• The Bank of England (BoE) could give Britain's government bond market a boost this week and lower public borrowing costs by more than £1Bn (US$1.3Bn) a year, banks say — but some former regulators warn a change in rules to achieve this would increase financial risks. The BoE is reviewing how its leverage ‌rules operate, which banks argue discourage them from holding public debt, after loosening its main capital requirement in December. It is due to give an update on its plans in its half-yearly Financial Stability Report set to be released this week.
• The central bank's review into leverage rules and other buffers follows a relaxation of U.S. leverage requirements in November, a development that increased competitive pressures for British lenders and potentially undermined broader resilience, nearly 20 years on from the global financial crisis.
• Barclays, with over 20 million United Kingdom (U.K.) customers, has called on the BoE to stop counting banks' holdings of British government bonds, known as gilts, towards a leverage ratio which requires banks to have capital worth somewhat over 3.25% of their assets to help cover any losses.
• A change here could encourage British banks to hold ⁠up to £150Bn more gilts, lower average yields by a fifth of a percentage point and save the government £2.5Bn a year in debt interest at a time of stretched public finances. This change should only apply to 'unencumbered' gilts, that is, those that banks are free to sell and are not already pledged as collateral in another transaction, Barclays added.
• Other banks see a sizeable, if smaller, gain too. Lloyds said a change might only lead to a £30Bn increase in gilt demand, but it still sees at least a £1Bn a year reduction in interest payments for the government — almost enough to cover a funding shortfall in defence plans recently announced.
• Since launching the review, the BoE has not said if it supports exempting gilts from leverage rules. However, Sam Woods, who was the BoE deputy governor for prudential regulation ‌until last ⁠week, told financiers in October that exempting all gilts from leverage rules "would be a profound and highly risky change". Woods has been succeeded by Katharine Braddick, previously a senior Barclays executive. Other former regulators have also voiced concerns.

(Source: Reuters)

• United States (U.S.) services sector activity dipped in June as some of the boost from businesses rushing to place orders amid the Middle East war ‌ebbed, but employment rebounded after contracting for three straight months, pointing to continued labour market stability.
• The Institute for Supply Management said on Monday, July 6, 2026, its non-manufacturing purchasing managers index edged down to 54.0 last month from 54.5 in May. A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity. The survey measure of new orders received by services businesses also dropped to 55.1 after surging to 57.3 in May. Order ⁠backlogs, however, increased last month.
• A similar dynamic was observed in the Institute for Supply Management’s (ISM's) manufacturing survey last week. The four-month U.S.-Israeli conflict with Iran raised prices of commodities, including oil. Washington and Tehran have since agreed to a ceasefire, with the fragile truce last month pushing oil prices back to pre-war levels.
• The decline in oil prices helped to slow the pace of increase in services inflation. A measure of prices paid by services businesses dropped to a still-high 67.7 from 71.3 in May. However, economists have warned that underlying inflation could remain elevated even if oil prices dropped. This will likely be driven by the fact that businesses are investing heavily in artificial intelligence, driving up prices of goods like semiconductors and electronics.
• Consequently, most economists continued to expect that the ⁠Federal Reserve (Fed) would hike interest rates this year, despite job growth slowing considerably in June and revisions showing nonfarm payroll gains in the prior two months were not as strong as previously reported. The U.S. central bank last month left its benchmark overnight interest rate in the 3.50%-3.75% range, but updated quarterly projections showed policymakers expected to raise borrowing costs this year.

(Source: Reuters)

