• The U.S. trade deficit widened sharply in July, increasing 24.4% to US$88.6Bn, as strong domestic demand boosted imports. The result was slightly better than the US$90.0Bn deficit expected by economists.
• Total imports increased 2.8% to US$399.3Bn, with goods imports rising 3.7% to US$320.6Bn. Capital goods imports surged by US$14.4Bn to a record US$140.3Bn, driven by increased imports of computers, computer accessories and semiconductors, likely reflecting continued investment in artificial intelligence. However, imports of industrial supplies and materials, which include petroleum, dropped $1.8Bn. Crude oil imports fell $1.8 billion amid lower prices.
• Meanwhile, exports declined 2.1% to US$310.7Bn, as goods shipment fell 3.0% to US$201.0Bn. The decline was led by a US$8.7Bn reduction in exports of industrial supplies and materials, including crude oil and non-monetary gold.
• Consequently, the goods trade deficit widened 17.3% to US$119.6Bn in July. On an inflation-adjusted basis, the goods deficit increased 12.7% to US$106.4Bn.
• Despite the Trump administration's aggressive import tariffs, the US recorded record goods trade deficits with Mexico, Vietnam, Taiwan, Thailand, South Korea and Malaysia. However, the deficit with Canada narrowed by US$3.7Bn to US$3.2Bn.
• The sharp widening of the deficit suggests that trade could again weigh on US economic growth in Q3. Trade already subtracted 1.14 percentage points from GDP growth in Q2, when the economy expanded at a 1.5% annualised rate. However, the surge in capital-goods imports also reflects strong business investment, particularly in the ongoing AI buildout.

(Source: Reuters)

• The number of Americans filing for unemployment benefits rose marginally last week, pointing to stable labour market conditions and continued low layoffs. Initial claims increased by 2,000 to a seasonally adjusted 206,000 for the week ended August 29, broadly in line with economists’ forecast of 205,000.
• The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased by 8,000 to 1.779Mn for the week ended August 22. Economists continued to characterise the labour market as being in a “slow hire, slow fire” mode.
• Separately, planned job cuts by US-based companies increased 58% to 52,881 in August. However, this represented the lowest total for the month of August since 2022, while announced layoffs so far in 2026 were 41% below the corresponding period of 2025.
• Attention now turns to the August employment report due September 4. Economists expect nonfarm payrolls to rebound by 56,000 jobs, following a 23,000 decline in July, while the unemployment rate is expected to remain unchanged at 4.1%.
• The relatively stable labour market gives the Federal Reserve room to remain focused on inflation. However, Fed Governor Christopher Waller indicated that he was leaning towards keeping rates unchanged in September if upcoming inflation data confirm that price pressures are continuing to moderate.
• With layoffs remaining low and unemployment expected to hold at 4.1%, there is currently little evidence of significant labour-market deterioration that would force the Fed to ease policy. This leaves inflation developments as a key determinant of the Fed’s September decision, particularly after services input prices reached a three-year high in August.

(Source: Reuters)

