• The Court of International Trade voted on Thursday, May 7, 2026, to invalidate President Trump’s 10% tariffs that he imposed in February 2026 under Section 122 of the Trade Act of 1974. It was a split vote, with two judges voting in favour of the small business plaintiffs and one dissenting.
• In the case, the plaintiffs argued that the tariffs circumvented the Supreme Court’s January 2026 ruling that struck down Trump’s blanket tariffs, which were imposed in April 2025 under the International Emergency ​Economic Powers Act (IEEPA). Those IEEPA tariffs are now in the process of being refunded to importers.
• After the Supreme Court ruled against Trump’s earlier IEEPA tariffs in January 2026, the White House announced new 10% tariffs in February 2026 under Section 122 of the Trade Act of 1974. Unlike the earlier tariffs, these were temporary measures designed to remain in place for up to 150 days.
• Thursday’s ruling marks another legal setback for the Trump administration’s signature trade policy. It also raises the question of whether the US government will be required to refund the additional set of tariffs. The administration is likely to appeal the decision.

(Source: Reuters)

• For the quarter ended March 31, 2026 (Q1 2026), JETCON Corporation Limited (JETCON) revved up earnings by 575.8% to $61.18Mn, as new customers drove out of the dealership.
• Formerly a used car dealer for three decades, Jetcon has transitioned its business model to focus exclusively on new vehicles, becoming the sole dealer for Beijing Automotive Industry Company (BAIC) locally.
• Revenue for the quarter increased by 113.0% to $418.27, driven primarily by motor vehicle sales despite supply constraints. Over the past year, the Jamaican auto market has witnessed a noticeable shift toward Chinese-made vehicles due to their advanced technology, higher specifications and significantly lower price point compared to traditional brands. This has created a stronger value proposition for buyers that has supported demand for Jetcon’s inventory.
• In line with revenue growth, the cost of sales also increased, albeit at a slower pace (100.7%). As a result, gross profit margin expanded from 18.8% to 23.5%
• Operating expenses rose by 31.0% to $34.40Mn, largely driven by higher sales and marketing costs, which increased by 74.6% to $12.65Mn. The local automotive market has become increasingly competitive, particularly with the influx of Chinese brands, prompting Jetcon to significantly increase its marketing spend.
• Looking ahead, there are notable opportunities in the market to boost revenues. Consumers have become more receptive to Chinese-made vehicles and recognise their value proposition. Additionally, elevated interest rates have made used vehicles less attractive, as they often require higher monthly payments due to shorter loan terms, while financing institutions are offering more favourable deals on new vehicles. This could sustain demand for new Chinese-made cars. However, strong competition from major players such as ATL, Fidelity Motors, Stewart’s Automotive Group, and Tyre Warehouse (Jetour) is expected to moderate growth in revenue and earnings over time.
• Jetcon’s stock price has increased by 62.0% since the start of the calendar year. The stock closed on May 5, 2026, trading session at $2.43 and a P/E of 14.9x, which is below the Junior Market Other Sector Average of 21.5x.

(Sources: JSE& NCBCM Research)

• Petrojam, Jamaica’s only petroleum refinery, is projecting total sales of 12.21Mn barrels for the 2026/2027 financial year, with 7.2Mn barrels allocated to the domestic market and 4.9Mn barrels for export. “This dual role ensures reliable local supply while generating valuable foreign exchange earnings,” Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, said. He was making his contribution to the 2026/27 Sectoral Debate in the House of Representatives.
• Between March 12 and April 8, 2026, transport fuel prices rose by about $49.20 per litre, but only $18 was passed on to consumers due to the Government’s pricing cap. He noted that the remaining cost was absorbed by Petrojam to cushion households and businesses.
• “That is a buffer of about US$8.6Mn ($1.3Bn to $1.4Bn) worth of protection that this Government has provided for Jamaicans during this energy crisis. While this buffer is effective, this intervention is costly, with projections reaching $11.8Bn by June 2026 if maintained,” Mr. Vaz told the House.
• Consequently, the Government has introduced a revised tiered pricing system to better reflect global market changes while managing price volatility. Minister Vaz also told the House that the Government is actively exploring opportunities to further optimise Petrojam’s role, through strategic partnerships, diversification, and potential public-private collaboration.
• This includes examining cleaner fuel options such as LNG (liquefied natural gas), expanding renewable integration within operations, and aligning with broader climate and sustainability goals.

