• The U.S. launched a fresh round of strikes on Iran early Wednesday morning, hours after President Donald Trump warned military strikes would intensify next week if Tehran does not cooperate in peace talks. U.S. Central Command (CENTCOM) said in a post on X that it began launching a wave of strikes at 6 a.m. ET, describing them as “designed to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz.”
• CENTCOM said the strikes were completed at 7:30 a.m. ET, with precision munitions launched against Iran’s coastal defence systems and cruise missile storage and launch sites on Greater Tunb Island, located in the Persian Gulf near the Strait of Hormuz. The strikes followed further attacks on Tuesday, while Tehran has launched attacks on multiple Gulf countries.
• In an interview with Fox News, Trump hinted the conflict was more likely to intensify than de-escalate as a fragile ceasefire agreed last month continues to fracture. “We’re going to hit them very hard tonight,” he said. “We’re going to hit them hard tomorrow night. We’re going to hit them really hard the night after.”
• Trump added that U.S. forces would target key Iranian infrastructure next week without a diplomatic breakthrough, warning that “next week comes the power plants” and “next week comes the bridges.” He had threatened to impose a 20% levy on cargo shipped through the Strait of Hormuz earlier in the week before abandoning that demand, saying Gulf states would instead invest in the U.S. as repayment.
• Analysts warned the conflict risks becoming a drawn-out “forever war.” Mike Rosenberg of IESE Business School said “it seems we are no closer to a settlement,” arguing the terms of the Islamabad Memorandum signed by Trump on June 14 were unrealistic and that the most likely outcome is a permanent ceasefire negotiated by Pakistan without nuclear guarantees.

(Source: CNBC)

• Trading in the shares of Derrimon Trading Company Limited (DTL) has resumed on the Jamaica Stock Exchange (JSE) after the company submitted its outstanding audited financial statements for the year ended December 31, 2025, and its unaudited first-quarter 2026 financial results on July 10th. The suspension, which was imposed after the filings became overdue, was lifted on July 13th
• Derrimon disclosed that Delayed Financials originated from its implementation of a new Enterprise Resource Planning (ERP) system, which began in 2021 after delays caused by the COVID-19 pandemic. Following a pilot rollout in late 2022, the company accelerated the migration to the new platform in 2023 after a cybersecurity incident compromised its legacy systems. Configuration and data-related issues, including errors involving unit costs and units of measure, emerged after the system was deployed across all locations in January 2024. However, these were undetected until a comprehensive inventory revaluation in late 2025 uncovered the deficiencies.
• Derrimon disclosed that a comprehensive audit and 10-month remediation exercise identified and corrected the configuration issues within its ERP system that had distorted inventory costs, margins and financial reporting across its retail operations between 2023 and 2025. The company also completed a full inventory revaluation and transitioned its inventory costing methodology from average cost to First In, First Out (FIFO)¹.
• Given the financial restatements, for FY2025, Derrimon reported a net loss of $2.58Bn, largely driven by a $3.77Bn inventory write-off arising from significant variances between physical inventory counts and the perpetual inventory records. Cost of sales was revised to $10.48Bn, reducing the year's gross profit margin to 3.24%.
• With the corrective measures now implemented, Derrimon reported a significant recovery in its first-quarter 2026 performance. Gross profit more than doubled, increasing 120.9% year-over-year to $944.20Mn and gross margin of 31.9%, up from 9.9%. Net loss narrowed 73.0% to $169.26Mn from a restated loss of $628.09Mn in the prior-year period. At the parent company level, DTL returned to profitability, recording net earnings of $77.10Mn compared with a $611.37Mn loss a year earlier.
• Management said the improved results reflect the restoration of normal gross profit margins within its Sampars and Select Grocers retail operations following the ERP corrections, as well as the early benefits of cost rationalisation, operational restructuring and strengthened governance. The company has also appointed new divisional leadership, restructured its finance function and indicated that debt reduction through improved operating cash flows and selective asset monetisation remains a key strategic priority.
• On the first trading day following the end of its suspension, DTL's shares closed at J$1.28, which is 1% below the J$1.46 before suspension. At its current price, the stock traded at a price-to-book ratio of 4.27x, above the Junior Market Distribution Sector average of 3.95x.

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¹Average cost values inventory by assigning every unit the same weighted average cost, calculated by dividing the total cost of goods available for sale by the total number of units available. FIFO (First In, First Out) assumes the oldest inventory purchased is sold first, meaning the earliest costs are recognised in cost of goods sold while newer inventory remains on the balance sheet.

