• Oil prices dipped on Thursday after the United States recorded its biggest one-day spike in coronavirus cases and California reimposed some lockdown measures, stoking worries a resurgence in COVID-19 cases will stall a recovery in fuel demand.
• S. West Texas Intermediate (WTI) crude futures fell 10 cents, or 0.3%, to $39.72 a barrel at 0148 GMT, trimming a 1.4% rise from Wednesday. Brent crude futures eased 6 cents, or 0.1%, to $41.97 a barrel, after rising 1.8% in the previous session.
• California sharply rolled back efforts to reopen its economy on Wednesday, banning indoor restaurant dining in much of the state, closing bars and beefing up enforcement of social distancing and other measures as COVID-19 infections surged.

 (Source: CNBC)

• Despite a 9.3% (or $25.42Mn) increase in revenues, Consolidated Bakeries Jamaica Limited (Purity) reported a 41.7% (or $6.07Mn) contraction in net profits for the first quarter ended March 31, 2020. Net profit was down to $8.47Mn (EPS: $0.04) from the $14.54Mn (EPS: $0.07) that was reported in the year prior.
• This outcome was primarily driven by a 9.6% (or $9.07Mn) growth in total operating expenses, a 50.4% (or $1.39Mn) increase in finance costs, and a 99.3% (or $825k) decrease in finance and other income.
• The stock has risen 2.4% since the start of the year, and closed trading at $1.70 on Thursday. At this price Purity currently trades at a P/B of 0.52x, which is below the Junior Market Manufacturing Sector Average of 2.03x.

 (Source: Purity Financials)

• Jamaica welcomed approximately 4.3 million visitors in 2019, comprising 2.7 million stopover arrivals and 1.6 million cruise passengers, whose combined spending contributed to the destination earning US$3.64 billion. Minister of Tourism, Hon Edmund Bartlett, made the disclosure during his contribution to the 2020/21 Sectoral Debate in the House of Representatives on June 24.
• He informed that stopover arrivals last year increased by 8.4 per cent, compared to 2018, with each visitor spending an average of 8.6 nights, and overall foreign exchange earnings increased by 10.3 per cent, up from US$3.3 billion in 2018.
• “At the end of 2019, tourism was projected to create 41,000 new jobs by 2022. We recognise now that the impact of COVID-19 will result in a revision of this estimate, but the broader point being made is that tourism remains one of the most critical catalysts for job creation in the Jamaican economy,” he contended.
• Bartlett said the Statistical Institute of Jamaica (STATIN) has now classified the direct employment in the tourism sector at 170,000 workers, to include employees in the accommodations subsector, travel agencies, ground transportation providers, workers in the attractions subsector, craft vendors, etc.

 (Source: JIS)

• Mexico, one of the countries hardest hit by the coronavirus around the world, has fallen short in providing as much stimulus funding as it would have liked — and far less than in developed countries — largely because of the structural challenges that have held it and the rest of Latin America back for decades.
• In comparison, developed economies like Canada, Germany, Japan, the United Kingdom and the United States have been able to spend more on economic stimulus because of their low borrowing costs.
• Mexico's central bank cut the overnight interbank lending rate by 50 basis points to 5% on Thursday. But the US Federal Reserves cut its benchmark rate to 0.25% in March from 1.75% the previous month, while the Bank of England slashed its rate to 0.1% from 0.75% in the same period.

(Source: Latinfinance)

• The Inter-American Development Bank (IDB) has agreed to redirect $500 million in funding to help micro, small and medium-sized enterprises (MSMEs) in Argentina recover from the economic effects of the COVID-19 pandemic.
• The redirected funds will go to medium-term loans for MSMEs to cover liquidity needs, pay bills to vendors and refinance existing loans, among other purposes, the IDB said. "It will also help them deal with a temporary rise in demand as a result of the crisis".
• The Argentine government plans to grant financing through the national productive development fund Fondep and put up money from the federal guarantee fund Fogar to back loans from financial institutions, according to the IDB.

(Source: Latinfinance)

• The Federal Reserve put new restrictions on the U.S. banking industry Thursday after its annual stress test found that several banks could get uncomfortably close to minimum capital levels in scenarios tied to the coronavirus pandemic.
• The Fed said in a release that big banks will be required to suspend share buybacks and cap dividend payments at their current level for the third quarter of this year. The regulator also said that it would only allow dividends to be paid based on a formula tied to a bank’s recent earnings.
• A recovery in 2021 also will be weaker, with global growth forecast at 5.4% for the year compared to 5.8% in the April forecast. The Fund said, however, that a major new outbreak in 2021 could shrink the year’s growth to a barely perceptible 0.5%.

 (Source: CNBC)

• The Federal Reserve’s stash of assets shrank for a second straight week as foreign central banks once again sharply cut their use of currency swaps and U.S. banks further dialed back their use of Fed repurchase agreements.
• The size of the Fed’s balance sheet - composed of assets ranging from U.S. Treasury bonds and mortgage-backed securities to loans to banks and state governments - fell to $7.13 trillion on June 24 from $7.14 trillion a week earlier, data released by the Fed showed on Thursday.

 (Source: Reuters)

• The Inter-American Development Bank (IDB) has granted $400 million in financing for Panama and $250 million for Costa Rica to help counteract the economic effects of the COVID-19 pandemic in the two countries.
• Both loans are in line with a rapid financing program approved by the International Monetary Fund (IMF) in April to cover emergency healthcare costs and contribute to macroeconomic stability in the medium term.
• To receive the money, the Panamanian government agreed to implement measures to ensure a stable balance of payments and a sustainable public debt-to-GDP ratio. It also agreed consented to "ensure fiscal sustainability" after the healthcare crisis is over.

 (Source: Latinfinance)

• Chile's Finance Ministry said Thursday that it has presented a bill to Congress that allows the central bank to buy debt issued by the treasury in the secondary market as a way to help underpin the financial system when exceptional circumstances, such as a pandemic, strike.
• The purpose of the measure is to boost the central bank’s capacity to mitigate risks and secure stability in the financial system in critical economic situations like the one brought about by the coronavirus pandemic. It is not meant to be used to finance government expenditures.
• The new ability is expected to improve the bank’s capacity to influence the long-term interest rate through non-conventional policies. Through purchases of public debt in the secondary market, the central bank would inject liquidity into the financial system and ensure the normal functioning of internal and external payments.

 (Source: Latinfinance)

• Oil prices rose on Tuesday after a volatile session sparked by confusion over the status of the U.S.-China trade deal.
• Brent crude rose 80 cents, or 1.86%, to $43.88 a barrel, having skidded to a session low of $42.21. West Texas Intermediate was up 81 cents, or 2%, at $41.55 a barrel after touching a low of $39.76.
• U.S-China relations have reached their lowest point in years since the coronavirus pandemic that began in China hit the United States hard. President Trump and his administration have repeatedly accused Beijing of not being transparent about the outbreak.

 (Source: Reuters)