• Announcements on corporate developments spanning regulatory compliance, leadership changes and regional expansion through cross-border acquisition were among the releases coming from companies listed on the Jamaica Stock Exchange’s (JSE) headlines.
• On the regulatory front, the JSE immediately suspended trading in the shares of Medical Disposables & Supplies Limited (MDS), in accordance with Junior Market Rule Appendix 2, Part 4(2)(e), pending submission of its audited financial statements for the year ended March 31, 2026. Until the outstanding financials are submitted and the suspension is lifted, investors will be unable to trade the stock, while the absence of audited results limits visibility into the company’s latest financial position and performance.
• Governance developments were also in focus, particularly across NCB Financial Group Limited (NCBFG) and its subsidiaries. Robert Almeida will conclude his tenure as NCB Financial Group Limited (NCBFG) Group CEO and director of Guardian Holdings Limited (GHL) on September 30, 2026. Dominic Rampersad will subsequently assume the role of Chairman of GHL’s Board on October 1. The notice was published pursuant to Section 64(1)(b) of the Securities Act, 2012.
• To support the leadership transition, NCBFG announced several senior appointments as part of its succession plan. Julian Mair will become Group CEO effective November 17, 2026, while Dave Garcia, who assumes the role of Group COO on September 1, will serve as Acting Group CEO from October 1 until Mair takes office. Ky-Ann Taylor will also become Group General Counsel and Corporate Secretary, while Sheree Martin has been confirmed as CEO of National Commercial Bank Jamaica Limited (NCBJ), both effective September 1.
• Alongside the leadership changes, NCBFG continued to reorganise its regional operations. The Group completed the sale of its wholly owned subsidiary, NCB (Cayman) Limited, to Bermuda-based Clarien Bank Limited, while the related transfer of a wealth and investment client portfolio remains subject to outstanding approvals. The intra-group transaction is intended to consolidate NCBFG’s offshore wealth-management operations under the Clarien brand and improve capital efficiency, with no material impact expected on the Group’s earnings or asset base and no disruption to clients. Mr. Almeida will continue to serve as a director of Clarien Bank Limited
• Elsewhere, Image Plus Consultants Ltd. (IPCL) also announced an upcoming governance transition. Independent Director Carolyn DaCosta will resign effective September 30, 2026, at which point she will also step down as Chair of the Remuneration, Corporate Governance & Nominations Committee. However, DaCosta will remain the company’s Mentor until November 30, providing some continuity during the transition. In accordance with Rule 503 of the JSE Junior Market Rules, the Board will advise the Exchange within the ninety-day period of the appointment of a new mentor.
• Beyond the governance changes, Eppley Limited (Eppley) continued its regional expansion thrust with the acquisition of NorthWest Premium Financing Limited (NWPF), a finance company providing insurance premium financing and other speciality loans in Trinidad and Tobago and Grenada. The acquisition extends Eppley’s presence across the Caribbean and broadens its specialty-finance exposure, while providing an opportunity to leverage its existing investment platform to support NWPF’s growth.
• The acquisition also comes against the backdrop of improved H1 2026 earnings for Eppley, with net profit rising 11.0% to J$455Mn. The improvement was supported by a 13.0% increase in gross investment income to J$888Mn, alongside stronger operating lease, rental, interest and asset management income. The performance reinforces the continued expansion of Eppley’s investment platform, with the NWPF acquisition providing another avenue to broaden its earnings base.
• From an investor perspective, the developments reinforce the importance of execution and transparency in shaping near-term sentiment. For MDS, restoring timely financial disclosure will be key to rebuilding visibility, while Eppley’s continued expansion could strengthen its earnings diversification over time, provided the company successfully integrates and scales NWPF and translates its broader regional footprint into sustainable returns.

(Sources: Jamaica Stock Exchange & NCBCM Research)

• United States (U.S.) oil giant Chevron has confirmed that it will significantly expand its operations in Venezuela, with plans to more than double production in the country over the next five years through a US$7Bn joint venture.
• The oil company, the second-largest in the U.S., said on Wednesday, September 2, 2026, that it has been assigned additional acreage in the Orinoco Belt, where it already holds an established position as Venezuela’s largest private oil producer. Chevron’s target of producing 600,000 barrels per day, at total costs of less than $20 per barrel, would represent more than half of Venezuela’s current output, The New York Times reported.
• The announcement comes five days after President Donald Trump said the U.S. had reached a separate agreement to take majority control of a significant portion of Venezuela’s oil reserves, which he said would more than double U.S. oil reserves.
• The latest expansion broadens Chevron’s footprint in Venezuela’s Orinoco Belt, with its 49%-owned Petroindependencia joint venture gaining rights to develop the adjacent Carabobo-1 and Carabobo-2-South-A areas, building on the April agreement that increased Chevron’s interest in the venture and added rights to the Ayacucho 8 area. The additional acreage supports further development of the company’s extra-heavy oil operations, with production across its three Venezuelan joint ventures already up 15% year-to-date.