• Newly listed company, Quantas Advantage Inc. (QAINC) made its financial reporting debut, delivering strong results for the nine months ended March 2026. Earnings increased 60.9% year-over-year, driven by continued expansion of its investment portfolio, robust growth in net interest income, favourable unrealised foreign exchange movements, and sustained credit quality.
• Net interest income expanded by 44.5% to US$1.97Mn (2025: US$1.36Mn), reflecting growth in interest-earning assets and improved portfolio yields. Higher portfolio yields was partially offset by higher interest expense as the Company increased its use of borrowings to finance portfolio expansion.
• Further boosting the bottom line, QAINC recorded unrealised foreign exchange gain of US$106.26K compared with an unrealised loss of US$153.99K in the corresponding period last year. This favourable swing provided a meaningful boost to earnings.
• At the same time, asset quality remained resilient, with no material deterioration in the credit portfolio. As a result, the company recognised an expected credit gain of US$8.84K, compared with a marginal gain of US$0.32K in the prior year, reflecting the continued strength of its underwriting standards and risk management framework.
• As the business continues to scale, operating expenses rose 45.1% to US$0.53Mn, primarily driven by higher management fees associated with the expanding asset base, alongside increased legal and professional fees related to transaction execution and structuring activities. That said, cost efficiency remained largely intact, with the management expense ratio (or expense ratio) holding rising modestly to 1.6% of average assets, versus 1.5% in the prior year.
• Looking ahead, management intends to deploy the IPO proceeds to accelerate portfolio growth, deepen its presence in the Caribbean private credit market, and capitalise on a robust pipeline of structured finance opportunities. This strategy is expected to support sustained asset growth, higher recurring interest income, and continued earnings expansion over the medium term
• Investors have responded positively to the stock. Since listing on July 1, 2026, QAINC’s stock price has increased by 12.4% closing at $21.79 as at Thursday. At this price, the stock is trading at a price-to-book (P/B) ratio of 2.2x, which is notably higher than the Main Market Financial Sector’s average of 1.1x.  This suggests that investors are optimistic about the Company's growth prospects and are willing to pay a premium relative to its book value, reflecting confidence that future earnings and returns will exceed what is currently represented on the balance sheet.

(Sources: JSE & NCBCM Research)

• Tourism Minister Edmund Bartlett says the government is advancing a range of infrastructure and destination development projects to support sustained growth and investment in Jamaica’s tourism sector.
• His remarks follow calls from industry stakeholders for sustained investment in destination infrastructure to support the sector’s expansion, made during the Jamaica Hotel and Tourist Association (JHTA) Tourism Forum for increased investment in destination infrastructure to support the industry's expansion.
• The Government's strategy centres on infrastructure upgrades, regulatory reform, and stronger community linkages as central to transforming tourism from a standalone industry into a fully integrated “tourism economy”. Priority projects include the recently completed Destination Development Strategy for Negril, alongside ongoing redevelopment plans for Falmouth, Ocho Rios, and St Thomas Thomas as part of efforts to improve visitor experiences and ensure that more communities benefit from the sector’s growth.
• The focus on destination infrastructure likely comes as visitor arrivals is expected to continue recover overtime and hotel room capacity expands, increasing the need for improvements in transportation networks, public spaces, utilities, and visitor amenities to preserve Jamaica's competitiveness against regional tourism markets.
• From an investment perspective, continued public investment in tourism infrastructure could generate positive spillover effects across several sectors. Improved connectivity and destination enhancements are likely to support higher visitor spending, benefiting hotel operators, transportation providers, attractions, restaurants, and commercial real estate. Infrastructure projects could also create opportunities for construction companies, building materials suppliers, and financial institutions through increased project financing and private-sector investment.
• For the broader economy, a more integrated tourism ecosystem should strengthen foreign exchange earnings, support employment growth, and encourage greater participation by local businesses through stronger linkages with agriculture, manufacturing, and professional services. Over the medium term, successful execution of these initiatives will continue to reinforce tourism's role as one of Jamaica's key drivers of GDP growth.

(Source: Caribbean National Weekly and NCBCM Research)

• The expanded Panama Canal has crossed a major milestone, handling more than 31,000 Neopanamax vessel transits in its first decade of operation. The expansion began service on 26 June 2016, when the COSCO Shipping Panama made the inaugural transit through the new locks. Since then, the upgraded canal has become a central part of global shipping routes and now generates more than half of the waterway’s total revenues.
• The milestone reflects how the expansion has reshaped maritime trade over the past ten years. By allowing larger vessels to pass through, the new locks have improved the canal’s capacity and reinforced its relevance in international logistics. During the first eight months of fiscal year 2026, the canal recorded 8,593 transits, including 2,385 Neopanamax vessel movements. This implies that Neopanamax ships accounted for 27.7% of total traffic in that period.
• The expanded canal’s contribution to revenue has grown steadily and now represents more than half of the waterway’s total revenues, highlighting its growing role in global trade. This shows that the investment in larger lock infrastructure has delivered both operational and financial benefits. The expansion is also being recognised as one of the most significant infrastructure projects in modern shipping. It has changed how carriers plan routes and has increased flexibility for global trade.
• During the first eight months of fiscal year 2026 (October 2025-May 2026), the Canal recorded 8,593 transits. Of those, 2,385 involved Neopanamax vessels, representing 27.7% of total traffic. The Panama Canal Authority said improved water levels at Gatun and Alhajuela lakes have allowed the Canal to maintain safe and reliable operations after the severe drought that disrupted traffic in 2023 and 2024.
• Looking ahead, the Panama Canal Authority continues to focus on long-term water security. Projects such as the proposed Rio Indio Lake^[1] form part of its strategy to strengthen climate resilience while ensuring reliable water supplies for both Canal operations and local communities.

