• China dominates the global market for rare-earth metals and has been threatening to take them hostage in the deepening trade conflict. 
• Just the suggestion that Beijing could starve American factories of essential materials has sent rare-earth prices soaring over the past month, with dysprosium oxide, used in lasers and nuclear-reactor control rods, up by one-third.
• But the alarm overlooks the rise over the past decade of alternative sources of rare earths and ignores the difficulties China would face in implementing a ban, including the prospect of widespread smuggling and the likelihood of hurting countries that Chinese authorities may prefer not to alienate.
• President Trump, fresh from an immigration dispute with Mexico pivoted Monday to his stalled China trade talks. In a CNBC interview, the president who is expected to meet Chinese President Xi Jinping later this month in Japan said their “differences can be worked out very easily.”
• But Xi shows no sign of caving and may use rare earths as a bargaining chip.

 (Source: The Washington Post)

• State Minister for Industry, Commerce, Agriculture, and Fisheries, Hon. Floyd Green, says the Jamaica Stock Exchange (JSE) Junior Market has recorded significant gains over the 10 years since its establishment.
• He noted that the market has grown from one company listing with capitalization of $750Mn, to some 43 entities that have generated approximately $135Bn in capital.
• In addition, he noted that major increases have been recorded for contributions to Pay As You Earn (PAYE) from $200Mn to $500Mn over the decade; National Insurance Scheme (NIS) up 148%; National Housing Trust (NHT) up 137%; and General Consumption Tax (GCT) up 940%.
• The Junior Market, established in 2009, facilitates investments in legitimate small and medium-sized companies, whose shares trade on a special JSE platform, which enables the listed entities to raise capital, thereby positioning them to contribute to Jamaica’s economic growth and development.

 (Source: JIS)

• Moody's Investors Service ("Moody's") comments that the potential merger between BRF S.A. (Ba2 negative) and Marfrig Global Foods S.A. (B2 Stable) is credit positive because it will result in a company with larger scale, product, and geographic diversification.
• However, the merger will provide limited operational synergies given the different strategies and segments the companies operate.

(Source: Moody’s)

• The government of St Kitts and Nevis is projecting a 29% drop in revenue in 2019, according to the Caribbean Development Bank (CDB).
• In its outlook for St Kitts and Nevis for 2019, the CDB also stated that the government is targeting a lower primary surplus, with total revenue expected to decline by 8.1% and total expenditure likely to grow by 5.7%.
• The decline in revenue will be caused by a projected 29.1% contraction in non-tax revenue from mainly the Citizenship by Investment (CBI) receipts. While capital expenditure is expected to grow by 21.8%, with one-third of the funds being earmarked for improving the public infrastructure.
• Kitts primary surplus is projected to fall to 2.1% of Gross Domestic Product in 2019.

 (Source: Caribbean News Now)

• Employment in the public sector declined by 11.1% in 2018 due to lower recruitment in the core civil services.
• “There was lower recruitment in the core civil services by 0.5%, which represented 63.1% of total public sector employment,” recounted the Bank of Guyana in its 2018 annual report.
• In the rest of the public sector, employment fell by 29.4%. Employment in public corporations contracted on account of lower recruitment by the Guyana Sugar Corporation (GuySuCo) and financial institutions by 39.2% and 0.6% respectively.
• Despite the decline in employment, employment costs increased by G$5 million, moving to G$59.4Mn. This reflected developments in wages, salaries, and benefits of public servants.

(Source: Guyana Chronicle)

• Talks between the U.S. and Mexico are set to continue into a third day in a bid to reach an agreement that would stop the imposition of 5% tariffs on American imports from its southern neighbor on Monday.
• Mexican Foreign Minister Marcelo Ebrard confirmed that his government has offered to send about 6,000 national guard troops to Mexico’s southern border with Guatemala to help stem migration, while Vice President Mike Pence said it is still the U.S. plan to go ahead with the tariffs.
• He said he would talk to President Donald Trump over the weekend to update him on developments ahead of the deadline.

(Source: Bloomberg)

• People’s Bank of China Governor Yi Gang said his country has “tremendous” monetary and fiscal policy space to make adjustments to the economy should the trade war worsen.
• He also said that his meeting this weekend with U.S. Treasury Secretary Steven Mnuchin would probably be a “productive talk, as always.”
• China’s markets are closed for a holiday today, but the offshore yuan fell the most in three weeks to trade at the weakest level since November, in the wake of the governor’s comments.

(Source: Bloomberg)

• Lasco Financial Services recorded audited net profit for the year ended March 31, 2019, of $281.76Mn (EPS: 22.28¢) relative to the $254.28Mn (EPS: 19.95¢) representing a 10.8% growth for the year.
• The improvement in the bottom line can be partly attributed to increased income (+36.9%), growth in other operating income (+28.3%) which when combined, contributed to 36.5%.overall growth in revenues.
• The stock has risen 5.6% since the start of the calendar year. LASM closed trading yesterday at $4.75, and currently trades at a P/E of 21.95x earnings which is below the Junior Market Financial sector average of 25.56.

 (Source: Lasco Financial Services Financials)

• The Bank of Guyana (BoG) has projected that the local economy will grow by 4.4 percent this year, due to growth in the major economic sectors.
• Growth will be driven by the agricultural, mining and quarrying, services and construction and manufacturing sectors. 
• Guyana’s economic growth rate was stronger at 4.1 percent for 2018 when compared to the 2.1 percent growth in 2017. This outturn was on account of higher production of bauxite, livestock, forestry, and other crops as well as increases in construction, manufacturing and service activities.
• Despite the many positive growth, the inflation rate is forecasted at 2.5% because of moderate increases in food and fuel prices. The BoG’s Financial Stability Committee is, however continuously assessing a number of risk indicators pertinent to the financial and economic systems.

• BERGER Paints Trinidad (BPTL) has ceased operations in TT. Berger Paints Limited (BPTL) and its recognized majority trade union, the National Union of Government and Federated Workers Union, signed a memorandum of agreement on May 31 on the cessation of operations of BTPL.
• Ansa McAl said while BPTL will stop its manufacturing operations in TT, product availability in the market will not be affected and that the paint business will now be distributed by Ansa Coatings Ltd.
• It was reported that BPTL has been in a loss-making position for several years and that the decision will put the paint business in a better position to build efficiencies and becomes more competitive in the local and export markets.

 (Trinidad & Tobago News Day)