• Brazil's economy expanded just 0.2% in the second quarter from 1.1% in the first quarter, a central ​bank indicator showed on Monday, signalling a loss of ‌momentum from the year's strong start, particularly in the all-important services sector.
• The IBC-Br economic activity index, viewed by markets as a proxy for gross domestic product, ​fell 0.6% in June from the previous month, also on ​a seasonally adjusted basis. Economists polled by Reuters had ⁠expected a 0.53% contraction.
• Central bank data showed that the positive quarterly reading for the IBC-Br was driven mainly by industry, which expanded ​0.5% from the previous quarter. Agriculture rose 0.3%, while services, the ​backbone of Brazil's economy, shrank 0.1%. The index is compiled using the central bank's ‌estimates ⁠for those sectors, along with projections for taxes linked to production, which increased 0.1% in the second quarter from the preceding three months.
• The second-quarter slowdown was widely expected. The Finance Ministry has said it ​anticipated softer growth ​as the effects ⁠of government support measures faded following a series of credit-boosting initiatives announced by leftist President Luiz Inacio ​Lula da Silva ahead of his October re-election bid.
• Restrictive ​borrowing ⁠costs have also weighed on economic activity. Although Brazil's central bank began an easing cycle in March, interest rates remain among the highest in real ⁠terms ​globally, at 14%, as policymakers seek to ​bring inflation, which stood at 4.44% in the 12 months through July, back to the ​official 3% target.

(Source: Reuters)

• Canada's annual inflation rate accelerated to 3% in July, slightly more than expected, as renewed United States-Iran tensions drove gasoline ​prices, while the cost of travel tours also rose. On a monthly basis, the consumer price index rose by 0.5%, Statistics Canada said, once again driven by an increase in gasoline costs.
• The inflation rate now sits at the ceiling of the Bank of ​Canada's (BoC’s) 1% to 3% control range. Analysts polled by Reuters had projected consumer ​prices to rise 2.9% annually and 0.4% on a monthly basis ⁠in July
• The increase in headline inflation rate had been widely anticipated because of ​higher energy prices, leaving the trend of underlying or core inflation as a more important ​signal for the BoC. Core inflation measures CPI-trim and CPI-median came at 1.9% and 2%, respectively. Both measures were at 1.9% in the prior month, StatsCan said
• Economists have said that with core ​inflation largely hovering around 2%, the midpoint of the central bank's 1% to 3% ​control range, the BoC is likely to keep its key policy rate on hold for the rest ‌of ⁠the year. Gasoline was the major driver for the annual rise in CPI, with prices accelerating 25.7% in July against an increase of 20.5% in June, the statistics agency noted. Prices for travel tours also contributed to the yearly rise in July as consumers ​paid more for hotels ​and flights to the ⁠United States, especially to the cities that hosted the football World Cup.
• However, a slower rise in grocery prices moderated the CPI, ​with food purchased from stores rising by 3.1% in July after ​posting a ⁠9% acceleration in June. Despite the slowdown in grocery costs, July was the 18th consecutive month that grocery price inflation outpaced the all-items CPI.  Shelter costs, which include rents and ⁠mortgage interest ​costs, continued to be subdued, with the costs ​rising 1.3% in July.

(Source: Reuters)

• Japan's economy slowed in the second ​quarter and missed market forecasts on softer household and business spending, highlighting the fragile nature of its recovery as the Middle East war clouds the outlook. Japan's economy slowed in the second quarter and missed market forecasts on softer household and business spending, highlighting the fragile nature of its recovery as the Middle East war clouds the outlook.
• However, long-term ‌bond yields hit a three-decade high as investors brushed aside the soft reading as reflecting one-off factors and focused more on mounting inflationary risks that could prod the Bank of Japan to raise interest rates next month.
• Gross domestic product rose 1.1% in annualised terms, government data showed on Monday, missing a median market estimate of 2.0% in a Reuters poll and below a revised 1.9% expansion in the previous quarter. While the data revealed some temporary soft patches in demand, analysts say robust underlying momentum and persistent price pressures are likely to keep the case for imminent interest rate hikes intact.
• Reuters reports that the BOJ is set to raise rates as soon as September and is considering a more aggressive pace of tightening thereafter to avoid falling behind the curve on inflation. The benchmark 10-year Japanese government bond (JGB) yield rose for a sixth straight session on Monday to hit a 30-year high of 2.925%, as investors continued to price in BOJ rate hikes sooner and faster than earlier expected. Private consumption was the biggest disappointment in the GDP data, falling 0.02% versus market expectations for a 0.5% increase, the first drop in eight quarters.
• Analysts said the weakness was due in part to lower school fees households paid thanks to subsidies, which pushed down headline private consumption but lifted government spending. Capital spending, a key driver of private demand, fell 1.2% in the second quarter, confounding market forecasts for a 0.4% increase. However, capital expenditure, as well as overall preliminary GDP, tend to be revised higher with updated figures. Exports remained resilient thanks to solid U.S. demand for Japanese hybrid vehicles and sustained global investment in artificial intelligence that supported shipments of semiconductor-related equipment and components.
• Looking ahead, analysts cautioned that rising import costs and mounting upstream price pressures could eventually feed through to consumers, posing a risk to spending later this year. Aside ⁠from rising fuel costs from the Middle East conflict, a weak yen has lifted import prices and broader cost-of-living for households, posing a headache for policymakers. Such price pressures have led to a flurry of hawkish comments from BOJ policymakers that bolstered the case for an early rate hike.

