• Brent crude closed in a bear market on Tuesday as the trade war ramps up investor concern over consumer and industrial demand.
• Bloomberg reported China will probably start avoiding imports of U.S. crude oil as tit-for-tat tensions ratchet up, according to traders who supply American crude to China.
• On the geopolitical front, U.S. Secretary of State Michael Pompeo will hold a joint press conference with the U.K.’s new Foreign Secretary Dominic Raab later today as the two nations agree to work together on maritime security in the Persian Gulf.
• The effort would aim to protect tankers passing through the world’s most important chokepoint for oil from the showdown with Iran.
• Meanwhile, Trump imposed further sanctions on Venezuela, freezing the government’s assets in the U.S. It is unclear whether the move will affect companies such as Chevron Corp., which was just granted a three-month waiver allowing it to continue producing oil and gas in the country.

(Source: Bloomberg)

• For the six-month period ended June 30, 2019, Caribbean Cement Company Ltd (CCC) reported an unaudited net profit of $1.50Bn (EPS: $1.76), a 42.2% increase from the $1.05Bn (EPS: $1.18) reported for the corresponding period in 2018.
• The performance over the period was primarily driven by a 4.0% YoY improvement in revenue which came in at $9.13Bn for the period. Notably, the performance over the six month period can also be attributed to the strong performance in Q1 which accounts for 75.4% of total profit for the period.  
• Despite a 6.0% YoY improvement in revenue for the second quarter the company’s profit contracted 47.6% when compared to the previous year due to a sharp increase in finance charges (+66.9%) and higher Depreciation, impairment and amortization costs (+19.1%).  The increase in finance costs was due to foreign exchange losses and higher interest expense. 
• The stock has risen 88.23% since the start of the calendar year, closing Wednesday’s trading session at $79.81 per share. At its current price, the stock now trades at a P/E of 22.92x earnings which is below the Main Market Industrials and Materials sector average of 28.50x earnings.

(Source: CCC Financials)

• Grace Kennedy’s net profit for the six-months ended June 2019 decreased to $2.27Bn (EPS: $2.03), down 7.3% from $2.45Bn (EPS: $2.17) in 2018.
• Though there was a 6.5% increase in revenue from $48.37Mn to $51.49Mn, profit was negatively impacted by the newly adopted accounting standard on leases, IFRS 16, which led to additional expenses of $115.00Mn in addition to, post-employment benefit expenses relating to IAS 19 increasing by $189.00Mn.
• Even though there is a decrease in profit, the Group expects to meet its 12-month profit target for 2019 and plans to pay a dividend of 40 cents per share which is equivalent to $397Mn on September 26, 2019.
• The stock has increased 12.08% year to date, closing Wednesday’s trading session at $71.17 per share. At its current price the stock now trades at a P/E of 14.98x earnings which is below the Main Market Conglomerate sector average of 22.90x earnings.

(Source: GraceKennedy Limited Financials)

• Nicaragua’s fiscal deficit will remain wide in 2019, as a severe economic contraction will weigh on government revenues.
• While the February 2019 passage of a tax and pension reform is likely to improve the country’s long-term fiscal trajectory, the impact in 2019 is likely to fall short of government projections.
• Fitch Solutions forecast Nicaragua’s fiscal deficit will narrow slightly to 3.8% of GDP in 2019 and 3.6% in 2020, from 4.0% in 2018.

(Source: Fitch)

• Trade between China and the Dominican Republic was US$1.4 billion in the first six months, a 44.1% jump, said Chinese ambassador Zhang Run. He said with the confidence in the country’s political stability, trade relations will develop at a considerable pace.
• The diplomat spoke in a meeting with the Dominican Republic Merchants Federation chaired by Iván García, who said they’ll continue doing business with greater legal certainty and confidence with Chinese exports to the country. “We will propel exports from the country to the Asian nation.”

(Source: Dominican Today

• Having waited all week for an update on how the latest round of trade talks between the U.S. and China were going, President Donald Trump answered that question emphatically with a series of tweets.
• Trump said the U.S. will impose 10% tariffs on another $300Bn of Chinese goods not already subject to levies. The final list of which has yet to be released but it is likely to include consumer goods and tech.
• The effects of Trump’s tweets were seen in Treasury yields which dropped the lowest levels since 2016; oil also took a beating and is now on track for a loss this week, and stock traders were caught in the midst of a brutal 48 hours between the Federal Reserve decision and the tariffs.
• It leaves an already-struggling global economy steeling itself for more difficulties and has analysts asking questions about when China’s currency may break through a key level against the dollar and what kind of opportunities it may bring for stock investors.

(Source: Bloomberg)

• Another topic on the tip of market watchers’ tongues all week has been no-deal Brexit, the increased threat of which has sent the pound tumbling lower.
• The Bank of England decision on Thursday left markets confounded and likely only adds further to the uncertainty as the central bank effectively decided not to assume no-deal outcomes in its latest inflation reports, even as markets do just that.
• The markets’ reactions appear warranted given the signals from the U.K.’s government, which has doubled its spending on preparations for leaving the European Union without a deal in place, but that’s been complicated by the government's majority being cut to one.

(Source: Bloomberg)

• Mayberry’s net profit for the six-month ended June 2019 plummeted to $97.17Mn (EPS: $0.09) which is a 79.5% drop from the $474.72Mn (EPS: $0.35) recorded in 2018.
• Rising expenses and falling revenues have significantly contributed to the deterioration in performance. A decline in the net interest income and other revenues by $195.57Mn (or 16.2%), together with a 28.7% increase in operating expenses were the main drivers behind the pull-back in the company’s performance.
• The stock has fallen 2.3% since the start of the calendar year, closing yesterday’s trading session at $8.91 per share. At its current price, the stock now trades at a P/B of 0.54x book which is below the Main Market Financial sector average of 2.49x.

(Source: Mayberry Investments Limited Financials)

• Net Profit for Sagicor Group increased 35.1% moving up from $5.28Bn (EPS: $1.36)  in June 2018 to $7.13Bn (EPS: $1.64) for the second quarter ended June 2019.  
• This performance was supported strong earnings growth from most of its operating segments including Employee Benefits (+14.4%), Investment Banking (+238.2%), Commercial Banking (+35.1%) and Other Divisions (+328%), with the only exception being the Individual Lines that saw a 13.2% contraction year-on-year.
• The stock has risen 56.2% since the start of the calendar year, closing yesterday’s trading session at $58.52 per share. At its current price, the stock now trades at a P/E of 14.89x which is below the Main Market Financial sector average of 23.60x.

(Source: Sagicor Group Financials)

• Mexico’s economy narrowly missed falling into recession in the second quarter, surprising most analysts, while posting growth well short of the pace pledged by President Andres Manuel Lopez Obrador.
• GDP rose 0.1% quarter over quarter, better than all but one forecast by economists in a Bloomberg survey, according to preliminary data published Wednesday by the country’s statistics institute. However, on an annual basis it contracted a more-than-expected 0.7%, the most since 2009. The final figures are due out Aug. 23.
• Bloomberg analysts are projecting Mexican growth of 1.0% this year, the slowest since the 2009 recession. Oviedo is even more pessimistic, estimating growth of 0.5% for the full year.

(Source: Bloomberg)