• Petroleum marketing company FESCO says it has increased its production and distribution capacity for Liquefied Petroleum Gas (LPG) or cooking gas.
• Jeremy Barnes, the Managing Director of FESCO, announced the commissioning of two new distribution plants. His remarks were made at the latest Mayberry Investor Forum. 
• He noted that there are two LPG filling plants located at Bernard Lodge and in Naggo Head, St. Catherine. He further noted the commissioning of two new sites, one in Discovery Bay and one in Stony Hill. This means that the company’s footprint of LPG plants to date is four.
•  "So we're actually packaging and distributing LPG to retail households, either directly or indirectly through dealers or directly to customers' homes…we're big now in the retail space on both LPG and also in gasolene, because we're now operating service stations, not just distributing to dealer-owned dealer-operated service stations”, Mr. Barnes highlighted.  
• This increase in its capacity is expected to boost revenues, profits, and ultimately shareholder value. According to Mr Barnes, Fesco is the largest locally-owned distributor of transportation fuels by location and volume.

 (Source: Mayberry Investor Forum & NCBCM  Research)

• Brazil's central government posted a larger-than-expected primary budget deficit in May, pressured by increased pension benefits, the Treasury said on Wednesday, June 26.
• The deficit, excluding interest payments, totalled 60.983Bn reais (US$11.06Bn), larger than the 54.2Bn reais shortfall forecast by economists in a Reuters poll.
• Government spending rose by 14% in real terms from a year earlier, driven by an uptick in pension benefits, compared to a 9% increase in net revenues.
• Tax collection in Brazil has been hitting successive monthly records. However, the market does not see this as enough to back the government's fiscal target of erasing the primary deficit this year. This is due to the rapid expansion of many mandatory expenditures and President Luiz Inacio Lula da Silva's reluctance to cut spending.
• Treasury Secretary Rogerio Ceron said that changes to the 2024 fiscal target are not on the table, underlining that the government believes the target to be "viable."
• Speaking at a press conference, he acknowledged the importance of addressing the growth of pensions to avoid incompatible dynamics with the spending limit. Ceron indicated that additional measures would be taken if needed to meet the fiscal target. He further added that a review of registries is underway to identify beneficiaries ineligible for government support policies.
• Overall, the Treasury said that in the 12 months through May, the central government's primary deficit reached 2.36% of gross domestic product (GDP).

 (Source: Reuters)

• Dates have been set by the International Court of Justice (ICJ) for written second-round pleadings by Guyana and Venezuela in the ongoing border case.
• Per the ICJ’s order, Guyana has until December 9, 2024, to make submissions. Venezuela has until August 11 of the following year.
• Agents from both Guyana and Venezuela had determined earlier this month that the second round of written pleadings was necessary after Venezuela’s Counter-Memorial in April. Guyana had initially suggested October 8 to make its submission while Venezuela wanted 12 months after to make theirs, a timeline considered excessive to Guyana.
• The case concerns the validity of the 1899 Arbitral Award, which determined the boundary between the two South American nations more than a hundred years ago. In 1962, some 63 years after accepting the boundary, Venezuela claimed the Award was null and void, reanimating a claim for two-thirds of Guyana’s territory.
• After years of discussions between the two countries under the United Nations Good Offices Process failed to deliver a resolution, UN Secretary-General Antonio Guterres referred the matter to the ICJ in 2018. In international law, 'good offices' refers to diplomatic and humanitarian initiatives by a third country or a neutral institution aimed at resolving a bilateral or international conflict.
• Furthermore, diplomatic tension between Guyana and Venezuela remains high over the disputed territory of Essequibo. In March 2024, Venezuela’s President Nicolás Maduro passed a law declaring the border region of Essequibo, which belongs to Guyana, a Venezuelan federal state.

