• The Government has commenced work to review and revise the requisite strategic actions for implementing the country’s long-term National Development Plan – Vision 2030 Jamaica – in light of the impact of the coronavirus (COVID-19) pandemic.
• “Speaking at a digital quarterly media briefing on May 27, Director General of the Planning Institute of Jamaica (PIOJ), Dr. Wayne Henry, said the revamping exercise includes revisiting the targets up to 2030 and the period/schedule for achieving the planned outcomes and national development goals.
• “This process has commenced with Government-led strategic actions and plans from various sectors, including programme revisions and reviews, in an effort to adapt to the challenges, shocks and risks presented by the global pandemic,” he indicated.
• Noting that the Government is not yet in a position to present revised long-term development targets, Dr. Henry said that from the PIOJ’s preliminary review of the development targets, it is anticipated that based on projections for the Jamaican and wider global society and economy, “there will be slippages in several indicators”.
• Henry pointed out that prior to the COVID-19 pandemic, the country, in pursuit of Vision 2030 Jamaica, had entrenched macroeconomic stability as evidenced by low unemployment and inflation rates, a declining debt-to-GDP ratio, and seven consecutive years of economic growth.

(Source: JIS)

• If the COVID-19 pandemic has done nothing else, it has exposed the vulnerabilities and weaknesses of the global financial system and the mechanisms currently in place to help developing nations establish stronger economies, leaders from both rich and poor countries acknowledged in a United Nations-led forum on Thursday.
• Convened by Holness, as well as Canadian Prime Minister Justin Trudeau and UN Secretary General António Guterres, the discussion focused on trying to find concrete financing solutions to the COVID-19 health and development emergency unleashed by the pandemic.
• The leaders discussed how the need for a revamping of the system of global financial and monetary governance, as well as putting an end to opaque structures that facilitate tax evasion and illicit financial flows that rob resources from developing countries. 
• In addition, the leaders, which also included heads of Latin American, Caribbean and international financial institutions, discussed changing financing rules to include middle-income debt alleviation, rules for access to financial resources, and concessional funding related to COVID-19 and beyond.

(Source: Latinfinance)

• Mexico’s central bank on Wednesday said the economy could contract by as much as 8.8% in 2020 as it published a range of forecasts for this year due to the coronavirus pandemic, followed by a likely recovery in 2021.
• The bank said the downturn could see economic contraction of between 4.6% and 8.8% this year, revising down its forecast from an earlier estimate of 0.5-1.5% growth in 2020.
• Depending on the shape of the rebound, and whether it is so-called V-shaped or a U-shaped recovery, the bank said growth in 2021 could range from -0.5% to 4.1%.

(Source: Reuters)

• President Donald Trump appears poised to sign a measure passed by Congress which would target Chinese officials for abusing the human rights of the country's Muslim minority.
• In a parallel move, Trump told reporters he's preparing to announce new polices on China in response to Beijing's imposition of national security legislation on Hong Kong.

(Source: Bloomberg)

• Federal Reserve Chairman Jerome Powell takes part in a moderated virtual discussion with former Fed Vice Chairman Alan Blinder from 11:00 a.m. Eastern Time.
• While the market sees a lower chance of negative rates, the range of Fed tools is likely to be discussed. Latest data shows its holdings of corporate debt ETFs rose to almost $3 billion, while the weekly balance sheet added a line item for muni bond purchases.
• It is also likely that Powell will be asked to comment on whether policy makers will engage in yield-curve control, as flagged by New York Fed President John Williams earlier this week.

(Source: Bloomberg)

• Despite a 20.1% (or $58.04Mn) increase in revenue, Elite Diagnostic Limited recorded a 16.4 contraction in net profit for the nine months ended March 31, 2020. Net profit declined to $19.07Mn (EPS: 5¢) from $22.81Mn (EPS: 6¢) reported in the corresponding period in 2019.
• The main contributor to this performance was increased expenses: administrative expenses increased 8.0% (or $9.60Mn), depreciation expenses climbed 32.1% (or $13.40Mn), while finance cost increased by 13.0% (or $1.80Mn).
• Elite Diagnostic Limited stock price has fallen by 31.9% since the start of the calendar year, and closed Wednesday’s trading session at $3.40.  The stock currently trades at a P/E of 24.3x earnings, which is above the Junior Market Average of 19.6x.

(Source: Elite Financials)

• General Accident Insurance Company Jamaica Ltd. reported unaudited net profit of $74.72Mn (EPS:7¢) for the three months ended March 31, 2020, representing a 142.0% growth in the bottom line relative to the $30.87Mn (EPS: 3¢) made in the same period of 2019.
• This performance was driven by a 38.1% ($184.94Mn) increase in net premiums earned, a 59.8% (or $18.56Mn) increase in investment income as well as a 56.0% (or $108.27Mn) decline in commission expense.
• The stock has fallen 9.2% since the start of the calendar year. GENAC closed Wednesday’s trading session at $6.45 and currently trades at a P/E of 11.1x earnings which is below the Junior Market Financial Sector Average of 23.9x. 

(Source: GENAC Financials)

• Mexico’s plan to gradually lift lockdown measures across the country carries a great deal of economic and political risk for President Andrés Manuel López Obrador (AMLO).
• While the government appears to believe Mexico’s outbreak is under control, concerns about testing capacity and steady growth in new cases suggest that re-opening too quickly could lead to a spike in new cases and deaths.
• This outcome would likely push back Mexico’s economic recovery, potentially leading to social discontent with AMLO’s administration and clashes with local and state-level leaders.

(Source:  Fitch)

• The Panama government said on Tuesday that in June it will start to relax some measures imposed to curb the spread of the novel coronavirus, permitting sectors such as construction, nonmetallic mining and pharmaceuticals to resume operations.
• As part of the second stage of reopening the economy, the textile, electronics and electricity sectors will also be able to resume operations.
• Panama’s curfew will also be relaxed, and places of worship, parks and sporting facilities may reopen at up to 25% capacity.

(Source: Reuters)

• International tourism is set to fall by 70% this year, marking the sector’s biggest slump since records began in the 1950s, United Nations World Tourism Organization (UNWTO) Secretary-General Zurab Pololikashvili told newspaper Handelsblatt.
• He said this prediction for the coronavirus-hit sector was based on the assumption that countries around the world would gradually open their borders from August.

(Source: Reuters)