________________________

¹The Rio Indio Lake Project is a massive $1.6 billion plan to dam the Río Indio and create a new reservoir. It will send water through a 5-mile tunnel into Gatún Lake. This water will help ships cross the Panama Canal during droughts.

(Sources: Panama Newsroom & Container News)

• Malaysian state-controlled oil company PETRONAS has recorded two discoveries and a successful appraisal well offshore Suriname, bringing its total successful wells in Block 52 to eight and unlocking more than 1 billion barrels of Oil Equivalent (boe) of recoverable resources. PETRONAS operates Block 52 with an 80% interest, while Staatsolie subsidiary Paradise Oil Company holds the remaining 20%.
• The company said the latest drilling campaign included the Caiman-1 exploration well, which encountered multiple oil-bearing Cretaceous sandstone intervals after reaching a total depth of 5,065 m in 90 m of water. The Swartzia Aspasia Complex-1 (SAC-1) exploration well, drilled in 610 m of water approximately 8 km east of the Sloanea-1 gas discovery, intersected gas-bearing sandstone reservoirs. Drill stem testing confirmed strong gas deliverability and reservoir quality.
• PETRONAS also completed the Roystonea-2 appraisal well, located about 7 km north of the Roystonea-1 discovery. The well confirmed the lateral extent of the oil-bearing reservoir, with testing indicating strong oil productivity.
• The latest results build on the declaration of commerciality for the Sloanea gas field in November 2025. A final investment decision on the development is targeted before the end of 2026. PETRONAS said the discoveries further strengthen the case for multiple oil and gas developments in Block 52, located within the highly prospective Suriname-Guyana Basin.
• Resource-driven Gross Domestic Product (GDP) in Suriname will get a significant boost with the commencement of new oil production in 2028, with moderate positive spillovers to non-natural resource GDP. According to the International Monetary Fund (IMF), the prospect of offshore oil production in the coming years presents an opportunity to increase growth and reduce poverty while increasing public investment to address infrastructure gaps.
• The agency expects GDP to jump to as high as 43.5% in the next few years, up from 1.5% in 2025. However, the expected oil boom also poses significant macrofiscal risks if not managed within a robust and credible policy framework

(Sources: World Oil, Upstream Online & IMF)

• A weaker-than-expected June jobs report could renew debate at the U.S. Federal Reserve (Fed) over how to assess the labour market at a time when the number of people available to work may also be declining due to an ageing population and tighter immigration policies.
• U.S. employers added 57,000 jobs in June, while job gains for April and May were revised down by a combined 74,000. Although the unemployment rate edged down to 4.2% from 4.3%, the decline was largely driven by 213,000 fewer people reporting themselves as unemployed, not stronger hiring. Instead, the number of people reporting they had jobs fell by around half a million, as many left the labour force altogether.
• The labour force decreased by about 700,000 in June and has declined by about 1.3 million since President Donald Trump returned to office. Around 1.5 million fewer people were employed in June than in January 2025, raising concerns that a shrinking workforce could weigh on future economic growth despite productivity gains.
• The weaker labour market data comes as the Fed continues to balance persistent inflation against the risk of slower growth. According to San Francisco Fed President Mary Daly, uncertainty over whether inflation or weaker growth poses the greater risk supports waiting before making further interest rate decisions. Following the report, financial markets pared expectations for additional Fed rate hikes.
• If history proves an accurate guide, June's weaker-than-expected first look ​could well be revised sharply lower in the reports for July and August. Policymakers are also assessing whether stronger productivity growth, supported by artificial intelligence, can offset a shrinking workforce and flat hours worked.

