• Nonfarm payrolls soared by 4.8 million in June and the unemployment rate fell to 11.1% as the U.S. continued its reopening from the coronavirus pandemic, the Labor Department said Thursday.
• The jobs growth marked a big leap from the 2.7 million in May, which was revised up by 190,000. The June total is easily the largest single-month gain in U.S. history. The numbers capture the move by all 50 states to get activity moving again after the virus seized up much of the U.S., particularly service-related industries.

 (Source: CNBC)

• K.L.E. Group Limited reported net loss of $19.07Mn (EPS: -20¢) for the three months ended March 31, 2020, despite a 46.1% (or $22.94Mn) increase revenue. This represents an almost hundredfold decline when compared to the $198k made in the same period of the previous year.
• The main contributor to this performance was an 83.9% (or $30.56Mn) increase in administrative expenses, a 57.9% (or $8.11Mn) increase in the cost of sales, a 19.5% (or $1.02Mn) increase in finance and depreciation costs as well as a 43.8% (or $2.8Mn) decline in other operating income.
• The company’s stock price has risen by 2.9% since the beginning of the year to end Wednesday’s trading session at $1.80. The stock currently trades at a P/B of 2.27x, which is slightly below the Junior Market average of 3.0x earnings.

 (Source: K.L.E Financials)

• Mexican financial authorities said on Tuesday they had revoked the license of the savings bank arm of retailer Grupo Famsa, which last week announced it was seeking Chapter 11 bankruptcy protection in the United States.
• In a statement, the financial authorities said the license for Banco Ahorro Famsa had been withdrawn due to inappropriate risk management and operations, as well as loans granted to “related parties of the group above regulatory limits.”
• The bank had also kept improper records, and repeatedly failed to comply with regulatory provisions, the central bank, the finance ministry and banking regulator said jointly.

 (Source: Reuters)

• The Inter-American Development Bank (IDB) said Wednesday that it granted a $100 million loan for Trinidad and Tobago to finance its response to the COVID-19 pandemic and promote an economic recovery after the health crisis has passed.
• Trinidad and Tobago will use part of the money to support household income and business liquidity during the pandemic through tax refunds, salary grants, food stamps and rental assistance. It will also use the loan to buy medical equipment and hire medical staff, the IDB said in a press release.
• The loan will also go to implementing the Fair Trading Act (FTA), which involves promoting competition in local markets, lowering the cost of essential goods for consumers and increasing private sector productivity.

 (Source: Latinfinance)

• The world’s tourism sector could lose at least $1.2 trillion, or 1.5% of the global gross domestic product (GDP), having been placed at a standstill for nearly four months due to the coronavirus pandemic.
• The UN’s trade and development body warned that the loss could rise to $2.2 trillion or 2.8% of the world’s GDP if the break in international tourism lasts for eight months, in line with the expected decline in tourism as projected by the UN World Tourism Organization (UNWTO).
• The United Nations Conference on Trade and Development (UNCTAD) estimates losses in the most pessimistic scenario, a 12-month break in international tourism, at $3.3 trillion or 4.2% of global GDP.

 (Source: UNCTAD)

• Oil prices dipped on Thursday after the United States recorded its biggest one-day spike in coronavirus cases and California reimposed some lockdown measures, stoking worries a resurgence in COVID-19 cases will stall a recovery in fuel demand.
• S. West Texas Intermediate (WTI) crude futures fell 10 cents, or 0.3%, to $39.72 a barrel at 0148 GMT, trimming a 1.4% rise from Wednesday. Brent crude futures eased 6 cents, or 0.1%, to $41.97 a barrel, after rising 1.8% in the previous session.
• California sharply rolled back efforts to reopen its economy on Wednesday, banning indoor restaurant dining in much of the state, closing bars and beefing up enforcement of social distancing and other measures as COVID-19 infections surged.

 (Source: CNBC)

• Despite a 9.3% (or $25.42Mn) increase in revenues, Consolidated Bakeries Jamaica Limited (Purity) reported a 41.7% (or $6.07Mn) contraction in net profits for the first quarter ended March 31, 2020. Net profit was down to $8.47Mn (EPS: $0.04) from the $14.54Mn (EPS: $0.07) that was reported in the year prior.
• This outcome was primarily driven by a 9.6% (or $9.07Mn) growth in total operating expenses, a 50.4% (or $1.39Mn) increase in finance costs, and a 99.3% (or $825k) decrease in finance and other income.
• The stock has risen 2.4% since the start of the year, and closed trading at $1.70 on Thursday. At this price Purity currently trades at a P/B of 0.52x, which is below the Junior Market Manufacturing Sector Average of 2.03x.

 (Source: Purity Financials)

• Jamaica welcomed approximately 4.3 million visitors in 2019, comprising 2.7 million stopover arrivals and 1.6 million cruise passengers, whose combined spending contributed to the destination earning US$3.64 billion. Minister of Tourism, Hon Edmund Bartlett, made the disclosure during his contribution to the 2020/21 Sectoral Debate in the House of Representatives on June 24.
• He informed that stopover arrivals last year increased by 8.4 per cent, compared to 2018, with each visitor spending an average of 8.6 nights, and overall foreign exchange earnings increased by 10.3 per cent, up from US$3.3 billion in 2018.
• “At the end of 2019, tourism was projected to create 41,000 new jobs by 2022. We recognise now that the impact of COVID-19 will result in a revision of this estimate, but the broader point being made is that tourism remains one of the most critical catalysts for job creation in the Jamaican economy,” he contended.
• Bartlett said the Statistical Institute of Jamaica (STATIN) has now classified the direct employment in the tourism sector at 170,000 workers, to include employees in the accommodations subsector, travel agencies, ground transportation providers, workers in the attractions subsector, craft vendors, etc.

 (Source: JIS)

• Mexico, one of the countries hardest hit by the coronavirus around the world, has fallen short in providing as much stimulus funding as it would have liked — and far less than in developed countries — largely because of the structural challenges that have held it and the rest of Latin America back for decades.
• In comparison, developed economies like Canada, Germany, Japan, the United Kingdom and the United States have been able to spend more on economic stimulus because of their low borrowing costs.
• Mexico's central bank cut the overnight interbank lending rate by 50 basis points to 5% on Thursday. But the US Federal Reserves cut its benchmark rate to 0.25% in March from 1.75% the previous month, while the Bank of England slashed its rate to 0.1% from 0.75% in the same period.

(Source: Latinfinance)

• The Inter-American Development Bank (IDB) has agreed to redirect $500 million in funding to help micro, small and medium-sized enterprises (MSMEs) in Argentina recover from the economic effects of the COVID-19 pandemic.
• The redirected funds will go to medium-term loans for MSMEs to cover liquidity needs, pay bills to vendors and refinance existing loans, among other purposes, the IDB said. "It will also help them deal with a temporary rise in demand as a result of the crisis".
• The Argentine government plans to grant financing through the national productive development fund Fondep and put up money from the federal guarantee fund Fogar to back loans from financial institutions, according to the IDB.

(Source: Latinfinance)