• The latest report from the Economics and Statistics Office estimated Cayman’s annual inflation rate at 2.8% at the end of March 2026, up from 1.3% in the previous quarter. This increase in the annual Consumer Price Index (CPI) is not unexpected, given the global energy shock that unfolded since the end of February 2026, which placed upward pressure on consumer prices.
• The West Texas Intermediate (WTI) spot price for a barrel of oil increased to US$102.86 on 31 March 2026, up from US$71.87 a year earlier. The sharp rise in crude oil prices would have contributed to higher consumer prices in the Cayman Islands through multiple channels. However, the pass-through from global energy prices to local electricity and fuel prices typically occurs with a lag of several months.
• While the report shows electricity prices up by 5.1% year-on-year, transport and fuel prices fell over the period. But, in addition to the direct increase in electricity costs, there would also have been indirect increases to most goods in supermarkets because of higher shipping and logistics costs. Furnishings, household equipment and routine household maintenance also saw prices rise by 6.7%.
• Cayman imports more than 90% of the goods and food it consumes, and the report shows widespread price increases in import-sensitive categories, including clothing, household goods, food and communication services and equipment.
• Another contributing factor was the increase in the minimum wage, which took effect on January 1. This resulted in a 6.7% increase in the prices of Furnishings, Household Equipment and Routine Household Maintenance, driven by a 45.8% rise in the index for employed staff (paid staff privately employed). 
• The increase in wages may also have contributed to the 5.1% year-on-year rise in prices for restaurants and hotels during the first quarter of 2026.
• However, the report identified the principal driver as “a 6.5% increase in the cost of accommodation services (local and abroad).” In addition, the quarter-on-quarter increase in this category was also significant, indicating that price pressures intensified during the first three months of 2026.
• Cayman’s CPI in the first quarter of 2026 was 0.8% higher than in the fourth quarter of 2025. Cayman only reports inflation numbers every quarter – unlike the US or the UK, where inflation numbers are released monthly. As a result, changes in Cayman’s reported inflation rate may appear more pronounced, as three months of price movements are reflected in each release rather than being spread across monthly updates.
• Although global energy prices subsided in Q2 and the West Texas Intermediate oil price hovers around US$80 per barrel, it remains to be seen if next quarter’s inflation report will show lower inflation. However, there are upward risks as geopolitical tensions re-escalate, resulting in higher oil prices.

(Source: Cayman Compass, NCBCM Research)

• Mexico's annual inflation rate fell in June for the third consecutive month, to its lowest level since December 2020, official data showed on Thursday. Annual prices in Latin America's second-largest economy slowed more than ​expected and settled into the central bank's target range, easing pressures to hike rates.
• Consumer ​prices rose 3.37% in the year through to June, the national statistics ⁠agency said, down from a 3.94% increase the prior month. In a ​Reuters poll, economists had expected a 3.52% increase.
• The larger-than-expected decline "will be welcomed by Banco de Mexico (Banxico) and means ​that interest rates will remain on hold in the near term," Capital Economics analyst Kimberley Sperrfechter said in a note. The annual core rate stood at 4.03%, slightly above the Mexican central bank target range ​of 3%, plus or minus a percentage point.
• Banxico held its benchmark interest rate at 6.5% late in June, in a unanimous decision, amid inflation ‌concerns ⁠linked to foreign trade policies and geopolitical conflicts. The central bank is expected to publish the minutes of that meeting later Thursday. The authorities will likely keep the rate unchanged until they see more convincing evidence that core inflation is ​converging toward the ​target," Pantheon Macroeconomics' ⁠analysts said.
• The market expects the benchmark rate to remain unchanged for the rest of this year ​and in 2027. However, opinions are divided on whether the ​next move ⁠will be a cut or a hike.

(Source: Reuters)

• President Donald Trump said the United States was reinstating its blockade of Iranian shipping in the Gulf and would keep the Strait of Hormuz open for a fee while warning that U.S. forces would strike Iran again “very hard” in the coming hours after the two sides exchanged missile and drone attacks.
• The hostilities followed Iran’s weekend announcement that it was closing the vital waterway, casting further doubt on an interim deal to halt the war and driving oil prices higher. Writing on Truth Social, Trump said the U.S. would collect a 20% toll on all cargo shipped through the strait.
• S. Central Command said it began a third consecutive night of strikes against Iran at Trump’s direction. Iran’s semi-official YJC news agency reported seven explosions in the southern port city of Bandar Abbas and two more on Kish Island. Trump also threatened to strike Mount Kolang Gaz La, or Pickaxe Mountain, a heavily fortified site near the damaged Natanz enrichment facility that experts say is beyond the reach of the most powerful U.S. bunker-buster bombs.
• Iran’s state TV said its army targeted a “hostile” U.S. vessel with cruise missiles and struck U.S. facilities in Kuwait with drones, while the Revolutionary Guards said they shot down a U.S. MQ-1 drone over Hormuz. Foreign Minister Abbas Araqchi wrote that Tehran was the guardian of the strait and would remain so “forever,” adding that “20% is of course too much. We will be fair.”
• The U.S. Navy-led Joint Maritime Information Center said the blockade would take effect at 20:00 GMT on Tuesday and apply to all vessel traffic regardless of flag, covering the entire Iranian coastline including ports and oil terminals. It said neutral transit passage to non-Iranian destinations would not be impeded and that humanitarian shipments would be permitted subject to inspection.
• Oil prices jumped more than 9% on Monday, with Brent futures posting their biggest single-day dollar gain since April 2. Higher energy prices are politically sensitive for Trump ahead of November midterm elections that will determine whether his Republican Party retains control of Congress.