(Sources: Oil Now & NCBCM Research)

• China's manufacturing activity likely contracted for a second month in June, a Reuters poll showed on Thursday. This has led to renewed calls for fresh stimulus after a string of recent indicators showed the economy struggling to get back on its feet.
• The official purchasing managers' index (PMI) was forecast at 49.5, unchanged from April, according to the median forecast of 19 economists in the poll. The 50-point mark separates growth from contraction in activity.
• All the while, a protracted property crisis continues to drag on domestic demand. Retail sales last month beat forecasts, but were aided by a five-day public holiday boost, while public sector investment grew just 0.1% in the January-May period, reflecting weak consumer and investor confidence.
• Policy support and strong exports should help China’s $18.6Tn economy grow 5.5% this year, said Julian Evans-Pritchard, head of China Economics at Capital Economics. However, he was "less sanguine about the medium-term outlook." Officials are under pressure to fire up new growth engines to reduce the economy's reliance on property, an objective analysts say may be incompatible with keeping growth steady at around 5%, which is the target for this year.
• Chinese Premier Li Qiang on Tuesday told delegates at a World Economic Forum meeting in the northeastern city of Dalian the rapid growth of new industries has strongly sustained healthy economic development. "Since the beginning of this year, China's economy has maintained an upward trend...and is expected to continue to improve steadily over the second quarter," Li added.

(Source: Reuters)

• Sales growth at British supermarkets slowed in June, reflecting wet weather, strength in sales last year and lower food inflation. Market researcher NIQ said sales at UK supermarkets rose 1.1% in the four weeks to June 15 year-on-year (YoY), versus growth of 3.3% in its May report and 12.1% in the same period last year when Britain enjoyed an early June heatwave.
• This time last year, UK food inflation peaked at just 14.6%. It was 3.2% in May this year, according to NIQ. Overall British retail sales also softened this month after a recovery in May, and stores expect another drop next month, a survey from the Confederation of British Industry showed on Wednesday.
• NIQ said the wet weather meant shoppers were more inclined to shop for groceries online rather than in stores. In the four weeks, in-store sales fell 0.9%, while online sales increased 3.7%, boosting the online channel's share of the grocery market to 12.6%, up from 12.2% a year ago
• The market researcher highlighted strong sales of warming foods, with gravy and stock sales up 28% and soup sales up 21%. "We remain hopeful that current warm weather and England’s success at the Euros (soccer championship) may boost sales of drinks and snacks," Mike Watkins, NIQ’s UK head of retailer and business insight, said.

(Source: Reuters)

• Minister of Tourism, Hon Edmund Bartlett believes the push to reimagine Caribbean Tourism is key to ensuring the industry’s resilience. Addressing the Council of Ministers at the Caribbean Tourism Organization's (CTO) Caribbean Week in New York, on Tuesday, June 18, Minister Bartlett expressed his support for implementing changes that will benefit the region.
• “Tourism remains the lifeblood of the Caribbean and as such we must do everything in our power to ensure that the industry is resilient. As we continue to grow, post COVID-19, it is important that we take a deep look at how we are operating and how we need to operate in the future to respond to the changing demands and potential disruptions,” said Minister Bartlett.
• Held during Caribbean-American Heritage Month, Caribbean Week covered the CTO’s business proceedings, which included meetings of the Board of Directors and the Council of Ministers and Commissioners of Tourism.
• “The call by the Secretariat of the CTO to actively look at reimagining the organization is welcomed as the region looks at finding strategic ways to increase our partnerships, creativity and opportunities to benefit us all. The pandemic showed us that we must do away with competition and move towards co-petition to grow exponentially to benefit livelihoods within our communities,” Minister Bartlett said.
• The CTO’s primary objective is to supply its members with the services and information required for fostering sustainable tourism that benefits the Caribbean people economically and socially.
• From this year's discussions, plans are underway, with the aid of a consultant, to explore methods for reinventing the organization. It was agreed that a working committee be set up to ensure input from Caribbean destinations in the strategy development.

(Source: JIS)

• The Bank of Jamaica (BOJ) has advised that effective July 1, 2024, it will no longer exchange coins of the Canadian Dollar (CAD), Great Britain Pound (GBP), and Euro (EUR) at its banking counter.
• This decision signifies a notable change in the Bank’s currency exchange services, intended to tackle persistent operational issues.
• The BOJ considers the exchange of foreign currencies as a public service and, for many years, has exchanged CAD, GBP and EUR coins for Jamaican Dollars. However, due to limited repatriation options for non-USD foreign coins, providing exchange services for these currencies has become more challenging recently.
• As a result, after giving value for these coins at its banking counter, the Bank cannot obtain value in return.
• Furthermore, the decision to cease accepting non-USD coins is consistent with the practice of central banks in the Caribbean region that are faced with similar difficulties.