(Source: Reuters)

• For the second quarter ending June 30, 2026 (Q2 2026), Sagicor Group Jamaica Limited (SJ) and Dolla Financial Services Limited (DOLLA) reported divergent results. SJ’s net profit attributable to stockholders fell 40.0% year-over-year to $2.85Bn, while DOLLA’s grew 28.0% to $169.00Mn.
• SJ’s decline largely reflected Hurricane Melissa-related claims provisioning, higher onerosity¹ and the absence of prior-year gains.
• SJ’s shortfall starts with the insurance business. Despite a 3.2% increase in insurance revenue to $15.61Bn, service expenses climbed 15.4% to $12.44Bn on elevated claims provisioning related to Hurricane Melissa. This cut insurance service result by 24.6% to $2.66Bn. Meanwhile, net investment income improved 4.6% to $9.33Bn, as a 16.4% increase in net interest income to $8.07Bn compensated for a 40.3% aggregate decline in realised and unrealised capital gains. The group also reported a $1.90Bn or 23.3% increase in other operating expenses to $10.07Bn, leaving profit before taxes 32.5% lower at $4.20Bn.
• SJ’s Q2 results contributed to a 44.3% decline in its H1 2026 performance. H1 insurance results are down 29.0% to $4.32Bn, net investment income is down 11.6% to $16.67Bn, while operating expenses grew 14.9% to $18.70Bn.
• As for DOLLA, earnings growth benefited from lower expected credit loss provisions of $34.34Mn (-66.2%), which supported a 23.5% revenue jump. The company had prior-year provisions and write-offs tied to fraudulent loans and continued to benefit from strengthened underwriting and collections. Notably, interest income on loans was also up 3.6%, supported by a larger loan book, but this was largely negated by a 22.2% increase in interest expense.
• Still, a slower rise in administrative expenses (+5.7%) brought its efficiency ratio to 42% from 56%, which supported earnings. Consequently, profit before taxation grew 47.0% to $194.00Mn, which fed into a 51.6% increase to $382.00Mn year-to-date.
• Looking ahead, SJ expects its balance sheet, robust risk and governance frameworks and diverse revenue base to support long-term value creation. Still, the group’s earnings remain exposed to claims development and market losses across its insurance books. Meanwhile, DOLLA expects to convert its strengthened liquidity² into earning assets – prioritising quality secured lending and further reduction of non-performing exposures. However, the group carries concentration in high-yield, single-market lending, where a 14.0% non-performing ratio and elevated funding costs leave limited room for slippage.
• SJ’s share price has advanced 3.2% year to date to $41.46 as at the close of Thursday, August 13, 2026. At this price, the stock trades at a P/B of 1.4x, which is above the Main Market Financial sector average of 1.1x. Within the same period, DOLLA has gained 17.2% year-to-date, closing at $3.21 and trading at a P/B of 4.4x. This is below the Junior Market Financial sector average of 1.4x.

_______________________

¹Onerosity refers to insurance contracts that are onerous under IFRS 17, meaning expected claims and expenses exceed expected premiums. Insurers must recognise the loss on such contracts immediately rather than over the life of the policy, so higher onerosity depresses current-period earnings.

²The $1.50Bn bond issuance strengthened DOLLA’s liquidity by adding fresh lending capacity.