(Source: Yahoo Finance)

• Antigua and Barbuda is set to increase fuel prices as prolonged conflict between the United States (U.S.) and Iran drives renewed volatility in global petroleum markets. Prime Minister Gaston Browne said the government could no longer sustain the fuel subsidies that had been in place for several months as international energy costs increased.
• Nevertheless, the government opted for a smaller-than-expected increase to limit the impact on consumers, with officials initially estimating that pump prices could rise by around EC$3.50 (US$1.30). Instead, the increase was capped at EC$2.00 (US$0.74) per gallon across the board. Gasoline prices are expected to rise from EC$14.50 to EC$16.50 per gallon, while diesel prices will increase from their current level to EC$16.25 per gallon. Despite the adjustment, Browne said Antigua and Barbuda’s fuel prices would remain below those of several other Caribbean countries.
• The higher fuel costs are also putting pressure on government finances, as the administration has been subsidising fuel while foregoing tax revenues from West Indies Oil Company (WIOC). Browne said the government would normally collect EC$3Mn–EC$4Mn monthly from WIOC but instead accumulated an estimated EC$24Mn in foregone revenues over six months and now owes the company EC$15Mn.
• The price adjustment also comes amid a dispute with gas station operators, who temporarily closed some facilities over demands for higher profit margins. Operators have argued that the 8% margin on fuel sales, largely unchanged since the early 1990s, no longer adequately covers rising costs such as wages, electricity, insurance and maintenance. The shutdowns add another layer of pressure to the fuel market.
• The government’s decision to absorb part of the increase in global oil prices is likely to complicate efforts to rebuild fiscal buffers and reduce public debt. While limiting the pump-price increase to EC$2 per gallon provides some protection to consumers and economic activity, it also comes at a time when public debt remains elevated at an estimated 68% of GDP, with unresolved arrears and high gross financing needs already posing challenges to debt sustainability. A more prolonged oil-price shock could therefore place further pressure on fiscal consolidation while weighing on growth through higher energy and transportation costs.

(Sources: Trinidad Express & NCBCM Research)

• Bank of Japan (BoJ) Governor Kazuo Ueda indicated that policymakers would debate raising interest rates, including at their September meeting, with a focus on whether inflationary risks are increasing, as underlying inflation remains close to the BoJ’s 2.0% target. His remarks signalled a strong chance of a rate hike this month, with markets expecting a 25-basis-point increase to 1.25%, following the increase to 1.00% in June 2026.
• Governor Ueda reiterated that the BoJ intends to continue raising interest rates while financial conditions remain accommodative. However, after five previous rate hikes, he noted that policymakers must carefully assess their cumulative impact on the economy before tightening further.
• While the Governor refrained from committing to a September hike, he indicated that policymakers would assess whether the BoJ’s economic outlook is materialising and whether upside price risks are increasing, both prerequisites for further rate increases.
• Expectations for a September hike were further bolstered after US Treasury Secretary Scott Bessent called for “decisive” monetary steps to combat the weak yen during a meeting with Ueda. The Japanese yen also appreciated sharply against the US dollar on September 2, after previously giving up around half of the gains made following the rare joint US-Japan intervention at the end of July.
• The case for a September rate hike has strengthened as the BoJ places greater emphasis on upside inflation risks. Hawkish BoJ board member Hajime Takata also called for the central bank to conduct rate hikes “nimbly” to counter intensifying inflationary pressures, rather than adhering to the roughly semi-annual pace anticipated by markets.

(Source: Reuters)

• The US and Iran carried out their biggest exchange of fire since July between September 1 and 2, renewing fears of a return to full-scale conflict after both sides had withheld fire for weeks. US forces struck Iran’s southern coast, while Tehran retaliated against American bases across the region.
• The US military indicated that it targeted air defences, radar systems, maritime assets, mine-laying capabilities and communications sites. Washington stated that the strikes were in response to recent Iranian attacks on commercial shipping and US forces in the region.
• Iran responded by striking what it described as US assets in Bahrain, Jordan, Kuwait and Iraq, warning that further US attacks would be met with heavier and more widespread responses. Iran claimed US forces were killed in Jordan and northern Iraq, although US officials indicated that initial assessments showed no casualties.
• Tensions around the Strait of Hormuz also intensified, with Iran blacklisting another 11 ships, bringing the total to 56. These vessels could face fines, confiscation or detention if they attempt to transit without Tehran’s permission. However, Washington maintained that the strait remains open, with more than 17 million barrels of oil exiting on August 31, 2026.
• The renewed hostilities weighed on global markets. US stocks declined on September 1 amid rising oil prices and escalating Middle East hostilities, while Asian and European stocks fell following the latest airstrikes. Wall Street subsequently opened higher on September 2 as investors focused on AI developments. Meanwhile, Brent crude settled 1.0% higher at US$95.63 per barrel, after both Brent and WTI reached their highest intraday levels since July 24.
• The escalation poses further risks to global energy markets, particularly given continued tensions around the Strait of Hormuz. The waterway carried around one-fifth of global oil and LNG consumed before the conflict, meaning further deterioration in physical flows through the region remains a key risk to oil prices.