(Sources: Reuters)

• China’s economy likely slowed in the second quarter as weak domestic demand offset resilient exports, fueling expectations for fresh policy stimulus. Strong AI-driven industrial output contrasts with soft consumption and private investment amid a prolonged property downturn.
• GDP is forecast to have grown 4.5% year-on-year in April-June, cooling from 5.0% in the first quarter, a Reuters poll of 54 economists showed — down from the 4.7% projected in April and at the low end of the official 4.5-5% full-year target.
• Exports, due Tuesday, likely grew at a slightly slower but still-solid pace in June as firms front-loaded U.S. shipments ahead of possible new tariffs. Investors are watching an expected late-July Politburo meeting for stimulus signals, though analysts expect no aggressive action unless growth slows more sharply.
• Growth is projected to edge up to 4.6% in the third quarter before easing to 4.5% in the fourth. For 2026, GDP is seen cooling to 4.6% from 5.0% in 2025, then to 4.4% in 2027. On a quarterly basis, the economy likely expanded 0.9% in the second quarter, down from 1.3% in January-March. Second-quarter GDP and June activity data are due at 0200 GMT on July 15.
• Analysts expect China to lean on fiscal policy, with the government speeding up spending and a budget deficit of around 4% of GDP for 2026. The central bank is seen holding its seven-day reverse repo rate for the rest of 2026, with a possible 20-basis-point cut to the reserve requirement ratio in the fourth quarter.

(Sources: Reuters)

• Passenger traffic at Jamaica’s two international airports declined during the first half of 2026 as the country continued to recover from the effects of Hurricane Melissa and other challenges affecting the tourism sector.
• Figures released by Mexico-based airport concession operator, Grupo Aeroportuario del Pacífico (GAP), show that Sangster International Airport¹ handled 1.91Mn passengers between January and June. This was a 26.7% decline compared with the 2.60Mn passengers recorded during the same period in 2025. The reduction has been linked largely to the impact of Hurricane Melissa, which reduced hotel room availability as repair work at several tourism properties is ongoing.
• Meanwhile, Norman Manley International Airport recorded a smaller decline, processing 850,200 passengers during the six-month period. That represented a 3.6% decrease from the 881,500 passengers handled during the corresponding period last year. Officials attributed the decline at the Kingston-based airport to lower visitor arrivals from some markets in the United States, Jamaica’s largest tourism source market.
• Despite concerns over the closure of low-cost carrier Spirit Airlines on May 2, GAP said the impact on Jamaica’s air connectivity was limited. Before ending operations, the airline accounted for approximately 3.5% of passenger traffic through Kingston and 2.6% through Montego Bay. Tourism stakeholders remain optimistic about a recovery, pointing to new and expanded air service expected to improve Jamaica’s connectivity. An example of this includes low-cost carrier Wingo, launching a new route connecting Medellín, Colombia, with Montego Bay.
• Jamaica is also expected to benefit from expanded service by Porter Airlines, which plans to introduce nonstop flights from Toronto, Ottawa and Hamilton during the 2026–2027 winter tourism season. Tourism officials said the restoration of hotel capacity, along with new air routes, should help support a rebound in visitor arrivals and airport passenger traffic in the coming months.

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¹Sangster International Airport, located in Montego Bay, is Jamaica’s busiest airport and serves as the main gateway for visitors travelling to the island’s major tourism destinations, including Ocho Rios and Negril.