 (Source: BOJ)

• The Dominican Government, through the Ministry of Finance, has issued green bonds for the first time in its history, totalling US$750Mn.
• These bonds achieved a rate of 6.70%, approximately 15 basis points lower than what would have been achieved with other non-thematic financing instruments of a similar term. Jochi Vicente, the head of the Treasury, explained that the funds obtained from this issuance will be used for green expenditures, as outlined in the country’s first Reference Framework for Green, Social, and Sustainable Bonds.
• This initiative implies savings for public finances due to the lower financing cost and supports projects aimed at mitigating the effects of climate change, to which the Dominican Republic is highly vulnerable. These projects will help protect public infrastructure and the population from climate-related impacts.
• The green bonds received demand from foreign investors in global capital markets that was six times higher than the amount issued. This significant interest demonstrates confidence in the Dominican Government’s commitment to environmental protection, social needs, and sustainable development, as well as the robust performance of the Dominican economy.
• Additionally, this operation was complemented by the repurchase of US$1,009Mn of an external bond maturing in 2025. To facilitate this repurchase and to cover part of the 2024 General State Budget financing needs, RD$105Bn of an external bond in local currency maturing in 2036 and US$500Mn of a reopening maturing in 2031 were issued.
• These operations have significantly impacted the debt portfolio of the non-financial public sector by decreasing the percentage of foreign currency financing and increasing the average maturity time of the global bond portfolio.

 (Source: Dominican Today)

• The Panama Canal authority said on Wednesday, June 26, that recent rains boosted water levels, allowing heavier ships with larger cargo loads to transit the canal's Neopanamax locks.
• The maximum ship depth for the key global waterway will be set at 47 feet (14.33 m) effective immediately, and on July 11, will deepen to 48 feet (14.63 m), the canal authority said in an advisory to clients. This however is still below 50ft which is the highest ship depth allowed in the Neopanamax locks.
• The authority also opened up another transit slot for Neopanamax ships for booking dates after Aug. 5, bringing the total number of available slots in both Neopanamax and Panamax locks to 35 slots from the historic average of about 36.
• The latest changes should provide more flexibility for shippers, some of whom have turned to alternative routes to move goods as the canal has suffered a series of restrictions due to drought.

(Source: Reuters)

• Sales of new U.S. single-family homes dropped to a six-month low in May as a jump in mortgage rates weighed on demand, offering more evidence that the housing market recovery was faltering.
• However, the sting from the largest decline in sales in more than 1-1/2 years, reported by the Commerce Department on Wednesday, was softened by a sharp upward revision to data for April. The revised data shows sales rising instead of falling as previously estimated. Supply was the highest in more than 16 years.
• New home sales declined 11.3% to a seasonally adjusted annual rate of 619,000 units last month, the lowest level since November, the Commerce Department's Census Bureau said. The percentage-based drop was the biggest since September 2022. The sales pace for April was revised up to 698,000 units, a nine-month high, from a previously reported 634,000 units.
• New home sales are likely to remain weak. According to a report from the Mortgage Bankers Association, week-over-week (WoW) seasonally adjusted loan applications for home purchases rose 1% last week. Sales plunged 43.8% in the Northeast and slipped 4.5% in the West last month. They plummeted by 12.0% in the densely populated South and 8.6% in the Midwest, which is viewed as a more affordable region.
• National house prices are, however, steadily rising. The Federal Housing Finance Agency reported on Tuesday that single-family home prices increased 6.3% on a year-on-year (YoY) basis in April. There were 481,000 new homes on the market at the end of May, the highest level since January 2008 and up from 474,000 units in April.
• At May's sales pace it would take 9.3 months to clear the supply of houses on the market. That was the most months since November 2022 and up from 8.1 months in April. Rising supply could improve housing affordability.

(Source: Reuters)