip in expenses, moving from $2.8Bn in 2018 to $1.5Bn in 2019 which contributed substantially to the improvement in the bottom line. There was a decline in all expenses incurred for the period, but the biggest reductions were seen in ‘interest and other financing costs’ which fell by 158%, and ‘hotel expenses from continuing operations’ which dropped by 43%.
• The stock’s price has fallen 29.42% since the start of the calendar year. Sagicor Real Estate X Fund closed trading yesterday at $9.93 and currently trades at a P/E of 62.06x earnings which is above the Main Market Real Estate sector average of 23.83x.

 (Source: Sagicor X Fund Financials)

• Fitch Solutions expect Trinidad &Tobago’s (T&T) fiscal consolidation to continue over the coming quarters, albeit at a reduced pace.
• It is forecasted that T&T’s fiscal deficit will continue to narrow over the coming quarters, shrinking the deficit from 3.9% of GDP in 2018 to 2.8% in 2019 and 2.0% in 2020.
• Revenues will be supported by rebounding economic activity, while expenditure growth will remain relatively subdued.
• However, the ongoing crisis in Venezuela threatens important revenue streams which could negatively impact T&T’s fiscal consolidation.

(Source: Fitch Solutions)

• Trinidad Petroleum Holdings Ltd (TPHL) on Friday announced that the expiration date for the Petrotrin bond exchange program has been extended until June 14 at 5 p.m., New York City time (4 p.m., local time), which is the third time the expiration date has been pushed back.
• TPHL is the parent company of Petrotrin, which remains as a registered company but whose operations were made defunct by the Government.
• TPHL is looking to exchange a US$850 million bond that becomes due in August this year for bonds that mature in 2026.
• Up to last Friday, holders of the Petrotrin bonds had consented to exchange some US$152Mn of Petrotrin's bonds, which include some amortizing bonds that mature in 2022.

(Source: Trinidad Express Newspaper)

• The race to be next leader of the U.K. Conservative Party is widening as more candidates throw their hats into the ring.
• The party’s dismal performance in the European elections may force the next leader to take a harder stance on Brexit, while opposition Labour Party leader Jeremy Corbyn was forced to promise a referendum after Labour also lost seats.
• In the rest of the European Union, horse trading has begun in earnest over the division of the top jobs following the election, with leaders meeting this evening to discuss the next European Commission and European Central Bank president.

(Source: Bloomberg

• Canadian Prime Minister Justin Trudeau’s government gave lawmakers formal notice it intends to bring forward legislation to ratify the new North American free trade agreement.
• Foreign Affairs Chrystia Freeland introduced a “ways and means” motion in the House of Commons on Monday for the legislation, which is the first step in the process for parliamentary approval.
• The procedure comes ahead of a visit to Ottawa by U.S. Vice President Mike Pence, who is scheduled to meet with Trudeau on Thursday to discuss advancing the agreement.
• A decision by President Donald Trump’s administration last week to lift tariffs on steel and aluminum helped clear major hurdles for lawmakers in all three countries to approve the U.S.-Mexico-Canada Agreement.

(Source: Bloomberg)

• The Bank of Jamaica (BOJ) announced today that there will be a further reduction in the cash reserve requirement (CRR) by two percentage points to 7%, to take effect on June 3, 2019.
• This is the second reduction in the cash reserve requirement by the Central Bank this year as it continues to relax monetary policy.
• The cash reserve requirement is the amount of money that deposit-taking institutions are required to hold at the BOJ against prescribed liabilities.
• The Central Bank expects that the reduction in the CRR will serve to increase liquidity in the financial system by $12.3Bn and therefore support the expansion of credit to businesses and households at lower rates and potentially on better terms.
• The BOJ has left open the possibility for further reductions based on the results of its assessment of market conditions going forward.

 (Source: BOJ)

• According to STATIN, the All Jamaica Consumer Price Index (CPI) rose 0.1% for the month of April.
• The movement in the CPI in April was mainly attributable to a 0.5% increase in the Food and Non-Alcoholic Beverages division, with the primary contributors being Vegetables and Starchy Foods (+1.1%) and Non-Alcoholic beverages (+0.3%). Additionally, higher global oil prices contributed to an (0.4%) increase in the ‘Transport’ division.  
• The calendar year-to-April 2019 movement was 0.8% (-0.7%; April 2018) while point-to-point inflation to 3.9% (3.2%; April 2018). Despite the 12 months to April 2019 inflation rate coming in above the 3.4% recorded for the year-to-March 2019, inflation continues to be below BOJ’s target range of 4%-6%.
• This outturn likely precipitated the BOJ’s decision to reduce the cash reserve requirement as it seeks to stimulate consumer prices through increased demand for goods and services, and, by extension, growth in economic activity.

(Source: STATIN)

• The Bahamas’ real gross domestic product grew by 1.6% in 2018 compared to 2017. This result represents an improvement on the average yearly real GDP growth of just 0.4% between 2015 and 2017 but falls short of the IMF’s expected growth of 2.3%.
• According to the Department of Statistics 9 of 17 industry groups contributed to the increase in real GDP, with real value added increasing 0.9% for the real estate industry group; 3.0% for the wholesale and retail trade group; 4.2% for the financial and insurance sector and the 7.9% increase in tourist arrivals.
• Deputy Prime Minister and Minister of Finance Peter Turnquest said: “This is the first time the country has had decent economic growth over five years. When we look at where we are now compared to where we were, these results are confirmation; there has been a significant turnaround and our policy mix is effectively placing us on a path of sustained growth.

(Source: Tribune 242)

• Central Banker Héctor Valdez Albizu, said Dominican Republic’s GDP grew 5.7% during the January-March 2019 period. In 2018, the country saw GDP grow 7.0% while inflation lagged at 1.17%. This compares well with the 6.3% average annual growth in GDP for the period 2013-2018 which saw inflation averaging circa 2.48% annually.
• Construction (+12.5%), Energy and Water (+11.7%), Financial Intermediation (+9.5%), Mining (+6.3%), Transport and Storage (+6.2%), Public Administration (+5.7%), Hotels, Bars and Restaurants (+5.0%), and Other Services (+5.2%), were the sectors with the highest growth for that period
• Valdez said that despite having faced an increasingly complex international environment, “the Dominican Republic has managed to remain a leader in economic performance in Latin America, based on the strength of its macroeconomic foundations”.

 (Source: Dominican Today)

• Sterling dropped to a three-month low of $1.2821 this morning and headed for its longest losing streak against the euro since 2000 as the risk of a no-deal Brexit flared up again.
• The main opposition Labour Party said it wouldn’t back Prime Minister Theresa May’s latest attempt to get her withdrawal agreement through Parliament, even as she faces more leadership challenges from within her own party.
• Meanwhile, there are further signs that companies in the U.K. are suffering from the continued uncertainty.

(Source: Bloomberg)