• Costa Rican President Carlos Alvarado of the center-left Partido Acción Ciudadana (PAC) will continue to build a political consensus around economic reforms to reduce the country’s fiscal deficits in the coming months.
• The Alvarado government will also prioritize policies to reduce carbon emissions and improve social programs for poor and minority Costa Ricans.
• However, higher unemployment and general pessimism among Costa Ricans pose a moderate risk to the government's reform agenda.

(Source: Fitch Solutions)

• Venezuela’s central bank on Tuesday reported a sharp contraction of third-quarter gross domestic product, its first release of economic data in nearly four years by a nation struggling under hyperinflation and migration exodus of millions of citizens.
• The government of President Nicolas Maduro halted the publication of economic indicators in 2015 as the OPEC nation’s socialist system began to unravel in response to the global decline in oil prices.
• Oil export earnings dropped to $29.8Bn in 2018 from $31.5Bn in 2017, according to the figures.
• The economy contracted 22.5% in Q3 2018 relative to the same period in 2017, according to data posted on the bank’s website, which did not provide a full-year 2018 figure. Monthly inflation in April 2019 was 33.8%, while 2018 full-year inflation reached 130,060%, the bank said.

(Source: Reuters)

• U.S. economic growth last quarter was revised down by less than expected amid stronger consumption and exports than initially reported, suggesting the expansion was on relatively firm footing before President Donald Trump’s escalation of the trade war with China.
• Inflation-adjusted gross domestic product increased at a 3.1% annualized rate in the January-March period, compared with an initially reported 3.2% and analyst estimates for a revision to 3%, Commerce Department data showed Thursday.
• Consumer spending, which accounts for the majority of the economy, grew 1.3%, topping projections for an unrevised 1.2% though still the slowest in a year.
• The figures may alleviate some investor concern that the economy is losing momentum -- highlighted by an inversion in part of the Treasury yield curve -- and potentially help Trump as he starts his reelection campaign.
• Recent reports suggesting a dimmer outlook this quarter, along with the intensifying tariff conflict, are casting a shadow over an expansion poised to become the nation’s longest on record in July.

(Source: Bloomberg)

• Ten months after President Donald Trump and European Commission President Jean-Claude Juncker agreed on a tariff truce, very little progress has been made in negotiating a trade deal between the U.S. and the European Union.
• Trump has been concentrating on his battle with China, while Europe has plenty of its own issues to deal with.
• In talks in Washington and Paris this month, the two sides again made little progress, leaving the path open for escalation.
• Speaking of the latter, China has put purchases of American soybeans on hold, bringing an end to so-called goodwill purchases, according to people familiar with the matter.

(Source: Bloomberg)

• For the nine-month period ended March 31, 2019, Pulse Investments Limited reported an unaudited net profit of $329Mn (EPS: $0.21) up from $83Mn (EPS: $0.16) reported in the corresponding period of 2018. This represents a growth of 26.5%.
• The 10.2% growth in revenues partly contributed to the improvement in the bottom line. Revenues increased from $313Mn in 2018 to $345Mn in 2019.
• In addition, the appreciation (46%) of the company’s investment properties for the period also added to the improvement in performance in the period.
• The stock has fallen 0.33% since the start of the calendar year. Pulse Investments closed trading yesterday at $2.98, and at this price, it currently trades at a P/E of 12.42x earnings which is below the Main Market Real Estate sector average of 23.75x.

(Source: Pulse Investments Financials)

• Jamaican Teas’ profit increased by 28% for the six months ended March 31, 2019. Unaudited profits for the period totaled $116Mn (EPS: $0.15), $26Mn higher than that reported in 2018.
• Cost of sales dipped by 32% which led to an improvement in the gross profit. The gross profit increased by $36Mn to close the period at $191Mn.
• A slight dip in the finance costs (8%) also partly contributed to the increased net profit. 
• The stock has fallen 6% since the start of the calendar year. Jamaica Teas closed trading yesterday at $4.23 and currently trades at a P/E of 13.73x earnings which is below the Junior Market Manufacturing sector average of 26.08x.

(Source: Jamaican Teas Financials)

• Growth has remained strong, reflecting external tailwinds and the fruits of past reforms. The outlook is promising but is subject to downside risks.
• The focus of policy should shift toward making growth more sustainable, resilient, and inclusive. Fiscal policy should balance further progress in debt reduction against a gradual use of well-earned fiscal space to close the country’s infrastructure and resilience gaps, in tandem with capacity and efficiency improvements to bolster the impact on growth.
• Policies to enhance resilience to climate change and natural disasters should be fully integrated into a credible medium-term fiscal framework.
• Continued progress in financial sector oversight, structural reforms, economic governance, and data provision is necessary to support and enhance sustainable growth.

(Source: IMF)

• The Deputy Prime Minister of Bahamas has signaled that the government remains on track to hit its main 2018-2019 fiscal target by touting a $400Mn reduction in the annual deficit since it took office.
• Addressing the UHY accounting firm’s Americas conference on Friday, K Peter Turnquest, disclosed figures ahead of this week’s 2019-2020 budget that hints the Minnis administration will bring the fiscal deficit within range of its $237Mn target for the current fiscal year.
• Giving an upbeat assessment of The Bahamas’ economic prospects, Mr. Turnquest focused on the 1.6% real GDP growth achieved in 2018 as a sign that the Government’s economic and fiscal policies are starting to bear fruit.

(Source: Tribune 242)

• Treasuries are in the vanguard of a bull run in global bonds, bringing into sight the prospect of benchmark 10-year yields dropping to 2% for the first time since late 2016 as traders ramp up bets on monetary-policy easing by the U.S. central bank.
• Escalating U.S.-China trade tensions and faltering global growth have seen U.S. 10-year yields tumble almost 40 basis points since mid-April to as low as 2.22% on Wednesday, May 29.
• The gap between the three-month and 10-year American yield fell as low as minus 12 basis points, the most since negative 2007, while fed funds futures showed about three quarter-point central bank cuts priced in by the end of next year.

(Source: Bloomberg)

• The disastrous showing for both the Conservatives and Labour party in the European elections has raised the likelihood of more extreme Brexit outcomes.
• The choice for lawmakers, and possibly the electorate, maybe between no deal or no Brexit.
• For the economy, the difference between those two outcomes is about 7% of GDP by 2030, according to Bloomberg Economics’ estimates.

(Source: Bloomberg)