(Sources: JIS & NCBCM Research)

• LATAM Airlines (LATAM) slashed its 2026 core earnings forecast on Tuesday, May 5, 2026, as higher jet fuel prices driven by the conflict in the Middle East significantly increased costs ‌despite mitigation measures. The Chile-based carrier cut its full-year adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) outlook to a range of US$3.8Bn to US$4.2Bn, from a previous forecast of $4.2Bn to $4.6Bn.
• Global airlines are contending with surging fuel prices since the U.S.-Israeli strikes on Iran disrupted traffic ⁠through the Strait of Hormuz, in the air travel industry's worst crisis since the COVID-19 pandemic.
• LATAM estimated a $40Mn hit to first-quarter results, saying the burden was softened by hedging and pricing lags, but warned of additional fuel expenses of more than $700Mn in the second quarter, assuming an average jet fuel price of $170 per barrel. Despite the fuel shock, the company still expects a mid-to-low single-digit adjusted operating margin in the second quarter, as revenue ‌measures, ⁠targeted capacity adjustments and additional cost controls help it offset the impact.
• "LATAM's strong balance sheet and liquidity position provide the flexibility to absorb fuel price volatility, continue investing in the business, and manage uncertainty while maintaining operational and financial discipline," it said.
• The ⁠carrier's new financial outlook assumes jet fuel prices of $170 per barrel in the second and third quarters and $150 in the fourth, compared with a prior full-year assumption of $90 ⁠per barrel. LATAM raised its forecast for cost per available seat kilometre this year to a range between 4.50 and 4.70 cents, from 4.30 to 4.50 ⁠cents previously. For the first quarter, Latin America's largest carrier reported net income of $576Mn, up 62.1% year-on-year, on revenue that rose 21.7% to $4.15Bn.

(Source: Reuters)

• Spirit Airlines, the budget carrier that kept Caribbean travel affordable for millions, operating routes from Fort Lauderdale to San Juan, Punta Cana, Santo Domingo, Aruba, Kingston, and beyond, shut down all operations on May 2, 2026, after a US$500Mn government rescue collapsed, eliminating 17,000 jobs overnight and leaving the region facing higher fares and fewer seats, with historical data suggesting prices could jump 23% or more.
• The collapse came after bondholders rejected an 11th-hour rescue proposal from the Trump administration that would have injected up to US$500Mn into the ailing carrier and handed the government up to a 90% ownership stake. Commerce Secretary Howard Lutnick personally called Spirit CEO Dave Davis to deliver the news that no deal was coming. Within hours, the wind-down was underway.
• Spirit had been fighting for survival through two Chapter 11 bankruptcy filings in under two years — a crisis rooted in pandemic-era losses that never fully recovered. A sharp surge in jet fuel costs, linked to the US-Israel conflict involving Iran, delivered the final blow, though Transportation Secretary Sean Duffy disputed fuel prices as the primary cause.
• The company served the Caribbean extensively, with routes from Fort Lauderdale to San Juan, Punta Cana, Santo Domingo, Aruba, Montego Bay, Kingston, Nassau, Haiti, and beyond, making it one of the most consequential carriers for budget travel across the region.
• Airlines worldwide ‌are struggling with surging jet fuel costs after U.S.-Israeli strikes on Iran, delivering the industry's biggest shock since the COVID-19 pandemic. Two weeks ago, JetBlue Airways founder Dave Neeleman warned that the airline could go bankrupt this year and that it would likely take Chapter 11 to address liabilities and repackage it for sale. However, JetBlue’s CEO Joanna Geraghty told employees the carrier was not considering bankruptcy for this year, despite more rumours being sparked post the announcement by Spirit, even as higher jet fuel prices threaten its financial recovery.
• Despite their troubles, JetBlue, United Airlines, Delta Air Lines, and Southwest Airlines all announced that they would be offering capped rescue fares to stranded Spirit customers whose flights were cancelled and who need to reach their final destinations. Nonetheless, Caribbean routes to Puerto Rico, the Dominican Republic, Jamaica, and Aruba are among the most exposed, facing both fewer seats and a higher pricing floor as competitors absorb displaced passengers at higher price points.

(Sources: Caribbean360, Reuters, View from the Wing)