(Sources: Caribbean National Weekly)

• The Georgetown Chamber of Commerce and Industry (GCCI) and the Trinidad and Tobago Chamber of Industry and Commerce signed a Memorandum of Understanding (MoU) committing both organisations to closer cooperation on bilateral trade. The MOU jointly addresses non-tariff barriers affecting Guyana's exports to Trinidad and Tobago.
• According to GCCI President Kathy Smith, the MoU is geared towards addressing long-standing trade obstacles by identifying and resolving barriers to market access and other challenges for the mutual benefit of businesses in both countries.
• The agreement also provides for collaboration beyond trade barriers, including joint projects, shared research on sectors with strong development potential, and advocacy with regulatory agencies and other key stakeholders to expand economic and social opportunities.
• T&T Chamber President Karen Yip Chuck described the agreement as the beginning of a long-term partnership, aimed at creating an enduring framework for the private sectors of both countries to identify challenges, advocate for solutions and unlock new business opportunities.
• Officials from both chambers noted that discussions on bilateral trade issues have been ongoing since 2022, particularly around easing the export of Guyanese agricultural products into the Trinidad and Tobago market. A working group will be established to monitor implementation and ensure the agreement's objectives are achieved.
• The agreement signals a renewed private-sector effort to strengthen Guyana–Trinidad and Tobago trade relations, with a particular focus on reducing non-tariff barriers that have constrained regional trade and market access.

(Source: Kaieteur News)

• Trinidad and Tobago's bid to open a new frontier in deepwater energy exploration has received a major endorsement from ExxonMobil. The company has nearly completed its first seismic acquisition campaign in Block TTUD-1 and is now preparing to evaluate the block's hydrocarbon potential.
• According to ExxonMobil Trinidad and Tobago Deepwater Limited President, Paul Riley, the company achieved its objective of commencing seismic acquisition operations within six months of signing the Production Sharing Contract for Block TTUD-1. Riley also credited the Ministry of Energy and the Environmental Management Authority (EMA) for facilitating a swift regulatory approval process.
• With the seismic acquisition programme nearing completion, ExxonMobil will shift its focus to processing and interpreting the seismic data, followed by subsurface evaluations and prospect maturation studies to identify drilling targets and assess commercial viability. Decisions on possible exploration wells will be made only after these studies are completed.
• ExxonMobil also welcomed the Government's support for the farm-in arrangement with Anadarko Caribbean Limited, noting that the partnership strengthens the venture's technical and operational capabilities. During its first contract year, the company paid US$3.66Mn to the Ministry of Energy, including US$935,000 for training, research and development, and scholarship programmes for Trinidad and Tobago nationals.
• Energy Minister Dr. Roodal Moonilal described ultra-deepwater exploration as the next chapter in Trinidad and Tobago's energy sector, noting that Block TTUD-1 has significant hydrocarbon potential. He added that exploration in the block could unlock opportunities in adjacent acreage and serve as a catalyst for further investment in the country's ultra-deepwater resources.
• The project forms part of Trinidad and Tobago's strategy to reverse declining production from mature oil and gas fields, secure future gas supplies for the downstream petrochemical and LNG industries and attract new upstream investment.

(Source: Trinidad Express Newspapers)

• Although the North Atlantic Treaty Organisation (NATO) summit in Ankara on July 7-8 passed relatively smoothly and reaffirmed NATO's "ironclad commitment" to collective defence under Article 5, the deep-rooted disagreements between the United States (US) and Europe over Iran, Greenland, Ukraine and defence spending remain firmly in place. As a result, BMI expects Transatlantic tensions to persist throughout the Trump presidency, reinforcing expectations that European members will increasingly prepare for reduced US involvement in NATO.
• Against this backdrop, European countries are expected to continue increasing defence spending to reduce their reliance on the US, supported by long-term commitments to raise military expenditure and invest in new defence capabilities such as the Deep Precision Strike missile programme. However, the pace of this build-up will likely remain constrained by high fiscal deficits, elevated public debt burdens and rising age-related spending pressures, limiting Europe's ability to quickly address US concerns over burden-sharing.
• The summit also reaffirmed strong Western support for Ukraine by formalising EUR70Bn in military assistance commitments for 2026 and signalling comparable support for 2027, providing Kyiv with the resources needed to continue resisting major Russian advances. While President Trump's decision to allow Ukraine to manufacture Patriot interceptor missiles should ease tensions in the near term, uncertainty over future US policy and Trump's relatively volatile approach to Russia and Ukraine will continue to weigh on the outlook.
• At the same time, President Trump's hardline positions on Iran, renewed claims over Greenland and continued review of US troop deployments in Europe remain key sources of downside risk for Transatlantic relations. Any renewed escalation in the US-Iran conflict, combined with pressure on European allies to provide greater military support or further reductions in the US military footprint in Europe, could quickly reignite tensions within NATO.
• Meanwhile, Türkiye is set to become an increasingly important player within NATO's defence-industrial base, as improving US-Türkiye relations, the potential return to the F-35 fighter jet programme, and rapidly expanding weapons exports strengthen Ankara's strategic importance. With defence exports reaching a record US$10Bn in 2025 and expected to rise further, Türkiye is likely to play a growing role in supporting NATO's long-term military capabilities while expanding its influence across the alliance.

(Source: BMI, A Fitch Solutions Company)