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Midweek Update: Several Leadership Changes by Listed Entities Published: 03 July 2025

  • The first week of July has seen several leadership changes or board appointments for listed companies Kintyre Holdings (formerly iCreate Limited), Access Financial Services, and Dolphin Cove.
  • Kintyre’s Chairman, President & CEO Mr. Tyrone Wilson, has formally taken on the additional role of Chief Executive Officer of Visual Vibe, a wholly owned subsidiary. In this capacity, he will spearhead the expansion of the company’s digital screen network, drive investments to support new location rollouts, and diversify service offerings, including entry into new geographic markets. Additionally, Ms. Jasmin Aslan will join Kintyre Holdings as Chief Business Officer while Mr. Andrew Wildish will resign as Chief Investment Officer effective June 30, 2025. The company’s investment will transition to Tyrone Wilson, supported by the Board’s Investment Committee, chaired by Mr. Nick Rowles-Davies.
  • For Access, Mr. Marcus James concluded his one-year leave of absence and will resume his position as Executive Director on the boards of Access Financial Services and Embassy Loans Inc. Meanwhile, Mr. Michael Shaw will remain Chairman of both organisations.
  • Lastly, on July 30th, Dolphin Cove’s board saw the removal of Eduardo Albor Villanueva and three other Mexican directors. The leadership changes follow a shareholder request under Article 95(h) of the company’s Articles of Incorporation. Following the departures, former chairman Stafford Burrowes and Steven Robert Strom were appointed as directors effective July 1st.
  • The swathe of changes in DCOVE’s board occurred amid the Chapter 11 bankruptcy filing for its parent company, World of Dolphins, which followed a similar filing by its intermediate parent, Dolphin Discovery, in Mexico. Since the filing, DCOVE’s share has declined by 37.1%, closing at $12.40 on July 2, 2025. At this price, the stock is trading at a price-to-earnings (P/E) ratio of 23.2x, which is above the Junior Market “Others” average of 20.7x

(Sources: JIS, Compiled by NCBCM Research)

CAF Boosts Support for the Caribbean: Approvals for The Bahamas, Barbados, Saint Lucia & Antigua Financings Published: 03 July 2025

  • The Caribbean region was featured prominently during a Board of Directors meeting of the CAF (Spanish acronym for Andean Development Corporation) - Development Bank of Latin America and the Caribbean, held in Seville, Spain, with several landmark developments in its deepening partnership with the region. 
  • A record US$5.4Bn in development financing was approved for operations across Latin America and the Caribbean. These include energy sector reforms and the green energy transition, support for Small and Medium-sized Enterprise (SME) development, railway infrastructure expansion, agriculture, and sustainable urban development. 
  • In keeping with its commitment to channelling increased development financing to the Caribbean, CAF approved its first sovereign loan to The Bahamas. The loan will support key objectives outlined in the Bahamas National Energy Policy, including the modernisation and digitalisation of the electricity network, enhanced integration of renewable energy sources, improved affordability, and strengthened institutional capacity in the energy sector.
  • The CAF also approved the issuance of Series C shares for the incorporation of Saint Lucia as a new shareholder country and the issuance of increased Series C shares to Antigua and Barbuda. Once the internal incorporation process is complete, Saint Lucia will be able to access CAF’s financial, technical, and knowledge services in support of its development priorities. Additionally, with the increase in Series C shares, Antigua and Barbuda will be able to access a larger envelope of development financing to advance its national development priorities.
  • CAF’s Board of Directors also endorsed Barbados’ request to transition from Series “C” to Series “A” shareholder status, the highest level of membership. This will enable Barbados to appoint a Director to CAF’s Board and deepen its participation in the institution. Upon completion of the transition process, Barbados will join Trinidad and Tobago as a full member of the bank.
  • The meeting was also historic in that it marked the first time a CARICOM country, Trinidad and Tobago, chaired CAF’s Board of Directors meeting. 