• Federal Reserve officials said on Wednesday, May 6, 2026, that the ongoing U.S.-backed war with Iran is raising the risk of a sustained inflation shock, with continued high oil prices and developing concerns about ​global supply chain pressures.
• According to Chicago Fed President Austan Goolsbee, business executives indicated that a short-term rise in oil prices following the start of the Middle East conflict on February 28 would be manageable. However, they warned that sustained high oil prices would place significant pressure on supply chains, echoing the supply-chain disruptions that contributed to the inflation surge during the COVID-19 pandemic.
• Goolsbee noted that those supply-chain pressures are already beginning to emerge as the war continues. Businesses are drawing down existing inventories of industrial chemicals and other inputs whose distribution has been disrupted. At the same time, sustained high fuel prices are increasing shipping and related costs, adding further pressure to production and distribution expenses.
• Notably, a New York Fed measure of global supply chain pressure jumped to its highest level since July of 2022, when manufacturing chains were ​still snarled from the pandemic and the world ​faced a broad surge in prices. This suggests that inflation pressures are moving beyond the impact ‌of tariffs and ⁠high oil prices due to the war in the Middle East.
• With inflation about a percentage ​point above the Fed's 2% target and expectations that it may move higher, investors see little chance the U.S. central bank will cut rates for perhaps another year or more. Consequently, the Fed may remain on an extended pause, keeping its policy rate in the 3.50%–3.75% range, where it has been since December 2025, and delaying what had previously been expected to be continued monetary policy easing.
• In addition, the Personal Consumption Expenditures Price Index (PCE Price Index) used by ⁠the Fed to ​set its inflation target, rose to 3.5% in March 2026 from 2.8% in the prior month. Meanwhile, core inflation, which excludes volatile items such as energy, rose to 3.2% from 3.0% in February 2026. Similarly, the Consumer Price Index (CPI) for April 2026, due next week, is expected to show a further acceleration.

(Source: Reuters)

• U.S. private payrolls posted their largest increase in 15 months in April 2026, pointing to continued labour market stability even as the conflict in the Middle East clouds the economic outlook. The ADP employment report suggests that hiring has not weakened sharply, despite concerns that the U.S.-Israel war with Iran, higher commodity prices and shipping disruptions could weigh on businesses.
• Private employment rose by 109,000 jobs in April 2026, the biggest gain since January 2025, after a downwardly revised 61,000 increase in March. The result was above economists’ forecast for a 99,000 gain, reinforcing the view that the labour market remains stable, though not especially strong.
• Economists described the labour market as being in a “low-hire, low-fire” state, meaning companies are not aggressively expanding their workforce, but they also are not cutting jobs significantly. However, economists warned that one strong labour market report is not enough to change the broader outlook, given the ongoing global conflict, oil shock and economic policy uncertainty.
• The broad increase in payrolls was led by education and health services, which added 61,000 jobs, making it the main driver of April’s employment gain. Construction employment rose by 10,000, while professional and business services shed 8,000 jobs, showing that hiring strength was not evenly spread across all sectors.
• Despite the war disrupting shipping in the Strait of Hormuz and pushing commodity prices higher, there has not yet been a marked increase in layoffs. Government data showed there were 0.95 job openings for every unemployed person in March, compared with 0.91 in February, suggesting that labour demand remains relatively steady.
• The ADP report was released ahead of the more closely watched Bureau of Labour Statistics employment report for April 2026, due on Friday. Economists expect nonfarm payrolls to rise by 62,000 jobs, private payrolls to increase by 75,000, and the unemployment rate to hold steady at 4.3%. The ADP report supports financial market expectations that the Federal Reserve will leave interest rates unchanged into 2027.

(Source: Reuters)

• One of the largest port terminals in the English-speaking Caribbean, Kingston Wharves Limited, outlined its strategy to fuel growth for the remainder of 2026 in its 2025 Annual report.
• The company is focusing on building a scalable, future-ready logistics division with regional reach, underpinned by strong leadership, advanced digital systems, and a deeply customer-centric approach.
• The development of a western bonded warehouse and logistics hub, strategically positioned to support tourism expansion, hurricane reconstruction efforts, and broader import-driven economic growth, is a key initiative. It also aims to strengthen its logistics market share by delivering faster turnaround times and maintaining high service standards. This will be supported by its pursuit of ISO 9001¹ certification to embed quality, transparency, and operational excellence.
• It is pursuing operational enhancements, including automation of delivery processes and the introduction of dedicated customs inspection lanes, all designed to create a smoother, more efficient cargo flow and an improved end-to-end customer experience. KWL will also invest heavily in its motor vehicle and container segments, expanding storage capacity, optimising yard space, and undertaking key infrastructure and climate-resilience projects to drive long-term efficiency, sustainability, and financial performance.
• Overall, KWL appears well-positioned to deliver steady growth, coming off a solid year where it grew earnings by 33.2%. This should be supported by major partnerships with key partners in the logistics business, including its 27% acquired stake in Montego Bay-Based Cargo Handlers Limited and a partnership with international furniture and fixture logistics provider, Logistics Plus Limited. Management deems these developments to be major moves to extend the company’s logistics footprint, enhance capacity, bolster competitiveness and expand market share.
• However, execution and external factors such as global trade conditions and climate risks will remain important considerations. Furthermore, if a conclusion to the war in the Middle East does not materialise and the Strait of Hormuz remains closed, it could further disrupt global supply chains and reduce economic activity, causing headwinds for its terminal operations.
• At the market close on Tuesday, May 5, 2026, KWL’s stock price had appreciated 8.4% since the start of the year to J$37.35. At this price, KWL trades at a Price-to-Earnings (P/E) ratio of 15.1x, which is below the Main Market Energy, Industrials and Materials (EIM) Sector median of 18.6x.

