• The Government of Trinidad and Tobago has appointed a ten-member committee to evaluate at least 25 bids for the sale or lease of the Guaracara refinery at Pointe-a-Pierre.
• Trinidad Petroleum Holdings Ltd (TPHL) says the evaluation committee will be led by the permanent secretary in the Ministry of Finance Vishnu Dhanpaul.
• The committee will evaluate all bidders participating in the Guaracara request for proposal (RFP) and make a recommendation to the Cabinet on the preferred bidder. TPHL stated that the appointment of the committee will remove any requirement for the board of directors to conduct the evaluation and selection as the committee will assume full responsibility for the selection of the preferred bidder.

 (Source: Trinidad Express)

• During January to June 2019 economic activity, measured by the Monthly Economic Activity Indicator (IMAE) shows growth lower than in 2018 and similar to 2017, according to Regional Center for Sustainable Economic Strategies (CREES) senior economist Miguel Collado Di Franco.
• “This behavior so far in 2019 has been characterized by political-institutional uncertainty, which has negatively affected the investment prospects of economic agents,” the economist said.
• That uncertainty that does not dissipate in view of the continuing effort to amend the Constitution, “all this within an environment dominated by the processes of political parties with a view to the largest elections, within the scope of candidacies, of recent history.”
• Collado Di Franco adds that other negative factors have joined this widespread perception of uncertainty, “such as a lower generation of currencies by sectors such as Free Zones and national exports, to which the effects of the sensational journalistic coverage of the tourism sector by means of international communication.”

 (Source: Dominican Today)

• Chinese policymakers tried to calm global worries by fixing the yuan stronger than expected.
• While the new level is (just) weaker than 7 to the dollar for the first time since 2008, the strength compared to market estimates was seen as a signal that Beijing is seeking stability.
• Global assets are calmer in the wake of the Chinese move.
• It seems that President Donald Trump’s hopes of weakening the dollar will be less successful, as his trade position increases foreign bids for haven Treasuries which also boosts secular demand for the U.S. currency. 

(Source: Bloomberg)

• Yesterday’s session saw a crude drop to a seven-month low as it was hit by the risk-off sentiment in markets and a larger-than-expected expansion in U.S. inventories.
• That slide started to turn around in late trading, a move which continued this morning after the Saudis said they were phoning other oil producers to discuss responses to the sudden drop.
• A barrel of West Texas Intermediate oil for September delivery was trading at $52.21by 5:50 a.m. Eastern Time, still more than a $1 below Wednesday’s opening level. 

(Source: Bloomberg)

• Lasco Manufacturing reported a modest increase in unaudited net profit for the three-month period ended June 30, 2019. Net profit moved up from $237.66Mn (EPS: $0.06) in 2018 to $282.42Mn (EPS: $0.07) in 2019 representing an 18.8% YoY growth.
• Contributing to the improved performance were increased revenues of $55.03Mn (or 3.2%) together with a $14.15Mn increase in other operating income. Moreover, gross margin increased to 37% from 35% and can be attributed to the on-going improvement in operational efficiencies.
• The stock has risen 16.8% since the start of the calendar year, closing Monday’s trading session at $4.32 per share. At its current price, the stock now trades at a P/E of 15.74x earnings which is below the Junior Market Manufacturing sector average of 33.23x.

(Source: LASM Financials)

• Kingston Properties Limited (KPREIT) has advised that at a duly convened Extraordinary General Meeting of the shareholders of the Company, a resolution was passed to increase the authorized shares of the company from 500,000,000 ordinary shares to 1,000,000,000 ordinary shares.
• KPREIT further advised that the increase in share capital is part of the Company’s strategy to substantially increase its capital base over the next three years, which will include a renounceable rights issue in short order.

(Source: JSE)

• JMMB Group Limited (JMMBGL) has advised that on August 2, 2019, their Board of Directors, via a Round Robin Resolution, approved a proposal for the Company to seek, at its next Annual General Meeting, the approval of its ordinary shareholders to issue up to 325,000,000 additional ordinary shares in the capital of the Company, ranking pari passu (on par with)  upon issue, in all respects with the existing ordinary shares of the Company.
• JMMBGL further states that the terms and conditions of such issue of additional ordinary shares are to be determined by the directors.

(Source: JSE)

• Economic underperformance relative to budget assumptions and lower than expected oil revenue is straining Mexico's budget framework and underscores challenges the government faces in meeting its non-financial public sector (NFPS) primary surplus targets, says Fitch Ratings.
• The recent announcement that the government will use part of the stabilization fund (FEIP) to offset lower than expected revenues without further spending cuts should allow the 2019 primary surplus target to be met. However, the decision also highlights the trade-off facing the government between maintaining fiscal targets and supporting the economy.
• The Ministry of Finance revised downward its 2019 real GDP growth forecast to 1.1% from 1.6% this week, following the release of 2Q19 data, which showed the economy expanded by just 0.1% QoQ (0.4% YoY). This means that Mexico barely grew in 1H19 and only narrowly avoided a technical recession as the economy contracted by 0.2% QoQ in 1Q19.

(Source: Fitch)

• Fiscal consolidation measures and slowing global growth will weigh on real GDP growth in Costa Rica in the coming quarters.
• However, the investment will likely remain robust as Costa Rica's competitive tourism, agriculture, and manufacturing sectors and a more accommodative monetary policy environment attract foreign investment.
• Fitch has revised down its 2019 real GDP growth forecast to 2.6% y-o-y, from 2.9% previously, and its 2020 forecast to 2.9%, from 3.0% previously, to reflect a more downbeat view on private consumption and external demand. 

(Source: Fitch)

• Traders in Asia are bracing for a full-fledged currency war after a slide in China’s yuan past the 7 per dollar mark raised the prospect of policymakers allowing their exchange rates to weaken to remain competitive.
• Currencies slumped across the region Monday, with South Korea’s won tumbling to the weakest in three years after the offshore yuan plunged almost 2% to an all-time low of 7.1114. The yen and Treasuries rallied amid a flight to safety.
• “Without a doubt, the global currency war is here, and it’s a natural extension of the trade war that’s just taken a turn for the worse,” said George Boubouras, director at Salter Brothers Asset Management Pty in Melbourne.
• Fear over trade and currency wars is prompting monetary action around the globe. Various central banks have since cut their rates: New Zealand’s dropped its benchmark rate by 50 basis points; Thailand by 25 basis points and India’s by an unconventional 35 basis points. 

(Source: Bloomberg)