(Sources: Sagicor Group Jamaica Limited & Dolla Financial Services Limited Unaudited Financial Statements & NCBCM Research)

• Stationery & Office Supplies Limited (SOS) and Cargo Handlers Limited (CHL) faced different earnings outcomes, for the quarter ended June 30, 2026 (Q2 2026). SOS lifted second-quarter net profit 216.9% to $62.87Mn, while CHL’s Q3 earnings were relatively flat as its revenue growth was thwarted by higher costs.
• SOS's Q2 revenue rose 4.8% to $469.44Mn while cost of sales was virtually unchanged at $199.69Mn. This lifted gross profit 8.5% to $269.75Mn and the gross margin to 57.5% from 55.5%. Administrative and general expenses fell 10.6% to $157.83Mn, while selling and promotional costs declined 10.2% to $38.63Mn – absorbing a 27.8% increase in depreciation and amortisation. Consequently, operating profit jumped to $62.01Mn from $17.92Mn.
• This strong Q2 carried SOS’ first 6 months of its financial year. H1 Profits increased 51.7% to $141.67Mn. Of the $48.27Mn increase, 89.0% came from Q2 alone.
• Meanwhile, CHL’s Q3 revenue rose 20.0% to $140.76Mn, which management attributed to higher cargo volumes through the Port of Montego Bay. This includes the delivery of pipes for the National Water Commission's Western Water Resilience Improvement project, increased cement tonnage and a limited containerised transhipment service.
• However, CHL’s gains were largely consumed by cost. Other operating expenses rose 32.6% to $85.22Mn owing to elevated volume handled, higher labour costs, and a shift in cargo mix, and administrative expenses rose 16.6% to $10.97Mn. The higher costs held operating profit to a 2.1% increase at $44.19Mn. An 82.9% fall in exchange gains to $0.64Mn also negated the combined effects of a $0.79Mn increase in interest income, a $1.5Mn increase in Share of profits of associates, and near elimination of finance costs ($0.69Mn: -97.3%).
• Beyond a flat Q3, CHL’s 9-month was softer. Revenue slipped 1.0% to $353.89Mn, other operating expenses climbed 14.1% to $217.48Mn, while administrative expenses rose 8.5% to $38.73Mn. This cut operating profit by 26.4% to $93.99Mn, while a $0.47Mn exchange loss and a 10.4% decline in share of profits of associates also weighed on earnings.
• Looking ahead, SOS wants to sustain current efficiencies while continuing to grow revenue for the remainder of the financial year. Meanwhile, CHL points to large-scale commercial projects and extensive luxury accommodation buildouts across Western Jamaica as continuing to propel cargo through the Port of Montego Bay. However, CHL’s key risk is that its earnings remain heavily tied to cargo flows through a single port. Any slowdown at Montego Bay or further cost pressure could quickly limit earnings.
• SOS’s share price has declined 7.2% year to date to $1.54 as at the close of Thursday, August 13, 2026. At this price, the stock trades at a P/E of 25.7x, which is above the Junior Market Distribution sector average of 17.6x. Within the same period, CHL is down 2.2% year-to-date, closing at $17.02 and trading at a P/E of 22.1x. This is below the Junior Market Others average of 32.1x.

(Sources: Stationery & Office Supplies Limited & Cargo Handlers Limited Unaudited Financial Statements)

• Latin America is bracing for what experts say could be the strongest El Niño on record, ​raising questions about how the climate phenomenon will affect the world's top food-exporting region. El Niño, characterised by unusually warm sea surface temperatures in the central and eastern ‌tropical Pacific Ocean, disrupts weather patterns worldwide. In Latin America, it typically brings heavier rainfall to the south while increasing drought risks further north, affecting agriculture, energy production, trade routes and the environment
• An unusually wet Southern Hemisphere winter, disruptions to Pacific marine ecosystems and dry conditions are already affecting parts of the Caribbean and the Amazon. Researchers expect the phenomenon to strengthen from September and potentially exceed the intensity of the 2015-16 El Niño, the strongest ​in modern records.
• In Argentina's fertile Pampas, Paraguay, Uruguay and southern Brazil, El Niño usually brings above-normal rainfall. Despite concerns over a strong ​or "super" El Niño, analysts said more water is generally good for crops.
• Germán Heinzenknecht, a meteorologist at Argentina's Applied Climatology Consultancy, said that, as ⁠in previous cycles, El Niño could boost soybeans, corn and wheat harvests by providing soil moisture for planting and improving water availability during the December to February summer.
• A stronger El Niño could also mean some rural areas will flood, though these will mostly be lands geographically prone to such events, Heinzenknecht ​added. Muddy or flooded roads can prevent South American farmers from accessing fields, complicating efforts to apply fertilisers and chemicals to protect yields, he said.
• Many of the rural roads, crisscrossing the region's southern agricultural heartlands, are already in poor condition. Heavy rains from September could also cause floods in cities and transport routes to ports, prompting Paraguay's government to put military units on alert and mobilise civilian engineering teams in July. Peru's northern coast faces flooding while ​the highlands suffer from water scarcity, a pattern likely to be repeated in Chile and elsewhere on the Pacific coast, according to the United Nations Food and Agriculture Organisation.
• An uneven El Niño-driven rainfall could reshape South America’s energy and trade flows, boosting Argentine natural-gas exports as drought hits parts of Brazil while heavier rains support hydropower, but worsening dry conditions threaten Amazon waterways, agriculture, and Panama Canal shipping.