(Source: Reuters)

• Canada's manufacturing sector expanded further in June as production and employment increased, but not all was positive for the sector as intensifying supply shortages helped lift cost inflation to a near four-year high.
• The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) edged up to 53.0 in June from 52.9 in May, marking the sixth consecutive month that the index remained at or above the 50-point threshold, signalling continued expansion in manufacturing activity.
• According to S&P Global Market Intelligence, Canada's manufacturing economy on the surface enjoyed a positive June with solid gains in output and new business supporting a third consecutive month of employment growth. However, manufacturers also reported a decline in export sales as global demand remained uneven.
• Growth continued to be supported by stockpiling activity, as firms and their customers sought to build inventories amid substantial supply-side disruption. Suppliers' delivery times lengthened to the greatest extent since September 2022, reflecting shipping delays linked to the Middle East conflict.
• High oil prices, rising transportation costs and U.S. tariffs continued to push up costs. The input price index rose to 67.2 from 66.5 in May, its highest reading since July 2022, while manufacturers also increased selling prices to help offset higher operating costs.
• Despite stronger production and hiring, business confidence slipped to a three-month low, as firms remained concerned that elevated input costs, supply shortages and trade-related uncertainty would continue to weigh on growth over the coming months.

(Source: Reuters)

• Corporate developments dominated the Jamaica Stock Exchange (JSE) during the period, with a combination of regulatory actions, reporting delays and sweeping C-suite transitions shaping the corporate news flow.
• Regulatory compliance took centre stage as the JSE immediately suspended trading in the shares of Kintyre Holdings (KNTYR) and Atlantic Hardware & Plumbing (AHPC), given their audited financials being 91 days overdue. In contrast, Blue Power Group is proactively managing a comparatively minor reporting delay of its own aiming to publish its audited financial statements by July 13. The company attributed the late submission to delays in receiving the audited financials of an associated company.
• Elsewhere, Derrimon Trading Company (DTL) advised investors that publication of its FY2025 Annual Report has been deferred to late September, extending its corporate reporting timetable.
• Alongside these disclosure developments, several listed companies announced leadership changes. At CAC 2000, Executive Chairman Steven Marston has assumed the additional role of Chief Executive Officer following the departure of Gia Abraham. The wave of executive changes extended across the market, with A.S. Bryden appointing Shelley Sylvester as Group Chief Financial Officer, WIPT announcing the departure of Senior Vice President Danville Walker, and Caribbean Assurance Brokers strengthening its board with the appointment of Noel Williams as a director.
• Collectively, these developments underscore the continued importance of strong corporate governance, timely financial disclosure and the smooth execution of leadership transitions, all of which could influence market sentiment and confidence in the affected companies.

(Sources: JSE & NCBCM Research)

• The Dominican Republic has become the first country in Latin America and the Caribbean to integrate parametric insurance into its adaptive social protection system. Developed through the Tripartite Agreement between the United Nations Development Programme (UNDP), the Insurance Development Forum (IDF), and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) through the InsuResilience Solutions Fund (ISF), the initiative will initially protect 3,030 climate-vulnerable households enrolled in a conditional cash transfer programme.
• The insurance product uses a parametric mechanism that automatically triggers payouts when predefined thresholds for excessive rainfall or strong winds are reached, using independently verified satellite and meteorological data.
• The new insurance policy, activated on June 15th, provides an additional layer of protection for households most exposed to climate-related events. The objective is not simply to compensate losses after a disaster but to ensure that financial assistance reaches affected families quickly, allowing them to cope with shocks before they escalate into long-term crises.
• By strengthening the government’s ability to respond rapidly, the programme transforms public support into timely and tangible assistance for communities facing extreme weather events. This approach reflects a growing recognition that climate resilience depends as much on speed and preparedness as on recovery.
• For AXA Climate, a member of the consortium that designed the solution, this milestone demonstrates how insurance can move beyond traditional compensation mechanisms to become a proactive tool for social resilience. By embedding risk financing directly into social protection systems, governments can deliver faster and more predictable support to vulnerable populations exposed to growing climate risks.
• Beyond its immediate impact, the initiative offers a potentially scalable model for other countries seeking to strengthen climate resilience. As climate-related disasters become more frequent and severe, governments are increasingly exploring ways to build anticipatory systems that protect people before vulnerabilities turn into humanitarian or economic crises.
• Consequently, this initiative demonstrates how insurance can strengthen preparedness, support fiscal resilience and accelerate recovery. More importantly, it shows that climate resilience is not only about rebuilding after a disaster, but it is also about ensuring that people have the tools and support they need before disaster strikes.

(Source: Climate.AXA)