(Source: CAF)

Brazil’s Central Bank Needs Time After Signalling Pause in Rate Hikes Published: 03 July 2025

  • Brazil's central bank signalled a "very prolonged" pause in its interest rate-hiking cycle because policymakers need more time to assess whether data are moving in the desired direction, a senior official said on Wednesday, July 2, 2025.
  • The bank's monetary policy director, Nilton David, stressed that the decision to halt the tightening cycle reflects the need to wait for signs that excess economic growth beyond potential has been absorbed, allowing inflationary pressures to ease.
  • "We do believe the length of time (rates remain unchanged) has an effect," he told an event hosted by Citi. David added that the process inevitably involves a slowdown in Latin America's largest economy, which has been consistently surprising to the upside for four years. "We are absolutely convinced that monetary policy works," he said. "It's only a matter of time, and things will converge."
  • The central bank raised its benchmark interest rate by 25 basis points (bps) last month to a near two-decade high of 15% and signalled it would pause tightening at its next policy meeting in July. Since September, cumulative hikes have totalled 450 basis points to tame annual inflation, which has been long running above 5%, exceeding the 3% target.
  • Looking ahead, Fitch anticipates that the BCB will begin monetary policy easing before the end of 2025, with the central bank set to cut rates by 25bps to 14.75% in December and by a further 275bps to 12.00% by end-2026. However, the hawkish forward guidance that accompanied June’s rate hike means that risks to this forecast are tilted to the upside.

(Sources: Reuters & Fitch Connect)

US Job Market Surprises with Increased Openings in May Published: 03 July 2025

  • U.S. job openings unexpectedly increased in May, but a decline in hiring added to signs that the labour market had shifted into lower gear amid uncertainty over the Trump administration's tariffs on imports, with a 90-day pause on higher reciprocal duties ending.
  • Job openings, a measure of labour demand, were up 374,000 to 7.77Mn by the last day of May, the Labour Department's Bureau of Labour Statistics said in its Job Openings and Labour Turnover Survey, or JOLTS report. Economists polled by Reuters had forecast 7.30Mn vacancies.
  • Economists were mostly dismissive of the surprise rise in job openings, noting that the bulk of the increase was in the leisure and hospitality sector. Hiring, however, decreased by 112,000 to 5.50Mn, with declines concentrated in healthcare and social assistance, manufacturing, as well as professional and business services. But hiring surged by 107,000 in accommodation and food services. Ultimately, the hire rate fell to 3.4% from 3.5%.
  • Economists said the JOLTS report suggested the Federal Reserve could wait until September to resume cutting interest rates. The U.S. central bank last month left its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December.

(Source: Reuters)

Eurozone Inflation Picks Up to ECB Target Published: 03 July 2025

  • Euro zone inflation edged up last month to the European Central Bank's 2% target from 1.9% a month earlier, driven primarily by services inflation, while softer prices in energy and industrial goods helped moderate the overall increase.
  • Before last month’s increase from the 1.9% low, inflation fell from as high as 2.5% in January 2025. Anticipating this fall, the ECB has lowered interest rates from record highs by two full percentage points over the last year, and debate has turned to whether it needs to ease policy further to prevent inflation from becoming too low, given weak growth.
  • Last month, services inflation edged up to 3.3% from 3.2%, as prices rose 0.7% the month, supporting the argument of policy hawks that domestic inflation remains uncomfortably high, reducing the risk of undershooting.
  • The development in services costs, which have been stubbornly high for years, is pivotal as it has raised fears that domestic inflation could get stuck above 2.0%.
  • Financial investors expect one more ECB rate cut to 1.75% towards the end of the year, then anticipate a period of steady rates before possible increases towards the end of 2026.
  • Core inflation, a closely watched measure that excludes volatile food and fuel prices, meanwhile, held steady at 2.3%, in line with expectations.
  • The outlook, however, is complicated by the fact that it depends on the outcome of a trade dispute between the EU and the U.S. President Donald Trump's administration. For now, the conflict has reduced price pressures because it has sapped economic confidence, pushing up the value of the euro and lowering energy prices.