(Source: Oil Now Guyana)

• Cement is strengthening its role in the Dominican Republic’s export performance, with the country’s cement industry emerging as a leading exporter of cement, lime, and gypsum in Latin America and the Caribbean.
• According to data from the General Directorate of Customs (DGA) cited by the Regional Centre for Sustainable Economic Strategies (Crees), Dominican exports totalled US$3.34 billion from January to June 2026, a 35.1% increase compared with the same period in 2025. The chemicals and minerals sector contributed US$295 million, or 8.8% of total exports, with cement and copper accounting for 4.8%.
• The Dominican Association of Portland Cement Producers (Adocem) said the figures demonstrate the importance of maintaining a strong domestic industrial base capable of meeting local demand while competing in international markets.
• A Ministry of Industry, Commerce and MSMEs (MICM) report found that Latin America and the Caribbean exported US$581.3 million in cement, lime, and gypsum in 2025. The Dominican Republic accounted for 25.4% of those exports, making it the region’s leading exporter and placing it ahead of Mexico and Guatemala.
• Crees has warned that Dominican exports remain concentrated in a limited number of sectors and has called for greater diversification and the promotion of higher-value products. Adocem argues that strengthening local manufacturing can contribute to that goal by encouraging investment, innovation, efficiency, and sustainable production.
• The association also emphasised the importance of public policies that promote productive investment, legal certainty, competitiveness, and better access to international markets, allowing domestic industries to expand production and create greater economic value in the country.

Source: Dominican Today)

• As the clock ticks toward U.S. President Donald Trump's latest tariff deadline, Canada and the U.S. aren't at a point where a tariff deal can be reached.
• Canadian officials are not satisfied with the latest U.S. offer, according to two sources with knowledge of the trade talks. According to sources on both sides of the border, the Americans offered a new proposal on Tuesday which would lower some of the sectoral tariffs but not to the degree that the Canadian side would like to see.
• LeBlanc, the Canada-U.S. Trade Minister, posted to X saying that discussions are "ongoing" and he and Charette, Canada's chief trade negotiator, will "continue to engage at the negotiation table." In addition to trying to dissuade Americans from levying new tariffs, LeBlanc and Charette are looking for relief on tariffs the U.S. has slapped on Canadian steel, aluminium, lumber and autos.
• Negotiators have been going back and forth in recent weeks in an effort to reach some sort of deal before Aug. 19, which is when Trump has promised a 50 per cent levy on hundreds of Canadian goods in addition to the sectoral tariffs already in place. The Americans are seeking a deal that would see preferential access to Canadian critical minerals and cover security and energy, the sources said.
• Sources told CBC News last week that the Canadian side has aggressively argued to the Americans that there would be no political appetite among Canadians to keep talks going if the Aug. 19 tariffs come into place.
• Canada is also hoping the ongoing trade talks between the two countries will result in a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration last month declined to extend the deal past 2036.

(Source: MSN)