(Source: Reuters)

• Two of the JSE’s alternative-investment managers posted improved results for periods ended June 30, 2026, although the drivers differed. Sygnus Credit Investments Limited (SCI) delivered the strongest financial year in its history, supported by portfolio growth, improved investment valuations and a larger contribution from Puerto Rico. Meanwhile, Eppley Limited (EPLY) posted higher first-half earnings as growth in its investment and asset management businesses offset rising operating costs.
• SCI's record performance was underpinned by stronger portfolio income and a sharp rebound in investment valuations. Total investment income rose 27.9% to a record US$19.68Mn, while net profit attributable to shareholders more than doubled to US$9.55Mn (+123.1%). The earnings uplift was driven by fair value gains of US$0.63Mn, compared with losses of US$2.09Mn a year earlier, which outweighed a US$0.47Mn foreign exchange loss and a 12.2% increase in the impairment allowance charge to US$3.86Mn. The higher charge largely reflected allowances against one stage 2 portfolio company^[1] whose private credit terms were restructured and finalised during the year, alongside increased provisions for Jamaican portfolio companies recovering from Hurricane Melissa.
• Portfolio growth continued to drive recurring earnings, with net interest income reaching a record US$11.75Mn (+32.5%), as interest income climbed 18.0% to US$26.30Mn. Investment income from the Puerto Rico Credit Fund also climbed 21.2% to a record US$7.66Mn, reinforcing the growing importance of the company's regional credit platform.
• Operating expenses increased just 7.1% to US$5.76Mn, allowing net investment income to rise 39.0% to US$13.93Mn and reducing the efficiency ratio to 29.2%, comfortably below management's 40% target. SCI also strengthened its long-term growth platform through both acquisitions and funding. Acrecent Financial delivered record earnings of US$8.10Mn (+57.3%), prompting SCI to increase its ownership to 95.85% through a further US$2.00Mn investment.
• Eppley also benefited from a larger investment portfolio, although its earnings profile was driven more by recurring investment income than valuation gains. Gross investment income rose 13.0% to J$888Mn, led by a 91.7% increase in net operating lease income and continued growth in rental, interest and asset management income. Together with slightly lower interest expense, this lifted net investment income to J$550Mn from J$441Mn.
• The improvement in net investment income was partly offset by higher operating costs, leaving pre-tax profit broadly unchanged. Administrative expenses rose 37.0% to J$338Mn, reflecting inflation, new office space and team expansion, while fees and other operating income declined 25.7%. Profit after tax nevertheless increased 11.0% to J$455Mn, aided by a J$13.5Mn tax credit compared with a J$30.7Mn tax charge in the prior year, with J$259Mn attributable to Eppley shareholders.
• At the close of trading on Monday, August 31, 2026, SCIJMD's ordinary share price stood at J$10.09, while EPLY closed at J$33.92. On a year-to-date basis, SCIJMD has depreciated by 14.9%, while EPLY’s stock price has been essentially flat (-0.03%). At these levels, SCIJMD trades at a P/B of 0.3x and EPLY at a P/B of 2.5x, placing SCIJMD below and EPLY above the Main Market Financial Sector average of 1.0x.

(Sources: Sygnus Credit Investments Ltd, Eppley Ltd & NCBCM Research)

^[1] A stage 2 portfolio company is one that has deteriorated materially.