(Source: Reuters)

BOJ Maintains Policy Rate at 5.75% Published: 02 July 2025

  • Following its Monetary Policy Committee (MPC) meetings on June 25 and 26, 2025, the Bank of Jamaica (BOJ) announced that it has maintained its policy rate at 5.75%. This pause follows a previous 25bps rate cut in May 2025. The decision was made on the balance of a run of stable inflation since last September and uncertainties from global trade policies, interest rate paths in major economies, and recent geopolitical tensions that pose upside risks to inflation.
  • Inflation has remained stable within the Bank’s target range of 4.0 to 6.0% since September 2024. Annual headline inflation in May 2025, as reported by the Statistical Institute of Jamaica (STATIN), was 5.2%, in line with the outturn in May 2024. Core inflation (which excludes the prices of agricultural food products and fuel from the consumer price index (CPI) was 4.6% for May 2025, remaining below the upper limit of the target since July 2023.
  • The BOJ expects inflation to remain within its target range of 4.0% to 6.0% over the next eight quarters. The private sector’s expectations for future inflation, a key driver of headline inflation, have stabilised. Meanwhile, international drivers of headline inflation, such as grains, liquefied natural gas, and oil prices, have generally trended down.
  • Still, risks to the inflation forecast are skewed to the upside, which means that inflation could be higher than projected. Most notably, geopolitical tensions, if prolonged or intensified, could cause upward pressures on international commodity prices. Additionally, while the direct impact of recent changes in global trade policy on domestic inflation is expected to be moderate, the second-round impact of these policies could be higher than anticipated.
  • That said, the MPC communicated that it would continue to monitor the incoming data and adjust its policy accordingly at subsequent meetings.

(Source: BOJ)

Caricris Reaffirms ‘Good’ Creditworthiness Ratings to GK And its Bond Issue of Up to J$3Bn Published: 02 July 2025

  • Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the regional scale ratings of GraceKennedy Limited (GK) at CariA (Local and Foreign Currency Ratings) and the Jamaica national scale ratings at jmAA (Local and Foreign Currency Ratings).
  • CariCRIS has reaffirmed the Group’s regional scale rating of CariA (Local Currency Rating) for its bond issue of up to J$3Bn, as well as its Jamaica national scale rating of jmAA (Local Currency Rating). The CariA rating reflects a good level of creditworthiness for both the obligor and the debt obligation when compared to others within the Caribbean. The jmAA rating indicates a high level of creditworthiness relative to other issuers and debt obligations within Jamaica.
  • CariCRIS also expects continued strong demand for the Group’s food products and services, supported by new product launches and enhanced distribution channels. The demand is expected to be bolstered by economic growth conditions in its main market, Jamaica. Notwithstanding this, the Group’s performance may be adversely affected by lingering geopolitical pressures and impending trade tensions with high levels of policy uncertainty.
  • The ratings and/or outlook could improve if there is an enhancement in the Government of Jamaica’s creditworthiness. Additionally, they could also improve if the company sustained financial performance indicators such as a PAT margin of 5.5% or higher, an operating profit margin of 7.5% or higher, and a return on assets (ROA) exceeding 5%, each maintained for at least two consecutive years.
  • Conversely, a downgrade could result from significant financial or operational deterioration, including sustained revenue decline, profit margin compression, rising debt levels, weakened debt service capacity, or a drop in the Government of Jamaica’s creditworthiness.

(Source: CariCRIS)