__________________________________

¹Being ISO 9001 certified signals that it has structured systems in place to improve efficiency, reduce errors, and maintain high service standards over time.

(Sources: JSE & NCBCM Research)

• Jamaica is set to expand its airlift from Canada with the introduction of new direct routes by Porter Airlines to Sangster International Airport in Montego Bay, adding nearly 5,000 seats to the market for the 2026–27 winter tourist season.
• The service will connect Montego Bay with three major Canadian gateways, Toronto, Ottawa and Hamilton, marking a significant boost in accessibility for Canadian travellers. Tourism officials say the move reflects growing demand for Caribbean travel, particularly from Canada, one of Jamaica’s key source markets.
• Minister of Tourism Edmund Bartlett described the development as a strong endorsement of the island’s appeal. “This new airlift from Porter Airlines is a powerful affirmation of Jamaica’s standing as Canada’s premier winter sun destination,” Bartlett said. “Connecting Montego Bay directly to Toronto, Ottawa and — for the first time for Porter — Hamilton opens our island to an even wider circle of Canadian visitors.
• With Canada accounting for 19.0% of Jamaica’s tourist arrivals, second only to the United States at 37.5%, the introduction of new airlines could provide a meaningful boost to travel to the island, particularly in light of the 29.6% decline in tourist arrivals since the start of the year.
• While this presents a valuable opportunity for the tourism industry, there are notable risks ahead. The ongoing conflict in the Middle East has driven up jet fuel prices, which could significantly increase airfare and overall travel costs and dampen demand.
• This surge in fuel costs has been weighing heavily on the aviation sector. The financial strain is already evident, with at least one airline, Spirit Airlines, having ceased operations, while for JetBlue Airways, plagued by approximately $9Bn in debt and six years of financial losses, it could be the proverbial straw that breaks the camel’s back. Given that both of these carriers play a significant role in connecting Jamaica to our primary source markets, the United States, this could have far-reaching implications for the tourism sector, which relies heavily on consistent and affordable airlift to sustain visitor arrivals and overall industry growth.
• Nonetheless, with the US and Iran appearing to edge closer to a deal to end the War, fuel prices are likely to come down and could provide much-needed relief to the industry’s bottom line.

(Sources: Caribbean National Weekly & NCBCM Research)

• Venezuela and Guyana revived their ongoing territorial dispute over the oil-rich Essequibo region with public hearings at the International Court of Justice in The Hague on Monday, May 4, 2026, marking a significant stage in a case filed by Guyana in 2018. Guyana seeks to uphold the 1899 Arbitral Award, which established the current border.
• However, Venezuela continues to reject the ruling as invalid and argues the matter should be resolved through bilateral negotiations under the 1966 Geneva Agreement. Guyana's foreign minister, Hugh Hilton Todd, described the case as of "existential importance," saying Venezuela's claim affects more than 70% of his country's sovereign territory. Local media, including the Guyana Chronicle and Stabroek News, have warned that losing Essequibo would "dismember" the nation, costing land, population and national heritage.
• Venezuela's delegation, led by Foreign Minister Yván Gil, is attending the hearings to "present its historical truth," according to a statement posted on X. The government reiterated that it does not recognise the court's jurisdiction over the dispute. Caracas maintains that while it will participate in proceedings, the Geneva Agreement remains in force and requires both countries to resolve the dispute through mutually agreed negotiations.
• The Essequibo region, covering about 62 square miles, has gained global strategic importance due to its vast natural resources. The offshore Stabroek Block alone is estimated to hold more than 11 billion barrels of oil, helping drive Guyana's rapid economic growth. Beyond oil and natural gas, the territory contains deposits of gold, diamonds and bauxite, as well as critical biodiversity within the Guiana Shield. In 2023, Venezuela held a referendum aimed at reinforcing its domestic and international position on creating a new Venezuelan state called "Guayana Esequiba."
• The referendum triggered strong international concern and heightened tensions with Guyana, which denounced the process as an attempt at unilateral annexation and a direct threat to regional peace amid ongoing legal proceedings in The Hague. After the capture of President Nicolás Maduro in a U.S. military operation in January, the interim government led by Delcy Rodríguez has maintained Venezuela's longstanding territorial claim.
• Rodríguez, who previously oversaw the case before the court, has used nationalist imagery, including maps depicting Venezuela with Essequibo, during public appearances. Guyana has filed formal complaints over those displays. Under the court's schedule, Guyana was to present its arguments for six hours on Monday before the panel of 15 judges. Venezuela is to respond on Wednesday (May 6th). Guyana will present on Friday again, with Venezuela to deliver the closing arguments on May 11.

(Source: News.AZ)