• U.S. producer prices were unchanged in July as goods prices fell and the cost of services increased marginally, bolstering financial market expectations that the Federal Reserve could keep interest rates unchanged next month.
• "It's now looking far less likely that the FOMC will feel the need to hike as soon as September," said Stephen Brown, chief North America economist at Capital Economics. The flat reading in the Producer Price Index for final demand last month followed ​a revised 0.1% drop in June, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI rebounding 0.2% following a previously reported 0.3% decline in June.
• In the 12 ​months through July, the PPI increased 4.7% after advancing 5.5% in June. Most of the PPI data are collected early in the month, meaning that sharp oil price ⁠increases toward the end of July were probably not reflected in the PPI. As such, economists expected higher PPI readings in August, and some saw a rate hike this year as still on the table.
• Goods prices dropped ​0.7% after sliding 1.4% in June. Energy prices decreased 3.1%, with wholesale gasoline prices falling 5.7%. Food prices declined 0.9% as fresh and dry vegetables tumbled 34.9%. Wholesale lettuce prices plunged a record 73.0% amid a cyclosporiasis outbreak, helping to ​more than offset a 37.0% surge in egg prices. Grain prices shot up 14.8%.
• Excluding the volatile food and energy components, goods prices rose 0.1%, lifted by a 1.3% advance in tyres as well as a 1.5% increase in iron and steel scrap, and 4.2% surge in transformers and power regulators. A narrow measure, which strips out foods, energy and trade services, rose 0.4% after edging up 0.1% in June. The so-called core PPI increased 4.7% in the 12 months through July after rising 5.0% in June.
• The cost ​of services increased 0.2% after climbing 0.5%. They were lifted by a 6.5% jump in portfolio management fees. That was partially offset by a 3.4% decrease in airline fares. Hospital outpatient prices increased 0.9%. Hotel and motel ​room prices fell 0.2%. The cost of transporting freight by road dropped 1.8%.
• Portfolio management fees, airline fares, and hotel and motel rooms are among the components that go into the calculation of the PCE inflation measures. Based on the CPI and PPI data, ‌economists forecast ⁠the PCE price index rebounding 0.1% in July after dipping 0.1% in June. That would translate to a 3.6% year-on-year increase in PCE inflation after rising 3.7% in June.

(Source: Reuters)

• TransJamaican Highway Limited (TJH) picked up speed in the second quarter ended June 30, 2026 (Q2 2026), with net profit accelerating 33.4% YoY to US$11.63Mn, supported by higher revenues, wider operating margins and lower finance costs.
• Toll revenue remained firmly in the fast lane, accelerating 26.5% to US$28.46Mn, as traffic growth continued across the road network, including Phase 1C, which commenced commercial operations in December 2025. Other gains, however, shifted to a lower gear, declining to US$0.65Mn on lower foreign exchange gains and investment income.
• Higher costs accompanied TJH’s expanded road network; operating expenses increased 15.8% to US$6.84Mn from US$5.90Mn, reflecting higher maintenance, operational support and amortisation costs on the Phase 1C corridor. However, revenue growth continued to outpace the rise in costs, with the operating margin widening to 69.0% from 68.3%, despite a 6.2% increase in administrative expenses to US$2.63Mn.
• Lower financing costs provided another tailwind to earnings, easing to 7.7% to US$3.13Mn as scheduled quarterly principal repayments on the secured notes continued and 20% of the cumulative redeemable preference shares were redeemed in January 2026. Consequently, profit before taxation surged 37.8% to US$16.51Mn, although a 49.3% increase in taxation to US$4.88Mn put the brakes on some of the bottom-line gains.
• The strong quarter kept TJH on track for a solid first half, with toll revenue rising 27.7% YoY to US$57.48Mn from US$45.01Mn, while lower finance costs helped drive profit before taxation up 38.3% to US$33.29Mn. Net profit consequently surged 39.8% to US$24.86Mn, demonstrating the earnings benefit from the expanded network and continued traffic growth.
• Looking ahead, TJH is positioning itself for the next leg of its growth journey. In addition to a full-year contribution from Phase 1C, continued traffic growth and increasing t-Tag penetration, the company is exploring further opportunities to extend its growth runway, including a potential operating role in the Montego Bay Perimeter Bypass, which is currently under construction and expected to be completed in 2026–2027.
• Discussions are also underway with National Road Operating and Constructing Company Ltd. (NROCC) regarding potential North-South and East-West highway extensions, while early discussions with the Government of Jamaica have begun around exercising the 2036 concession extension option. Collectively, these initiatives could broaden TJH’s operating footprint and provide additional avenues for longer-term earnings growth.
• However, there could still be a few speed bumps along the way. Earnings remain concentrated in a single tolled concession and are therefore sensitive to fuel costs, consumer activity and disruptions along the corridor. Furthermore, the expanded network brings structurally higher operating and amortisation costs, which could take some mileage out of the incremental revenue gains from Phase 1C.
• Investors have already driven TJH’s share price significantly higher, with the stock advancing 129.5% YTD. At its current price, TJH trades at a P/E of 19.7x, above the Main Market Energy, Materials and Industrials sector average of 18.6x, suggesting that a sizeable portion of the improved earnings outlook may already be reflected in the stock’s valuation.

(Sources: TransJamaican Highway Limited Unaudited Consolidated Financial Statements & NCBCM Research)