Dominican Republic Leads Caribbean in Egg Exports Published: 02 July 2025

  • The Dominican Republic has emerged as the Caribbean leader in proportional egg exports, dedicating 20.73% of its egg production, about 820 million units, to international trade, according to the Datos Productivos Latam 2024 report by the Latin American Egg Institute (ILH) and the Latin American Poultry Association (ALA).
  • Pavel Concepción, president of the Dominican Poultry Association (ADA), emphasised that the country accounts for 45.77% of all Caribbean egg exports, outperforming larger Latin American economies.
  • Additionally, the Dominican Republic boasts the lowest average egg price on the continent, just US$1.87 per dozen. This stands in stark contrast to prices in countries like the USA (US$4.95), Uruguay (US$5.55) and Chile (US$3.86). The affordability of eggs has spurred significant domestic consumption, with Dominicans consuming an average of 293 eggs per person annually, placing the country fifth in Latin America for per capita egg consumption.
  • Concepción also highlighted the growth of the poultry industry, with current chicken production reaching 22.5 million birds per month, one million more than in 2024, fully meeting national demand with recognised quality standards.
  • Looking ahead, the industry plans to invest more than RD$7Bn by 2025. Projects include a refrigeration plant with capacity for eight million pounds of chicken and an egg processing facility to produce liquid and powdered egg products for local and global markets. The ILH has recognised the Dominican Republic as a model in Latin America, noting its combination of high production, low prices, and strong consumption, where eggs represent just 1.76% of household spending.

(Source: Dominican Today)

Chile's Economic Activity Misses Forecasts in May Despite Mining Boost Published: 02 July 2025

  • Chile's economic activity rose 3.2% in May when compared to a year earlier, driven by a strong performance of its key mining sector, but still landed below market forecasts, central bank (BCCh: Banco Central de Chile) data showed on Tuesday, July 1, 2025.
  • The IMACEC index1, which accounts for about 90% of the Andean country's gross domestic product, accelerated from the 2.5% year-on-year increase reported in April but missed the 3.7% expansion forecast by economists polled by Reuters.
  • The mining sector of the world's largest copper producer posted the main activity jump as it grew 10.3% year-on-year, boosted by higher output of the red metal, the bank said. "The (annual) IMACEC result was explained by the growth of all its components, with the performances of services and mining being the highlights," it added in a statement.
  • On a monthly basis, economic activity in the Andean country was down 0.2%, the bank said. "Economic activity remains solid, despite the modest month-to-month decline in May, which followed a decent run," Pantheon Macroeconomics' chief Latin America economist, Andres Abadia, said. "The outlook remains positive."
  • After recording a 2.6% growth for 2024, Fitch Solutions forecasts growth to come in at 2.4% this year and 2.3% in 2026. This forecast is underpinned by the expected continued recovery of private consumption, with consumer confidence and retail sales looking strong and robust mining exports.
  • Notably, Fitch’s mining production outlook remains solid for this year, and the state mining company Cadelco is partnering with the private sector on new lithium projects. However, elevated inflation poses some headwinds in 2025, as neither Fitch nor the BCCh expects inflation to fall to the 4.0% upper tolerance range by year-end, but inflation should moderate by year-end.

______________________

1Spanish acronym for Monthly Index of Economic Activity

(Sources: Reuters and Fitch Connect)

China Ready to Discuss Tariffs and Subsidies with U.S. at WTO Published: 02 July 2025

  • China is ready to have discussions about trade policies, including tariffs and subsidies, that Washington has identified as obstacles to reforming the World Trade Organisation, a senior delegate at China's mission to the World Trade Organisation (WTO) said.
  • China had heard "every word" the U.S. had said at the WTO about its trade practices and is open to discussing tariffs, industrial policy and some benefits it gains from its developing country status, as part of broader conversations on reform ahead of a 2026 ministerial meeting in Cameroon, the delegate said.
  • Washington, however, argues that there can be no meaningful WTO reform until China and other major economies relinquish privileges known as Special and Differential Treatment (SDT) granted to developing countries, which the U.S. says give them an unfair advantage.
  • The delegate said China's developing country status was non-negotiable, but it might forgo SDT in upcoming negotiations, as it did recently on fisheries and domestic regulations. However, former WTO spokesperson Keith M. Rockwell, a senior research fellow at the Hinrich Foundation, was sceptical that China would fully relinquish SDT in areas like agriculture.
  • The U.S. opposes countries picking and choosing SDT benefits and wants China to completely renounce them. The delegate said China was open to discussing subsidies to ensure a fairer playing field, provided it was met with goodwill in return. But it would not accept any attempts to try to change its economic system, they added.

(Source: Reuters)