• Oil prices fell on Thursday after U.S. industry data showed a surprise steep build in crude oil inventories, dampening hopes of a smooth recovery in demand as some countries ease coronavirus lockdowns.
• The decline in oil benchmarks extended losses on Wednesday over uncertainty about Russia’s commitment to deep output cuts ahead of a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, a grouping dubbed OPEC+.
• Brent crude futures were down 1.12%, or 39 cents at $34.35 per barrel, after dropping to as low as $33.62 in earlier trade. U.S. West Texas Intermediate (WTI) crude futures were down 1.52%, or 50 cents, at $32.31 a barrel at 0945 GMT. The U.S. futures slipped earlier as much as 5% to a low of $31.14.

(Source: Reuters)

• Bank of Jamaica (BOJ) Governor, Richard Byles, says the anticipated gradual recovery of economic activity from the impact of the coronavirus (COVID-19) is expected to result in improvements in the current account deficit of the balance of payments (BOP).
• Byles noted that due to drastic changes in the pattern of economic activity in Jamaica and abroad, the current account deficit is projected to worsen by more than five percentage points of gross domestic product (GDP) in the current fiscal year to 7.5 per cent, from the 2.3 per cent estimated in 2019/20.
• “This worsening mainly reflects the impact of the sudden stop in tourist arrivals and the slowdown in remittance inflows,” he said.He said that, in contrast, the merchandise trade deficit is projected to improve due to a decline in imports, particularly fuel, consequent on lower oil prices, which fell from US$55 per barrel during the last fiscal year, to US$30 currently.
• Additionally, Mr. Byles said the fall in the incomes of Jamaicans, coupled with a decline in foreign direct investment (FDI)-related projects, is expected to constrain the importation of non-fuel consumer goods, raw materials and capital goods. He argued that the assumed gradual recovery of economic activity “implies that the current account deficit will also improve gradually over the ensuing two years”.

(Source: JIS)

• Derrimon Trading Company Limited reported unaudited net profits attributable to shareholders of $91.62Mn (EPS: $0.034) for the three months ended March 31, 2020, up by 33.7% (or $23.11Mn) relative to the same period in the prior year.
• This outturn can be explained by a 5.5% (or $173.20Mn) increase in trading income, a 360.1% (or $17.72Mn) increase in other income as well as a 15.4% (or $8.98Mn) decline in finance cost, which outstripped the 14.3% (or $58.18Mn) increase in operating expenses. 
• The stock has fallen 12.5% since the start of the calendar year. Derrimon closed Thursday’s trading session at $2.24 and currently trades at a P/E of 19.5x earnings which is above the Junior Market Distribution Sector Average of 17.5x.

(Source: Derrimon Financials)

• Panama said on Wednesday that it reached a binational agreement with Costa Rica that allows the transportation of Panamanian cargo to circulate through the neighboring country, which established restrictions on foreign truckers that have generated a crisis that threatens to shortage food and supplies to the region.
• After detecting COVID-19 in fifty truck drivers from different countries, the Government of Costa Rica issued two decrees, in force since last Monday, that restrict the transit of these personnel through the country, a unilateral measure that has been criticized by others.
• Since last Sunday, a group of Panamanian transporters blocked the Paso Canoas border post in rejection of the ethical measures, which include delivering cargo to Costa Rican drivers at the border.
• The bilateral agreement reached by Panama and Costa Rica "achieves a solution for compatriots, guarantees the flow of merchandise and facilitates trade in the region, amid the aftermath generated by the COVID-19 pandemic

(Source: Fitch)

• The Inter-American Development Bank (IDB) approved on Tuesday a total of $970 million in loans for Argentina, Ecuador and Paraguay to underpin their efforts to battle against the COVID-19 pandemic.
• The bank approved a $470 million loan for Argentina, a $250 million loan for Ecuador and a line of credit of up to $250 for Paraguay.
• Argentina’s $470 million loan, maturing in 2043, will be used to secure access to COVID-19-related medical attention for 17 million people. The $250 million loan to Ecuador will be used to finance a project seeking to improve the detection and monitoring of COVID-19 infections.
• Paraguay’s new $250 million credit line will be executed through three loans. Only the first one, for $105 million, has been approved. It will be used to build a sewer and clean water project for 92,000 households in the Cuenca Lambaré sector of the metropolitan area of Asunción. The interest rate for these loans will be  based on Libor. 

(Source: Latinfinance)

• China dropped its annual growth target for the first time on Friday and pledged more government spending as the COVID-19 pandemic hammers the world’s second-biggest economy, setting a sombre tone to this year’s meeting of parliament.
• The omission from Premier Li Keqiang’s work report marks the first time China has not set a target for gross domestic product (GDP) since the government began publishing such goals in 1990.
• Further, China is targeting a 2020 budget deficit of at least 3.6% of GDP, above last year’s 2.8%, and fixed the quota on local-government special bond issuance at 3.75 trillion yuan ($527 billion), up from 2.15 trillion yuan, according to Li.

(Source: Reuters)

• Oil prices slumped on Friday after China’s decision to omit an economic growth target for 2020 renewed concerns that the fallout from the coronavirus pandemic will continue to depress fuel demand in the world’s second-largest oil user.
• Brent crude fell $1.56, or 4.3%, to $34.50 a barrel by 0323 GMT, after gaining nearly 1% on Thursday. West Texas Intermediate (WTI) crude dropped by $1.79, or 5.3%, to $32.13 a barrel, having gained more than 1% in the last session.

(Source: CNBC)

• 138 Student living reported unaudited net profit of $270.01Mn (EPS: 65¢) for the six months ended March 2020, representing a $ 226.46Mn improvement from the $43.4Mn (EPS: -11¢) loss reported in the corresponding period in the prior year.
• This performance was largely driven by a 69.4% (or 308.60Mn) increase in total revenue coupled with a 7.6% (or 29.52Mn) reduction in admin expenses as well as 75.2% (or 27.53Mn) decline in tax expenses.
• The stock has risen by 88.7% since the beginning of the calendar year. 138 Student Living closed Tuesday’s trading session at $8.00 and currently trades at a P/E of 21.1x earnings which is above the Main Market Real Estate Sector Average of 15.59x earnings.

(Source: 138 Financials)

• For the three months ended March 31, 2020, Stanley Motta’s net profits dipped 10.3% (or $7.29Mn), despite a 10.3% (or $10.42Mn) increase in revenues. Net profits were down to $63.21Mn (EPS: 8¢) from the $70.50Mn reported in the prior year.
• The main contributor of this performance was a 93.9% (or $17.46Mn) increase in administrative expenses as well as a 104.9% (or $1.22Mn) increase in tax expenses.
• The stock price has fallen 15.1% since the start of the year. Stanley Motta Ltd. Closed Tuesday’s trading session at $5.06 and currently trades at a P/E of 14.1x which is below the Main Market Real Estate Sector Average of 15.5x.

(Source: Stanley Motta Financials)

• Panamanian President Laurentino ‘Nito’ Cortizo’s comprehensive response to Covid-19 will boost his legislative and public support in the coming months.
• However, sustained downward pressure on economic activity could present risks to social stability and policy formation in the medium-to-long term, particularly as unemployment heads higher and Covid-19 exposes economic and social disparities.
• Fitch Solutions have revised Panama’s score in their Short-Term Political Risk Index (STPRI) to 66.4 out of 100, from 67.6 previously, to reflect higher unemployment and greater public pressure for the government to improve social services.

 (Source: Fitch)