• Wisynco Group Limited (WISYNCO) closed FY2026 with record revenues, but the strength in its underlying operations did not fully translate to its bottom line as higher finance costs and taxes weighed on earnings. Net profit declined 6.6% to J$4.1Bn, despite revenues from continuing operations rising 14.1% to J$65.3Bn.
• Revenue growth strengthened in the final quarter, increasing 19.0% YoY to a quarterly record of J$17.5Bn. The strong top-line performance was broad-based, supported by increased volumes across the company’s product mix, new product introductions and price adjustments. Price adjustments in part reflected management’s efforts to offset the Special Consumption Tax (SCT) on Non-Alcoholic Sweetened Beverages (NASBs), which took effect on May 1, 2026. This tax on NASBs incurred J$454.0Mn in costs in the final quarter.
• Revenue growth translated into an improvement in gross profitability, with gross profit rising 15.2% to J$22.5Bn and gross margin edging up to 34.4% from 34.1%. The improvement came as major production expansion activities neared completion and utilisation of installed capacity increased. However, some of the benefits were absorbed by selling, distribution and administrative expenses, which rose 16.0% to J$16.8Bn, owing to higher staff costs and property-related expenses to support the business expansion. Consequently, the expense-to-sales ratio was slightly higher at 25.7% from 25.3%.
• Driven by higher interest expense on borrowings and increased foreign exchange losses, finance costs more than tripled to J$848Mn from J$242Mn, limiting the increase in profit before tax to just 2.4% at J$5.6Bn. The modest improvement in pre-tax earnings was further offset by a higher tax charge, which rose 38.8% to J$1.5Bn and included J$564Mn in deferred tax related to accelerated tax allowances on capital expenditure. As a result, net profit declined 6.6% to J$4.1Bn, with net profit margin narrowing to 6.3% from 7.7%.
• With the major production expansion now substantially complete, the next phase will depend on how effectively WISYNCO converts its larger capacity base into earnings. Higher utilisation, continued product innovation and growth in local and export volumes should provide further operating leverage. However, the increased financing burden raises the importance of generating sufficient incremental earnings to improve returns on the capital invested.
• At the close of trading on August 31, 2026, WISYNCO's share price stood at J$19.88, representing a 6.7% increase year-to-date. At this level, the stock trades at a P/E of 18.2x, above the Main Market Distribution & Manufacturing Sector average of 14.8x.

(Sources: Wisynco Group Ltd & NCBCM Research)

• Guyana remains one of the world’s fastest-growing economies while its government debt burden has declined and unemployment has fallen sharply, according to a new report from the Inter-American Development Bank (IDB). The latest Caribbean Economics Quarterly shows that despite increased borrowing to finance roads, schools and other infrastructure projects, the share of government revenue used to service debt has fallen significantly since the start of oil production.
• Before oil production began, Guyana spent about seven cents of every dollar collected by the government on debt payments. That figure has since declined to approximately five cents. “Guyana remains a low-debt case, driven by continued strong resource revenues, making it an outlier within the sample,” the IDB said. The situation contrasts with several other Caribbean economies like The Bahamas, Suriname and Trinidad and Tobago, where debt burdens remain elevated, as the countries entered 2025 with debt burdens materially higher than in 2019.
• The country's unemployment rate fell from 14.5% in the third quarter of 2021 to 6.8% during the same period in 2024. The decline means that while roughly one in seven working-age Guyanese was unemployed in 2021, that figure had fallen to fewer than one in 14 by 2024. The improvements come amid rapid economic and population growth fueled largely by the expansion of Guyana's oil and gas industry. Guyana's population has increased from approximately 700,000 a decade ago to about 900,000, while the economy expanded by 19.3% in 2025 after recording growth of 43.8% in 2024.
• Although oil remains the primary driver of the economic boom, growth has also accelerated outside the petroleum industry. Non-oil economic growth reached 15% in 2025, up from 13% the previous year, indicating that the expansion is increasingly extending into other sectors of the economy. Strong growth is expected to continue over the next several years. The International Monetary Fund (IMF) projects economic growth of 16.2% in 2026, accelerating to 19.7% in 2027 and 22.1% in 2028. Growth is subsequently projected to moderate to 12.8% in 2029 and 11.5% in 2030 before slowing sharply to 1.1% in 2031 as oil production stabilises.

(Source: Caribbean National Weekly)